Profitability, Resource Use Efficiency and Marketing Constraints of Banana Farming in Nawalparasi West, Nepal

Abstract

Aims: This study aimed to analyze the profitability and resource-use efficiency of banana (Musa paradisiaca) farming in Nawalparasi West District, Nepal. It also assessed the effects of farm size on profitability, marketing conditions, and major production and marketing constraints. Study Design: A descriptive and analytical research design was employed. Place and Duration of Study: The study was conducted among commercial banana farmers in Susta and Pratappur Rural Municipalities, Nawalparasi West District, Nepal, from February to June 2026. Methodology: Primary data were collected from 95 commercial banana farmers through household surveys, focus group discussions, key informant interviews, and field observations. Data were analyzed using SPSS and MS Excel through descriptive statistics, benefit-cost analysis, farm-size comparison, marketing analysis, and the Cobb-Douglas production function. Results: The average production cost was NPR 27,536.03 per kattha per production cycle, while gross revenue was NPR 47,671.58, resulting in a net return of NPR 20,135.54 and a benefit-cost ratio of 1.73. Labor, chemical fertilizers, irrigation, and propping had significant positive effects on gross returns, whereas planting materials had a significant negative effect. The estimated return to scale was 0.588, indicating decreasing returns to scale. Labor, chemical fertilizers, and propping were under-utilized, while planting materials, manure, micronutrients, plant-protection chemicals, and irrigation were over-utilized. Large farms achieved higher profitability than small farms. Marketing analysis revealed complete dependence on middlemen, with producers receiving only 25.73% of the final consumer price. Unstable prices, pest and disease incidence, and post-harvest losses were the major constraints. Conclusion: Banana farming was economically profitable in the study area, but inefficient resource allocation, weak market access, pest and disease problems, and post-harvest losses limited profitability and sustainability. Improved input management, market regulation, technical support, and post-harvest infrastructure are recommended.