COMPARATIVE ADVANTAGE OF ARECA NUT OVER RICE IN JHAPA, NEPAL

This study was conducted to assess comparative economic analysis of the areca nut and rice production. This study also aimed to assess the major governing factors and overall economy involved in the production, major problems leading to shift rice farming, key determinants of areca nut production in the study area. Seventy areca nut growers were selected by simple random technique and thirty rice growers were selected by purposive sampling technique. Three potential areas of Jhapa district: Mechinagar municipality 1, 2, 3, 4; Buddhashanti and Arjundhara were selected as the survey site where there is major shifting of rice cultivation for commercial areca nut farming. The data collection was done from both primary and secondary sources. Descriptive statistics benefit cost analysis, resource use efficiency through Cobb-Douglas economic model was used to analyze data using SPSS. It was found that areca nut production had significantly higher gross return in comparison to rice whose production was affected by factors viz. labor, manure, chemical fertilizers, pesticides and irrigation in areca nut while machineries use, chemical fertilizers, seeds, manure and labor for rice production. The major reason for adopting areca nut cultivation was easier in cultivation practice, low cost of cultivation and high economic return. The B/C ratio of areca nut and rice was 2.02 and 0.99 respectively which was statistically significant. The productivity of the areca nut can be increased by adopting improved cultivation practices and scientific technology. Since, agro climatic conditions favors the production of areca nut cultivation, it should be shifted from small scale to commercialized form.