A Comparative Economic Analysis of Improved and Local Maize Seed System in Udayapur, Nepal

Authors: Saroj Dhakal; Pradip Gyawali; Sisam Pandey; Bikash Sharma; Sandesh Dhakal
DIN
IJOEAR-FEB-2025-31
Abstract

The primary aim of this study is to identify significant predictors affecting the deployment of upgraded seed in Udayapur, Nepal. With minimum prior study and insufficient information in the survey area, this research tries to fill the knowledge gap by investing socioeconomic, institutional, financial and technical factors affecting the adoption of improved seed. A sample size of 75 respondents were interviewed at farm level. Benefit Cost ratio, Binary Logistic regression and Scaling index techniques are employed for the research. The benefit-cost ratio (BCratio) for improved seed adoption was found to be 1.37, which is higher than of local seed (1.10). The total area under cultivation (p = 0.010) and training status of farmers (p = 0.050) were significant factors affecting the adoption of improved seed. For every increase in one-unit, area (hectare) and trained farmer, the odds of planting improved seed increase by 15.1 % and 4.168% respectively. The untimely availability of improved seed (0.71), fragmented landholdings (0.65) and lack of technical knowledge (0.53) were top three ranked factors hindering the adoption of premium seeds. To further encourage the use of high graded seed, technical and financial assistance, timely supply of input, land consolidation, and cooperative’sroles become crucial. To streamline the future plans and programs for maize cultivation in the research area, an endeavor is made to study possible pathways for interventions.

Keywords
Adoption Binary Logistic Regression Improved seed Scaling index
Introduction

Increasing agricultural productivity is crucial for economic growth and food security (SQCC, 2013). There are numerous factors diminishing food security, one of which is inefficient inputs application (FAO, 2024). The impacts of climate change across the globe will exacerbate issues of alimentary security, famine and global hunger especially, notably for the resources poor developing countries, and more especially in South Asia, including Nepal (Masso, 2012). Studies show that the use of improved seed can increase crop yields by up to 30 %, emphasizing the importance of seed in agriculture (SQCC, 2013). An access to affordable high quality seeds is crucial for improving productivity (Sector & Strategy, 2013). Maize, known as the “queen of cereals” for its high yield potential, cultivated across diverse regions, with notable variation in adaptation (Revilla et al., 2022; Prakash et al., 2019). It covers total production area of 985,565 hectares (ha), production 3,106,397 Metric ton (Mt), and 3.15 Mt/ha Yield. In Udayapur district, maize is grown on 17,945 hectares (ha), production 43,714 Metric ton (Mt), yielding 2.4 Mt/ha (MoALD, 2020). Maize, once a subsistence staple, is now increasingly cultivated on commercial level (Dhakal et al., 2015) due to increase in demand by 5 % annually, (Sapkota & Pokhrel, 2013) especially from poultry industry.

Nevertheless, its productivity in Nepal lags behind neighboring countries, despite increasing in its demand (Subedi, 2015). The introduction of superior maize type is one potential solution to enhance productivity and meet market needs (S. P. Adhikari et al., 2019). The preference of maize varieties is affected by various factors (Kalle Hirvonen, Elia Machado, 2024b) among which socioeconomic factor is studied in this paper.

Nepalis highly vulnerable to natural disasters (Masso, 2012), which pose significant risks to maize production. The areas such as Nepal, dependent on rain-fed agriculture, have been slower to benefit from Green Revolution technologies (Pingali, 2012). Further marginal farms often devoid of the resources to completely adopts these advancements (George, 2015). The utilization of progressive farm practices, such employing progressive over traditional seeds can aid in enhanced productivity (Pandya-lorch, 2009).

The affordability, timeliness along with availability of quality seeds, and varietal options, is crucial for embracing superior maize strains and bridging the yield gap (Mishra, R., P., Joshi, G., R. dan Dilli K., 2017). The adoption rate of improved maize varieties in Nepalis about 64% with approximately 40% of the total maize plantation is performed with refined type seeds and the remaining proportion with local or traditional varieties (Paudel & Matsuoka, 2008). The rate of adoption is higher in Terai regions as compared with hilly areas of the country, as access to inputs and infrastructure is poor in these areas (MOAD, 2014). To remedy this, production of Maize in Udayapur district has been supported by HMRP, CBSP (MoALD, 2021) and more. There is no prior research on the determinants influencing the incorporation of improved seeds in Udayapur, Nepal. This research aims to assess the cost of production, income, benefit cost ratio for farmers with improved and local seed usage, the socioeconomic variables affecting the integration and constrains in adoption of superior strains.

Conclusion

The research offers clear evidence that the employing superior seeds over the traditional, is associated with greater Benefit-Cost ratio by 0.27%. Additionally, two predictor variables, cultivation area and training status of farmers were found to have an affirmative and significant linkage on the adoption of enhanced seeds. This implies, for every increase in one unit (hectare) area and trained farmer, the odds of employing superior seed strains increase by 15.1%. and 4.169 % respectively. The untimely availability of improved seed, small landholdings and lack of technical knowledge were top ranked hindering factors in the adoption of improved seed.

To remedy the major barriers in adopting improved seeds, several recommendations are propose based on the study. There is an urge to supply adequate high qualities seeds on time through a robust distribution network. Establishing efficient supply and distribution network by interlinking all the channels of value chain should be promoted. Supporting marginalized farmers with target specific programs such as land consolidation, farmers’ cooperative, subsidies and incentives, is pivotal. The financial and technical assistance, and disseminating technical knowledge at grass root level will encourage the adoption of improved seeds. Implementing these programs and policies will incentivize better adoption of improved seeds by pooling available resources, increasing, encourage bulk supply, strengthening community seed banks and increasing bargaining powers of farmers.

DECLARATIONS I, Saroj Dhakal, declare that the research entitled “A Comparative Economic Analysis of Improved and Local Seed Systems in Udayapur, Nepal” is our original work and has not been submitted previously in any form to any other university or institution. To the best of my knowledge and belief, this work is free from plagiarism. I understand that my research may be used as a

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