Socio-economic impact and financial feasibility of tractorization in Chitwan district of Nepal
Loading...
Date
2006-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
G.B. Pant University of Agriculture and Technology, Pantnagar - 263145 (Uttarakhand)
Abstract
The study was conducted in Chitwan district of Nepal to examine the socio-economic impact and financial feasibility of tractors which are increasingly becoming popular in the area for agricultural and non-agricultural purposes. The study was based on a survey of 50 farmers, 30 from tractor farms and 20 from bullock farms. The data related to the year 2004-05. Simple descriptive statistical tools including regression analysis technique and discounted measures of investment appraisal were used to accomplish different objectives of the study.
The study revealed that, percentage of gross cropped area covered by paddy, maize and wheat was slightly higher (72.7%) on tractor farms as compared to bullock farms (69.0%). The average cropping intensity of tractor farms was found to be 170.34 per cent, while it was 160.52 per cent for bullock farms. Average level of use of HYVs and number of irrigation were higher in tractor farms by 39.4 and 21.9 per cent, respectively as compared to bullock farms. Average crop diversification index for tractor farms (0.79) was slightly lower than bullock farms (0.81) indicating that the diversification in terms of crops was comparatively more on bullock farms than on tractor farms. Dairy and goat rearing were more popular on bullock farms (70 and 80%, respectively) than on tractor farms. The results indicated that tractor farms preferred non-conventional on-farm activities like poultry, beekeeping, nursery etc.; and services, business, sawmill operation for non-farm diversification. Gross farm revenue, gross farms family income, returns to family labour and capital, returns to family owned capital, returns to management, net crop income per hectare of cropped land/net cultivated land were higher on tractor farms by about 527, 164, 182, 310, 76, 31 and 41 per cent, respectively as compared to bullock farms. Average annual hired human labour employed, total human labour employed and off-farm employment were higher on tractor farms by about 355, 19 and 53 per cent, respectively than on bullock farms. The study revealed that human labour, cash expenses and tractor labour were efficiently used on tractor farms. Cash expense was inefficiently
utilized on bullock farms, at the level less than required. Average tractors (35 HP) were utilized for about 927 hours, 35 per cent more hours than for required break-even level. Benefit-cost ratio, net benefit-investment ratio, net present worth and internal rate of return were 1.07, 1.68, Rs. 1,73,662 and 34 per cent, respectively before financing as against 1.17, 1.70, Rs. 4,63,982 and 48 per cent, respectively after financing which passed the test for financial feasibility regarding investment in tractor for an average farm size of 1.45 ha.
For increasing cropping intensity and area under major cereals necessary efforts should be made regarding irrigation facility, extension services and distribution of HYVs. In order to bridge gap between tractor and bullock farms regarding income and employment concerned agencies should give emphasis on education, infrastructure development, simplifying loan transaction procedure and cost and, improved packages of technology on livestock husbandry. For magnifying positive impact of tractorization it is desirable to develop and promote system of tractor hiring and from cooperative societies, lending tractor loan on joint collateral system and, rental market for tractor.
Description
Keywords
null