Evaluating smallholder farmers’ demand for rice variety attributes in Nepal

ABSTRACT

Despite the release of many modern varieties of rice (Oryza sativa), farmers in Nepal have been cultivating relatively few rice varieties. The objective of this study is to estimate farmers’ demand for rice variety attributes and to identify the factors that influence their decision regarding varietal choice. Yield increase is considered jointly with other attributes, such as cooking and eating quality, drought tolerance, and maturity period. Choice experiments were conducted and results showed that there was significant demand from farming households for yield increase, improvement in cooking and eating quality, tolerant to drought, and short maturing varieties. The choice data were analyzed using a multinomial and random parameter logit model. From a policy perspective, results showed that for broader adoption of crop varieties, variety development programs should give priority to aforementioned attributes rather than solely on increased crop productivity.

KEYWORDS:

• Choice experiment
• cooking and eating quality
• drought tolerance
• maturitiy period
• random parameter logit
• willingness to pay

Notes

¹ A VDC is an administrative unit in Nepal, which is divided into nine wards.

² The number of choice scenario that can be generated from 5 attributes, 4 with 3 levels and the remaining 1 with 2 levels, is 3⁴ × 2¹ = 162.

³ We use Ngene software to create orthogonal fractional factorial design.

⁴ Inclusion of an option to select status quo or baseline alternative is considered instrumental in achieving welfare measures that are consistent with demand theory.

⁵ Ropani is a land unit in Nepal. 1 Hectare = 19 Ropanies.