Production economics, marketing and critical success factors of Large Cardamom in Bhojpur, Nepal

Figures & data

Figure 1. Area, production and productivity of Large Cardamom in Nepal.

Figure 2. Total area, productive area, production and yield of Large Cardamom in Bhojpur.

Figure 3. Different sources of household income in study site.

Figure 4. Contribution of large cardamom in total farm income.

Table 1. Average cost and return per household in study areas

Item	Total
Average Return per household	NPR 223,340.27 (USD 1970.36)
Average Cost per household	NPR 152,171.66 (USD 1342.49)
Overall B/C ratio	1.467

Source: Field Survey, 2019

Table 2. Average gross margin of cardamom across the study sites

Name of the Municipality	Gross margin (per ropani)	Gross margin (per 40 kg)
Bhojpur	NPR 20,587.6 (USD 181.63)	NPR 88,489.2 (USD 780.67)

Source: Calculation by researcher using field survey data, 2019

Table 3. Factors share to total output of cardamom in study area

Variables	Coefficients	Standard error	t-value	P>|t|
Intercept	−112.91	45.81	−2.46	0.020381
Labour(Beta 1)	13.36**	6.24	2.13	0.041578
Pest management (Beta 2)	2.32**	0.84	2.75	0.010357
F value	6.34
Probability > F	0.0055
R^2	0.319
Adjusted R^2	0.269

Note: **indicate statistically significant at 5% level of significance

Table 4. Estimates of marketing costs, margins, producer’s share and index of marketing efficiency

Variables	Marketing Channel
	1*	2*	3*	4*	5*	6*
Net price received by the producer (NPR)	605.63	605.63	626.25	650.63	700.00	605.63
Total marketing cost (NPR)	12.15	10.50	11.05	9.50	7.15	6.00
Total marketing margins (NPR)	157.23	158.88	137.70	114.88	67.85	263.38
Retailer’s sale price (NPR)	775.00**	775.00**	775.00**	775.00**	775.00**	875.00**
Producer’s share (PS)%	78.15	78.15	80.81	83.95	90.32	69.21
Index of marketing efficiency (MME)	3.58	3.58	4.21	5.23	9.33	2.25

Note 1.*indicates the six different types of marketing channel as identified earlier in marketing channel

Note 2. **indicate price at Birtamod, which was considered final price that reaches consumer hand.

Table 5. SWOT analysis related to production

Strength	Weakness
● Good returns ● Higher profit margin compared to cereal crops ● Less investment and time consuming ● Provide time to spent on other productive works ● Marginal lands can be utilised for large cardamom cultivation	● Lack of knowledge about improved large cardamom practices ● Lack of healthy seedlings (Tissue culture seedlings) ● Lack of farm labour and Increased wage demand from them due to earlier (past) high rice of large cardamom
Opportunities	Threats
● Oil extraction from steam distillation (Value addition & Production diversification) ● Utilisation of barren land for land expansion	● Declining production with increasing disease incidences ● Increasing pest problem (monkey)

Source: (KII & FGD, 2019)

Table 6. SWOT Analysis related to market

Strength	Weakness
● Hand cash ● High demand in international market ● Cash payment helps to spent earned money for fulfilling daily needs like foods, clothes and other goods ● Good returns helps to sustain livelihood	● Price instability ● Lack of price information mechanism ● Decrease in price compel to store large cardamom which results either some loss or low price later due to decrease in quality (Freshness, seed and mucilage content, colour)
Opportunities	Threats
● Direct export to third country ● Premium price with organic certification ● Product diversification ● Expansion of international market beyond India	● Decreasing price ● Decreasing international reputation due to adulterations

Source: (KII & FGD, 2019)

Figure 5. CSF in end market of large cardamom.