Microeconomic Analysis of Apple Farming During COVID-19: The Case of Mustang District

Abstract

Apple farming has been playing significant role in the micro economic development of Nepal. This study entitled Microeconomic Analysis of Apple Farming during COVID-19: The Case Study of Mustang District thus tried to analyze private and social returns of apple farming. Methodologically, this study applied quantitative approach and survey research strategy. Required data/information were collected by applying household survey and key informant interview techniques in which survey questionnaires and interview guidelines were used as tools of the study. More specifically, survey questionnaires were filled up by 156 apple farmers belonging to three villages: Marpha, Tukche and Syang selected purposively and randomly. More specifically, of the total 156 respondents, 60 respondents were selected from Maprha, 48 were selected from Tukche and Syang. The theoretical ideas such as economics of agriculture development, agriculture transformation and integrated farming system have been applied while interpreting the data. The study found that 67.7 percent of the farmers belong from 41-60 years age group and 80.8 percent were male farmers. The education level among the farmers was 30.1 percent for both primary and lower secondary level. Below 90.0 percent of the farmers have food sufficiency less than 9 months from their own production. The mean average income of the family from agriculture, business, remittance are Rs. 678076.92, Rs. 457733.33, Rs. 722321.43, and average income of the family is Rs. 553014.6. The average expenses of the family in different purpose are Rs. 79746.19. The average expenses for Vitamin/Fertilizers/Pesticide and labour are Rs. 133807.7 and Rs. 90445.51 and the average expenses in the apple farming is Rs. 52163.23 and the average yearly income from the farming is Rs. 607371.8. The average farm gate price of the apple is Rs. 119.68, average retailer price is Rs.92.16 and average market price (paid by consumer) Rs. 162.72. Apple farming from the district are having different problems such as shortage of storage house, manpower, shortage of vitamins and fertilizers. During COVID-19, not a single farmer received financial compensation and aid from governing body. All in all, this study comes up with the conclusion that agriculture in particular help to improve living standard of the farmers and other stockholders like retailers, driver, labour, and the other entrepreneurs. Finally, the empirical findings of the study can be applied in knowledge level, practice level and policy level by the readers, local development stakeholders as well as agriculture development planner and policy makers.