Resource use efficiency of wheat seed production: a case of wheat Superzone Kailali, Nepal

Seed is one of the most important inputs in the agriculture production process. Likewise, it is crucial to study the efficacy of the seed production process. Therefore, a study was conducted to assess the lucrativeness and efficiency of resource used for Wheat seed production in Kailali district of Nepal. The study used formal and informal wheat seed producers from Wheat Superzone, Kailali. Data were collected with help of a well-structured questionnaire. Descriptive and statistical tools were used to analyze data which also included the Cobb-Douglas production function. The study revealed that the total variable cost incurred was significantly higher in informal wheat seed production since formal seed producers were provided with subsidies. Gross return was found comparable between the formal and informal wheat seed producers and yet the gross margin was significantly higher for formal seed production. The study revealed that wheat seed production was a profitable agri- enterprise but the formal seed production was significantly more profitable (BCR= 1.49) than the informal system (BCR= 1.25). The return from the formal wheat seed production was likely to increase with improvement in inputs such as seed and human labor. Similarly, informal wheat seed production could also be efficiently carried out by the efficient use of human labor. Thus, the study is important for policymakers and planners at the different sectors for budget allocation and provides adequate information for business planning in the seed sector.