COMPARATIVE ECONOMIC ANALYSIS OF MAIZE SEED AND GRAIN PRODUCTION IN GULMI, NEPAL

Serious hurdles plague maize cultivation in Nepal’s mid-hills, which poses many bottlenecks to commercialization and productivity. This study investigates the dynamics of maize production and commercialization in the Ishma, Malika, and Madane Rural Municipalities of Gulmi district, where maize seed and grain production has potential. The findings reveal that, while seed producers are marginally younger, their household heads perform much better than grain producers on all three family size, economic activity, and labor use criteria. Better seed and better inputs (labor and manure) benefit seed producers and increase the production cost. Although they average the same maize yield, seed producers obtain higher returns as their total return is NRs. 140669.2, compared with only NRs. 68,036.42 for grain producers. For Gulmi, maize seed production is more profitable than grain production (1.47: 1.31, respectively) as indicated by the Benefit-to-Cost ratio (B: C). Similarly, seed producers were found to have a higher (1.204) return to scale than grain producers (1.147). Production obstacles include shortages of workers, problems with pests and diseases, poor infrastructure, and lack of technical expertise. These challenges are exacerbated by marketing problems, such as distance to market and low seasonal prices, which make commercialization difficult. According to the Cobb-Douglas production function analysis, the increased cost in intercultural operations, pre-sowing operations, and post-harvest activities leads to higher income for seed and grain producers. The results pinpoint the need for improved access to inputs, technical training, and better infrastructure to enhance the maize production efficiency and commercialization in Gulmi.