Beruflich Dokumente
Kultur Dokumente
BY:
SHOVAKHAR PAUDEL
Exam Roll No.: 16910/15
T.U. Registration No.: 7-2-297-552-2015
At
Janapriya Multiple Campus
Tribhuvan University
i
STUDENT DECLARATION
This is to certify that I have completed the Summer Project entitled “A study of cash crops
in Pokhara metropolitan city” Under the guidance of “Mr. Devi Lal Sharma” in partial
fulfillment of the requirements for the degree of Bachelor of Business Administration at
Faculty of Management, Tribhuvan University. This is my original work and I have not
submitted it earlier elsewhere.
Date: Signature:
Name:
ii
CERTIFICATE FROM SUPERVISOR
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ACKNOWLEDGEMENTS
During the time of research, many faces were associated. Without kind help and co-
operation from these figures, this study would not have been possible. I would like to
express sincere thanks to those who contributed directly or indirectly to this study.
I would like to express my sincere thanks to the research advisor Mr. Devi Lal Sharma for
his encouragement, suggestions, comments and continuous guidance throughout the whole
study period.
I am grateful to all the authorities who helped me by providing all the substantial data and
information needed and helped me completing this summer project successfully by giving
their time and support to fill up the questionnaire.
At last but not the least, I am deeply indebted to my parents, brothers, sisters and friends
for their help and encouragement throughout my study period.
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Table of Contents
STUDENT DECLARATION ......................................................................................................................... ii
CERTIFICATE FROM SUPERVISOR ........................................................................................................... iii
ACKNOWLEDGEMENTS .......................................................................................................................... iv
LIST OF TABLES ....................................................................................................................................... vi
LIST OF FIGURES .................................................................................................................................... vii
INTRODUCTION ....................................................................................................................................... 1
1.1 Context Information ..................................................................................................................... 1
1.2 Purposes of Study ......................................................................................................................... 4
1.3 Significant of the study ................................................................................................................. 4
1.4 Literature Survey .......................................................................................................................... 5
1.5 Research Methods ........................................................................................................................ 7
1.5.1 Nature and Sources of data.................................................................................................... 8
1.5.2 Data Collection Procedure ..................................................................................................... 8
1.5.3 Data Analysis Tool .................................................................................................................. 8
2.1 Organization / Situation/Respondent profile ............................................................................ 9
2.2 Data Presentation......................................................................................................................... 9
Coffee ............................................................................................................................................ 11
Legume .......................................................................................................................................... 14
Oils................................................................................................................................................. 17
Fruits.............................................................................................................................................. 19
Potato and mushroom: ................................................................................................................. 20
FINDINGS AND DISCUSSION ............................................................................................................ 22
CONCLUSION AND ACTION IMPLICATION............................................................................................. 23
3.1 Conclusion................................................................................................................................... 23
3.2 Action Implication ...................................................................................................................... 23
Reference .............................................................................................................................................. 24
v
LIST OF TABLES
vi
LIST OF FIGURES
vii
EXECUTIVE SUMMARY
Cash crops are those which are grown not primarily as a source of food, such as grains
but mainly as raw materials for industries. The main cash crops are sugarcane, oilseeds,
cotton, jute, tea, coffee, tobacco and rubber. For the high yield of cash crops, farmers
should carefully plan and skillfully manage the crop production. Coffee is the most
produced cash crop of Kaski. Other significant cash crops include legumes, fruits, potato
and mushroom.
The specific objective of this research is to determine the status of production of cash
crops in Pokhara metropolitan city. These data have been obtained from governmental
authorities which are relevant and precise.
The research design used in this project is exploratory and descriptive research and the
data collection scheme is secondary data collection. Interview was taken with respective
authority and data regarding existing crops in Pokhara were tabulated and analysis was
done.
viii
CHAPTER I
INTRODUCTION
1.1 Context Information
Cash crop farming is for profit. Also called commercial farming and cash cropping, it is
a farming venture in which cash crops are grown. Cash crops are those which are
produced for the purpose of generating cash or money. The products are therefore
intended to be marketed for profit. Cash crops was a big thing when slavery was around,
but now it's normal to us. We go to our local grocery store and we buy whatever we
need, when we need it. In today's society, we necessarily don't use the term cash crops
anymore because we essentially don't need to call it that. People today don't realize that
there are still slaves in countries that make our food for us.
There are various types of cash crops such as jute, tea, coffee, etc. Some of which are
abundantly present in our locality. Coffee is one of the best cash crops with high
potential in national as well as global market. So, production of coffee has been a great
leap in the sector of cash cropping. Generally, rather than other food crops cash crops
are produced with low physical efficiency and high technicality. Cash crops can also
be a major part in influencing the GDP of the country. In an agricultural country like
Nepal cash crops are eventually the vital goods for export as most of the products that
are exported by our country are cash crops.
Coffee farming has a huge potential in terms of climate and geographical topography in
Nepal. Tea and coffee are the most valuable cash crops regarding Nepal. However, Jute,
cardamom on the other hand has some geographical limits. Coffee can be produced
either in the plain land or in terraces. It normally starts giving its fruit after one year of
the plantation. Coffee required shades for proper growth so that it is not affected by
scorching light of sun. Generally, wet lands are preferred for the coffee farming as less
fertilizers are required for farming in such places. Coffee not only can be cultivated
easily but it can also be converted into the finished goods within the local or household
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industry. Because of such perfect platform farmers are encouraged to grow coffee and
generate income for them as well as the country’s economy.
Cash crop is generally cultivated to sell for generating profit. It may be the excess of
what a farmer produces and does not need to keep for subsistence. Cash crops are raw
materials for the industrial use. For the high yield of cash crops, farmers should carefully
plan and skillfully manage the crop production.
For instance, Cotton is the one of the world’s leading cash crops. It can be economically
produced and making cotton products is also relatively inexpensive. Cotton fabrics are
extremely durable and resistant to abrasion. Cotton accepts many dyes, is usually
washable, and can be ironed at relatively high temperatures.
Coffee is one of the most prized commodities around the world, some believe only
second to oil. A coffee tree yields its maximum sometimes between its fifth and tenth
year and may bear for about 30 years.
Crops sold on market (cash crops) are an integral part of strategies to improve the
economic status in a country like Nepal. By selling their surplus, production, agricultural
households generate income that improves daily life style. Several factors have worked
in favor for the expansion and the commercialization of the crops sector. Agricultural
policies have improved, becoming less distortive, incentives for farmers have improved.
Growth in export trade has been raised and supported. There is a great difference
between the cash crops of present and the past as nowadays each and every marketed
crops are cash crops.
Cash crops production enables farmers and farm workers to increase living standards.
Moreover, most importantly the production of cash crops offers farmers opportunities
for investment and improving management of firms, stimulating agricultural innovation
and increase yields. As of any farming activity, cash crops agriculture requires
management of risk such as soil degradation price variability and marker access.
2
For an agricultural country like Nepal where due to various problems and situations
ongoing, for those people who intend to do something within the country Cash crop
farming is the best and the suitable option available as it provides the platform for the
modern youths to do something profitable and economical to raise the standards in
personal level as well as in the perspective of a country too. To raise the economic
standards of a country which is almost dependent on agriculture, cash crop will be the
best suitable option as it defines the modern agricultural system and focuses highly on
economy.
A country cannot produce everything needed for it on its own so that there is trend of
exporting and importing goods. In order to maintain the equilibrium state of exports and
imports one should have the proper knowledge of goods imported and exported. For
example, we are Nepali we depend highly on other countries for various modern tools,
equipment’s, machines etc as till date we do not have any kind of proper skilled human
resource in that area so, what we can do properly is agriculture and even in traditional
agriculture it is quite difficult earn such huge amount of money to balance the trade
deficit and the best alternative for balancing the figures is cash crop farming as a lot of
money is generated from there. Therefore, those goods which are necessary can be
imported and a lot of cash crops which have high demand over the various countries can
be exported.
3
1.2 Purposes of Study
The main aim of this research is to study about cash crops production specially being
coffee and their contribution in overall revenue generation.
4
1.4 Literature Survey
The review of literature is a crucial aspect. The main purpose of literature review is to
find out what works have been done in the area of this research problem under study
and what has not been explored.
Nepal is culturally an agriculturally based country. One third of the GDP comes from
agriculture and there are numerous opportunities in agriculture mainly because of varied
agro- climate prevailed in the country. Especially cash crops have the comparative
advantage that could be produced in huge market to meet the demand of neighboring
countries as well. Trade deficit, food insecurity, income generation, poverty reduction, and
employment generation could be addressed by turning present status of robust, vibrant and
commercial agriculture through technology led agro-industrialization. There are agro
commodities which are imported from India and other countries in huge quantity by the
scarce hard currency earned through remittance. evidence shows that almost 70% of the
remittance is spent for agricultural commodities which have high potentiality to produce
within the country even after local consumption.
Such product can be exported to the other countries to mitigate trade imbalance, enhance
export promotion and import reduction and promote agriculture within a time frame as
propose a couple of years ago by government of Nepal. Nepal should come up with
functional, pragmatic and implementable agricultural plan and policy to harness huge
possibility of agriculture commercialization to meet the consumption demand within and
outside the country. (Agronomy journal of Nepal vol.4 2016, national agriculture genetic
Resource center, khumaltar)
More than two –thirds population resides in the rural area and most of them depend on
agriculture. Subsistence form of agriculture is common in Nepal. Rural area and cash crops
are interrelated like two parts of the same coin. The contribution of agriculture to national
gross domestic product is remarkable; however, is declining over the decades. In fact the
agricultural sector cannot attract young people; the trend of migration from rural to urban
is significantly increasing. The poverty is exceedingly marked in rural Nepal. The
government of Nepal emphasizes on agricultural development in for poverty alleviation.
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Order to alleviate poverty, rural development and national economic growth through the
policy level.
However available data and qualitative analysis reveal that the outcome from the
agricultural sector is not satisfactory due to the several factors. In such situation more than
half of the population has been facing food insufficiency. Because of weak policy and
implementation, the agricultural sector has been suffering poor outcome. In that way
government of Nepal along with concerned authorities should effectively implement
agriculture policies in order to reduce poverty and rural development. The agriculture-rural
accommodating policies and successful performance are crucial for poverty alleviation and
rural development. (Mr. Chaudhary PhD student, of rural development at Tribhuvan
University)
The transfer and adoption of newly developed technologies were and will always be part
of development system of mankind, Sunter 1996.
With the liberalization of national and international trade and markets, the farmers who do
not adapt to changes by adopting the new technology of growing crops i.e. more cash crops
instead of food crops people would not be able to compete in the marketplace of the
liberalized world (NCELL 1997).
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1.5 Research Methods
Research simply means to search again and again. It is a systematic activity to achieve
truth or findings solution to a problem. It is a process of a systematic and in-depth study
or research of any particular topic, subject or area of investigation backed by the
collection, presentation and interpretation of relevant details or data. Methodology is the
research method used to test the hypothesis. So, the research methodology refers to
overall research process, which a researcher conducts during his/her study. “The
purpose of research is to discover answers to questions through the applications of
scientific procedures. The main aim of research is to find the truth which is hidden and
which has not been discovered at yet.”
The basic framework of this study is descriptive. In order to reach and accomplish the
objectives of this study, different activities are carried out and different stages are
crossed during the study period. For this purpose, the chapter aims to present and reflect
the methods and techniques are carried out and followed during the study period.
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1.5.1 Nature and Sources of data
The nature of data collected in this research is quantitative. The data is collected
from lucid secondary sources.
• The secondary sources include data from articles in various newspapers, relevant
data from metropolitan agricultural office including coffee co-operatives.
8
CHAPTER II
DATA PRESENTATION AND ANALAYSIS
Entire farmers involving in the production of cash crops in Pokhara are the population
of this research. Production per metric ton, rate and total cost has been evaluated for
major cash crops present in the city. Out of various cash crops, soybean, black gram,
peas, coffee, beans, black eyed peas and lentils were significant and abundant.
9
Classification of Various cash crops
Categories Percentage
1 Coffee 45%
2 Legume 32%
3 Oil and Veg 10%
4 Potato and Mushroom 8%
5 Spices 3%
6 Others 2%
Table 1 Categories of cash crops in production
Legume
Potato and
mush
Coffee
Spices
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There are various varieties of cash crops such as coffee, legume, oil and veg, potato and
mushroom, spices and others. Also, there may be some other cash crops such as cardamom,
avocado etc. but due to its low cultivation in that particular area we kept those cash crops
in the classification of others.
Here in the table no. 1 categories of crops produced and its amount are shown. We can see
that coffee is the highest among all as it has the forty-five percentage covered with it. The
second most produced cash crops are legumes which are thirty two percentages and
remaining others are oil and veg of ten percent, potato and mushroom of eight percent,
spices of three, and remaining all others combined two percentages respectively.
These exact numbers are shown in the pie diagram in fig 2 as we can see most of the portion
covered by coffee, then after legumes, oil and veg, potato and mushroom, spices and others
respectively.
Coffee
Organic coffee farming in Nepal is becoming popular among farmers since the last few
decades. Organic coffee is an environment friendly high value cash crop help to increase
the income of Nepali farmers. In this way coffee farming is going popular day by day
in the rural mid-hill region of Nepal. Total production of Rs 1086500 has been made in
recent year in Pokhara metropolitan city.
11
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2 dfem7fgf 0 0
3 kf]=n]=g=kf– @% 0 0
4 kf]=n]=g=kf– !( 0 0
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10 lgd{nkf]v/L 5.25 52,500
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15 ebf}/} 25 0
16
kf]=n]=d=g=kf @^ –## 99 990000
hDdf 133.65 1086500
12
Progressive production of coffee in Pokhara
11000
10800
10600
10400
10200
10000
9800
9600
9400
2071 2072 2073 2074
In the table no. two, we only see the production of coffee in different areas of Pokhara
metropolitan city. The production units are shown in hector. Among the different places
where coffee is cultivated the most coffee cultivating areas are from Pokhara Lekhnath
ward no twenty six to thirty three and the total coffee produced in hector is133.65 and the
revenue generated from it is ten lakhs eighty six thousand and five hundred.
The figure three represents the progressive production of coffee in Pokhara from 2071 to
2074. It has been seen that there has been massive upgrade in coffee production between
these dates. So from here what we can predict is that here is been significant improvement
in coffee production and forecast that more amount of coffee will be produced in the future
resulting in higher revenue.
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Legume
Legume is the second most significant cash crop found in Pokhara. Furthermore, it can
be sub-divided into black eyed peas, beans, peas, lentils, black gram. Out of these
lentils was found to be widely commercialized. Black eyed peas seemed to be static
over past three years and was of less importance.
SN Categories Percentage
1 Soybean 43%
2 Black Gram 32%
3 Lentils 11%
4 Peas 8%
5 Black eyed peas 6%
TABLE 3 TYPES OF LEGUMES AVAILABLE
Black eyed
peas
Peas
Lentils
Soyabean
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There are various types of legumes such as soybean, black grams lentils etc. In table no.
three we can see that the most produced legume in Pokhara is soybean i.e. forty-three
percentage out of hundred. Secondly, black gram is produced thirty-two percentages,
lentils eleven percentages, peas eight percentages and black-eyed peas eight percentages
respectively.
Fig four shows the distribution of legume production where most of the portion is covered
by soybean, black gram, lentils, peas and black-eyed peas respectively.
15
And in table no. four we can see the production of legumes in detail where we can see how
much varieties of legumes are produced as well as in what quantity are, they produce in
different placed of Pokhara.
Soyabeen , 5830
6000
5000
4000
Axis Title
Figure no. five shows the rate of production annually per thousand where the production
units are shown via bar graph
16
Oils
There are abundant sources of oil found in Pokhara among which mustard oil is the most
significant. Seseme, Sarso, nut oil is also found to be produced in some extent.
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Oil production and classification
Mustard oil
40%
Nut oil
55%
Seseme
Sarso 2%
3%
Here in the figure and the table the distribution of oil product can be seen. The amount of
varieties of oils produced here can be distinctly seen. The most produced oil product here
is nut oil, mustard oil, sesame oil and sarso oil respectively as of the figure but in the table
we can see total distributions of oil product only.
18
Fruits
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pTkfbglz
s'n d]=6g d]=6g=÷x]
n
=
1 kf]v/f @) enfd 15 11 28
5 k'/fGrf}/ 4 4 40 10
6 kf]v/f 0 0 0 0
7 cd{nf 0 0 0 0
8 k'DbL e'DbL 0 0 0 0
9 s[itL 0 0 0 0
10 lgd{nkf]v/L 0 0 0 0
11 cfaf{ laho 0 0 0 0
12 sfx'F 0 0 0 0
13 rfkfsf]6 0 0 0 0
14 ;/fª\sf]6 0 0 0 0
15 ebf}/} 0 0 0 0
kf]=n]=d=g=kf @^ –
16 ## 89 89 675 0
hDdf 118.1 113.7 821.3 30
Figure 6 Different Fruits as cash crops
Here in the table we can see distribution of fruits as cash crops and the amount of its
production in the different places around Pokhara.
19
Potato and mushroom:
35
mushroom, 32
30
25
Axis Title
20
15
10
5
0 potato, 1.5
2071 2072 2073 2074
20
Table shows the distribution of potato and mushroom respectively. And in the comparison,
we can see that mushroom is highly produced then potato and if given importance can have
the high market establishment.
And the chart here shows the growth in production of potato and mushroom where potato
is in constant level whereas mushroom is in highly increasing order.
21
FINDINGS AND DISCUSSION
The various findings that the researcher has made in this research is explained below:
• Out of all cash crops produced in Pokhara, Coffee was most produced with total
production of Rs 1,336,500.
• Legume is second most significant cash crop in Pokhara metropolitan city, soybean hits
the apogee with total production of Rs 58,30,425.
• Coffee has suitable market in Pokhara with highest production rate in small hector of
area.
• As per the interviewee, farmers were more conscious and were involved in cash crop
farming.
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CHAPTER III
From the analysis of data collected and from the experience’s researcher have
reached the following conclusions. Coffee is the most profitable and highly produced
cash crops among other various cash crops that are produced in Pokhara as well as other
places because of its easy market access, high profitability, easy to grow as well as its
flexibility to grow in various land topographies.
• Since coffee has its high market value and faith towards the farmers coffee production
should be prioritized even more.
• The government should provide subsidies to the farmers and proper rewards, so that
they may get even more motivated and production may get enhanced.
• Proper farming tools should be provided to the farmers so that the production process
would get easy and dealt without hesitation.
• Various programs regarding farming should be launched so the attention of the modern
youth will grow.
• Cash crops should be made a main target of production as they are the main
exporting materials.
23
Reference
Kothari C R, “Research and Methods & Techniques”, New Age International (P) Ltd,
2004.
Cooper Donald R. & Shindler Pamela S, “Business Research Methods” Tata McGraw-Hill
Edition Eighth.
Agronomy journal of Nepal vol.4 2016, national agriculture genetic Resource center,
khumaltar)
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