Impact of Farmers’ Marketing Decisions on Profitability in Wheat: A Case Study of Kailali District

Abstract

Wheat is one of the most important crops of Nepal in terms of area under cultivation, production and consumption with a benefit-cost ratio of 1.38, representing a highly profitable enterprise. There has been very limited study regarding the marketing aspect of wheat and almost no study regarding the best marketing decision which leads to significant losses. This study aims to assess the impact of farmers’ marketing decisions concerning time, place and quantity of wheat sales on profitability along with the factors affecting them. For this research, purposive sampling was done with 100 wheat-growing households. Data were collected using a pre-tested semi- structured questionnaire in Kobo toolbox and the descriptive and inferential data analysis was carried out using Ms-excel and STATA version 14.2. The main problem in cultivation was found to be irrigation and its associated cost. 3 probit regression models related to selling time (immediately after harvest or later), place of sale (home or distant market) and quantity sold (in installments or whole) were run. Annual wheat production was found to be significant in all conditions, indicating that larger producers have greater flexibility in their marketing decisions. Farmers with higher production are more likely to delay sales, sell privately from home, and sell in installments, likely due to their ability to manage storage, transport, and market risks better than smaller producers. The research recommends the authorities to assist farmers through a subsidy in irrigation costs and storage costs, along with providing market decision information to increase the economic efficiency and profitability of wheat growers.