A STUDY ON CASH CROPS IN POKHARA METROPOLITAN

CITY

BY:

SHOVAKHAR PAUDEL
Exam Roll No.: 16910/15
T.U. Registration No.: 7-2-297-552-2015

A Summer Project Report Submitted to

Faculty of Management, Tribhuvan University

in partial fulfillment of the requirements for the degree of

Bachelor of Business Administration

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
 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.

iii
 Table of Contents
STUDENT DECLARATION ....................................................................................................................................... ii
ACKNOWLEDGEMENTS ........................................................................................................................................ iii
LIST OF TABLES ...................................................................................................................................................... v
LIST OF FIGURES ................................................................................................................................................... vi
INTRODUCTION ..................................................................................................................................................... 1
1.1 Context Information................................................................................................................................... 1
1.2 Purposes of Study....................................................................................................................................... 2
1.3 Significant of the study .............................................................................................................................. 3
1.4 Literature Survey ........................................................................................................................................ 4
1.5 Research Methods ..................................................................................................................................... 6
1.5.1 Nature and Sources of data ................................................................................................................. 7
1.5.2 Data Collection Procedure ................................................................................................................... 7
1.5.3 Data Analysis Tool ................................................................................................................................ 7
2.1 Organization / Situation/Respondent profile ......................................................................................... 8
2.2 Data Presentation ...................................................................................................................................... 8
Coffee .......................................................................................................................................................... 10
Legume........................................................................................................................................................ 12
Oils .............................................................................................................................................................. 15
Fruits ........................................................................................................................................................... 16
Potato and mushroom: ............................................................................................................................... 17
FINDINGS AND DISCUSSION .......................................................................................................................... 18
CONCLUSION AND ACTION IMPLICATION .......................................................................................................... 19
3.1 Conclusion ................................................................................................................................................ 19
3.2 Action Implication .................................................................................................................................... 20
Reference ............................................................................................................................................................ 20

iv
 LIST OF TABLES

Table 1 Categories of cash crops in production .............................................................................. 9

Table 2 Total production of coffee in hector ................................................................................ 10

Table 3 Types of legume in production ........................................................................................ 12

Table 4 Production of legumes in detail ....................................................................................... 13

Table 5 Production of potato and mushroom respectively ........................................................... 17

v
 LIST OF FIGURES

Figure 1 Framework of cash crop production ................................................................................. 5

Figure 2 Types of cash crops in Pokhara ........................................................................................ 9

Figure 3 Progressive production of coffee in Pokhara.................................................................. 11

Figure 4 Major legume categories ................................................................................................ 12

Figure 5 bar graph showing legumes production .......................................................................... 14

Figure 6 Types of oil production .................................................................................................. 16

Figure 7different Fruits as cash crops ........................................................................................... 17

Figure 8 Timeline of potato and mushroom production ................Error! Bookmark not defined.

vi
 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.

vii
 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 have 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

1
the local or household industry. Because of such perfect platform farmers are encouraged to grow
coffee and generate income for them as well as the country’s economy.

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.

 To examine the varieties of cash crops produced in Pokhara Metropolitan city

 To access the volume of cash crops produced around Pokhara metropolitan city
 To examine the contribution of coffee product

2
 1.3 Significant of the study
 This study is helpful to find out the volume of cash crops that can be produced in a given area
 This research assists businessmen and entrepreneurs to invest and get engaged in sector of cash
crops.
 This study is helpful for the student and other researcher who are interested in this research
topic.
 This study suggests farmers to grow even more as of now to meet the daily household
requirements.
 This research encourages people to be involved in such beneficial market.

3
 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.

1.4.1 Conceptual Review

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

4
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.

Figure 1 Framework of cash crop production

5
 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.

6
 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.

1.5.2 Data Collection Procedure

These data were collected from governmental authorities by meeting in person. Data
are highly reliable and updated every month. Some questions were also asked to the
respective authorities in the interview. Interview is one of the best data collection schemes
and is highly precise.

1.5.3 Data Analysis Tool

Various tables, pie chart, time diagrams, histograms have been used to analysis the
data thoroughly. These figures help researchers to analyze the data at one glance and are
used for future comparisons.

7
 CHAPTER II
DATA PRESENTATION AND ANALAYSIS

2.1 Organization / Situation/Respondent profile

This report contains three different chapters. First chapter is Introduction which includes context
information, purpose of the study, significance of the study, literature survey, research methods
used for data collection and analysis. Similarly, second chapter is data presentation and analysis
that includes the organization/situation/respondent profile, data presentation, data analysis,
findings and discussion. Here, collected data and their presentation are made through tables,
charts and diagrams, and analysis or interpretation of those presented data is done later. And the
last chapter is about conclusion and action implications. Then references and appendixes are
presented at the end of the report.

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.

2.2 Data Presentation

Data presentation is the process of presenting the data in systematic way with the aim to
simplify the information collected. Presentation of data and analysis of data is one of the most
needed factors to be compulsory done in the report writing. This should be done with the stated
objectives. In this chapter, the data and information collected from various sources is managed,
analyzed and presented in proper tabular formats. The data presentation of this summer project is
mentioned in the following ways:

8
 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

Production

Coffee Legume Oil and veg Potato and mush Spices Others

Figure 2 Types of cash crops in Pokhara

9
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.

qm=;= :yfg pTkfbg d]=6g b/

1 kf]v/f @) enfd 4.4 44,000

2 dfem7fgf 0 0
3 kf]=n]=g=kf– @% 0 0
4 kf]=n]=g=kf– !( 0 0
5 k'/fGrf}/ 0 0
6 kf]v/f 0 0
7 cd{nf 0 0
8 k'DbL e'DbL 0 0
9 s[itL 0 0
10 lgd{nkf]v/L 5.25 52,500
11 cfaf{ laho 0 0
12 sfx'F 0 0
13 rfkfsf]6 0 0
14 ;/fª\sf]6 0 0
15 ebf}/} 25 0

16 kf]=n]=d=g=kf
@^ –## 99 990000
hDdf 133.65 1086500
TABLE 2 TOTAL PRODUCTION OF COFFEE IN HECTOR

10
 Progressive production of coffee in Pokhara
11000

10800

10600

10400

10200

10000

9800

9600

9400
2071 2072 2073 2074

Figure 3 Progressive production of coffee in Pokhara

11
 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 legume in production

Legume prduction classification

Soyabean

Lentils

Peas

Black eyed peas

Figure 4 Major legume categories

12
qm=;= :yfg मास e6df; d';'/f]
pTkfbg दर / दर pTkfbg दर / दर pTkfbg दर / दर
d]=6g d]=6g d]=6g d]=6g d]=6g d]=6g
1 kf]v/f @) enfd 22 55000 1210000 37 75000 2775000 6 78,000 468000
2 dfem7fgf 8.4 55000 462000 4 75000 300000 3 82,000 246000
3 kf]=n]=g=kf– 2.1 55000 115500 2.4 75000 180000 1.6 78,000 124800
@%
4 kf]=n]=g=kf– 2.1 57000 119700 2.4 75000 180000 0.8 84,000 67200
!(
5 k'/fGrf}/ 3.5 55000 192500 3.2 75000 240000 1 82,000 82000
6 kf]v/f 0.8 55000 44000 1.6 75000 120000 1 80,000 80000
7 cd{nf 0.8 57000 45600 2.4 75000 180000 1 78,000 78000
8 k'DbL e'DbL 1.6 55000 88000 3.84 75000 288000 1.5 78,000 117000
9 s[itL 0.5 55000 27500 2.4 75000 180000 1 86,000 86000
10 lgd{nkf]v/L 0 55000 0 0 75000 0 0 82,000 0
11 cfaf{ laho 6.66 55000 366300 3.15 75000 236250 1.5 78,000 117000
12 sfx'F 2.146 55000 118030 2.94 75000 220500 1.4 80,000 112000
13 rfkfsf]6 2.079 55000 114345 2.743 75000 205725 0.672 82,000 55104
14 ;/fª\sf]6 4.585 55000 252175 4.131 75000 309825 0.68 78,000 53040
15 ebf}/} 1.425 55000 78375 5.535 75000 415125 0.51 76,000 38760
16 kf]=n]=d=g=kf 0 55000 0 0 75000 0 0 81,000 0
@^ –##
hDdf 58.695 3234025 77.739 5830425 21.662 1724904

d:ofª s]/fp rgf

pTkfbg दर / दर pTkfbg दर / d]=6g pTkfbg दर /
d]=6g d]=6g d]=6g d]=6g d]=6g
2 69,000 138000 10.75 73,000 0 97,000
4.8 72,000 345600 83,000 0 96000
0 70,000 0 1 78,000 0 98,200
0 71,250 0 1 83,000 0 98,600
0 73,212 0 1 82,000 0 98,700
0 69,000 0 0 80,000 0 99,220
0 70,008 0 0 78,000 0 1,00,450
0 71,000 0 0 78,000 0 1,00,200
0 68,320 0 0 82,000 0 99,950
0 69,000 0 0 81,300 0 99,120
0.48 72,000 34560 0 78,000 0 98,950
0.476 74120 35281.12 0 82,000 0 981,250
0.455 73,220 33315.1 0 83,000 0 1,00,420
0.455 71,180 32386.9 0 78,000 0 1,02,540
0.525 69,150 36303.75 0 79,000 0 1,00,540
0 71,202 0 0 81,000 0 1,02,00
9.191 13.75 1,279,300

Table 4 Production of legumes in detail

13
 Rate of production annually per thousand
7000

6000

5000

4000

3000

2000

1000

0
Category 1

Black gram Lentils Peas Soyabeen Black eyed peas

Figure 5 bar graph showing legumes production

14
 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.

qm=;= :yfg hDdf

If]qkmn pTkfbg pTkfbsTj
x] d]=6g d]=6g=÷x]=

1 kf]v/f @) enfd 11 16.5 3

2 dfem7fgf 11.5 5.7 0.18
3 kf]=n]=g=kf– 2.5 20.1 0.804
@%
4 kf]=n]=g=kf– 21.5 17.25 0.802
!(
5 k'/fGrf}/ 20 15.9 0.795
6 kf]v/f 0 9.3 7.57
7 cd{nf 0 9.3 7.52
8 k'DbL e'DbL 0 10.8 8.77
9 s[itL 0 11.5 9.3
10 lgd{nkf]v/L 0 7.3 5.92
11 cfaf{ laho 0 0 0
12 sfx'F 0 0 0
13 rfkfsf]6 0 0 0
14 ;/fª\sf]6 0 0 0
15 ebf}/} 0 0 0
16 kf]=n]=d=g=kf 0 0 0
@^ –##
hDdf 66.5 123.65 44.661

15
 Producrion of oil

Mustard oil Seseme Sarso Nut oil

Figure 6 Types of oil production

Fruits
hDdf
If]qkmn x] pTkfbsTj
qm=;= :yfg pTkfbglz
pTkfbg
d]=6g=÷x]
s'n d]=6g
n =
1 kf]v/f @) enfd 15 11 28

2 dfem7fgf 7.6 7.2 54.3 0

kf]=n]=g=kf–
3 @% 1 1 9 10
kf]=n]=g=kf–
4 !( 1.5 1.5 15 10
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

16
 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 7different Fruits as cash crops

Potato and mushroom:

Table 5 Production of potato and mushroom respectively

17
 Chart Title
40
30
20
10
:yfg
:yfg
0 pTkfbg pTkfbsTj mb/
2071 d]=6g 2072 2073 pTkfbg
2074 pTkfbsTj
d]=6g=÷x]=
1 429.9 26.3 15046500
d]=6g
kf]v/f @) enfd potato 1 mushroom 0 0
1 0 0 kf]v/f @) 0 enfd
dfem7fgf 2 0 0
2 0 0 dfem7fgf
kf]=n]=g=kf– 3 0 0
kf]=n]=g=kf–
@%
3 0 0 @%
kf]=n]=g=kf– 4 0 0
kf]=n]=g=kf–
!(
4 0 0 !(
k'/fGrf}/ 5 0 0
5 0 0 k'/fGrf}/
kf]v/f 6 6 4 1200000
6 0 0 kf]v/f
cd{nf 7 1.2 4 240000
7 0 0 cd{nf
k'DbL e'DbL 8 9.6 4 1920000
8 0 0 k'DbL e'DbL
s[itL 9 3 4 600000
9 0 0 s[itL
lgd{nkf]v/L 10 6 4 1200000
10 0 0 lgd{nkf]v/L
cfaf{ laho 11 10.1 5.1 2020000
11 0 0 cfaf{ laho
sfx'F 12 0 0 0
12 0 0 sfx'F
rfkfsf]6 13 0 0 0
13 0 0 rfkfsf]6
;/fª\sf]6 14 3 4 600000
14 0 0 ;/fª\sf]6
ebf}/} 15 3.5 4 700000
15 3404.1 0 ebf}/}
kf]=n]=d=g=kf 16 110 0 22000000
kf]=n]=d=g=kf
@^ –##
429.9 26.3
@^ –##
1546500
hDdf hDdf 152.4 33.1 32,400000
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, soyabean 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.

18
 CHAPTER III

CONCLUSION AND ACTION IMPLICATION

3.1 Conclusion
It was a good opportunity to work on the skill of patience, as a large number of data.
It helped in developing the kind of relations one needs to uphold in the corporate world
and it helped in building up the right attitude and the skill to behave and gain knowledge
from other various senior personnel.

19
 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.

3.2 Action Implication

Coffee is one of the leading cash crops.

The suggestion generated by the research are as follows:

 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.

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.

District agricultural office, pokhara – Birauta

Data from (http://www.agricultureinnepal.com/coffee-farm)

20
21