Economics of Onion Seed Production and Marketing in West Rukum , Nepal

Onion seed production is an important income-generating enterprise for smallholder farmers in Nepal, particularly in hill regions with favorable agro ecological conditions. However, production inefficiencies and weak market linkages may limit farmers' profitability. This study aimed to assess the economics of onion seed production and marketing in Rukum (West), Nepal, focusing on production costs, profitability, factors affecting gross income, marketing channels, and major constraints. Primary data were collected from 60 vegetable seed-producing households in Chaurjahari Municipality and Sano Bheri Rural Municipality through household surveys, key informant interviews, and focus group discussions. Descriptive statistics, gross margin analysis, benefit-cost ratio (BCR), producer's share, and Cobb-Douglas production function were employed for data analysis.The average onion seed production was 33.68 kg per household, with a productivity of 617.40 kg/ha. The production cost and gross revenue were NPR 338,336.30/ha and NPR 1,076,125/ha, respectively, generating a gross margin of NPR 737,788.80/ha and a BCR of 3.18. Labour accounted for the highest production cost (51.62%), followed by crop protection (20.06%). Fertilizer and crop protection costs had positive and statistically significant associations with gross income at the 10% significance level. Approximately 81.7% of farmers sold their seeds to local traders, while the producer's share of the consumer price was only 18.75%. Disease and pest infestation and untrustworthy traders were the major production and marketing constraints, respectively.Onion seed production is a profitable enterprise in Rukum (West). Improved technical extension services, integrated pest management, access to quality foundation seeds, farm mechanization, and stronger market linkages are essential to enhance production efficiency and farmers' profitability.