STUDY ON SUSTAINABLE DEVELOPMENT OF APPLE PRODUCTION AND TRADE IN NEPAL

The report aimed at analyzing the impact of economics on apple fruits based
livelihoods in Nepal by reviewing the literature and compiling data analysis obtained from the ministry source. The study based on the apple fruit. Apple is an important fruit grown
in Nepal and are available worldwide. The total production of apples in the world during the year 2016 was 89,329.1 thousand metric tonnes from an area of 5,293.34 thousand
hectares with a productivity of 18.6 Mt/ha while in Nepal the total production was 41,012
metric tonnes from an area of 5,625 hectares with a productivity of 7.3 Mt/ha. During
analysis, the result showed the import of apple was increasing compared to previous years
from neighboring countries. It was observed that Nepal import 2.8 million metric ton of
apples while export was 477 metric tons on average over the 6 fiscal years. Apple was a
high-value cash crop grown in hill and mountain districts in Nepal at the elevations of
roughly between 1800 and 2000 meters above sea level. Though the production and yield of
apple were limited compared to other major fruits, its contribution to people’s livelihoods
was significant as it has a high market value. Most of the apple growers were the
small-scale producer in Nepal, therefore through analysis of Cobb-Douglas production
function, the production of apple has the characteristics of decreasing returns to scale, the
use efficiency of labor and capital has a positive impact. Moreover, the country has the
great scope in producing apple but these have not been explored properly. The study
reveals that the sustainable development of apple production was possible by supporting
small-scale producers and vulnerable groups. This study also attempted to analyze the
production, trade, and consumption and it's correlation coefficients from which the export
and consumption correlation revealed that there was a significant negative correlation.
Similarly, there was a negative correlation between production and import. In addition,
the consumption trend of apple shows increasing and can be consumed fresh and
processed into a value-added product. The results found in this study were an indicator to
improve the domestic production and foreign trade. Finally, it was suggested to produce
more apples by adopting systematic production and utilizing available resources to
become self-sufficient and sustainable in the apple production.
Keywords: Apple Production, Consumption, Trade, Correlation, Cobb-Douglas Model