Rental Market of Pump-sets in the Central and Western Parts of Nepal Plains

Abstract

Using data collected from the central and western parts of Nepal plains, we examine the extent of rental market of pump-sets therein, and identify the factors affecting the decision of farm households to purchase the service of pump-sets. Further, the article investigates whether cropping intensity and extent of crop diversification for non-users, owner users and rental users of pump-sets are significantly different. Our analysis suggests that there exist rental markets of considerable sizes in the field study locations. Access to extension service, proportion of high yielding varieties in total cropped land, availability of pump-sets, caste and locational characteristics have been identified as the determinants of the decision to purchase the service of pump-sets. Cropping intensity and extent of crop diversification for the rental users have been found to be higher than those of the non-users and the owner users, and this finding establishes the positive impact of the rental market.