Consumers’ willingness to pay for organic agriculture products: a case study of Nepalgunj city, Banke

This study was carried in Nepalgunj Sub-Metropolitan City, Nepal to understand awareness of consumers’ about organic product, consumers’ willingness to pay for organic products and socio-economic factors affecting their decision of willingness to pay for consumption of organic goods. Total of 200 respondents were selected as sample population. Among total respondents, 85.5% of respondent were aware about organic products, among which only 53% respondents were well informed about organic products and their importance. Out of 200 randomly selected respondents only 114 respondents were willing to pay addition cost or price premium for organic products. Among ten socioeconomic variables listed only seven variables found to be determinant of willingness to pay premium price for organic agricultural products, which are gender, occupation, income level and education of respondents, and awareness about chemical residue absence in organic agriculture products, perception of higher nutrition on organic products and awareness about health benefit from organic products. Result showed that income level and health consciousness are two most important determining factor. So, there is a need to find a way so that more and more people can be made aware about organic agricultural products and provide organic products at reasonable price premium.