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Price of potato seed was found to have negative relationship with the area under potato because potato tuber seed has highest cost share in total cost of production. Most of the farmers were not satisfied with the availability of the vegetable price information aired through Radio Nepal. The lagged farm gate price did not have significant role in area allocation. The cost of production was always lesser than the farm gate price fetched by the farmers. Thus, the farmers were cultivating potato for long time irrespective of the fluctuations in the price of potato. The contributions of yield and area to production were found equal. Reliable marketing information system should be established to reduce the marketing cost and encourage the potato farmers.