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Value Chain Analysis of Agro-Forestry Commodities in Nepal
Value Chain Analysis of Agro-Forestry Commodities in Nepal
Value Chain Analysis and Development Study of Major Agro-Forest Commodities in the Food
Security and Disaster Risk Reduction in Eastern Nepal
All rights reserved. Reproduction and Dissemination of information in this publication for educational,
research or other non-commercial purposes are authorized without any prior written permission from
RNN provided the source is fully acknowledged. The reproduction of the information from this toolkit
for any commercial purposes is prohibited without written permission from Rural Reconstruction Nepal
(RRN)
July, 2012
Rural Reconstruction Nepal (RRN) deserves the excessive thanks and special gratitude for providing the most
genuine topic of the current issues on value chain analysis, and financial to make this study complete. Our
special thanks got to Ratna Karki (Program Director, RRN) for providing the meaningful ideas, suggestion
and comments during the entire research period.
We express our gratitude to RRN`s staff members ( Homraj BIshural, (Ramechhap) , Milan Bhattarai
(Morang), and Diwakar Dahal (Sankhuwasabha) for sharing professional experiences and support provided in
the field.
At last, not least, we are very grateful to community people and friends who directly or indirectly involved in the value
chain research.
While selecting the appropriate agriculture commodities, farmers selected the seasonal and off-
seasonal vegetable production, found the highest IRR (0.8) followed by Turmeric (0.74),
Cucumber (0.71), Pomegranate (0.62) and Japanese persimmon (0.5) as second, third and
fourth ranks respectively in Gelu and Chisapani VDCs (RAMECHHAP). There is the highest
possibility to promote the Tomato farming using plastic tunnel in both of VDCs. Capacity
building to the farmers towards seasonal and off-seasonable vegetable production was the
urgent needs to the community. There were some possibility for Sweet orange and Wood Apple
farming in Gelu (5 and 6 wards) and Gelu (1-9 wards) respectively in Ramechhap. As natural
fodder and forage is easily available, we can promote Goat farming in both VDCs of Ramechhap
district.
Likewise, in both of VDCs (Letang and Jante), people have preferred and ranked the LAURE SIMI
/French bean (IRR-0.85) followed by Banana (IRR=0.74), Tomato (IRR=0.65), Bringle (IRR=0.60)
and SAG (IRR=0.45) as first, second, third, fourth and sixth position respectively. Farmers have
been practices the LAURE SIMI since the past years. They have received the high prices, and
secured market (especially in Kalimati, KATHMANDU).
Different farmers have demanded the different demands as per the location, choice of species,
feasibility, availability of markets, and problems and risks. As per the demands, points of
intervention are required during different stages:
At input supplier level, inadequate knowledge on quality seed supplier and insufficient technical
knowledge on plant protection measures are the major constraints especially for French bean,
Finally, effective coordination for supplying the inputs for every agricultural commodity,
appropriate production technology with inset/pest management, instillation of processing
technology for value addition, products certification and marketing/policy are the most
important points where we could intervene for the socio-economic upliftment of the
marginalized poor, women and dalits through cooperatives or group farming where the buyers
can buy the needed quantity as required.
Key words: Rural Farmers, Agricultural Commodities, Input Supply, Production, Networking,
Marketing, Community development
1.1 INTRODUCTION 10
1.2 RATIONALE OF THE STUDY/PROBLEM STATEMENT 12
1.3 OBJECTIVES 14
4.1 CONCLUSION 62
4.2 RECOMMENDATIONS 65
4.2.1 Work on disease management 65
4.2.2 Providing the quality seeds and introducing high yielding varieties 65
4.2.3 Quality production and post harvesting handling 65
4.2.3 Support to establish collection centre 66
4.2.4 Support to establish the Instillation Technology 66
4.2.5 Entrepreneurship development and business planning 66
4.2.6 Conduct exposure visit of the farmers 66
4.2.7 Support in branding, export facilitation and market diversification: 66
The use of value chain approaches and analyses has been gaining in popularity since 1985,
when Michael Porter introduced a generic value chain model in his book, Competitive
Advantage. Porter defines and maps five broad categories of value chain activities - inbound
logistics; operations; outbound logistics; marketing and sales; and, services – and then outlines
ways in which the model can be used to define a firm’s competitive advantage in two
categories: cost advantage; and differentiation. Porter further identifies ten ‘cost drivers’ for
value chain activities: economies of scale; learning; capacity utilization; linkages among
activities; interrelationships among business units; degree of vertical integration; timing of
market entry; firm’s policy of cost or differentiation; geographical location; and, institutional
factors (regulation, union activities, taxation).
In Nepal, most value chain projects implemented to date have focused on agricultural
commodities or products, which is logical given that 77% of the country’s population depends
on the agricultural sector, and that the country’s two poorest occupational categories
(agricultural wage laborers; and, smallholder farmers) draw income from the sector.
Agricultural value chain approaches applied in Nepal generally focus on high value
commodities, as defined by the per unit (kilogram) cost of these commodities. Within these
value chains, projects have sought to transform value chain relationships; to shift the balance of
This research is absolutely the action oriented research. Therefore, outcomes of the research can be
used in the research areas in the near future. The systematic plan has been designed in order to find out
the actual value chain analysis of the possible agro-forestry commodities.
The following 10 steps for participatory value chain analysis should be adopted in any area of
interventions. In this research, we have focused on step 1, 2, 4 and 6 only. Identification of the potential
areas for possible agro-forestry commodities, multi-stakeholders meeting, collection of baseline
information, value chain mapping and upgrading strategies. However, the modality of the research was
the sub-set of the holistic value chain analysis.
There were 10 steps in the participatory action research for the analysis and development of the value
chain.
Identifying
Implement target
ing Project Cycle and Value groups and
organizing
upgrading Chain analysis groups
strategies (Wellbeing
ranking )
Training
Collection of
and
the baseline
capacity information
building
Value
Developing chain
upgrading mapping
strategies and
analysis
Although there is the highest possibility to develop the appropriate marking channel in favor of
farmers` of Ramechhap, Morang and Sankhuwasabha. Farmers have not so benefitted due to
the existing production trends and marketing situations. The main reason on why they are not
In Chisapani and Gelu VDCs of Ramechhap, there is the possibility of off-seasonal and
seasonable vegetable production. Tomato, runner beans and cucumber are the major
agricultural crops which would promote as professional farming in the areas. There are not any
functional cooperatives in the villages. Therefore, formation of farmers `cooperatives, post
formation support to the newly formed cooperatives and technical inputs to the farmers are
the major activities which could implement for socio-economic upliftment of the disadvantaged
and marginalized farmers.
In LETANG and JANTE VDCs of Morang, farmers got benefitted by selling the agricultural crops
(Runner beans, Banana, Cucumber, ladyfingers, etc). There is also the lack of farmers`
association to solve the agricultural related problems in their own locations. Disease/pest
management is another most important issue which lowers the production. Finding out the
root causes of disease and long term solution will be best option for increasing the production
in the same unit of land for the future courses of action.
Technology
Problems in Value Insect/pest
promotion (Off
Chain Analysis management
seasonable
vegetable
production)
Networking with
farmers, dealers and
traders
1.3 Objectives
The main objective of this task is to find out the most possible agro- forest commodities in the
proposed area and to analyze the current status of these commodities value chain and to
provide the significant insight into the activities of chain actors, service providers and
supporting institutions in it so that intervention can be done to upgrade the sub sector and
value chain to a more productive and efficient manner. The study has attempted to address
following specific objectives under various components of value chain analysis:
To identify the most possible marketable agriculture and forest commodities in the
study area.
To identify the value chain of these commodities- no of actors, supporters, service
providers, logistics and their capabilities
To analyze the policy environment of these commodities
To prepare the map on subsector and value chain
To analyze the governance, financing and potentiality of value chain development
and upgrading strategies
Chisapani and Gelu VDCs are the neighboring VDC of the Ramechhap district headquarter. The
Chisapani VDC ranged from the he Sunkoshi River to the 3500 masl and Gelu VDC is ranged from f
300 masl to 3500 masl. The areas of Gelu and Chisapani are 2646.84 ha and 1365 ha
respectively. Both of the VDCs is hilly and most are the south facing. Both of the VDCs are linked
with seasonable
ble or agricultural Road recently. The average rainfall is very low as compared to
Rice is the major cereal crop followed by maize and millet. Vegetables like cabbage, cauliflower,
tomato and cucurbits, fruits like orange and spice crop like cardamom are commonly grown in
the VDC. Besides these crops, fruit crops like pomegranate, persimmon and limes are found all
over the VDCs and sweet orange are found in the ward no 6 and 9 of the Gelu VDC. Being the
sloppy area and improved terraces the place is very suitable for fruits. People are growing
pomegranate and persimmon traditionally. Most of land are covered by the fodder and
majority of the farmers are raising the livestock mainly goat and buffaloes for household
income and meat, milk and fertilizers.
Most of the farmers are using bullock power for plowing field, which is very common practice
throughout the hilly region in Nepal. Hence farm operations are very labor intensive. Most of
the work is done by family labor but in the main season mutual exchange of labor is fairly
common and at times farmers hired external labors which are sometimes paid in kind.
Therefore, it seems that farmers are busy all round the year.
Morang district
Morang is a part of Koshi Zone. The district, with Biratnagar as its district headquarters, covers
an area of 1,855 km² and has a population (2001) of 843,220. Morang lies in the southern Terai,
or plains, of Eastern Nepal. Most of the land is taken up by rice and jute cultivation, though
areas of sal forest remain along the northern part of the district where the plains meet the hills.
It also boasts the largest industrial area in the whole country, expanding from Rani Mills Area
to Duhabi River. Biratnagar Jute Mills and Dhanawat Matches are among the nation's oldest
industries.
In both VDCs, rice is the major crop which is sown in April/May and harvested in
September/October. During October/November farmers used to grow different crops depending
on their preference. Farmers grow seasonal vegetables for home consumption as well as for local
market. In both vdcs weekly markets are in functioning the trading of local and imported
commodities. On the other hand, a few farmers are also growing off-season vegetables (e.g.
tomato) because of their high prices. Besides crops, farmers keep some livestock for milk and
manure production which is major source of fertilizer. At least one cow or buffalo and a few
goats are common in each farm. For the bedding material, farmers collect litter from the
community forest.
Most of the farmers are using bullock power for plowing field, which is very common practice
throughout the hilly region in Nepal. Hence farm operations are very labor intensive. Most of the
work is done by family labor but in the main season mutual exchange of labor is fairly common
and at times farmers hired external labors which are sometimes paid in kind. Therefore, it seems
that farmers are busy all round the year.
The district headquarter is Khandbari bazaar located at mid-hill of the district at an elevation of
100 m from sea level. The district is divided into one municipality and 33 VDCs, 11 Illaka for the
administrative purpose and two electoral constituencies. The district is endowed with historical
The altitude level of Siddhakali VDC is ranged from 400 to 1000 meter MSL. The total
cultivated area of this VDC is 1266 ha and about 223 ha is year round irrigation, 427 ha is
irrigated only in rainy season and remaining 616 ha is un-irrigated. The soils in this VDC are
mostly grey in color and are mainly sandy loams. Rice, maize and wheat are major cereals. Fruits
like orange and vegetables like potato, cucurbits and radish grown in this VDC.
Farmers grow seasonal vegetables mostly for home consumption. On the other hand, a few
farmers are also growing off-season tomato) because of their high prices. Besides crops, farmers
Most of the farmers are using bullock power for plowing field, which is very common practice
throughout the hilly region in Nepal. Hence farm operations are very labor intensive. Most of the
work is done by family labor but in the main season mutual exchange of labor is fairly common
and at times farmers hired external labors which are sometimes paid in kind. Therefore, it seems
that farmers are busy all round the year.
Table: Possible agricultural commodities in Chisapani and Gelu VDCs of Ramechhap district
In the existing situation, women groups were very active to initiate the agriculture based income
generation in their own village. During the field visit, we were able to record the community based
cooperative named Ramechhap. Pashupati Women Cooperative and Paribartansil Multipurpose
Cooperative in Gelu. There are many challenges to establish the cooperative in the long run due to the
unstable market, lack of technical inputs and unstable market. People are very hopeful from RRN for
strengthening the existing cooperatives in term of seed money support and market linkages for the
future courses of action. During intersection, value addition of TOMATO has been deeply discussed.
Technology transfer for greenhouse management through plastic tunnel, Instillation of Tomato Sauce
machine for making sauce are the most demand from the community. Transferring the knowledge and
skills on off-seasonable vegetable production to farmers was the most urgent needs in the community.
The IRR was used in order to find out the priority of agricultural commodities. First of all, we selected
the five appropriate agriculture crops, and then priority ranking was conducted. The ranking was
obtained according to people perception as excellent, very good, good, neutral, and not appropriate.
The ranking of the possible agricultural commodities have been calculated according to Miller (1998).
According to the perception of farmers, they selected the seasonal and off-seasonal vegetable
production in the first priority. Therefore, we found the highest IRR (0.8) followed by Turmeric
(0.74), Cucumber (0.71), Pomegranate (0.62) and Japanese Persimmon (0.5) as second, third
and fourth ranks respectively. Therefore, the table reveled that there is the highest possibility to
promote the Tomato farming using plastic tunnel in both of VDCs. Capacity building to the
farmers towards seasonal and off-seasonable vegetable production was the urgent needs to the
community. We found the possibility of Turmeric production as the second priority. At the same
time, farmer would be benefitted through Pomegranate and Japanese persimmon farming.
There are some possibility for Sweet orange and Wood Apple farming in Gelu (5 and 6 wards)
and Gelu (1-9 wards) respectively.
During discussion, we also marked the weighted value for each commodity in Chisapani and
Gelu VDCs of Ramechhap. We have concluded that the growth potential of above five
commodities are very high than scope, poverty reduction potential, prospect for success and
traditional skills. Obviously, growth potential of the commodities in the study area is awesome.
In above table, it reveals that the recommended commodities have the higher scope with the
greatest growth potential. However, traditional knowledge on farming is very nominal.
However, there is balance of resources to promote any of the agricultural commodities. In fact,
promotion of the first (up to third) can easily promote in that areas.
Growth potential
5 Scope (Production,
(Market,
4 area, income,
Production,
consumption)
Competition) 3
2
1 Weight Value
0
Traditional Poverty reduction
knowledge and potential, social
skills benefits
Prospects for
success,
conductive policy
and social
In the figure, the possibility of the ranked commodities is higher than normal. In each category,
we have found the satisfactory result to commence any listed crops. Farmers can start up the
first choice crops then second, third and so on as per their preference ranking. (See above).
Community Demands
Different farmers have demanded the different demands as per the location, choice of species,
feasibility, availability of markets, and problems and risks. The main demands have been
enlisted below:
In both of VDCs, there are ample of opportunity to commence the Goat farming because of the
fact that people would use the local fodders and other locally available forage as goat feeds.
Other possibility is to establish the milk collection center in both of VDCs. Gelu VDC is equally
important to cultivate the Amriso in the farm lands which is alternative commodity for
promoting sustainable livelihoods in Gelu. Likewise, we can install the juice processing unit
using the raw materials from Wood Apple and Junar. The farmers have expected the technical
inputs (Improved seeds, technical trainings and technology instillation for processing) from RRN
in a sustainable manner. In a present situation, capacity building for farmers on seasonable and
off-seasonable vegetable production, focusing on TOMATO production including technology
instillation for Sauce production from Tomato.
Road Access
Accessibility of road is the major component for analyzing the value chain of any commodity. In
case of Gelu and Chisapani VDCs, there are earthen road for transporting the agriculture market
to district headquarter. The nearest market is Manthali in both of VDCs. If the quantity of the
products was high, farmers would sell those products in Kathmandu market or other national
markets. The gavel to black topped (Concrete road) will help farmers to transport their
agricultural products in the district headquarter.
Climate: Altitude of 60-2600 masl and temperature of 20-30oC is suitable for its cultivation.
Crop Protection
Insects
Tomato fruit worm
Symptoms: Feed on fruits and decay fruits. Larvae half inside fruit and half outside.
White Fly: Suck the sap, transmit virus, Control by spraying insecticide
Disease
Damping Off
Symptoms : Decay of plant parts as well as shoot situated underground.
Control Measures: Seed treatment with Bavistin / thiram 2 gm/ kg of seed.
Leaf Blight
Symptoms: Leaf urn, fruit decay.
Control Measures: Tricoderma 1gm per 5 gm Seed.
Bacterial Blight:
Symptom: Wilting of Whole Plant.
Control Measures: Use disease resistant variety like Srijana.
Mosaic virus
Symptoms: Leaf wrinkles and yellowing.
Control Measures: Uproot the plants, use cow milk @ 10 ml/liter of water.
Climate
The Japanese persimmon needs a subtropical to mild-temperate climate. It will not fruit in
tropical lowlands. The atmosphere may range from semi-arid to one of high humidity.
Soil
The tree is not particular as to soil, and does well on any moderately fertile land with deep
friable subsoil. In Florida, a sandy loam with clay subsoil promotes good growth. While the
young tree needs plentiful watering, good drainage is essential.
Propagation
It can also be propagated by means of root suckers and grafting. Seeds for the production of
rootstocks need no pretreatment. They are planted in seedbeds or directly in the nursery row 8
to 12 in (20-30 cm) apart with 3 to 3 1/2 ft (0.9-1.06 m) between the rows. After a season of
growth, they may be whip-grafted close to the surface of the soil, using freshly cut scions or
scions from dormant trees kept moist in sphagnum moss.
Cultivation
The soil should be well prepared–deeply plowed and enriched with organic matter. Trees
should be set out at spacing ranging from 15 x 5 ft (4.5 x l.5 m) to 20 x 20 ft (6 x 6 m), depending
on the habit of the cultivar. Good results have been obtained with a fertilizer mixture of 4 to 6%
N, 8 to 10% P and 3 to 6% K at the rate of 1 lb (.45 kg) per tree per year of age. Generally the
application is made in spring, but some growers apply half in the spring, half in July. Over-
fertilization or excessive amounts of nitrogen fertilizers will cause shedding of fruits.
Young trees are pruned back to 2 1/2 ft to 3 ft (.74-.91 m) when planted and later the new
shoots are thinned with a view to forming a well-shaped tree. Some cultivars tend to develop a
willowy growth and require cutting back occasionally to avoid the development of weak
branches which break when heavy with fruit. Annual pruning during the first 4 to 5 winters is
desirable in some cultivars. If a tree tends to overbear and shows signs of decline, it should be
drastically cut back to give it a fresh start. After flowering, the trees should be irrigated every 3
weeks on light soil, every month on heavier soil, until time for harvest. One California grower,
with trees on deep river loam, has provided furrow irrigation every 2 weeks from April through
September. Branches are fragile and must be propped when heavily laden with fruits.
Exposure: Pomegranate shrubs may be grown in part shade as necessary, but ideally should be
placed somewhere with as much sun and warmth as possible.
Foliage/ Flowers/Fruit of Pomegranate: The leaves are glossy and have a narrow, lance shape.
In most places they are deciduous, but in the warmer climates may be evergreen.
The flowers are tube shaped and over 1" long. They are a brilliant scarlet red, and are very
attractive to hummingbirds. The flowers are self-pollinating, though fertility is improved through
Fertilize in November and March for the first two years. Otherwise, not much fertilizer is usually
needed in subsequent years. Propagation is through cuttings taken in winter, and air layering.
Seeds may be used, but varieties may not stay true.
Pests & Diseases of the Pomegranate: Pomegranate shrubs are one of the easier fruits to work
with since they are not usually affected by many pests or diseases. Possible pests may include
pomegranate butterfly, thrips, scale, mealy bugs and white flies. Deer will sometimes eat the
leaves, and occasionally gophers may chew on the roots. Diseases include leaf spot, fruit spot,
twig dieback, dry rot and soft rot.
In SIDDHAPOKHARI, farmers have also categorized the Orange as third category which would be
one of the possible agriculture commodities. According to the climatic condition, Orange may
be suitable to promote in the near future. Although there has already practiced the orange, it
will be essential to promote with the extension of new areas.
Growth potential
5
4.5
4
3.5
3
Traditional 2.5
2
knowledge and 1.5 Scope
skills 1
0.5
0
Prospects for
success,
Poverty reduction
conductive policy
potential
and social
environment
Weighted Value
Marketing situation
The marketing situation of agricultural commodities is quite better than the previous year. Farmers
received the Cardamom price up to NRs. 150/Kg in this year. Hence, the price of cardamom has been
seen as quite awesome. In the present situation, farmers have enlisted such commodity as second
priority because of the fact that cardamom has the serious problems of insect /pest named FURKE,
SIRKE and POKE.
During the focus group discussion which was held in the VDC building (Siddhapokari- 8) of
SANKHUWASABHA district, farmers have remarked the possibility of many vegetables, fruits and
plantation crops. It was found that their main food crop was rice followed by maize. Cardamom was the
main cash crop in the district. In Siddhapokhaari VDC ward no. 9; it was also observed that 60 % of
farmers were growing orange in their cultivable land as commercial scale. Farmers of ward-8
emphasized the vegetable like tomato, chilli and potato as a professional farming if irrigation is
provided.
Orange and lime have high possibility for production and marketing as they can be sold at high price
from the farm. According to farmers, they are selling orange and lime (NiBUWA) at Rs. 3-4 and Rs.4 per
piece respectively. For the cash crop, cardamom and Broom grass has been seen as a high possibility to
grow in the village, and it has also good marketing linkage for this crop. Farmers are selling broom grass
(@Rs 30-40/kg) and cardamom (@Rs. 40000/40Kg) in and around there. They have been selling these
products to the buyers from Dharan, Birtamode, and Dhulabari since the past years. According to them
they can harvest the Chilli (AKABARE) up to 5 PATHI from a plant.
They are also interested to grow off-season vegetables specially tomato in poly-house using plastic
tunnels. Farmers were very much interested to grow the chilli (Akabare) at first, and then orange and
lime. These commodities have also the good market at the local. Some farmers had demanded for
potato rustic storage at that region and vegetable seed production (especially bean and pea).
During FGD Farmers said market access for vegetables is less, so they are not very much interested on
perishable vegetables. Logistic cost is also very high to reach commodity at Tumlingtar. It costs Rs 5-6/Kg
of each product for agriculture commodities transportation. Their main cash crop is cardamom. Due to
lack of irrigation and shade, famers are facing problem on cardamom ripening. During the FGD it was
found that some farmer had cultivated mushroom but they faced problem of market. Farmers have
shown the intense interested to grow marketable products if technical support is provided.
Farmers have faced the problems on cardamom such as late ripening, massive drying during summer. It
would be collapsed in coming years if no control measures have been taken. And they were saying that
if they were not control for spreading of disease, they need to find and replace an alternative cash crop
favourable for local climate. For alternative crops, most of them were interested to grow chilli, off-
season tomato, orange (at around 700-800m asl). AKABARE chilli they can sell at Rs. 200-400/kg, tomato
at Rs. 50/kg in the local market. It was found that some farmers are growing tomato for local market.
Farmers are not buying tomato at farm because of buying habits in the shop. They said it is difficult to
change their habits as they can buy other products at a shop and also in credit, personal contact and
regular supply.
These farmers group has community forest where they are cultivating cardamom, bead tree, and broom
grass in a collective way. During the main season of mandarin orange they are selling at higher price
than other market said purna Karki, RRN field staff. Because of high price and easy cultivation paddy
land is substituted by cardamom. It earns higher price than other commodity at that locality. But it has
some barriers to entry at value chain. There are many brokers on the way to Dharan or Birtamode, they
need to paid in cash. Farmers need to categorize into small and large and then program have to
implement according to their capacity. Small farmer may produce for local market and larger farmer
may produce for other markets.
Climate: Altitude of 60-1500 masl and temperature of 20-25oC is suitable for its cultivation.
Uses
Red hot pepper is famous for its taste and health benefits. Nowadays it’s even exported to the
Nepalese communities residing in foreign nations. It is used as a cure for gastritis and ulcer.
Regular uses of this pepper increases appetite and believed to cure fatigue. It is also preserved
as pickles, dried pepper, paste and powder.
Although detail data on production and marketing is not available, tentatively 20 million rupees
transaction occurs just in Dharan agriculture wholesale market. Further analysis shows that
50% of the total production is being exported to India and third countries, which shows its huge
export potentiality.
Due to its unique taste, flavor, hotness and health benefits, its demand is increasing day by day.
Commercial cultivation of this pepper could be one of the ways to improve the rural livelihood
of pro- poor farmers. Furthermore, possibility of value addition and export to foreign market
makes it one of the potential crops for commercialization.
Farming Technology
Seed sowing: Hills Falghun - Jestha
Terai Shrawan - Kartik
Variety: Akbare
Seed/Seedling: 25 grams per ropani.
Spacing: Row to Row: 100 cm
Plant to Plant: 50 cm
Fertilizer requirement:
(per ropani) FYM: 1000-1500 kg
Urea: 7 kg Chelated Zinc: 100 gm
DAP: 6.5 kg Borax: 100 gm
MOP: 3.5 kg
Harvesting time: Jestha – Chaitra.
Production (per ropani):(Per ropani)
Improved: 600-800 kg
Local: 300-500 kg
Dried Chilli: 200-250 kg
Conclusion: Akabare itself the diease resistant variety. Damping off is the serious disease in the
Akabare cropping fields. Sanitation of cropping field is the important for reducing the possibility
of disease in the field. Red round chilies contain high amounts of vitamin
C and carotene (provitamin A). Yellow and especially green chilies (which are essentially unripe
fruit) contain a considerably lower amount of both substances. In addition, peppers are a good
source of most B vitamins, and vitamin B6 in particular. They are very high
in potassium, magnesium, and iron. Their high vitamin C content can also substantially increase
the uptake of non-heme iron from other ingredients in a meal, such as beans and grains.
However, the consumers of Akabare Chilli have been increasing day by day with the positive
aspects of Akabare, with medicinal value.
Local Consumers
Consuming
from Jhapa
consumers and Morang
Rs 500-
600/kg
Rs 450-
500/kg
Sp-500-
550rs
Retailing
Domestic Retail
shops(W Weekly Market in
eekly Market Jhapa and
Morang
Market)
wholesaling
Individual
farmers in the Wholesaler
community
10% 85% 2%
3%
Flow of money
Individual
farmers in the
community
Grading
NGOs/INGOs
Individual
farmers in the
community
Village development Committee, Farmers
400 rs/kg
350 rs/kg
SP-350-
SP-300-
Producing
Individual
farmers in the
community
Poduction
cost-17 rs/
kg
Nursery farmers/
supplying
Input
nursery
enterprises/
equipment supplier
Information
Flow of money
flow
Supporters and
Function Chain actors
Cost influencers
Selling price
Shares of chain
The input for the production of the Akabare Chilli in Siddhakali and Siddhapokhari is supplied by
the agro-vet near by the VDCs. They got the seed from weekly market also. Very few no of
farmers produced the seedling of Akabare khursani and sold it to the farmers. They sold it NRs
15/ Seedling. Small farmers can also grow the chilli in the nursery bad, in polybags. Then,
seedlings of ABAKARE CHILLI are transplanted in the planting sites. Most importantly, local
varieties should be promoted in order to resist from disease/pest, and increase production at
the same time in the same unit of land. In some case, soft load is also required to enroll small
poor farmers.
Producer
In the current situation, only the small no of farmers are producing the Akabare khursani for
their home consumption among them only 4-5 farmers are selling their product to the market.
There is still lacking of skills on pre and post harvesting of AKABARE KHURSANI. Insect pest
management was another important problem while growing AKABARE CHILLI in SIDDHAKALI
and SIDDHAPOKHARI VDCs.
Processor
In AKABARE KHURSANI, there is no specific processing method. Grading is only the important
task in processing which is done by directly farmers/producers. More than 95% of the product
sold directly and only 5% sell with drying and making powder. Farmers dry the surplus amount
of Akabare khursani in sun to make the dry khursani and sell. Sometime they prepare the dust
of Akabare kursani and sell in the market..
Assembler/Wholesaler
Only in the special cases like if someone is travelling to the Terai, they collect the Akabare
kursani from the community and packed into a jute sack and bring to the Terai (Jhapa and
Morang) and sell. This is the existing scenario of Akabare Khursani. After promoting , farmers
will start up as Akabare wholesalering in thir own community. Obviously, cooperative can also
manage for wholesaleing or dealers for bring up the easiness to farmers.
Retailer
Retailers are weekly market retailer. In weekly market the producers bring their product to the
market and sell it to the consumers. But in some cases the retailers collects the Akabare
Khursani from the producers and sell in the weekly market. Sometime the producers sell
directly to the consumers at farm gate.
The people lived inside the VDCs and neighboring VDCs are the main consumers of Akabare
Khursani. Then people from Jhapa and Morang are also the consumers. In some cases the
visitors from outsides also buy and bring to their own places. Due to usefulness of this species ,
The uses of Akabare has widely disseminated across Nepal. The consumers of Akabare have
been expanding due to its medicinal value.
Chain coordinators
Being a rudimentary and un-perfect marketing channel, very less no of actors are involved.
Most of the chain activities are performed by the producer himself. Therefore till the time
producers are seemed as the chain coordinator in the existing value chain.
Information flows (intra-chain info; product info, price info, market info)
The information about quality, demand is flow from consumer to the producer. The product
flow is from producer to the consumer. The money flows is from consumer to the input
supplier. The market information is also not flow properly because of un-perfect market.
There is a well developed market for cardamom which ensures the sale of cardamom of any
quantity that farmers produce. The marketing system is also relatively efficient than other
commodities and the market actors including farmers are aware about the national and
international market price, marketing channel and marketing system. In addition, they are
adopting the refining /processing (post harvest) technology well. Furthermore, the shade trees
(Uttis: Alnus nepalnensis) in cardamom field are good timber crops and are alone able to
sustain their livelihoods if no cardamom is produced for 4-5 years.
As an important ‘low volume high value crop’ cardamom farming has helped the producers and
market actors to make their livelihoods better than others. At present condition, the farmers
and related stakeholders are not expecting any intervention from external agencies and not in
position to accept if any. However, they are heartily and kindly appealing for research and
development activities against disease control which is economically most important problem.
In both of VDCs (Letang and Jante), there were the similar possibility of above ranked agricultural
commodities. According to focus group discussion, we first listed out the five important commodities
then ranking was conducted during the participatory approach. As per the result, we found the highest
score (IRR value=0.85) of Laure SIMI/French Bean followed by Banana (IRR=0.74), Tomato (IRR=0.65),
Bringle (IRR=0.60) and SAG (IRR=0.45) as first, second, third, fourth and sixth position respectively.
After reviewing the weighted value under different criteria on value chain, we found the
highest value (5) under scope category. The main reason on why this highest value was that
infrastructure for agriculture development is very good condition. Farmers are very eager to
cultivate the preferred commodities.
Growth potential
5
4.5
4
3.5
3
2.5
Traditional knowledge and 2
1.5 Scope
skills
1
0.5
0
In both Jante and Letang VDCs, farmers have not adopted as professional farmers due to lacks
of farming loan, cooperatives and technical persons. The RRN will also transfer the skills and
knowledge for the socio-economic upliftment of the poor farmers by creating favorable
environment for loans, cooperative farming and disease/pest management for handsome
production in the same unit of land.
In the above figure, we can clearly see the possibility of the ranked communities in Letang and
Jante VDCs of Morang district. According to the geographical setting, soil type, climatic
condition and preference of the local farmers, both VDCs have been categorized as the highest
scope. Poverty reduction potential in the areas are seen as quite low because of the fact that
farmer are slightly higher than poverty. They are attempting to be a professional framer with
the maximum utilization of the available local resources, and technology promotion with the
help of the Rural Reconstruction of Nepal (RRN). The traditional skills and knowledge have also
been used in a minimal percentage due to technology promotion in the village and introduction
of the new varieties year by year.
Recommended Varieties
Bush Bean Varieties:
Blue Lake 274 (58 days to harvest; plump, tender pods; slow-developing seeds; resistant to
bean mosaic), Bush Kentucky Wonder (57 days; long, flattened pods) and Arka Vijay
Pole Bean Varieties:
Blue Lake (65 days to harvest; oval, straight, strangles, juicy and tender pods; resistant to bean
mosaic), Kentucky Blue (65 days; AAS Winner; round; 7 inch pods), Kentucky Wonder (65 days;
fine flavor, 9 inch pods in clusters) and Pusa Early Prolific
Time of planting
Bean can be planted from May 15th until early August.
Hills Magh – Bhadra.
Terai Asoj – Kartik.
Growing Conditions
Beans are warm-season crops that require full sun for good growth and yield. Although they
will grow in a wide variety of soils, a sandy loam is best. Beans, especially limas, germinate
slowly and grow poorly in cool, wet soil. Maintain the soil pH in the range of 6.0 to 6.8 and
thoroughly incorporating fertilizers, rotted manure or compost into the soil bed before
planting. FYM is applied at the rate of 20 t/ha. N:P2O5: K2O recommendation for the crop is
50:100:50 kg/ha. The leaf caterpillar is a common pest of the crop.
Yield:
Bushy type: 6-8 mt/ha Climbing type: 12-16 mt/ha
Common Problems
The bean mosaic diseases cause plants to turn a yellowish green and produce few or no pods.
The leaves on infected plants are a mottled yellow and are usually irregularly shaped. The only
satisfactory control for these diseases is to use mosaic-resistant bean varieties.
Bright yellow or brown spots on the leaves or water-soaked spots on the pods are signs of
bacterial bean blight. Bacterial blight is best controlled by planting disease-free seed; avoiding
contact with wet bean plants; and removing all bean debris from the garden.
It is also affected by Fusarium wilt, collar rot, anthracnose and powdery mildew.
Disease and Insects: Spray Roger @ 1-2 ml/lit of water for aphid and spotted beetle. Spray
Diathame M 45 @ 2-3 ml/lit of water for anthracnose. Spray servo oil 10 ml/water for insects
and powdery mildew diseases.
Input suppliers: In French bean, there are no special and regular input suppliers. Seeds and
chemical fertilizers and pesticides are supplied by local agro-vet. The tools, they need for
digging, cutting and planting, are spade, axe and sickle which are manufactured by local
blacksmiths and sometime they buy from hardware shop in near big market like Damak and
Itahari. The bamboo is needed for staking which is supplied by local traders and some farmers
use their own bamboo from field. There is one cooperative in Jante who also provides the input
needed for French bean production.
Growers: As per household observations in Letang and Jante, most of the households in the
lower belt produce the French bean.
Local processors:
The growers themselves are the processors in most of the cases. Only in few cases cooperative
is a local processor. In case of French beans local processing reveals that the selection, grading
and packaging only.
Local traders:
In letang local traders collect the French bean from farmers and sell it in the weekly market
(Hat Bazaar). Some local producers also collect the French bean and transport to the Ithari,
Damak and Biratnagar to sell. In some cases producers directly sell in the Hat Bazaar. In very
few cases the traders from the near big market come to the field to buy. Due to the fluctuation
of market prices local traders are not interesting to do the marketing job as traders.
But in case of Jante VDC of Morang, there is very well established cooperative which organizes
the most of marketing function of French bean. All the producers bring their products in the
cooperative and cooperative pack it in jute sacs and send it to Kalimati, Kathmandu. Producers
themselves also sell their products directly to the consumers in Hat Bazaar.
Wholesalers
The cooperative also do the wholesaling and the traders from Kalimati are the wholesaler. In
case of Letang, the local producers collect the French bean and sell in the near big market are
also wholesaler.
Retailers
Retailers are the traders in the vegetable markets in near big markets, kathmandu, the traders
of Hat Bazaar and the open shops. The bicycle vendors and cart vendors are also retailing the
French bean in Terai and kathmanchu.
Production
Logistics
Transform
Branding
Design inputs Marketing
Quality
Packaging
, etc
The above table mentions the critical issues, upgrading strategies, action and action point of
the study areas. Supplying the improved varies of seeds including disease resistant varieties,
farming loan, seed money to cooperatives for the newly formed cooperatives, technology
promotion, supplying the technical human resource, harvesting and post harvesting
technologies, processing through value addition, and marketing /policy are the very important
aspects for promoting sustainable agro-forest commodities in the future.
Farmers are very much interested to commence the professional farming in both VDCs. The
small farmers have the limited assets to start up the farming even though they have already
interested to farm the seasonable and off-seasonable vegetable production including
cultivation of horticulture species (Pomegranate and Japanese persimmon).
For the upliftment of poor and small scale farmers, RRN had better invest as soft loan or seed
money for incorporating poor farmers in comply with collective markets. In the present
situation, RRN has to invest in different points on value chain from input level to market/policy
level. The most important stages of intervention are in inputs, production, processing and
marketing from organizational sight. Providing the improved varieties of seeds, capacity
building for farmers on technology transfer for seasonable and off-seasonable vegetable
production and financial supports in inputs supply. Providing technical support for insets/pest
management focusing on organic pesticide is the main point of intervention in production
sector. Another most important stage of value chain is processing. In Gelu and Chisapani VDCs,
there are ample of opportunity to add the value of the existing crops. Technical supports on
making TOMATO SAUCE from fresh tomato, and JAM JELI production from Japanese
Pomegranate.
However, formation of farmers` cooperatives is very important at the first stage. There will be
the collective market for exporting products from village to city areas. As we know,
cooperatives have the rights to produce any products using processing technology. They must
also register in District Cottage and Small Industry in order to export the products like as
company. Coordination with different farmers association, DADO, District Cortege and Small
Industries Office , District Cooperative Association, etc are the most important partners for
marketing the products in a sustainable manner.
In a nutshell, the point of intervention for value chain analysis in Gelu and Chisapani VDCS were
as follows:
Supplying of improved varieties of seeds, financial loan/soft loan, crop insurance, etc
Pre and post harvesting technique, inspect pest management, technical manpower
Processing instillation technology on Sauce, juice, JAM and JELI production.
Coordination among producers, traders, farmers` association and company owners
After discussion among the farmers, they had ranked the AKABARE KHURSANI as first most
possible commodity in both Siddhakali and Siddhapokhari VDCs. In this section, how much
efforts are essential in each and every step of AKABARE KHURSANI? . Where would be the point
of intervention? As a result, farmers can cultivate the AKABARE CHILLI as a professional
farming. However, 40% intervention is required during inputs supply, 30% intervention is
required during production, 10 % intervention during processing (Drying, making dust, etc) and
20% intervention during market of the products.
From above discussion, we can say that there is a secure market for AKABARE CHILLI; only 20%
intervention is required for marketing the products. In case of Amriso, farmers can make the
Sweeps (Kucho) and marked in the weekly market or nearby market. The Rural Reconstruction
Nepal (RRN) can intervene in AKABARE Chili, Cardamom (Alainchi), Orange, Amriso, Mushroom,
Milk collection centre, Vegetable production, Turmeric and Ginger cultivation and Processing.
The most importantly, in the first year, farmers have demanded to assist in AKABARE CHILLI
cultivation practices. The point of intervention is needed at the time of pickle making and dust
production. The cooperative can make the value addition of AKABARE CHILLI after getting
trainings from RRN.
In case of Orange, soil testing is essential at the time of nursery management and transplanting
in the field. Technical supports on vegetative production are an important issue while
producing the orange in Siddhapokhari VDC.
In nutshell, the point of intervention is required in the followings different value chain:
Supply of seeds of Mushroom, Tomato, Akabare chilli, Turmeric and Ginger (Promotion
of disease resistant crops, improved varieties of seeds)
Production and harvesting techniques (AKABARE CHILLI, Turmeric and Ginger, Orange)
Processing of agricultural commodities (Electric Drier support for Cardamom processing.
Making AKABARE Khursani dust by spices processing machine, Mushroom cream
production, Tomato Sauce production, Making Sweeps (Kucho) from Amriso, Turmeric dust
production, Pickle from Ginger and AKABARE KHURSANI
Market Research/Market Linkages: RRN will facilitate to form the cooperatives, farmers` groups
and marketing groups. If there has already existed cooperatives, it will assist and strengthen for
capacity building towards marketing. Linkages between farmers/producers and traders
Long term partnership and linkages with district based lined agencies (District Agriculture
Development Office, District Livestock Service Office (DLSO), District Forest Office (DFO)
In compare with other districts (Ramechhap and Sankhuwasabha), there will be minimum
possibility of processing technology because of the fact that farmers can directly sell the
products without processing. In some extend, very low processing on vegetable like cleaning,
grading and packing in sag. Due to geographical feature, we found the similar interest of
farmers on growing agricultural commodities in both Letang and Jante VDCs. Farmers` first
choice was French bean. In this choice, there are no such vague value chains of French bean.
The point of intervention is needed at the time of supplying seeds, cooperative management,
production techniques by supplying the JT/JTA during first year, and marketing linkages.
In some extend, RRN could intervene in processing on Banana wine/chips production, Tomoto
sauce production, etc. In the present situation, farmers want to upgrade their knowledge and
skills for adapting as professional farming. VDC-wise JT/JTA supply has seen as important up to
1 year for transferring the skills to farmers on how to cultivate the agricultural crops
systematically. Due to very high demands of French bean in both VDCs, RRN could declare as
French bean Village (LAURE SIMI GAU).
In order to increase the production, it had better support the plastic Jhikro (Plastic Sticks) to
farmers by which they could use these supported materials at least 3-5 years. This program will
also support on forest conservation. Therefore, the point of intervention in Morang has been
concentrated on input supply, production and marketing channel development only.
After field visit, the following issues have been highlighted after visiting the real field and
interaction with local farmers as a point of intervention:
Quality Seeds: French Bean (LAURE SIMI), Banana, TOMATO, BRINGLE and SAG, Plastic sticks
(JHIKRO) support for French beans
Production: Formation of Farmers groups, Technical Assistance (French bean farming, Banana
farming, Tomato farming , Bringle farming, etc)
Processing: Banana chips production, BANANA Wine (collaboration with cooperative, technical
supports, etc) and TOMATO Sauce
Market Research/Market Linkages: RRN will assist and strengthen for capacity building
towards marketing. Linkages between farmers/producers and traders
TOMATO Sauce
Quality Seeds: French Bean (LAURE Seeds: Supply seeds from private
SIMI), Banana, TOMATO, BRINGLE and nurseries, DADO, etc
Inputs SAG, Plastic sticks (JHIKRO) support for
French beans Coordination with financial
association, revolving funds, other
Financial services: Production
cooperatives.
technology, loan to farmers, etc.
In SANKHUWASABHA (Both Siddhakali and Siddhapokhari VDCs), Farmers have ranked the
commodities among all possible agro-forest commodities receiving the highest score (0.9) for
AKABARE KHURSANI or DALLE KHURSANI followed by Cardamom (0.81), Amriso (0.7),
Mushroom (0.64), Milk Collection Centre (0.5), Seasonable and off-seasonable vegetable
production (0.42) and Turmeric (0.4) as second, third, fourth, fifth, sixth and seventh position
respectively. Farmer’s attraction towards AKABARE KHURSANI is very high because of securing
market where they can sell as higher price than other commodities.
Similarly, In MORANG ( Both VDCs of Letang and Jante), people have preferred and ranked the
LAURE SIMI/French bean (IRR-0.85) followed by Banana (IRR=0.74), Tomato (IRR=0.65), Bringle
(IRR=0.60) and SAG (IRR=0.45) as first, second, third, fourth and sixth position respectively.
Farmers have been practices the LAURE SIMI since the past years. They have received the high
prices, and secured market (especially in Kalimati, KATHMANDU).
There are many challenges to establish the cooperative in the long run due to the unstable
market, lack of technical inputs and unstable market. People are very hopeful from RRN for
strengthening the existing cooperatives in term of seed money support and market linkages for
the future courses of action. During intersection, value addition of TOMATO, AKABARE
KHURSANI, BANANA, TURMERIC, POMEGRANATE, WOOD APPLE and JAPANESE PERSIMMON
had been deeply discussed. Technology transfer for greenhouse management through plastic
tunnel, Instillation technology for making sauce from TOMATO, making juice from Wood Apple
and Pomegranate, and JAM/JELI from Japanese persimmon are the most demands from the
community in Gelu and Chisapani VDCs. Transferring the knowledge and skills on off-
seasonable vegetable production to farmers was the most urgent needs in the community.
Networking
Manure and fertilizer (Vermi- Collection Centre Establishment
composting, urine collection, by cooperatives or farmers
etc) in production level groups`
Sustainable Community
Disease /pest management in Development
farms or cultivated lands Product quality, Organic
(Organic Pesticide certification, etc
Management)
In processing technology, there are no any processing machines for SAUCES from tomato, Chilli
powder from dried AKABARE KHURSANI, JAM/JELI from Japanese persimmon, Juice from wood
Apple, etc. There are also important towards point of intervention for getting organic
certificates as well. There are good demand of quality seeds and pesticides in so that input
suppliers have very good scope to work in this sector. At production level, potentiality to
adoption improved post-harvesting practices; scope to increase area and productivity; proper
harvesting, and establishment of collection Centres at local level can add value to the
producers.
The concerned authorities such as Plant Pathology Division under NARC, Research related
organization like LI-BIRD, and even RRN should focus research work to address the present
problem and should disseminate the appropriate technology to control these problems. The
inflected seeds from the previous crops are also the major problems to spread the disease.
Therefore, seed treatment before planting or cultivating is essential, and awareness on disease
remedy such as seed treatment measures should be provided to the input suppliers and
farmers. The disease resistant variety of TOMATO like SHREEJANA has been recommended for
the promotion of TOMATO farming as disease resistant variety.
4.2.2 Providing the quality seeds and introducing high yielding varieties
The productivity of local seeds is comparatively low and is also prone to disease. Therefore,
RRN should facilitate to farmers for providing the high yielding and disease resistant varieties in
the near future after collaborating with inputs suppliers and various research institution (NARC,
SNV, LI-BIRD, etc).
Capacity building of farmers towards quality production is the important tool for scaling up the
farmers for cultivating seasonable and off-seasonable vegetable production including fruit
production. Introduction of improved and disease resistant varieties, timely plantation and
seed treatment helps to increase the production. Similarly, simple processing activities like
cleaning, sorting and grading can generate additional income to the producers. Farmers can use
such type of simple value addition after harvesting the agriculture commodities which is also
the pre-step for processing the commodities.
In the study area, we have not found the any collection centre; means farmers have not
practiced the cooperative farming through the establishment of collection centre. There is not
such facility Centre where farmers can deliver the product and trader can sort, grade and
package easily. Therefore it is strongly recommended to RRN including the government of
Nepal, other development organizations to support for building collection Centres in strategic
collection points. It is recommended to develop the technologies for storage at local level and
invest to build cold storage facilities in major market areas.
Farmers can add the value of their products by processing of TOMATO for making TOMATO
Sauce, Juice from Wood Apple, Jam/Jeli from Persimmon, etc through cooperative model.
Organization should support them for transferring the skills and knowledge on this sectors by
hiring the qualified and experienced entrepreneurs.
4.2.5 Entrepreneurship development and business planning for producer group organizations
Due to the lack of entrepreneurial skills and business knowledge, farmers are unable to take
farming as business. Therefore, there is need to capacitate farmers and producer group
organizations on business planning and entrepreneurship development training. These types of
training are will help them to develop business perspective and understand market dynamics.
The trainings can be given by partnering with organization experienced in providing such
trainings.
RRN should support to farmers on certification of their products in term of quality and without
using the pesticides. Organic certification is another issue in order to prepare farmers for
getting more benefits from their commodities. Therefore, quarantine lab should be upgraded
and bilateral talks should be conducted in order to accredit Nepali lab with India.