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2012

Value Chain Analysis and Development


Study of Major Agro-Forest Commodities
in the Food Security and Disaster Risk
Reduction in Eastern Nepal

The Study on Value Chain research from Ramechhap, Morang and


Sankhuwasava districts of Nepal
Copyright © Rural Reconstruction Nepal (RRN)

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

Value Chain Analysis of Agro-forestry Commodities 2


Community people of Gelu and Chisapani (RAMECHHAP), Siddhakali and Siddhapokhari
(SANKHUWASABHA), and Jante and Letang (MORANG) have contributed in myriad of ways by sharing
their invaluable time, resources and knowledge without which, materialization of the report in this form
wouldn’t have been possible. Space does not permit mentioning their entire good name however; it in no way
does mean belittling of our gratitude toward them.

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.

-Damodar Gaire, Lead Consultant

Value Chain Analysis of Agro-forestry Commodities 3


The study was carried out in Ramechhap, Morang and Sankhuwasabha districts in order to
identify the most possible marketable agriculture commodities, prepare the value chain map
for the first ranked commodities, and analyze the governance, financing and potentiality of
value chain development including upgrading strategies.

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.

After discussion among the farmers of Siddhakali and Siddhapokhari VDCs


(SANKHUWASABHA), we 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 production is high due to appropriate climate, edaphic and
topographic condition. Another reason of highest preference was due to secure market which
can be sold with the high price.

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).

Value Chain Analysis of Agro-forestry Commodities 4


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.

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:

1. Supply of inputs (Supplying the disease resistant seeds (Shreejana in TOMATO),


Capacity building trainings on TOMATO, CUCUMBER, LADYFINGER, FRENCH BEAN, SAG,
BANANA, Japanese Persimmon and Pomegranate, Appropriate farm tools, etc.
2. Seeds money for establishing the cooperative or post formation support to
cooperatives
3. Manure and fertilizer (Skills transfer on preparing compost and green manure, Vermi-
composting, urine collection, etc) in production level
4. Disease /pest management in farms or cultivated lands (Organic Pesticide
Management), provision of JTA in every programmed VDC of Rural Reconstruction
Nepal (RRN)
5. Pre-harvesting and post harvesting support of vegetable (TOMATO, FRENCH BEANS and
AKABARE KHURSANI especially in Ramechhap, Morang and Sankhuwasabha district
respectively.
6. Value Addition (Instillation of Processing technology (Tomato sauce , Wood Apple Juice,
J. Persimmon Jam/JELI , Akabare Pickle, Akabare dust/powder, BANANA Chips, etc.
7. Collection Centre Establishment by cooperatives or farmers groups`(In each VDC of RRN
working areas)
8. Product quality, Organic certification, brand name (If possible)
9. Linkages with cooperatives, research institution , government lined agences,
Companies, etc
10. Networking

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,

Value Chain Analysis of Agro-forestry Commodities 5


Pomegranate, Japanese persimmon and Akabare Khursani. Similarly at production level,
prevalence of disease; low productivity; traditional cultivation practices; traditional practice of
seed production and storage; improper practice on post-harvest handling; limited collective
marketing practices and low bargaining power; and minimum support from GOs and NGOs are
the constraints.
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.

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

Value Chain Analysis of Agro-forestry Commodities 6


ADB Agriculture Development Bank
CAED Centre for Agro-Ecology and Development
CBS Central Bureau of Statistics
CDO Community Development Organization
CIAT International Centre for Tropical Agriculture
CEAPRED Centre for Environmental and Agricultural Policy Research
DADO District Agriculture Development Office
DDC District Development Committee
DFO District Forest Office or Officer
DSCO District Soil Conservation Office
EFA Education For All
FECOFUN Federation of Forest User Groups of Nepal
GON Government of Nepal
ICIMOD International Centre for Integrated Mountain Development
ILO International Labour Organization
IP Indigenous Peoples
masl meter above sea level
RRN Rural Reconstruction of Nepal
NARC Nepal Agriculture Research Council
NCA Nepal Chepang Association
NEFIN Nepal Federation of Indigenous Nationalities
NFDIN National Foundation for Development of Indigenous Nationalities
NGO Non Governmental Organization
NPC National Planning Commission

Value Chain Analysis of Agro-forestry Commodities 7


CONTENTS PAGES

1.1 INTRODUCTION 10
1.2 RATIONALE OF THE STUDY/PROBLEM STATEMENT 12
1.3 OBJECTIVES 14

2.1 STUDY AREA 15


2.2 STUDY METHODS 22
2.2.1 Primary Data Collection 22
2.2.3 Secondary Sources of Information 24

3.1 POTENTIAL AGRICULTURE COMMODITY 25


3.2 CULTIVATION METHODS (TOMATO) 29
3.2.1 Tomato Cultivation 29
3.2.2 Persimmon (Haluwabed) Cultivation 30
3.2.3 Cultivation of Pomegranate 32
3.3 POSSIBILITY OF AGRICULTURAL COMMODITIES (SANKHUWASHABHA) 34
3.4 DISCUSSION DURING FOCUS GROUP DISCUSSION 37
3.4.1 Siddhakali VDC 37
3.4.2 Siddhapokhari VDC 37
3.5 CULTIVATION PRACTICES (AKABARE KHURSANI) 39
3.6 VALUE CHAIN MAP OF AKABARE KHURSANI (HOT PEPPER) 41
3.7 CARDAMOM IN SANKHUWASAVA 44
3.8 POSSIBLE AGRO-FOREST COMMODITIES (MORANG) 47
3.9 CULTIVATION PRACTICES (FRENCH BEAN) 50

Value Chain Analysis of Agro-forestry Commodities 8


3.10 VALUE CHAIN MAP OF FRENCH BEAN 51
3.11 UPGRADING STRATEGIES 54
3.12 POINTS OF INTERVENTIONS 56
3.12.1 Point of Intervention: Ramechhap 56
3.12.2 Point of Intervention: Sankhuwasabha 58
3.12.3 The Point of Intervention 60

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

Value Chain Analysis of Agro-forestry Commodities 9


1.1 Introduction
Value chain (VC) is a chain of value-creating activities which are not isolated from one another.
Rather, one activity often affects the cost or performance of the others (www.netmba.com). It
is a sequence of productive processes from the provision of specific inputs for a particular
product to primary production, transformation, marketing and distribution, and final
consumption (Amatya, 2009). The products pass through all activities of the chain in order,
gaining value with each activity. The value chain analysis (VCA) examines the full range of
activities that are required to bring a product in a particular enterprise from its conception to
its end markets. A good VCA provides a snapshot of an enterprise at a particular time, while VC
mapping indicates the way a product flows from raw material to end markets. Most of the
forest enterprises in developing countries are small and medium enterprises (SMEs) (Elson,
2009), and in many of them, especially those from South Asia.

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

Value Chain Analysis of Agro-forestry Commodities 10


power through the formation and empowerment of associations; to empower the private
sector; and to improve value chain governance. (Marcy Corps, 2006)

Value chain development is a systematic compilation of action-oriented methods for promoting


economic development with a value chain prospective. Value chain is the set of linkages
between actors where the actors know each other well and form stable, long term
relationships, support each other so they can increase their efficiency and competitiveness.
Each actor invest their time, effort and money to add the value and reach a common goal of
satisfying consumers needs which enables them to increase their profits. The process
determines how business receives raw materials as input, add value to the raw materials
through various process and utilities and sell the end users or consumers. It provides overall
structure of products (value chain) and helps to design intervention for generating the income
and employment through promoting micro and small sized enterprises at local level. The value
chain investigates through participatory process in gaining unleash knowledge, ownerships and
commitment, especially among private sector representatives for driving the process in
collaboration with local people, the government, NGOs Service providers and donors.

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.

1. Identification of the potential areas for possible agro-forestry commodities.


2. Multi-stakeholders` meeting and key informants interview
3. Identifying target groups and organizing groups (Wellbeing ranking )
4. Collection of the baseline information
5. Value chain mapping and analysis
6. Developing upgrading strategies
7. Training and capacity building
8. Implementing upgrading strategies
9. Monitoring and evaluation
10. Information sharing and dissemination

Value Chain Analysis of Agro-forestry Commodities 11


Identification of
Information the potential
sharing and areas for possible
dissemination agroforestry
commodities.
Multi-
Monitoring stakeholders
` meeting
and and key
evaluation informants
interview

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

Fig: Participatory Action Research on value chain analysis

1.2 Rationale of the study/Problem Statement


Finding out the possible agriculture and forest commodity and intervention design after
thorough analysis of value chain of the selected agro-forest products can be a significant
approach for poverty reduction, particularly the people who are dependants on agriculture and
forest lead resources. Particularly the value chain approach in the rural communities is very
weak and rudimentary although its existence in those areas. The profit in the value chain is not
equally shared and the only the few chain actors are benefited. Therefore the value chain can
be improved rapidly through functionally from production level, processing level and marketing
level. In the rural area the product and services offer substantial potential for niche and unique
marketing by product diversification at the upstream level.

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

Value Chain Analysis of Agro-forestry Commodities 12


benefitted is that they have not practiced the cooperative farming or low productions which
huddle for supplying the continuous commodities in the market.

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.

In SIDDHAKALI and SIDDHAPOKHARI VDCs of Sankhuwasava district, farmers have been


cultivating the agricultural crops as per their traditional skills and practices since the long time
ago. Although farmer have very much interested to cultivate the Hot Pepper (DALLE KHURSANI)
as a professional farming, they have not received the proper information, technical supports
and other management practices for cultivating the DALLE KHURSANI in both of VDCs. Another
most important crop is Cardamom locally known as ALAINCHI. The price of ALAINCHI has
rapidly increased in this year (Up to NRs.61, 000/40 Kg). Farmers have worried about the
disease of Cardamom which is very difficult to identify and cure. Government including
agriculture based organizations has the responsibility to identify the root cause of disease of
ALAINCHI for the direct implementation in ALAINCHI farms. There is not availability of qualified
and experienced technical persons in VDCs. There are tremendous problems in value chain of
agricultural commodities in the study area. After visiting the areas, we have concluded the
following diagram:

Value Chain Analysis of Agro-forestry Commodities 13


Lack of Cooperative
or farmers`
association

Technology
Problems in Value Insect/pest
promotion (Off
Chain Analysis management
seasonable
vegetable
production)

Networking with
farmers, dealers and
traders

Figure: The major value Chain Problems in the study area

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

Value Chain Analysis of Agro-forestry Commodities 14


2.1 Study area
Ramechhap District

Ramechhap is one of the hilly districts


of Janakpur Zone. It iss situated
between latitude 27020" to 270 50"
north and longitude 850 50" to 860 35"
east. It is surrounded by Okhaldhunga
and Solukhumbu in the east, Kavre in
west, Sindhuli in south Dolkha in
north.. The total area of the district is
1564 sq km (156433 ha). Cultivable
land is 59180 ha and cultivated land is
50908 ha. The Irrigated land is 1968
ha. Manthali is the district headquarter
headquarter.. The altitude of the district ranges from 369 to 6958
masl. Most of the soil is made of sandy loam type. The highest peak of the district Numbur Chuli
(6958 m) and lowest place of the district is Kalonjore Ghat (369 m) which is situated in the
Rampur VDC. The climate is mostly subtropical type and some tropical, warm temperate and
cool temperate and high altitude climate and Tundra type climate due to its altitude. The
average annual rainfall is 2020 mm. Maximum temperature is 31.3 0 C and minimum is 11.90C.
Majority of the people are Newar, Brahaman, Chhetri, Bhote, Sunuwar, Damai, Sarki, Gurung,
Tamang caste/ethnicity.
/ethnicity. The local markets of the district are Manthali, Ramechhap, Khimti,
Khimti
Dhobi, Sanghutar, Salupati, Dorumba, Devitar, Galpa, Sawadanda
Sawadanda.. Population of this district is
14 212408 (2058BS) which consists 100853 male and 111555 female. The total household
number is 40386 and average population density 136 persons per sq km. The population of
Gelu is 6147 with majority of CHHETRI whereas Chisapani has 3303 with majority of NEWAR
community.

CHISAPANI and GELU VDCs

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

Value Chain Analysis of Agro-forestry


forestry Commodities 15
the national rainfall. These areas are rain-fed area and the irrigation for the crops is very
difficult being the scarce of water resources.

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.

Banana is one of the important tropical fruits


in the country. Commercial cultivation of
banana can be found in Morang. Letang is the
most appropriate for banana farming which
can be extended in other possible wards and
although there is the highest possibility of
banana farming, people in that village are
imposed to restrict or limited farming due to
the unsecure marketing and improper value
chain of Banana. Banana production seasons
are found to vary according to districts. The

Value Chain Analysis of Agro-forestry Commodities 16


import of banana from Nawgachiya (Bihar) in Northa India and Andra Pradesh in South India is
made at the time of shortage of production from domestic supplies. According to the trader
ranking, Morang is the first rank while marketing the banana in appropriate seasons. Runner
beans, Banana, Cucumber, Ladyfinger, etc are the main agricultural crops programmed VDCs of
RRN (Letang and Jante).

JANTE and LETANG VDCs


Jante and Letang VDCs are situated 70 and 60 Km north -east from the district headquarters,
respectively. The average altitude level of Jante VDC is ranged from 150 to 500 meter MSL.
Mostly grey and black colored sandy loam to reddish brown soils are commonly found which is
acidic in nature and include sandy loam to loam soils. Rice is the major cereal crop followed by
maize and millet. Vegetables like bean, cow pea and cucurbits and fruits like banana are
commonly grown in the VDC. The average altitude level of Letang VDC is 200 meter MSL. The
soils in this VDC are mostly grey in color and are mainly sandy loams. Rice, maize and wheat
are major cereals. Fruits like banana and vegetables like beans, cucurbits and potato (Solanum
tuberosum), radish (Raphanus sativus) grown in this VDC.

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.

Value Chain Analysis of Agro-forestry Commodities 17


Sankhuwasabha District
Sankhuwasabha district is a
mountainous district at
Koshi zone at Eatern
Development Region of
Nepal. The district is located
in the high and mid-
mountainous belt of Koshi
zone at the Eastern
Nepal.The district is
bordered with Taplejung
and Terahthum district in
the east, Solukhumbu and
Bhojpur districts in the west,
Dhankuta district in the
south and Tibet the
autonomous region of China
in the north. The total area
of the district is 3468.38
square kilometre. The
district extends within
latitude of 27º 06’ N to 27º
55’ N and Longitude 87º 57’
E to 87º 40” E. The climate
of the district varies as per
the topographical setting
and altitude. The cool Alpine climate in the north to sub-tropical climate in the south shows the
tremendous variation of the climate in the district. Different types of forest and vegetation are
also found in the various parts of the district. The topographical setting of the district
constitutes small hill, valley plain, river basin, rivers, high hill and mountain. The Mount Makalu
(8463 m) Himalaya, which is fifth peak of the Nepal, is the highest mountain peak in the
northern part and Kewabesi (250 m) is the lowest part in the southern part of the district. The
high hill terrain constitutes more than 400 slopes and mid hill and small hill terrain constitutes
gentle slope and some plain area in river basin of the district.

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

Value Chain Analysis of Agro-forestry Commodities 18


base, tourism potential, mountainous topography and natural resources. The Makalu-Barun
National park and Conservation Area has enhanced the potential of tourism development. The
Arun River is one of the major hydro-power potential of Nepal. The promotion of tourism,
agriculture, herbal, and livestock sector development, the well planned and improved transport
facility can play a vital role in the district. Total number of households is 30766 with average
household size of 5.17. The total population is dominated by Rai (22.4%) followed by Kshetries
(19.43%). The dominant religion is Hindu (46.95 %) followed by Kirat (27.55%) and Buddist
(24.78%), (CBS 2001). The research was conducted in two hilly VDCs of Sankhuwasabha District,
(SIDDHAKALI and SIDDHAPOKHARI).

SIDDHAPOKHARI and SIDDHAKALI VDCs


Siddhapokhari and Siddhakali VDC were purposively selected for the focus group discussion. It
was found that many organizations have been implemented different programs including
agriculture with ultimate goal of overall development of the VDCs people. Siddhapokhari and
Siddhakali VDCs are situated around 80 Km South-east from the district headquarter Khadbari.
The average altitude level of Siddhapokhari VDC is ranged from 400 to 3000 meter MSL. This
VDC has 948 ha of land of which 130 ha is irrigated year round, 380 ha irrigated only in rainy
season and rest 438 ha of cultivated land is un-irrigated. Mostly grey and black colored sandy
loam soils are commonly found. 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, potato is cultivated widely in
upper part of the VDC. Similarly, this VDC is rich in producing Chiraito.

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

Value Chain Analysis of Agro-forestry Commodities 19


keep some livestock for milk and manure production which is major source of fertilizer. At least
one cow or buffalo and a few goats and/or pig 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.

Value Chain Analysis of Agro-forestry Commodities 20


Map of the study area

Value Chain Analysis of Agro-forestry Commodities 21


2.2 Study Methods
Product Selection Criteria
The following criteria were used in order to select the Agro-forestry commodities in the study
areas:
 Commodities which seem potential to large scale intervention
 Livelihood upliftment potential for local, marginalized, women and Dalits
 At least agriculture roads facilities
 Intervention of Rural Reconstruction Nepal (RRN)
 Existing the farmers` association (Groups or cooperative)
 Nature of the commodities ( Resistance on insect/ pest, drought and others)
 Good market possibility
 Perception of local people

2.2.1 Primary Data


Collection
Respondents, such as
collectors, community
leaders, village traders and
district level traders and
other stakeholders involved
in these value chains were
directly interviewed with the
help of the study team
members based on a pre-
designed survey to generate
and triangulate qualitative
information on the actors
and their benefit and power Photo: Focus group discussion, Gelu, Ramechhap
structure/hierarchy, policy/legal environments for value chain, its governance, characteristics of
horizontal and vertical linkages, participation of women and disadvantaged groups, and the role
of information, technology, finance and other services including market and industry related
data such as product information, market channels and volumes, distribution network, prices
and margin, etc. Market status of the selected product was carried out in Participatory
Marketing Channel Analysis (PMCA) model.

i) Key persons' interviews and interaction with concerned agencies


Key persons' interviews and discussions were held with the officials of:
 District Development Committee (DDC)
 District Agriculture Development Office (DADO)

Value Chain Analysis of Agro-forestry Commodities 22


 District Forest Office (DFO)
 District Livestock Service Office (DLSO)
 District Cottage and Small Industries (DCSI)

ii) Cluster visit


The following clusters were identified by Rural Reconstruction Nepal (RRN),
(RRN) which also
recommended by the different lined agencies
agencies:
1. Letang and Tante (Morang)
2. Siddhakali and Siddhapokhari (Sankhuwasava)
3. Chisapani and Gelu (Ramechhap
(Ramechhap)

iii) Focus group discussions


Focus group discussions were
also held with the
beneficiaries (target group) to
identify potential agriculture
commodities. Altogether six
FGDs were organized, one
each in Letang, Jante
(Morang), Siddhakali and
Siddhapokhari
(Sankhuwasabha), and
Chisapani and Gelu
(Ramechhap). The main
participant during the FGDs
were farmers, local leaders, Photo: Focus Group Discussion, Jante, Morang

teachers, entrepreneurs, local


traders, businessman, and representatives from CFUGs.

Participatory and consultative


The study focused on understanding of the various stakeholders
stakeholders‟‟ functions, participation, roles
and services that they provide to natural products in the districts. Using the participatory
methods and approaches, it was tried to understand opinions of various interest
intere groups and
stakeholders. Several governmental and non
non-governmental
governmental offices were consulted.

Poly Vocal Approaches


This method intends to reflect the views and concerns of stakeholders who are involved in
production and marketing the agro
agro-forestry
forestry commodities. Both external as well as internal

Value Chain Analysis of Agro-forestry


forestry Commodities 23
views were recorded during the field visit. During external approach, it was communicated
with a wide range of stakeholders who involved in the production and marketing of the
agricultural commodities whereas value chain within community was recorded using internal
approaches

iv) Direct market observation and


market survey

Market centers were visited during the


field study. The main market centers
visited were Letang, Manthali,
Biratnagar, Itahari and Khandbari. During
the visit, agriculture based products
were observed. Brief interactions with
shopkeepers and traders were also held.
Market demand, prices of products,
distribution channel of the products, and
other details were discussed during the
market observation.

2.2.3 Secondary Sources of Information


Secondary data collection is also one of the important methods to make more relevant for the
study. Secondary data was obtained from a wide array of qualitative and quantitative sources
such as case studies, literature reviews and desk research to provide information on various
aspects of natural and other high value products such as geographical and biological; socio-
economical, governance and policies, technological and marketing. With a special emphasis on
value chain and marketing, priority was provided for gathering information on the market
channels, trade volumes, marketing practices, demand, and supply situation as mentioned
above.

Value Chain Analysis of Agro-forestry Commodities 24


3.1 Potential Agriculture Commodity
Ramechhap
Ramechhap is an agriculture based district; about 90% of the people are depended on
agriculture where none of farmers have practiced the commercial or professional farming.
Therefore, subsistence level of farming is the major problem in the Ramechhap district.
Realizing these situations, focus groups discussion was conducted in order to find out the actual
situation on where we could intervene such agriculture commodities in the future. After
discussing with the community during focus group discussion, the following agricultural
commodities had been recorded incorporating the poly vocal approaches:

Table: Possible agricultural commodities in Chisapani and Gelu VDCs of Ramechhap district

Agricultural Commodities Possible location to Remarks


intervention
Seasonal and off-seasonal Chisapani and Gelu (1-9 Tomato farming in a rainy season
vegetable production wards) (off seasonal), cucurbits in a winter
season, ladyfingers in winter season
Japanese Persimmon Chisapani and Gelu, 1-9
wards
Pomegranate (Anar) Chisapani and Gelu (1-9
wards )
Sweet Orange Only in Gelu-5 and 6
Wood Apple Gelu (1-9 wards/ Specially for making the juice or
locally known as SARBAT, Powder,
Jam and Squash.

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.

Value Chain Analysis of Agro-forestry Commodities 25


Index of the Relative Ranking (IRR) (Ramechhap)

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).

Table: Ranking of agricultural commodities in Chisapani and Gelu VDCs

Agriculture Commodities Index of Relative Rank Remarks


Ranking (IRR)
st IRR= (R1S1+R2S2+-------------
Tomato 0.8 1 ***
th +Rn*Sn)/nr (Miller, 1989)
Pomegranate (ANAR) 0.62 4
th
Japanese Persimoum 0.5 5
nd
Turmeric 0.74 2 **
rd
Cucumber 0.71 3 *

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.

Ranking on Value chain

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.

Table: Scope of ranked agricultural commodities in Gelu and Chisapani VDCs

S.N. Criteria for Value Chain Weighted Value Remarks


1 Growth potential (Market, 5 There is a secure market after production. The main
markets are Manthali, Sindhupalchok, Dhulikhel, Banepa
Production, Competition) and Kathmandu valley.
2 Scope (Production, area, 4
income, consumption)
3 Poverty reduction potential, 4
social benefits

Value Chain Analysis of Agro-forestry Commodities 26


4 Prospects for success, 4 Favorable climatic conditions
conductive policy and social
environment
5 Traditional knowledge and 2 Very little knowledge on off-seasonable
skills vegetable production

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.

Potentiality of ranked commodities in Gelu and Chisapani VDCs

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:

Value Chain Analysis of Agro-forestry Commodities 27


1. Supply of inputs ( Appropriate farm tools, quality and improved varieties of seeds,
technical manpower, etc)
2. Seeds money for establishing the cooperative or post formation support to cooperatives
3. Capacity building trainings for seasonable and off-seasonable vegetable promotion
especially on TOMATO and CUCUMBER.
4. Cultivation practices of JAPANESE PERSIMOUM, POMEGRANATE
5. Sweet orange and wood apple value addition (Organic juice production from Sweet
orange and wood apple) through cooperatives.
6. Trainings on organic pesticide management
7. Manure and fertilizer (Vermi-composting, urine collection, etc)
8. Harvesting techniques, collection and storage
9. Marketing of the commodities
10. Networking

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.

Value Chain Analysis of Agro-forestry Commodities 28


3.2 Cultivation Methods (TOMATO)
After discussion with farmers from Ramechhap district, three important crops named TOMATO,
JAPANESE PERSIMOUM and POMEGRANATE have been recommended for cultivation in
Chisapani and Gelu VDCs. The guidelines for cultivation of the ranked agricultural commodities
have been described below:

3.2.1 Tomato Cultivation

Climate: Altitude of 60-2600 masl and temperature of 20-30oC is suitable for its cultivation.

Off-season months: Mid-June to mid November

Transplanting Time: Terai ---> Mid Bhadra – Asoj.


Low Hill ---> Magh and Shrawan.
High Hill ---> Baisakh - Jestha.

Variety: Large Fruit = BSS-20 ,Thims -2, Trisana


Medium Fruit = Srijana, Bises, Dalila
Small Fruit = Dhana, Grescco -1, CL – 1131, Care – Nepal

Seed/Seedling: 5 grams/ 1000-1500 seedlings/ropani.

Spacing: Row to Row: 100 cm


Plant to Plant: 50 cm
Fertilizer requirement (Per ropani)
FYM : 1500 kg Crystal : 20gm
Urea : 10 kg Zyme : 1 kg
DAP : 10 kg Chelated Zinc : 100gm
MOP : 5 kg Neem cake : 2 kg
Borex : 100gm
(One Kg tomato production requires Nitrogen 6 gm, Phosphorus 7 gm and Potash 7 gm)

Harvesting time: Jestha - Mansir


Production (per ropani) :
For Open Field For Plastic House
Local: 1000-1200 kg Local : 2000 – 3000 Kg
Hybrid: 2000-3000 kg Hybrid: 4000 – 8000 Kg

Crop Protection
Insects
Tomato fruit worm
Symptoms: Feed on fruits and decay fruits. Larvae half inside fruit and half outside.

Value Chain Analysis of Agro-forestry Commodities 29


Control Measures: Practice IPM, Use NPV virus and destroy worm at larval
stage. Use helilure as sex pheromone

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.

Nematode: Nodules and knots in the roots, stunted growth


Control: Crop rotation

3.2.2 Persimmon (Haluwabed) Cultivation


Origin and Distribution
The tree is native to Japan, China, Burma and the
Himalayas and Khasi Hills of northern India. In China it is
found wild at altitudes up to 6,000-8,000 ft (1,830-2,500
m) and it is cultivated from Manchuria southward to
Kwangtung. Culture in India began in the Nilgiris. The
tree has been grown for a long time in North Vietnam, in
the mountains of Indonesia above 3,500 ft (1,000 m) and
in the Philippines. It was introduced into Queensland,
Australia, about 1885.
It has been cultivated on the Mediterranean coast of
France, Italy, and other European countries, and in southern Russia and Algeria for more than a
century.

Value Chain Analysis of Agro-forestry Commodities 30


Cultivars
Among prominent cultivars are the non-astringent 'Fuyu', 'Jiro', 'Gosho' and 'Suruga'; the
astringent are 'Hiratanenashi', 'Hachiya'.

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.

Value Chain Analysis of Agro-forestry Commodities 31


Cropping and Yield
Many cultivars begin to bear 3-4 years after planting out; others after 5-6 years. The annual
yield of a young tree ranges from 22.6-40.8 kg of a full-grown tree, 150-250 kg. Harvesting takes
place in fall and early winter. Spraying the bearing branches with gibberellic acid 3 days before
harvest has retarded maturity on the tree; has doubled the storage life of astringent types after
curing.

Diseases and pests


Low germination rates of planted seeds have been traced to dry rot caused by Penicillium sp. It
can be controlled by pretreatment with an appropriate fungicide. Cercospora may spot the
leaves, and a virus causes "mosaic"–mottling of leaves and premature leaf fall, shedding of
flowers, and necrotic spots on fruits; also a different necrosis on the tree and the bark of
shoots, twigs and branches that causes die-back. Anthracnose occurs on fruits that have slightly
cracked or have been pierced by insects. In Florida, leaf spot, algal leaf spot, twig blight, twig
dieback, root rot, thread blight and other fungal diseases may occur.

3.2.3 Cultivation of Pomegranate

Pomegranate shrubs are one of the easiest fruits to


keep, since they are usually not affected by many
pests or diseases. The fruits are full of antioxidants
and thought to have many health benefits. And also
not as easily perishable as compare to other fruits.

Latin Name: Punica granatum

Common Names: Pomegranate.

Size & Shape of the Pomegranate: The


pomegranate can range from a dwarf shrub of 3' to a
small tree of 20-30'. The average size of a standard
pomegranate shrub is 12-16' tall with a round shape.

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

Value Chain Analysis of Agro-forestry Commodities 32


cross pollination. The pomegranate fruit is approximately 2.5-5" wide. It has a red, leathery rind.
Each seed is encased in pulp and sectioned off by walls. Harvest when the color has developed
and makes a metallic sound when tapped. They can be stored for a long time if kept around 32-
40F.

Growing Tips for Pomegranate:


Perfect for the sunniest and warmest locations in the yard that might scorch other plants. The
pomegranate shrub is somewhat drought tolerant, and also salt tolerant. The pomegranate does
best in well-drained soil, though it is able to thrive in a wide variety of soils from acid loam to
alkaline soil. The pomegranate shrub is drought tolerant, though irrigation is needed for proper
fruit production, per the California Rare Fruit Growers. Water every 2-4 weeks during the dry
season when you are establishing new shrubs.

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.

Maintenance/Pruning: Pomegranates are prone to producing suckers, so remove them as they


appear.
Pruning procedures:
1. Cut the pomegranate back once it is 2' high.
2. Allow 4-5 shoots to develop about 1' above ground.
3. For the first three years keep shortening the branches to encourage shoot development. Fruit
only develops where there is new growth.
4. After 3 years, just prune away dead, damaged or diseased branches.

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.

Value Chain Analysis of Agro-forestry Commodities 33


SANKHUWASABHA

3.3 Possibility of Agricultural Commodities (Sankhuwashabha)


Due to the favorable climatic and topographic condition, we have to promote tremendous agro
forestry commodities even in the same unit of the land. Farmer’s interests, production and
existing marketing situations (channels and prices) are the most common factors to rank the
possible commodities in the community. Therefore, we organized the focus group discussion in
both of Siddhakali and Siddhapokhari VDCs. The following commodities were recorded during
discussion using poly vocals approaches.

Table: Possibility of Agricultural Commodities in Siddhakali and Siddhapokhari VDCs

Agricultural Commodities Possible location to Remarks


intervention
Akabare Khursani (Hot Pipper) Siddhakali and SiddhaPokhari There is the highest possibility of hot
(1-9 Wards) piper farming across the whole VDC.
Cardamom (Alainchi) Siddhapokhari (1-9 Wards) Farmers are interested to initiate or
expand the Cardamom farming only
when the organization will manage or
solve the problem of insect /pest.
Orange Siddhapokhari (8-9 wards) As per the climatic condition,
Siddhapokhari (8-9) fits for orange
farming. Soil testing of each site is
required.
Amriso Both of VDCs Community Forests and edge of the
productive land, used as hedge and
fodder for livestock’s
Mushrooms Both of VDCs Kanye and Gobre mushrooms
production
Milk collection centre Both of VDCs Livestock’s loan, insurance facility and
fodder tree management is
recommended
Seasonal and off-seasonable Both of VDCs Specially cucurbits family, Tomato,
vegetable production Potato , etc
Turmeric Both of VDCs Uplands and Kharbari of the VDCs
Ginger Both of VDCs Problems on marketing fluctuation, very
low market price

Index of Relative Ranking


After finding out the possible agro-forest commodities in Siddhakali and Siddhapokhari VDCs of
Sankhuwasabha district, we have ranked the commodities among all possible agro-forest
commodities. According to the result, we have received 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

Value Chain Analysis of Agro-forestry Commodities 34


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 production
is high due to appropriate climate, soil and topographic condition. Another reason of highest
preference was due to secure market which can be sold in a high price.

Table: IRR value of Ranking communities in Siddhakali and Siddhapokhari VDCs

Agriculture Commodities IRR Value Ranking


nd
Cardamom (Alainchi) 0.81 2 **
th
Ginger 0.34 8
th
Amriso 0.7 3 *
th
Mushrooms 0.64 4
th
Milk collection centre 0.5 5
st
Akabare Khursani (Hot Pipper) 0.9 1 ***
th
Seasonal and off-seasonable vegetable 0.42 6
production
th
Turmeric 0.4 7
Farmers have categorized the Cardamom farming as the second priority even though
Sankhuwasabha has been famous for Cardamom farming since the long years ago. Now,
Disease of Cardamom (FURKE and CHIRKE) is very serious where farmers can not solve the
problem themselves. But, the Cardamom market is secure in every year with remarkable
process. Farmers are still selecting the Cardamom farming due to its high price and easy to
cultivate. The Cardamom is also recognized as farming of lazy farmers (locally known as ALCHHI
KO KHETI).

Weighted Value on Value Chain


While finding out the weighted value on value chain in different criteria, SANKHUWASABHA has
been remarkably seen as quite good for developing the value chain. All the criteria were found
at least the weighted value (3) which is higher than normal. Therefore, both of VDCs have the
highest possibility to promote above agro-forest communities. Growth potential and scope of
these commodities were astounding.
Table: Potentiality of ranked commodities in Sankhuwasabha
S.N. Criteria for Value Chain Weighted Value Remarks
1 Growth potential (Market, 4 There is a secure market after production. The
Production, Competition) main markets are Manthali, Sindhupalchok,
Dhulikhel, Banepa and Kathmandu valley.
2 Scope (Production, area, 5 The district itself has scope to produce the
income, consumption) above mention commodities.
3 Poverty reduction potential, 4 Livelihood improvement potential for the socio-
social benefits economic upliftment of the marginalized and
disadvantaged people.
4 Prospects for success, 5 The above commodities are success in the local
conductive policy and social level.
environment

Value Chain Analysis of Agro-forestry Commodities 35


5 Traditional knowledge and skills 3 It can be used in local level as per their
traditional skills.
** Where, 1: Least value and 5= Highest value

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.

Existing potentiality of ranked commodities in Siddhapokhari and Siddhakali VDCs

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.

Value Chain Analysis of Agro-forestry Commodities 36


3.4 Discussion during Focus Group Discussion

3.4.1 Siddhakali VDC

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).

3.4.2 Siddhapokhari VDC

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.

Value Chain Analysis of Agro-forestry Commodities 37


Some farmers were saying that cauliflower and cabbage produced at Siddhapokhari cannot compete
with Dhankutan cauliflower and cabbage. Some farmers were saying off-season vegetables during rainy
season is not economical because of bad road to either direction (Dhankuta or Tumlingtar) and high
transportation costs. Therefore the possibility of growing cauliflower, cabbage and other rainy season
vegetables from the market point of view is nominal.

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.

Value Chain Analysis of Agro-forestry Commodities 38


3.5 Cultivation Practices (Akabare Khursani)
AKABARE KHURSANI
Cultivation
Akabare Chilli is a famous
Solanaceus crop grown in hilly
region of Nepal, especially in the
eastern hills of Nepal. Although
there are numerous species and
cultivars of round hot pepper,
slightly elongated bigger one with
hot flavor is the widely cultivated
one. Red hot pepper is commercially
grown in eastern hills of Nepal
around Dhankuta, Illam and Sankhuwasava. It is one of the hottest peppers widely used in daily
Nepalese meal.

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.

Suitable climatic conditions and soil


Although it can be cultivated in wide range of climatic conditions, sub-tropical climatic
condition is suitable for its commercialization. Average day temperature 22-25 0C and average
night temperature 15-20 0C is best for its proper growth and production. Sandy loam soil with
high fertility and high soil organic matter content is suitable for commercial cultivation. Soil pH
should be around 6-7. Water logging condition should be avoided.

Value Chain Analysis of Agro-forestry Commodities 39


Nursery management
For early season crop seeding should be sowed on Ashwin-Kartik and for late season crop on
Magh-Falgun. Seeds should be taken from healthy and high productive plants. Seedlings should
be protected from rain and cold using plastic tunnel.

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.

Value Chain Analysis of Agro-forestry Commodities 40


3.6 Value Chain Map of AKABARE KHURSANI (Hot Pepper)
Akabare Khursani Value chain in Siddakali and Siddapokhari VDCs of Sankhuwasabha

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%

District Agriculture Development Office


Processing (Sun
Drying And

Flow of money

Bank, transport agencies


Grinding)

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

group, Agriculture sub sector

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

Value Chain Analysis of Agro-forestry Commodities 41


Input supplier

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.

Value Chain Analysis of Agro-forestry Commodities 42


Consumer

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.

Value adding in Akabare chain


In production chain, there is not specific value adding parameters, farmer produces it and
select on the physical product features and appearance, and clean it with water. No specific
processing for Akabare. Sometime they dry it and also make dust/powder; these are only some
value addition activities. Akabare Khursani itself the expensive agriculture commodity, had
better not do other processing for value addition. The dust /powder is seen like as other chilli
powder. Therefore, product certification is also required to make the trusts for consumers.
Akabare Pickle is very important product in Nepal. After training to farmers, farmers themselves
prepare the Akabare pickle, and can sell them as higher price.

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.

Value Chain Analysis of Agro-forestry Commodities 43


3.7 Cardamom in Sankhuwasava
Sankhuwasava is one of the most potential districts for cardamom production in Nepal where
larger number of farmers have been cultivating traditional variety of cardamom and small
proportion of them are cultivating modern variety. The modern varieties are high productive
than the local varieties but now farmers are facing different problems. In spite of high
fluctuation in market price, farmers are keen interested to continue its farming in the area
because it is least labor intensive and highly profitable in comparison to other crops possible.
There is an interesting saying ‘AALAICHI AALCHI KO KHETI HO’ (cardamom is a crop of lazy
people) which justify the scope of this crop in the area.

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.

For the sustainable production of Cardamom, permanent solution towards disease/pest


management is required. Governments and agriculture-related organizations are responsible
to solve the farm-based problems in a long term.

Value Chain Analysis of Agro-forestry Commodities 44


(Adopted from SNV, 2011)

Value Chain Analysis of Agro-forestry Commodities 45


Value chain and its actor

(Adopted from SNV, 2008/2009)

Value Chain Analysis of Agro-forestry Commodities 46


MORANG

3.8 Possible Agro-Forest Commodities (Morang)


Two VDCs named Letang and Jante were selected to analyze the value chain of the appropriate
agro-forestry community. Altogether, two major focus group discussions were conducted in
the premise of VDC building where related stakeholders (famers, Middleman, businessman,
youth and other key persons) had been participated during discussion. Different people have a
different ideas, interest and understanding towards selecting the agricultural commodities.
According to the common understanding and voices of farmers, the following commodities
have been found as the most possible agriculture commodities:

Table: Possibility of agricultural Commodities in Letang and Jante VDCs.

Agricultural Commodities Possible location to Remarks


intervention
Laure SIMI Letang (1-9 wards) and
Jante (1,2,3,8 and 9 wards)
Banana Both of VDCs
Tomato Both of VDCs Off seasonal vegetable production
using plastic tunnel
Bringle Letang (2,4 and 8) and Jante
(1,2,4,6,9 wards)
Spinach (SAG) Both of VDCs

Index of Relative Ranking (Morang)

Table: Ranked agricultural commodities in Letang and Jante VDCs

Agricultural Commodities IRR Value Ranking


Banana 0.74 2nd **
Laure SIMI/French Bean 0.84 1st ***
Tomato 0.65 3rd *
Bringle 0.60 4th
Spinach (SAG) 0.45 5th
*Ideal IRR Value=1

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.

Value Chain Analysis of Agro-forestry Commodities 47


Farmers have been practices the LAURE SIMI since the past years. They have received the high prices,
and secured market (especially in Kalimati, KATHMANDU).

Potentiality of Ranked Commodities

Table: Weighted value on different criteria on Value Chain

Criteria for Value Chain Weighted Value Remarks


Growth potential (Market, Production, Competition) 4
Scope (Production, area, income, consumption) 5
Poverty reduction potential, social benefits 4
Prospects for success, conductive policy and social environment 3

Traditional knowledge and skills 2

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.

Potentiality of Ranked Commodities in Letang and Jante VDCs

Growth potential
5
4.5
4
3.5
3
2.5
Traditional knowledge and 2
1.5 Scope
skills
1
0.5
0

Success, conductive policy Poverty reduction


and social environment potential, social benefits

Value Chain Analysis of Agro-forestry Commodities 48


Discussion: In this figure, we have attempted to find out the existing potentiality of ranked
commodities in Letang and Jante VDCs, Morang. We received the highest weight (5) on scope
especially on production, area, income and consumption. According to the trends, production
of French bean (LAURE SIMI), Banana and Bringle (BAIGUN) have found remarkably high since
the past years. Capacity building of farmers is important aspect to make them technologically
perfect. In Letang and Jante, farmers have earned more than the previous years.

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.

Value Chain Analysis of Agro-forestry Commodities 49


3.9 Cultivation Practices (French bean)
French Beans
(for Letang and Jante VDCs)
Cultivation of Beans
The bean is a tender, warm season
vegetable. These are of two types. Bush
Beans stand erect without support. They
yield well and require the least amount of
work. Green bush beans were formerly
called "string beans" because fiber
developed along the ridge of the pods.
Pole (Climbing) Beans climb supports and
are easily harvested. These are
intercropped with maize.
Climate: Altitude of 60-2500 msl and
temperature of 15-30 0C is suitable for its
cultivation.

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.

Value Chain Analysis of Agro-forestry Commodities 50


Spacing & Depth
Plant seeds of all varieties one inch deep
Spacing: Bushy Variety: Row to Row: 60-75 cm Plant to Plant: 60 cm
Climbing Variety: Row to Row: 90-100 cm Plant to Plant: 60 cm
Seed/Seedling: Bushy Bean = 4 - 5 Kg per Ropani
Climbing / creeping Bean = 2 - 3 Kg Per Ropani.
Harvesting
Baisakh – Falgun.
Harvest when the pods are firm, crisp and fully elongated, but before the seed within the pod
has developed significantly. The bean plant continues to form new flowers and produces more
beans if pods are continually removed before the seeds mature.

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.

Seed treatment: Captan /Thiram @ 2-3 gm/kg of seed.

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.

3.10 Value Chain Map of French bean


French bean is the first ranked agricultural crops in Letang and Jante VDCs.
Therefore, the detail value chain map has been described below:

Value Chain Analysis of Agro-forestry Commodities 51


Value Chain Analysis of Agro-forestry Commodities 52
Descriptions of chain-actors
There are three kinds of actors in French Bean value chain: micro-actors, meso-actors and
macro actors. Among them, operational service provider i.e. basic functions and chain
operators constitute the micro-level actors or micro-actor. The key functions are input
providing, growing, local processing, collecting cum wholesaling, retailing and consuming. The
details of functions and respective actors are describes in below mentioned descriptions.

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.

Value Chain Analysis of Agro-forestry Commodities 53


Consumers: The consumers are divided into local and distant, locals are from the same VDCs
and near big markets and distant are from Kathmandu.

3.11 Upgrading Strategies


After the detailed value chain analysis, the different upgrading options were assessed. Upgrading
strategies were developed in a participatory manner building on RRN’s and its partner’s core
competence in the agro-forestry sector and its experience in the region. The most important aspects in
developing a pro-poor value chain for agro-forests commodities were social mobilization and designing
systems and processes to mainstream the trade while working with highly fragmented and diverse
stakeholder groups. The role of strong, efficient, and committed facilitators was vital to success.

Production
 Logistics
 Transform
Branding
Design inputs Marketing
 Quality
 Packaging
, etc

Fig: Functional Upgrading in the Value Chain

Value Chain Analysis of Agro-forestry Commodities 54


In this research, we found that the upgrading strategy in case of input supply, production and
marketing are the major issues in the real field. Transferring the skills and knowledge to farmers
will be the long term upgrading strategies rather than giving support in a very short time.

Table: Critical issue, Upgrading strategies, Action and Action Point

Critical Issue Upgrading Strategies Action Action Point


Lack of value chain Vertical Facilitate market access Upstream trading nodes
understanding and contractualisation and income security such as producers, local
inequitable processor, and local
participation of target traders
groups
Disorganized Horizontal coordination
Developing the Production/collection
production bargaining power, nodes (Farmers` groups,
formation of farmers` women groups`,
group, cooperative, etc cooperatives,)
Unorganized selling Processing Coordination for trading Production node
at upstream level.
Poor production and Quality seeds, Product Improve the quality of Production and local
harvesting techniques upgrading the products (Organic trading node
production, improved
seeds, etc)
Policy and regulatory Value chain upgrading Facilitate about policy Institution,
constraints and practices on governments and other
agricultural crops stakeholders.
(especially on vegetable
production)

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.

Value Chain Analysis of Agro-forestry Commodities 55


3.12 POINTS of INTERVENTIONS

3.12.1 Point of Intervention: Ramechhap

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

Value Chain Analysis of Agro-forestry Commodities 56


Figure: Points of Intervention on different stages of Value Chain in Ramechhap district

Value Chain Level Intervention Partnership

Market Research/Market Linkages: Partnership with seasonable and off-


RRN will facilitate to form the seasonable vegetable producer, livestock’s`
cooperatives, farmers` groups and (Meat) producers, and fruits producers
Market/Policy marketing groups. If there has already Strategic Partnership: Department of
existed cooperatives, it will assist and Agriculture and Cooperative, DADO, District
strengthen for capacity building Chamber of Commerce, District Cottage and
towards marketing. Linkages between Small Industry Office
farmers/producers and traders

Instillation of Tomato Sauce Coordination with processing


machine, JAM and JELI from machine suppliers, Small cartage
Processing Japanese persimmon, Juice from and Small Industry, etc
Pomegranate, Technical trainings
to Farmers/processors for value
addition

Formation of Farmers groups Farmers groups


Technical Assistance (pre and post
harvesting techniques, low cost Public sector actors
Production
storage options, insect/pest
management training, organic
production

Quality Seeds: Linkages between Seeds: Private Nursaries, DADO, etc


farmers groups and seeds suppliers,
Inputs train lead farmers to cultivate the Coordination with financial
quality seeds. association, revolving funds, other
cooperatives.
Financial services: Production
technology, loan to farmers, etc.

Value Chain Analysis of Agro-forestry Commodities 57


SANKHUWASABHA

3.12.2 Point of Intervention: Sankhuwasabha

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)

Value Chain Analysis of Agro-forestry Commodities 58


Point of Intervention in Sankhuwasabha district

Value Chain Level Intervention Partnership

Market Research/Market Linkages: Partnership with seasonable and off-


RRN will facilitate to form the seasonable vegetable producer, livestock’s`
cooperatives, farmers` groups and (Meat) producers, and fruits producers
Market/Policy marketing groups. If there has already Strategic Partnership: Department of
existed cooperatives, it will assist and Agriculture and Cooperative, DADO, District
strengthen for capacity building Chamber of Commerce, District Cottage and
towards marketing. Linkages between Small Industry Office
farmers/producers and traders

Electric Drier support for Cardamom Coordination with processing


processing. machine suppliers, Small cartage
Making AKABARE Khursani dust by
Processing spices processing machine, and Small Industry, etc
Mushroom cream production,
Tomato Sauce production, Making
Sweeps (Kucho) from Amriso,
Turmeric dust production, Pickle from
Ginger and AKABARE KHURSANI

Formation of Farmers groups Farmers groups


Technical Assistance ( Farm
Management, Insect/Pest Public sector actors
Production
management ( Especially Chirke,
Furke and Poke of Cardamom ),
disease control of AKABARE, etc

Quality Seeds: Turmeric, Mushroom, Seeds: Farmers` nurseries, DADO,


Ginger, AKABARE KHURSANI and etc
Inputs seasonable and off-seasonable
vegetable production. Coordination with financial
association, revolving funds, other
Financial services: Production
cooperatives.
technology, loan to farmers, etc.

Value Chain Analysis of Agro-forestry Commodities 59


MORANG

3.12.3 The Point of Intervention

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

Value Chain Analysis of Agro-forestry Commodities 60


Points of Intervention in Morang

Value Chain Level Intervention Partnership

Market Research/Market Linkages: Partnership with seasonable and off-


RRN will assist and strengthen for seasonable vegetable producer
capacity building towards marketing.
Market/Policy Strategic Partnership: Department of
Linkages between farmers/producers Agriculture and Cooperative, DADO, District
and traders Chamber of Commerce, District Cottage and
Small Industry Office

Banana chips production Coordination with processing


machine suppliers, Small cartage
BANANA Wine (collaboration with
Processing cooperative, technical supports, etc and Small Industry, etc

TOMATO Sauce

Formation of Farmers groups Farmers groups


Technical Assistance ( French bean
farming, Banana farming, Tomato Public sector actors
Production
farming , Bringle farming, etc)

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.

Value Chain Analysis of Agro-forestry Commodities 61


4.1 Conclusion
In RAMECHHAP, farmers selected the seasonal and off-seasonal vegetable production (IRR=0.8),
as the highest rank among four agricultural commodities, 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. 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.

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.

Value Chain Analysis of Agro-forestry Commodities 62


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:

Supply of inputs (Supplying


the disease resistant seeds Pre-harvesting and post harvesting
Linkages with cooperatives, research
(Shreejana in TOMATO), support of vegetable (TOMATO,
institution , government lined agences,
FRENCH BEANS, AKABARE KHURSANI
Capacity building trainings on Companies, etc
TOMATO, CUCUMBER,
LADYFINGER, FRENCH BEAN, Harvesting techniques, collection and
SAG, BANANA, Japanese storage
Perssimon a nd Pomegrnate

Promotion of products, Maketing of


Value Addition (Instillation of the commodities
Seeds money for establishing Processing technology (Tomato sauce ,
Wood Apple Juice, J.Perssimon
the cooperative Jam/JELI , Akabare Pickle, Akabare
dust/powder, BANANA Chips, etc.

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)

Value Chain Analysis of Agro-forestry Commodities 63


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,
Pomegranate, Japanese persimmon and Akabare Khursani. Similarly at production level,
prevalence of disease; low productivity; traditional cultivation practices; traditional practice of
seed production and storage; improper practice on post-harvest handling; limited collective
marketing practices and low bargaining power; and minimum support from GOs and NGOs are
the constraints.

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.

Value Chain Analysis of Agro-forestry Commodities 64


4.2 RECOMMENDATIONS
4.2.1 Work on disease management
Bean mosaic is the main disease being faced by French Bean producer which is one number for
loss in production. Likewise Furke, Chhirke and Root Root disease of Cardamom , Rhizome rot
disease of Ginger, Leaf Blight and Mosaic virus in TOMATO, dry rot caused by Penicillium sp in
Japanese Persimmon, and leaf spot, fruit spot, twig dieback, dry rot and soft rot in
Pomegranate are the major disease in the farmers` preference agricultural commodities.
Therefore, identification of the disease and prompt curing mechanism in field level by supplying
the agriculture related technical persons should be dispatched in each VDC of RRN working
areas.

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).

4.2.3 Quality production and post harvesting handling

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.

Value Chain Analysis of Agro-forestry Commodities 65


4.2.3 Support to establish collection centre

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.

4.2.4 Support to establish the Instillation Technology

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.

4.2.6 Conduct exposure visit of the farmers


Realizing the motto of seeing is much more reliable than hearing. Farmers of every program
VDC should give the chance to visit in many farms or cooperatives or processing unit in at least
one year upgrading their skills and motivating them in business motive.

4.2.7 Support in branding, export facilitation and market diversification:

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.

Value Chain Analysis of Agro-forestry Commodities 66


Value Chain Analysis of Agro-forestry Commodities 67