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Value Chain Analysis of Lentil Production in Bardiya District of Nepal

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Different production problems were perceived differently by lentil growing farmers in the study areas. In case of Piplapur area, problem of technical factors got the first priority followed by lack of technical knowledge to farmers, lack of subsidies, problem of low scale of production, unavailability of quality seed in time, problem of weeds, problem of insects, unavailability of commercial rhizobium at first seed treatment ,problem of diseases, problem of abiotic (drought) before sowing, problem of winter rainfall, and problem of chilling/frost injury. Due to this problem production of lentil has declined than in Simara area.

Illiteracy ,poor economic condition, gender inequality, lack of modernization in agriculture are main reasons that are responsible to rank technical factors as first production problem.

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Similarly in Simara, lack of subsidies got the highest priority followed by problem of technical factors, unavailability of quality seed in time,unavailability of commercial rhizobium at first seed treatment ,problem of chilling/frost injury, problem of weeds, problem of disease, lack of technical knowledge to farmers, problem of abiotic (drought) before sowing, problem of insect, low scale of production and problem of winter rainfall.

Due to political instability, gender inequality,corrupt leaders,poor linkage between farmers and government , which ranks subsidies as the topmost production problem in Simara. However, farmers of Simara were more progressive, well trained and skilled than famers of Piplapur.

 SWOT analysis of Lentil secton

Production

  • Fifth largest producer globally
  • Low investment, low production costs and high potential for profitability
  • Average national yield is higher than India and close to world’s average.
  • Farm production capacity of around 187,437 MT, out of which 73 percent of total production are concentrated in ten districts of Terai
  • Grown intercropped with other companion crops to provide diverse food at the household level and security of production at the time of crop failure.
  •  Common practice of relay cropping which provides more time for vegetative growth and reduce production cost due to zero tillage compare to sole cropping

 

Processing

  • About 18 lentil processing mills have Sortex machine with attributes of grading and polishing, each has operating capacity of about 4-5 ton/hr
  •  Centrally located processing units close to markets and have access to transportation and communication facilities

 

Marketing

  •  Nepalese lentils are known as a red lentil that is “small in size, tasty, and easily cooked” ; it is also organic, which is highly demanded and appreciated in South Asia and the Middle East, compared to lentils of other colors and from other country with large diameter.
  • Nepalese lentil get worldwide premium price due to quality and taste.

 

Weakness Production.

  • Lack of improved seeds, fertilizers and pesticide due to insufficient production and distribution.
  • Unavailability of irrigation facility for critical stages of the growth.
  •  Less awareness among farmers on priming and rhizobium inoculums.
  •  Boron and Molybdenum deficiency in Terai region
  •  Low seed replacement rate

 

Processing

  •  Grading and storage system is not efficient at processor level, since the processors are not using metal bins it is causing weight loss
  •  Unavailability of storage facility at farmers level which causes high post harvest losses

Marketing

  •  Lack of reliable data and analysis on national and international market
  •  Poor market information system at farm level
  • Lack of collective marketing at farmer’s level
  •  Lack of quality assurance lab and technology

 

Opportunities

Production

  •  New improved varieties (Khajura 1, Khajura 2, Simal and Sikhar) are available for whole terai and central hill, attainable yield is higher than the national average yield
  •  Possibility to boost productivity of small farmers (priming – rhizobium culture treatment, insect pest management, irrigation at critical stages, weed and nutrient management)

 

Marketing

  • Opportunities for value addition through cleaning and grading at farmers level
  •  Possibility of import substitution
  •  Increasing export markets, with prospects for the development of a niche market for organic, pure, natural lentil as a gift to international community
  •  Increasing demand in new markets like UAE, Egypt and Sudan.
  •  Sri Lanka and Pakistan could become potential neighbor markets apart from Bangladesh.
  •  Export volume can be increased through price competitiveness Threats .
  •  Subsistence production among small holders have low incentives for increasing productivity
  •  Farmers reluctant to adopt as sole crop due to economic condition, food security, traditional practice and also higher profitability in other crops such as sugarcane and vegetables
  •  Pests and disease

 

Marketing

  • Australia, Canada and USA production and policies are targeting the South Asian markets
  •  Price is volatile around the globe

 

DISCUSSION

Lentil is a leading pulse crop of Nepal and ranks 6th position after Canada, India, Turkey, United states of America, Kazakhstan. The production is concentrated in the terai district due to favorable climate ,prevailing soil condition and most importantly easy access to the national highways. In context of Nepal, lentil production is concentrated mainly in Dang, Kailali , Rautahat. Lentil is considered as highly traded commodities and listed among as 19th commodity with export potential in Nepal. Lentil shares about 2.3% of total national export. Lentil cultivation has an enormous potential to provide farmers a good employment and income generation opportunities especially in the Terai regions where there is fertile land and suitable climatic condition for growing lentil successfully. Although the lentil production has increased in years, price for the product is not constant. This study was carried out for analyzing the production and marketing problems faced by the farmers involved in lentil. Lack of subsidy and insufficient technical facilities are the major production problem faced by the farmers involved in lentil. Analyzing the value chain and the economics of production and marketing of coffee and its constraints was also the main concern of the study. For the successful study and analysis of the present status and the actors who are involved in lentil production, a survey was conducted in Bardiya district, the survey includes Piplapur and Simara of Badaiya rural municipality. .Out of the total population of Lentil growers, all together 60 growers were taken as respondent from the sites proportionately (30 from each location).

Besides that relevant and necessary information were collected from secondary sources few summaries of the studies are listed below:

  • In Bardiya, most of the household head are male, the proportion of female respondents was very less compared to that of male in both the study area.. Out of 30 respondents in Piplapur 27(90%) were male and 3(10%) were female whereas in Simara 25(83.33%) male and 5(16.67%) female.
  • The overall average family size of the study area was found 5.56, which was higher than that of national average family size (4.70) in 2011 (CBS, 2012).
  •  The proportion of economically active population is greater in Piplapur and lower in Simara .
  •  ,In Piplapur area Chhetri, Brahmin and Janjati, were not found in the sampled households. Tharu (96.67%) were highest followed by Dalit (3.33%).. In Simara area, ethnicity diversity was found as Brahmin (76.67%), Chhetri (20.0%) and Tharu (3.3%).
  •  In Piplapur area 73(40.33%) members were illiterate, 27 (14.92%) members have secondary education level, 3(1.65%) members have bachelor level of education and only 1(0.56%) member have above bachelor level of education. Similarly, in Simara area, 54 (35.29%) of members have secondary level of education, 41 (26.79%) of members were illiterate,5 (3.27%) members have bachelor level of education and only 1 (0.67%) member have above bachelor level of education.
  •  The average land holding in Piplapur area was 29.53 Katha and in Simara area was 37.067 Kathaa.
  •  The average production in Piplapur area was (4.9167 qt) than the average production in Simara (4.4783 qt).
  • The average productivity of Piplapur and Simara was found to be 44.91 (kg/kattha) and 45.2196(kg/kattha) respectively
  •  .The average gross margin/kattha was significantly higher in Simara(2719.70)as compared to piplapur(584.8037) (t= -1.158, p= 0.019). This is due to higher productivity of lentil in Simara than in Piplapur. The average gross margin/kg of Piplpaur (1.923) and Simara (32.00) wasn’t found significantly higher.(t=-0.879, p=0.128).
  • The benefit cost ratio of Piplapur was 1.0377 and that of Simara was 1.5709 which clearly signifies that profitability of lentil production was higher in Simara.
  • Value chain analysis highlights the simple point that most goods and services are produced by a complex and sequenced set of activities.
  • The main problems faced by the lentil growers for production in Simara was lack of subsidies followed by problem of technical factors whereas in Piplapur insufficient technical facilities followed by technical knowledge.
  • The main problems faced by the lentil growers for marketing in Simara was open border followed by price variation whereas in Piplapur low farm gate price per unit followed by price variation.
  • The problems faced by traders are fluctuation in price, low farm gate price per unit ,weak coordination with traders,lack storage facilities

 

Conclusion & Recommendation

Based on the survey conducted on value chain analysis of Lentil production in Bardiya district of Nepal, following conclusion were drawn.

Bardiya is one of the major production area for lentil due to favorable climatic condition, prevailing soil condition and most importantly easy access to main highway routes . Lentil production( specially seed production) has significant contribution to household income which may crucial for uplifting socio-economic condition of the rural farmers. Release of new variety and improving the local landraces along with the improvement in cultivation practices is must for increasing the productivity of lentil . There are several area for improvements like proper irrigation, storage, weeding, insect and pest management, disease management etc. Irrigation during the grain filling is important for increasing the productivity. 

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