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Strengthening the competitiveness of the lentil seed system of Nepal: a value chain approach

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  • Gautam, Damodar
  • Dhakal, Shiv Chandra
  • Kattel, Rishi Ram
  • Khanal, Narayan Prasad

Abstract

A value chain approach is the most viable and pragmatic strategy to develop an effective, inclusive, competitive and sustainable seed system for many crops globally. This study was conducted in the Kailali, Dang and Siraha districts of the Terai and Inner Terai regions of Nepal to map and thoroughly analyze the value chain of the lentil seed system. Primary data were collected through a household survey, key stakeholder interviews and focus group discussions. Altogether, 300 lentil grain-producing and 100 seed-producing farmers were selected for the study. Descriptive statistics, value chain mapping, stakeholder price spread calculation and return on investment were the major tools for the study. Conventional cultivation practices along with incidence of biotic and abiotic stresses ensured non-significant differences in yield, income and benefit-cost ratio (B:C) between local seed users and improved seed users, resulting in a distorted demand pull chain and eventually leading to the lamentable lentil seed system. Total value addition from farm gate to end user was 63.84% of the total retail price. Seed conditioners and processors contributed 28.38% of total value addition. Return on Investment (ROI) per total cost was higher for seed-producing farmers (59.3%). However, ROI per added cost was higher (214.8%) for retailers followed by seed conditioners and processors (96.37%). The total price spread along the chain was 45.21% of the total consumer price, revealing the inefficient marketing system. Scaling up the major factors behind improved seed adoption, like package of practices, use of a specialized production area, the development of stress resilient varieties, technical assistance, training, and subsidy schemes based on production and efficient market system development, can economically benefit lentil-producing farmers, thereby reinforcing the major pulling force of the lentil seed value chain. Appropriate infrastructure, government prioritization, a coordinated policy environment and innovative public-private partnership models across the seed value chain are necessary for overall sectoral growth.

Suggested Citation

  • Gautam, Damodar & Dhakal, Shiv Chandra & Kattel, Rishi Ram & Khanal, Narayan Prasad, 2023. "Strengthening the competitiveness of the lentil seed system of Nepal: a value chain approach," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 67(1), January.
    • Handle: RePEc:ags:pojard:356217
    DOI: 10.22004/ag.econ.356217
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    References listed on IDEAS

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