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Competitiveness And Determinants Of Lentil (Lens Culinaris Medik.) Export From Nepal: A Porter’S Five Forces Framework Approach

Author

Listed:
  • Binod Ghimire

    (Faculty of Agriculture, Agriculture and Forestry University, Chitwan, Nepal)

  • Shiva C. Dhakal

    (Faculty of Agriculture, Agriculture and Forestry University, Chitwan, Nepal)

  • Santosh Marahatta

    (Faculty of Agriculture, Agriculture and Forestry University, Chitwan, Nepal)

  • Ram C. Bastakoti

    (Green Resilient and Productive Agriculture Ecosystem (GRAPE), GIZ, Nepal)

Abstract

Lentil (Lens culinaris Medik.) is a vital pulse crop for Nepal, holding significant economic value in domestic agriculture and exports. Despite being a major producer, Nepal’s lentil export competitiveness is limited by inconsistent quality, minimal value addition, and a fragmented supply chain. This study investigates the determinants of Nepalese lentil export competitiveness, focusing on the Dhaka market, using Porter’s Five Forces framework and secondary data from sources like FAOSTAT. Analytical tools such as descriptive statistics, multiple OLS regression, the Augmented Dickey-Fuller test, Johansen co-integration, competitive matrix, and Rapid Market Appraisal are employed. Findings indicate that Nepalese lentils are favored for their taste and cooking quality, yet face stiff competition from Canada, Australia, and India. Key determinants affecting competitiveness include market share, consumer demand, quality attributes, and pricing. OLS regression shows Nepal’s exports are significantly influenced by exchange rate (β = 2.93, p = 0.011), Bangladesh’s domestic production (t = -3.43, p = 0.004), and international prices (β = -1.0689, t = -2.51, p = 0.025). Within study among markets and traders in Dhaka, Nepal contributes around 16% share and this share found declined in recent years, with rising imports from Australia and Canada. Exporters and importers emphasize market demand, taste, and cooking quality as trade drivers. The study concludes with strategic recommendations including export credit and efficient production to improve Nepal’s competitive position. Strengthening value chains, quality assurance, and market linkages is essential to ensure sustainable growth and global market integration for Nepalese lentils.

Suggested Citation

  • Binod Ghimire & Shiva C. Dhakal & Santosh Marahatta & Ram C. Bastakoti, 2025. "Competitiveness And Determinants Of Lentil (Lens Culinaris Medik.) Export From Nepal: A Porter’S Five Forces Framework Approach," Food & Agribusiness Management (FABM), Zibeline International Publishing, vol. 6(2), pages 66-74, May.
    • Handle: RePEc:zib:zbfabm:v:6:y:2025:i:2:p:66-74
    DOI: 10.26480/fabm.02.2025.66.74
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    References listed on IDEAS

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