MASTER PLAN OF AGRICULTURAL MARKETING IN EASTERN DEVELOPMENT REGION OF NEPAL Final Report Submitted To Government of Nepal Ministry of Agricultural Development Department of Agriculture Agri. Business Promotion & Marketing Development Directorate (ABPMDD) Harihar Bhawan, Lalitpur Submitted By: Business Promotion Research and Communication Pvt. Ltd., (BPRC) Putalisadak, Kathmandu, Nepal Tel # 0977-01-4442853/4436617, Fax # 0977-01-4436617 Post Box # 19006, Email # [email protected] July 2017 (Ashad, 2074) Preface BPRC is pleased to undertake this Study "Master Plan of Agri-Marketing in Eastern Development Region of Nepal". BPRC expresses its gratitude to Agri Business Promotion and Marketing Development Directorate (ABPMDD) to having entrusted this important task. It also expresses gratitude to Mr. Laxman Prasad Paudel, Program Director and his team for expert guidance and for providing suggestions throughout the study period and report writing. BPRC is also thankful to ABDMDD team for their valuable, constructive comments and suggestions which were provided during Inception report and draft report presentations. We also express graduate to Senior Agriculture Marketing Officers Mr. Rajendra Prasad Pradhan and Mr. Puspa Raj Shahi for providing necessary instructions during final report preparation. BPRC acknowledges with gratitude the contribution made by study team of the project, with their valuable contribution the project was successfully brought to its conclusion. BPRC is most grateful to Mrs. Naina Dhakal, Team Leader for the successful execution of this project and for steering the whole tasks of conducting field study till its conclusion. In addition, BPRC conveys its appreciation to the contribution made by Chief and SMS of District Agriculture Development Offices, Agro-Vets, Traders, Wholesalers, Representative of District Development Committee, Member of Market Management Committee, Commercial Farmers Representatives and Agri-Cooperatives etc. of Eastern Development Region for their participation, suggestion during District Level Interaction Meeting, which was held in each district. Bashu Dev Pandey Managing Director Business Promotion Research and Communication Pvt. Ltd. (BPRC) Putalisadak, Kathmandu July 2017 (Ashad, 2074) i Study Team SN Name Position 1 Mrs. Naina Dhakal Team Leader/Agri. Economist 2 Mr. Ram Chandra Subedi Team Member/Agri. Economist 3 Mr. Amrita Nanda Baidya Team Member/Agri. Economist 4 Mr. Bal Krishna Sharma Team Member/Agri. Economist 5 Mr. Krishna Kumar Shrestha Team Member/Agronomist 6 Mr. Surath Babu Aryal Team Member/Horticulturist 7 Mr. Sujin Prasad Joshi Team Member/Architect Engineer 8 Mr. Sheela Shrestha Team Member/GIS Expert ii Abbreviation ABPMDD Agri-Business Promotion and Marketing Development Directorate ADS Agriculture Development Strategy AMI Agricultural Marketing Infrastructure APMC Agricultural Produce Market Center APMMC Agricultural Produce market Management Committee APTP Approach Paper to Thirteenth Plan ASC Agriculture Service Center BPRC Business Promotion Research and Communication Pvt. Ltd. CBO Community Based Organization CBS Central Bureau of Statistics CC Collection Center CDO Chief District Officer CECI Centre for International Studies and Cooperation CS Cold Store DADO District Agriculture Development Office DCCI District Chamber of Commerce and Industries DDC District Development Committee DoA Department of Agriculture EDR Eastern Development Region GDP Gross Domestic Product Ha Hectare HB Haat Bazaar INGO International Non-government Organization MMC Market Management Committee MoAD Ministry of Agricultural Development mt Metric ton NA Not available NARC Nepal Agriculture Research Council NGO Non-government Organization NLSS Nepal Living Standard Survey PACT Project for Agriculture Commercialization and Trade PPP Public Private Partnership RISMFP Raising Incomes of Small and Medium Farmers Project RM Retail Market Sq.ft. Square feet TP Thirteenth Plan VC Village Committee VDC Village Development Committee WFDD Women Farmer Development Division WM Wholesale Market iii Study District Map iv Table of Contents SN Content Page No. Preface i Study Team ii Abbreviation iii Study District Map iv Table of Contents v List of Table ix List of Figure xii Executive summary xiii Chapter 1 1-4 Introduction 1 1.1 Background 1 1.2 Objectives of the Study 1 1.3 Scope of the Study 1 1.4 Methodology 2 1.4.1 Desk Review 2 1.4.2 Field Assessment 2 1.5 Approaches 3 1.5.1 Training of research assistant 3 1.5.2 District level Interaction Meeting 3 1.5.3 Focus Group Discussion (FDG) 3 1.5.4 Visit of production area 3 1.6 Limitations of the Study 4 1.7 Structure of the Report 4 Chapter 2 5-11 Agricultural Marketing Policy Review 5 2.1 Marketing Act and Directives 5 2.1.1 Agricultural Marketing Development and Management Directives-2073 5 2.1.2 Directives on Construction and Operation of Agriculture Marketing Infrastructure 6 on Partnership Basis, 2068 2.1.3 Directives on Provision of Subsidy to Agriculture Cooperative for Buying and 7 Selling of Agricultural Products, 2070 2.1.4 Directives on Provision of Subsidy on Construction of Cold Store, 2070 7 2.1.5 Kalimati Fruits and Vegetables Market Development Board Order, 2058 7 2.2 Policies and Strategies 8 2.2.1 National Agricultural Policy, 2061 8 2.2.2 Agribusiness Promotion Policy 8 2.2.3 Agriculture Development Strategy 9 2.2.4 Thirteenth Plan (FY 2013/14–2017/18) 10 Chapter 3 12-109 Agricultural Marketing in Eastern Development Region 12 3.1 Taplejung District 13 3.1.1 Introduction 13 3.1.2 Present Production Situation of Major Agricultural Crops 13 3.1.3 Forecast of the Production and Marketable Surplus 14 3.1.4 SWOT Analysis of Agricultural Marketing Development 15 3.1.5 Present Status of AMI in Taplejung District 15 3.1.6 Location of AMI to be Developed in Taplejung District 16 3.2 Panchthar District 18 3.2.1 Introduction 18 3.2.2 Present Production Situation of Major Agricultural Crops 18 3.2.3 Forecast of the Production and Marketable Surplus 19 3.2.4 SWOT Analysis of Agricultural Marketing Development 20 3.2.5 Present Status of AMI in Panchthar District 20 v SN Content Page No. 3.2.6 Locations of AMI to be developed in Panchthar District 22 3.3 Ilam District 24 3.3.1 Introduction 24 3.3.2 Present Production Situation of Major Agricultural Crops 24 3.3.3 Forecast of the Production and Marketable Surplus 25 3.3.4 SWOT Analysis of Agricultural Marketing Development 26 3.3.5 Present Status of AMI in Ilam District 26 3.3.6 Locations of AMI to be Developed in Ilam District 28 3.4 Jhapa District 30 3.4.1 Introduction 30 3.4.2 Present Production Situation of Major Agricultural Crops 30 3.4.3 Forecast of the Production and Marketable Surplus 31 3.4.4 SWOT Analysis of Agricultural Marketing Development 32 3.4.5 Present Status of AMI in Jhapa District 32 3.4.6 Locations of AMI to be Developed in Jhapa District 39 3.5 Morang District 41 3.5.1 Introduction 41 3.5.2 Present Production Situation of Major Agricultural Crops 41 3.5.3 Forecast of the Production and Marketable Surplus 42 3.5.4 SWOT Analysis of Agricultural Marketing Development 43 3.5.5 Present Status of AMI in Morang District 43 3.5.6 Locations of AMI to be Developed in Morang District 47 3.6 Sunsari District 48 3.6.1 Introduction 48 3.6.2 Present Production Situation of Major Agricultural Crops 48 3.6.3 Forecast of the Production and Marketable Surplus 49 3.6.4 SWOT Analysis of Agricultural Marketing Development 49 3.6.5 Present Status of AMI in Sunsari District 50 3.6.6 Location of AMI to be Developed in Sunsari District 56 3.7 Dhankuta District 57 3.7.1 Introduction 57 3.7.2 Present Production Situation of Major Agricultural Crops 57 3.7.3 Forecast of the Production and Marketable Surplus 58 3.7.4 SWOT Analysis of Agricultural Marketing Development 59 3.7.5 Present Status of AMI in Dhankuta District 59 3.7.6 Locations of AMI to be Developed in Dhankuta District 61 3.8 Tehrathum District 63 3.8.1 Introduction 63 3.8.2 Present Production Situation of Major Agricultural Crops 63 3.8.3 Forecast of the Production and Marketable Surplus 64 3.8.4 SWOT Analysis of Agricultural Marketing Development 65 3.8.5 Present Status of AMI in Tehrathum District 65 3.8.6 Locations of AMI to be Developed in Tehrathum District 66 3.9 Sankhuwasabha District 68 3.9.1 Introduction 68 3.9.2 Present Production Situation of Major Agricultural Crops 68 3.9.3 Forecast of the Production and Marketable Surplus 69 3.9.4 SWOT Analysis of Agricultural Marketing Development 70 3.9.5 Present Status of AMI in Sankhuwasabha District 70 3.9.6 Locations of AMI to be Developed in Sankhuwasabha District 72 3.10 Bhojpur District 74 3.10.1 Introduction 74 3.10.2 Present Production Situation of Major Agricultural Crops 74 3.10.3 Forecast of the Production and Marketable Surplus 75 vi SN Content Page No. 3.10.4 SWOT Analysis of Agricultural Marketing Development 76 3.10.5 Present Status of AMI in Bhojpur District 76 3.10.6 Location of AMI to be Developed in Bhojpur District 77 3.11 Solukhumbu District 79 3.11.1 Introduction 79 3.11.2 Present Production Situation of Major Agricultural Crops 79 3.11.3 Forecast of the Production and Marketable Surplus 80 3.11.4 SWOT Analysis of Agricultural Marketing Development 81 3.11.5 Present Status of AMI in Solukhumbu District 81 3.11.6 Location of AMI to be Developed in Solukhumbu District 82 3.12 Okhaldhunga District 83 3.12.1 Introduction 83 3.12.2 Present Production Situation of Major Agricultural Crops 83 3.12.3 Forecast of the Production and Marketable Surplus 84 3.12.4 SWOT