Value Chain Analysis of Potato in Tokha Municipality of Kathmandu District, Nepal

Abstract

The study was carried out in Tokha Municipality of Kathmandu district from April, 2020 to June, 2020 to map the value chain of potatoes and assess the productivity and profitability within the existing value chain. Altogether 50 potato producers were selected along with 5 aggregators, 5 wholesalers, 5 retailers and 10 consumers using the random purposive sampling technique. The primary data were collected through field survey, focus group discussion and key informant interviews and secondary data were obtained from various published documents. The data obtained were analyzed in MS-Excel and SPSS. The average area under potato cultivation was 2.94 ropani with a productivity of 6.96 quintals per ropani, which is slightly lower than national-wise productivity (7.48 quintals per ropani). The cost of production per ropani was NRs. 13397 while cost incurred by traders per quintal (aggregators NRs. 3470, traders NRs. 4250 and wholesalers NRs. 3571). The average gross return was NRs. 28182.28 per ropani. The producers B:C ratio was 2.13 while aggregators (3.80), retailers (3.20) and wholesalers (1.99) with the net margin NRs. 7989.58 per ropani. The producer’s share on consumer’s price was 72.43% and the marketing margin for aggregators, retailers, and wholesalers was NRs.570.91, NRs.800, and NRs.587.44 respectively. The problems in quality assurance among traders and higher prices among the consumers were found. Thus, potato being an important cash crop, the decision¬-makers should take up initiatives for strengthening the potato value chain by establishing cold storage facilities in production belts and improving subsidized credit services to value chain actors.

Value chain analysis of potato in Bajhang district, Nepal

“…In the study area, wholesalers and retailers played the part of processors. This is different from the finding of Tokha municipality (Shrestha et al, 2022), where they were identified as separate actors in the value chain. The major enablers or supporting actors were the Agriculture Knowledge Centre (AKC), Project Implementation Unit (PIU), Potato Zone, District Agriculture Development Office (DADO), NGOs (Sahara Nepal), INGOs, JTAs, Agriculture and Extension officers, Agricultural Development Bank Ltd. (ADBL), and microfinance.…”

“…5030 per quintal. Therefore, the producer's share in consumer's rupee is only 51.68% which is significantly lower than the producer's share of 72.43% in Tokha municipality, Kathmandu (Shrestha et al, 2022). The finding showcases that the producer's share is not satisfactory because intermediaries are getting almost half of the share from the consumer's pay.…”

“…2430 per quintal, whereas in the Tokha municipality, Kathmandu, it was NRs. 1394.11 per quintal (S. Shrestha et al, 2022). The value addition and value share of each actor…”

Profitability and Resource Use Efficiency Analysis of Potato Cultivation in Doti District of Nepal

“…cost of NRs 11,244.11 per kattha, or around NRs 244,882.2 per hectare in Potato cultivation which is similar to previous findings by(Sapkota et al, 2019;Shrestha et al, 2022). Additionally, it was found that Jorayal's farmers spend an average of NRs 11,223, which is NRs 43.01 less than Bogtan's farmers (NRs.…”

Analysis of economic, production, and marketing aspects of potato farming in Changunarayan Municipality of Bhaktapur, Nepal

“…This information underscores the importance of understanding the dynamics of marketing channels and their impact on both producer income and overall market structure. Shrestha et al (2022), in their study in Tokha, Kathmandu, also found that as the number of intermediaries in the supply chain increases, the market margin increases while the producer's share decreases.…”