Value chain development of bay leaf in Nepal: an impact assessment

Abstract

We assessed an impact of bay leaf value chain intervention programme on household welfare in mountain agroforestry context. We used primary survey data from project and comparison villages and propensity score matching for creating a valid counterfactual. Results indicate that households in the project villages planted 75 per cent more bay leaf trees, produced 170 per cent more bay leaves and sold more quality products at higher prices than households in comparison villages; percapita household income increased by NPR 5000-7300, share of bay leaf income in total household income increased by 8-10 per cent and level of poverty declined by 6-8 per cent. Households with female respondents benefited more in some aspects but not so in others, especially in enrolling children in school. ARTICLE HISTORY

Ocimum Sanctum [Tulsi]—An Alternative Additional Livelihood Option for the Poor and Smallholder Farmers

“…This relationship is statistically significant at 1 percent level. The findings of this study are consistent with the study findings conducted by [5,[32][33][34] that analyze the impact of commercialization of medicinal and aromatic plants such as njansang on poverty alleviation in project villages of Cameroon. Similarly, the farmers' total crop income increases by 0.9 percent for every 1 percent increase in total value of crop production in 2017.…”

“…In the face of such vulnerabilities, provision of alternative but additional livelihood options for the poor and smallholder farmers becomes a high priority. At the same time mountain agroforestry products including non-timber forest products (NTFPs) and medicinal and aromatic plants (MAPs) are considered a substantial source of alternative livelihoods which could be treated and branded into mountain niche products also constrained with limited capacity to process and package these products and non-availability of established markets targeting such valuable products [5,6].…”

“…It is essentially related with the concept of upgrading products enabling actors involved to move up in the chain, add value to their products and services for optimum and equitable benefits [24]. Strengthening vertical and horizontal interaction at various stages of the value chain positively influence income of the stakeholders involved in the chain [25] and help reduce poverty among the beneficiary households [5]. Upgrading of products via value chain development entail attaining required skills and abilities in order to brand relevant products and services and leveraging niche markets for the same [26].…”

Economics of Cinnamomum glaucescens (Nees.) Drury in Western Terai Region of Nepal: A Value Chain Perspective

“…Previous studies (Rai and Chapagain 2014;Shah et al 2018) have shown that middlemen get maximum profit margin. Piya et al (2011) identified the producers as the weakest actors in the NTFP market chain and thus they have least bargaining position.…”

“…Value chain approach emphasises a range of activities and market linkages to help entrepreneurs including growers to enhance the quality of products and fetch a higher price, thus increasing household income (Shah et al 2018). Value chain activities can be used to add value on every step of the chain by systematically improving the quality of the products through grading, packaging and connecting the farmers with markets (Mohan 2016).…”