value chain/ market analysis of the lentil sub-sector in ... - Nepal Trade

isen at the community level which does help support the need that farmers have for credit,
however they are not able to fulfil the total credit demand from their communities due to
weak institutional management for capital formation and delivery services.
5.1.3 Processing
Unavailability of sorting technology for all types of weeds at the processor level:
Processing consists of a number of steps including mechanical separation, grading,
decortications, splitting, and polishing. There are many processors in Nepal who lack
appropriate facilities that feature sorting technology. This is especially important for sorting
out weeds.
Improper cleaning and lack of grading at the farmer level: Lentils are very specific in
terms of seed coat color, diameter, thickness, and uniformity in appearance. There is no
provision of mechanical separation, cleaning or grading of lentils at the production level
which diminishes profits.
5.1.4 Marketing
Lack of collective marketing at community level: Farmers do not practice collective
marketing at the community level for price bargaining with collectors. Most of the farmers at
the local level do not understand the benefits that could be harnessed through collective
marketing.
Lack of trade and market related information at the producer and trader level: There is
a lack of trade and market related information at the producer and local traders level
particularly on potential buyers, demand, prices, and quality requirements.
Trade is largely dependent upon Bangladesh: Bangladesh is the major destination of
Nepalese lentil including about 83% of Nepals total exports in 2010.
Lack of trust among Bangladeshi banks and Nepalese exporters: There is a poor linkage
between Bangladeshi and Nepalese financial institutions. Bangladeshi financial institutions
are not cooperative with Nepalese exporters and at times as much as six months can go by
before Nepalese exporters receive payments.
Low bargaining capacity of farmers: Nepalese producers are unable to get reasonable price
due to unavailability of storage facilities and collection centers. Due to this, farmers are
reluctant to produce in large quantities and this is a detriment to their profits.
Low purity percentage: 85% purity is regarded as the optimum level in the western part of
the country. About 15% impurity such as weeds, dust, and soil is allowed by western
processor in buying lentil while it is 5 percent in eastern region which is one of the major
factors for variation in farm gate price between two regions. Grading and separating facility
is not available at collectors and farmers level. This impurity level is verified at processor
level during procurement of lentil from collector. If there is more percentage of purity,
collectors could get additional price but farmers dont receive purity gain.
Value Chain/ Market Analysis-Lentils 24