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

5.2.2 Production
High scope to increase productivity: Productivity can be increased by introducing high
yielding seed varieties and improved cultivation practices like the use of quality seeds,
weeding, applying nutrient management, and disease management. Many seed varieties can
be grown throughout the Terai and mid hill districts of Nepal during the winter season.
Low amount of capital and skill required in lentil production and storage: Lentil crops
do not need very much capital for production. Even small holders can grow lentil crops
easily. Growers have to invest about 60 % of the total cost into irrigation and labor for
harvesting, winnowing, and threshing. The cost is even lower if farmers use household labor
and grow in low lands.
Availability of improved varieties: Normally, farmers select the seed of traditional cultivar
due to a lack of knowledge about improved cultivars. There is a lot of room for improvement
in terms of increasing yield simply by selecting the appropriate cultivar with high
productivity.
Availability of financial institutions at district level: There are three or four financial
institutions in each lentil growing district. The number is even higher in central Terai
districts.
Provision of financing at cooperative level: There are community level cooperatives in
each district. Additionally, new cooperatives have been emerging in each lentil growing
district every day. Many times, cooperatives will offer financing at a low interest rate.
Availability of research and extension services: There are many NGOs and government
institutions working in the lentil sub-sector including: DADOs, FORWARD, LIBIRD,
PACT, NARDF and NARC. Resources can be optimized through coordination and
collaboration among these programs and projects.
5.2.3 Processing
Availability of high-tech processing technologies: Currently, about 18 high-tech processing
mills are operating in Nepal. These processing units are centrally located close to the Indian
boarder and have access to transportation and communication facilities with the entire world.
Each processing unit has a capacity of about 4-5 ton/hrs with sorting and grading abilities.
5.2.4 Marketing
Value addition through cleaning and grading at farmer’s level: In order to attain
competitive prices, farmers must follow basic post-harvest handing practices like cleaning,
drying, grading and packaging. These activities are simple, but many farmers are reluctant to
put in the extra effort.
Scope to develop a niche market for organic and natural lentil: Currently, the use of
pesticides, chemical fertilizers, and herbicides in lentil crop is almost non-existent at the farm
level. There is increasing trend for consuming organic lentils, particularly in developed
countries. Nepal can harness this opportunity through exploring Nepali organic lentil;
particularly in EU and U.S. markets.
Value Chain/ Market Analysis-Lentils 26