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

The input supply system should be strengthened to ensure the availability of high quality
inputs at the farmer level. Government, non-government, and private sector actors should
closely coordinate to achieve export-led economic growth. Private/public and cooperative
partnerships should take a lead role in infrastructure development, such as warehouses,
collection centers, and research and development (R&D). Examples of R&D investment
opportunities include varietal improvements, seed multiplication, and enhancing quality
standards. Provisions should be made for smallholder farmers and processors to receive
incentives on capital, agricultural inputs, grading and cleaning tools, equipment, and microirrigation
systems. Cooperation among market actors is the most essential factor for
establishing a functional lentil value chain.
1. INTRODUCTION
1.1 Background
NEAT is designed to promote economic growth, reduce poverty, and improve livelihoods in
Nepal. Under its components 2 - encouraging competitiveness and exports in select
agricultural and non agricultural commodities or services - NEAT is supporting four subsectors
including: lentils, off-season vegetables, ginger, and orthodox tea.
ANSAB is an independent, nonprofit, civil society organization working in South Asia since
1992. ANSAB is committed to biodiversity conservation and economic development through
community-based enterprise oriented solutions. ANSAB is the pioneer in developing and
applying new approaches to promote natural products-based enterprises and value-chain
interventions in Nepal.
Lentil (Lens culinaris) is mainly grown in the lowland Terai region of Nepal in rotation with
cereals based on the availability of residual soil moisture after the harvesting of rice. It is
generally planted in mid October to November and harvested in March and April. Lentil is a
short bushy annual legume with small purse like pods containing 1 or 2 lens-shaped seeds.
Lentils were among the earliest domesticated plants about 10,000 years ago in the Near East
(Cubero et al. 2009). Lentils play an important role in livelihood, food, and nutritional
security. They are low in fat, low in sodium, cholesterol free, high in protein, and are an
excellent source of both soluble and insoluble fiber, complex carbohydrates, vitamins and
minerals. Lentil is also an important nitrogen fixing crop.
Lentil is the highest pulse in terms of both production areas and production quantity that
covers more than 60percent of the total pulses produced in Nepal. It is also the largest
exported item among agricultural commodities from Nepal with a share of about 2.3 percent
of total national exports and about 3.1 percent of the total world export (ITC, 2010). Nepal is
currently listed among the top 10 exporters and was 5th in 2009 and 2010 in terms of quantity
and value in US dollar exported. Lentils from Nepal are receiving US $1,364 per metric ton
(MT) which is high compared to the lentils from other countries. The Nepal Trade Integration
Strategy (NTIS) has prioritized lentil as one of the 19 commodities with export potential in
Nepal.
Despite a high export potential, there are many constraints that are limiting the production
and export of lentils. The major constraints to increase lentil production at farm levels are the
lack of improved seeds, production technologies, micro-nutrients, chemical fertilizers,
insecticide/pesticide management, and micro-irrigation. Also constraining export growth are
Value Chain/ Market Analysis-Lentils 2