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

yielding varieties and improved cultivation practices like use of quality seeds, propermulching, weeding, and disease management.Mother rhizome harvesting: There is the practice of mother rhizome harvesting in easternpart of the country which is not practiced by the farmers of central and western Nepal. Theharvesting of mother rhizome can provide significant return in cost of production as it is soldin the offseason.5.2.3 ProcessingProduct diversification: This study objectively looks at developing value added products indifferent value chain points of ginger for better market penetration and economic gain of theprimary producers. It is found that departmental stores in Kathmandu are importing gingerproducts like paste, powder, slices mixed with vinegar, etc. from India and Thailand. Apartfrom that there is also high demand of powder, pickles, and dry ginger. If Nepaleseprocessors can make those products, they will easily access the market, which is moreprofitable than selling it fresh.Availability of other projects: There is availability of program and projects like CADP,PACT, HVAP, Mercy Corps, SNV, and WTO-STDF which are focussing their activities inthe ginger sector. Greater collaboration would result in meaningful, easy access to processingactivities at farmers and traders level.5.2.4 MarketingValue addition through cleaning, grading & sorting: To make the products competitive inregional markets, simple activities like cleaning, grading, sorting, and proper packaging canbe done. These activities would increase the shelf life of the products and help generatepremium price in the markets.Opportunity for import substitution: As Nepal is exporting fresh ginger at a low price andimporting value added products from regional and international market at a high price, thereis an opportunity to substitute the imports. For example, Nepal is also importing fresh gingerfrom China, which can be substituted by developing storage facilities.Market diversification: Most of the ginger from Nepal is exported to India. ITC data showsthat about 99 percent of ginger was exported to India in 2009, however, per unit price ofginger in Indian market is low compared to other South Asia, East Asian and Middle Eastcountries. According to ITC 2010, the exported unit value (USD/MT) for Nepalese ginger inIndia is USD 205. In this context, the market diversification can be a good opportunity forNepalese ginger. South Asian countries like Pakistan and Bangladesh are the 3 rd and 5 thbiggest importers of the ginger worldwide and have imported ginger with the unit value ofUSD 878 and USD 1,556 respectively. Similarly, Arabian countries, Japan, Malaysia, USA,UK and Netherlands can be the potential markets for the export of Nepali ginger, as theyhave good demand of ginger with high unit value.Employment for women and poor in primary processing center: In the eastern region, theginger from Nepal is washed in Naxalbari, a bordering town in India. No such processingcentre is reported in the western region. According to an exporter in Naxalbari, a singleprocessing center can provide employment to approx 50 people for 10 months. Most of theworkers in such processing centers are found to be women or the poor. Establishment of suchValue Chain/Market Analysis-Ginger 33