VALUE CHAIN ANALYSIS OF TOMATO IN PALPA DISTRICT OF NEPAL

Abstract

The study was conducted from January to June 2020. This study aims at carrying out the value chain analysis of tomato subsector in Palpa district. The specific objectives of the study were identifying the actors involved in value chain of tomato, finding out benefit cost ratio, marketing margin, producer share and value share of value chain actors, preparing value chain map of tomatoes and identifying the key strength, weakness, opportunities, and threats at different nodes of tomato value chain. Data were collected from primary and secondary sources. Primary data was collected by household interview, KII and secondary data was collected through published journals, research articles, reports of PMAMP, AKC and other government organizations. Data analysis was done using SPSS, Ms-Excel, and Stata statistical software. Data were analysed using descriptive statistics, benefit cost ratio, Cobb-Douglas production function, correlation analysis and value chain mapping. The opportunities and challenges in tomato value chain was achieved using strength, weakness, opportunities and threats (SWOT) analysis. From the study it was found that economically active population was 60.9% and majority of tomato growers (69.2%) has agriculture as their primary occupation. The average farm size was 0.7 ha and average area for tomato farming was 0.1 ha. The average productivity of tomato of sampled household was 29Mt/ha under open field condition. The average cost of tomato production was NRs. 18.2/kg. The gross margin and net margin per ha were NRs. 394474.4 and NRs. 362014.2 respectively. Benefit cost ratio was 1.67. Market margin was NRs. 25/kg with producer’s share 54.55% in the mostly used value chain. Similarly, market margin of local value chain was NRs. 15/kg with producer’s share 70% in the local value chain. The result identified that the major actors involved in the value chain were input suppliers, collector/cooperatives, wholesalers, retailers and consumers. The disease/insect infestation was major problem in production while low farm-gate price was major problem in marketing in the study area. The research showed that tomato farming is an important agribusiness in the research area.