An analysis of the ginger value chain in palpa, Nepal

Figures & data

Figure 1. Map of Palpa district including study area.

Table 1. Cost of production and B:C ratio of ginger in Palpa, Nepal

Particular	Unit	Quantity	Price	Total Amount (NPR.)
Average Cost of Production Per Hectare
Variable Cost	NPR.			324751.8
Human Labour	Day	140	450	63000
Bullock Labour	Day	5.06	1500	7600
Power Tiller Use	Hour	15	700	10500
Pumpset Use	Hour
Sprayer Use	Hour
Seed	Kg	2477.6	80	198207.8
Manure	Kg	14977.6	2.5	37444
Management Cost	NPR.			8000
Fixed Cost	NPR.			120
Land Tax	NPR.			120
Total Cost	NPR.			324871.8
Gross Income/Main product	Kg	8631.4	40	344804.2
Cost Per Quintal	NPR.			3424
Cost Per Kg	NPR.			34.24
B/C Ratio				1.06

Note: 1 USD = 129.16 NPR.

Table 2. Cobb-Douglas production function of ginger production in Palpa, Nepal

Variables	Coefficient	Standard error	t-value	p-value
Constant	2.074***	0.378	5.492	0.000
Human labor cost	0.215*	0.119	1.798	0.075
Seed cost	0.588***	0.126	4.653	0.000
Manure cost	0.091***	0.032	2.834	0.006
F-value	517.342
R Square	0.943
Adjusted R Square	0.942
Return to scale	0.894

Note: ***, * indicates the level of significance at 1% and 10% respectively

Table 3. Relationship between family type and annual income of ginger growers in Palpa, Nepal

Variables	Nuclear Family	Joint family	Mean difference	t value	p-value
Annual Income (NPR.)	346428.57	302898.55	43530.021	1.007	0.317

Note: 1 USD = 129.16 NPR.

Table 4. Relationship between grading of ginger and income from ginger in Palpa, Nepal

Variables	Grading performed	Grading Not performed	Mean difference	t value	p-value
Income from ginger cultivation(NPR.)	50557.98	24115.00	26442.980***	4.859	0.000

Note: *** indicates the level of significance at 1% and 1 USD = 129.16 NPR.

Figure 2. Value chain mapping of ginger in Palpa, Nepal.

Figure 3. Local value chain (with price) of fresh ginger in Palpa, Nepal.

Note: 1 USD = 129.16 NPR.

Figure 4. Local value chain (with price) of dried ginger in Palpa, Nepal.

Table 5. Major actors involved in marketing channels of ginger in Palpa, Nepal

Marketing channel\Actors	Producer	Collector/Local Trader	Wholesaler	Local retailer	Consumer
Channel I [Cost in NPR.) a) Fresh ginger b) Dried Ginger (Sutho)	34.24 250	40 300	55 600	65 1000	80 1200
Channel II [Cost in NPR.] a) Fresh ginger b) Dried ginger (Sutho)	34.24 250	--	--	55 500	75 1000

Note: 1 USD = 129.16 NPR.

Table 6. Marketing margin and producers’ share of ginger in Palpa, Nepal

Marketing Channel	Farm gate price (NPR.)	Retailer’s price (NPR.)	Market margin (NPR.)	Producer’s share (%)
Channel I a) Fresh ginger b) Dried Ginger (Sutho)	40 300	80 1200	40 900	50 25
Channel II a) Fresh ginger b) Dried ginger (Sutho)	55 500	75 1000	20 500	73.33 50

Note: 1 USD = 129.16 NPR.

Table 7. Factors affecting the price of ginger

Factors	P1(1)	P2(0.8)	P3(0.6)	P4(0.4)	P5(0.2)	Weight	Index	Rank
Market information	70	7	8	6	6	84	0.87	I
Cost of production	7	78	7	5	0	75.6	0.78	II
Season	4	10	46	31	6	53.2	0.55	III
Access to market	0	12	34	44	7	49	0.51	IV
Transportation system	7	7	6	7	70	33	0.34	V

Note: The figure in the parentheses indicates the score used and ‘P’ stands for priority (Ex. P1= First priority and so on)

Table 8. Players affecting the price of ginger

Players	P1(1)	P2(0.8)	P3(0.6)	P4(0.4)	P5(0.2)	Weight	Index	Rank
Government	65	12	9	7	4	83.6	0.86	I
Local collectors	12	53	22	4	6	70.4	0.73	II
Cooperatives	0	32	41	7	17	56.4	0.58	III
Wholesalers	6	6	7	70	8	44.6	0.46	IV
Processors	7	7	17	6	60	37.2	0.38	V

Note: The figure in the parentheses indicates the score used and ‘P’ stands for priority (Ex. P1= First priority and so on)

Table 9. Ranking of production problems of ginger in Palpa, Nepal

Problems	P1 (1)	P2 (0.8)	P3 (0.6)	P4 (0.4)	P5 (0.2)	Weight	Index	Rank
The lower value of ginger and its products in the market	80	7	6	4	0	90.8	0.94	I
Prevalence of pests and diseases	7	49	31	9	1	68.6	0.71	II
Lack of labor, irrigation, and other inputs	0	39	52	4	2	64.4	0.66	III
Lack of quality seed material	4	8	2	51	32	38.4	0.40	IV
Lack of technical knowledge and guidance	6	8	2	36	45	37	0.38	V

Note: The figure in the parentheses indicates the score used and ‘P’ stands for priority (Ex. P1= First priority and so on)

Table 10. Ranking of marketing Problems

Problems	P1 (1)	P2 (0.8)	P3 (0.6)	P4 (0.4)	P5 (0.2)	Weight	Index	Rank
Unavailability of the right price at market	81	8	6	2	0	91.8	0.95	I
Lack of storage and processing facilities	6	71	4	8	8	70	0.72	II
Lack of market information	8	6	67	6	10	57.4	0.59	III
Lack of sufficient middlemen	2	4	10	77	4	42.8	0.44	IV
Lack of transportation facilities	2	4	12	4	75	29	0.30	V

Note- The figure in the parentheses indicates the score used, and ‘P’ stands for priority (Ex. P1= First priority and so on)

Table 11. SWOT analysis of ginger in Palpa, Nepal

Strength	Weakness
Climatic suitability and traditionally cultivated Higher return from ginger compared to cereals Availability of traders at different levels Less perishable than other commodities Inputs such as FYM, and labor force are locally available A good return from processing Sutho (dried ginger) is a local tradition Higher capacity of organic production	Inadequate technical knowledge of production Inadequate storage facilities Fluctuation in the price of ginger Inadequate storage facilities Lack of organized market Lack of farmers’ awareness Lack of processing centers
Opportunity	Threats
Availability of quality seed Availability of governmental and private sector service providers Demand for organically produced ginger The opportunity to increase in value of the product through the establishment of a cleaning center and processing center Less chance of product loss in post-harvest since ginger can be locally processed into Sutho (dried ginger) Processing products like Sutho, oil, candy, pickles, medicine, squash Stable price if establish processing centers	Dramatic price fluctuation may cause a loss Rhizome rot infestation causing stoppage of production pockets More Efficient and enhanced production of ginger in neighboring country, India Continuous use of the same land for many years for ginger production Price fixed by the Indian market Higher quality and lower rates of ginger produced by India Natural calamities