Strengthening the Competitiveness of Lentil Seed System of Nepal : A Value Chain Approach

Value chain approach is the most viable and pragmatic strategy for effective, inclusive, competitive and sustainable seed system of many crops globally. This study was conducted in Kailali, Dang and Siraha district of Terai and Inner Terai regions of Nepal to map and thoroughly analyze the value chain of lentil seed system. Primary data were collected through household survey, key stakeholders’ interview and focus group discussion. Altogether, 300 lentil grain producing and 100 seed producing farmers were selected for the study. Descriptive statistics, value chain mapping, stakeholder’s analysis, price spread and return on investment were the major tools for the study. Conventional cultivation practices along with incidence of biotic and abiotic stresses ensued non-significant difference in yield, income and Benefit Cost ratio (B:C) among local seed user and improved seed user resulting distorted demand pull chain and eventually leading to the lamentable lentil seed system. Total value addition from farm gate to end user was 63.84% of total retail price. Seed conditioner and processors are contributing 28.38% of total value addition. Return on Investment (ROI) per total cost was higher for seed producing farmers (59.3%). However, ROI per added cost was higher (214.8%) for retailers followed by seed conditioner and processor (96.37%). Total price spread along the chain was 45.21% of total consumer price revealing the inefficient marketing system. Scaling up the major factors behind improved seed adoption like package of practices, specialized production area, development of stress resilient varieties, technical assistance, training, subsidy scheme based on production and efficient market system development can economically benefits lentil producing farmers thereby reinforcing the major pulling force of lentil seed value chain. Enabling infrastructure, government prioritization, coordinated policy environment and innovating public-private partnership models across the seed value chain is necessary for overall sectoral growth