Author: Astha Pokharel
Surkhet, located in Karnali Province, serves as the provincial capital. Birendanagar, Surkhet is an agricultural hub and plays a key role in farming and marketing agricultural products in this region. For many farmers, this farming practice acts as an ancestral profession, with individuals choosing thetraditional way of farming passed down by their ancestors.
Before moving into the ideas of the value chain, it is essential to capture opinions of Surkhet’s farmers on their production practices. Are they satisfied with their agricultural occupation? What motivates them to farm, and what expectations do they have from the farming system?
Farming is more than a livelihood for many people. It acts as a form of life where their journey is shaped by tradition and resilience. So far, closer to the truth, an array seems to emerge; farmers seem to be stuck in the same cycle as their ancestors, doing things traditionally with little or no innovation.
The “rat race,” inherited from previous generations creates a barrier for farmers to indulge in agribusiness. There are significant barriers to delving into agribusiness which include lack of resources, market fluctuations, and insufficient support. Now is the time to break this cycle and empower farmers to explore value addition and diversification in agriculture.
The main crops cultivated in Surkhet are cauliflower, potato, and field crops such as paddy, wheat, maize, turmeric, and ginger. The Indigenous Chaudhary community of Surkhet is more focused in making “dhakiya” as they can make their earnings through it.
Community groups generally possess a theoretical understanding of climate change, as natural disaster provides a warning sign which may lead to various catastrophic events such as drought, the emergence of new weeds and pests, floods, water scarcity and early withering of leaves (Kharel et al., 2023).
So, enhancing climate-resilient farming along with value-added activities is crucial. This blog explores the complexities of Surkhet’s agricultural value chain, offering insights into sustainable practices, market innovation, and the perspectives of farmers themselves.
Decoding the Magic of the Agri-Value Chain
The value chain describes the “Farm-to-Fork” which is an European deal concept of food products, with increased added value for consumers from primary production to the processing stages (Riccaboni et al., 2021). Our journey commenced in two municipalities, Birendranagar and Bheriganga, where the context for farming is similar many farmers sell their produce directly to middlemen, who may not incentivize or support value addition as it would bypass their role in the supply chain.
Fluctuations in market prices coupled with limited awareness of value addition have left many farmers in Surkhet disheartened. This often leads to agricultural losses, as farmers struggle to get good returns on their investments. Although a processing unit is set up in Birendranagar, many farmers continue selling their products directly to the markets without participating in the value chain activities. The primary reasons for the lack of participation are limited knowledge of processing technologies and inadequate access to training programs.
The value chains act as a paradox for farmers providing both opportunities and associated challenges. From an economic point of view, it provides an opportunity to enhance market access, empower farmers, and strengthen market linkage. However, there are some unavoidable repercussions. It compels farmers to use chemical fertilizer for bulk production and promote monoculture farming which degrades the soil health and also hampers the environment. So, to create a balance, sustainable value chain models are necessary to promote a greener and prosperous life, that benefits both farmers and their surroundings.
Value Chain Processing Opportunities: Insights from a Practitioner
Jahare is well-known for producing ginger and turmeric. The majority of the farmers of this ward suffer from kidney stones as a result of severe water shortage and poor hygiene. Since cooperatives purchase turmeric and zinger in large quantities from farmers, they are a game changer for the majority of farmers in that area who produce turmeric. Since half of the produce was sold in the market as seed, while the other half was processed into zinger “sutho” and turmeric powder, farmers are happy with cooperatives despite not being more satisfied with the price.
Stakeholder’s Voices and Challenges
During the interactions with farmer groups in Surkhet, various common concerns emerged:
- Dissatisfaction with Market Prices: Farmers consistently expressed frustration with the low returns on their investments. While some highlighted the challenges of market volatility, others mentioned that the existing demand for raw goods discouraged them from exploring value-added processing.
- Closure of Haat Bazars: Despite government efforts to establish haat bazars (local markets), farmers showed shallow interest in participating, citing logistical and financial challenges. The faded interest among farmers to sell their products in these bazars led to their closure.
- Dissatisfaction Among Agri-Business Service Providers: Service providers perceive agriculture as a risky occupation. While they often enter into contracts with farmers to procure bulk products, inadequate market infrastructure results in significant post-harvest losses, as proper stalls are unavailable. Further, transportation facilities for middlemen pose challenges to the supply of perishable goods, as prolonged traffic jams during transit can lead to significant post-harvest losses.
- Off-Season Production Issues: Farmers often rely on off-season production, but supply does not exceed demand, leading to food shortages. This arises due to the lack of cold storage and obligation to sell their product within the limited seasonal window
What's Holding Back Agribusiness Growth?
Farmers in Surkhet often remain unaware of the opportunities available in agribusiness. Many smallholder farmers share a common sentiment: “We are not educated; farming is the only occupation we can continue.” This mindset reinforces the perception that farming is the responsibility of the illiterate, highlighting limited aspirations and opportunities. This emphasizes the need for a shift in mindset and greater awareness among Surkhet farmers.
Opening Doors to Agri-Value Chain Opportunities
In order to explore the potential of the agricultural value chain by Surkhet farmers, interventions are needed at multiple levels:
- Capacity Building: Giving farmers access to training courses on market knowledge and processing technology might encourage them to participate in value chain activities.
- Infrastructure Development: Setting up and running haat-bazars initiation of Agri-fair with suitable amenities can boost market access and decrease post-harvest losses.
- Policy Support: Participation in the value chain can be promoted by policies that try to close the gap between farmers and markets, such as incentives for value-added goods and subsidies for processing facilities.
- Awareness Campaigns: Farmers may be encouraged through various workshops, trainings and campaigns to embrace innovation and risk-taking that changes their attitude in farming and agribusiness.
- Digital platforms for Information Exchange: If farmers get access to mobile apps, the flow of information regarding market prices, demand for crops and new market linkage is easily accessible. So, they are provided with proper digital platforms like GeoKrishi App, Smart Krishi, etc.
Author Introduction
Astha Pokharel, an Agriculture graduate from Agriculture and Forestry University, is an early-career researcher with experience in proposal writing, research, and community development. She has worked as a Research Assistant at the Nepal Agriculture Research Council, contributing to data collection, proposal drafting, and report writing. With expertise in both qualitative and quantitative research, she has collaborated with various firms and organizations. Passionate about sustainable agricultural development, she aims to integrate her academic knowledge and practical experience to create a meaningful impact in social science and agriculture.
The views and opinions expressed in the piece above are solely those of the original author(s) and contributor(s). They do not necessarily represent the views of Governance Monitoring Centre Nepal and/or Centre for Social Change.
