Value Chain Analysis of Large Cardamom in Ilam District of Nepal    

Keshav Prasad Shrestha1* and Jiban Shrestha2


A value chain is a set of linked activities that work to add value to a product. The study on value chain analysis of large cardamom (Amomum subulatum Roxb) was conducted in Ilam District, Nepal during May-August, 2017. The farmers, input suppliers, traders and concerend officials were key actors of this research. The 30 farmers, 10 input suppliers and 15 traders were selected randomly. The findings showed that area of large cardamom and its production are in decreasing trend. Majority of farmers were using suckers detached from mother rhizomes as planting materials which was main cause of disease transmission. Farmers used traditional dryer (Bhatti) for the curing, that reduced the quality of large cardamom. Farmers were not undertaking value addition like tail removing, grading and packaging which was performed at trader level. The price trend showed that the average price was higher in 2013/14, it was found highly fluctuating. Financial analysis revealed that enterprise was highly profitable. Key problems facing by growers and traders were high price fluctuation, lack of disease free saplings, dependency on Indian market, very old orchard, declining productivity, drying out water resources, adulteration, lack of research and extension support services, lack of favorable government policy and least coordination among the chain actors. So, it is necessary to maintain strong vertical and horizontal integration among the value chain actors to increase value chain efficiency of large cardamom. The government should formulate farmers friendly Large Cardamom Development Policy and implement it for better quality production and marketing.

Keywords: Fluctuation, Large cardamom, Price information, Value addition, Value Chain