Presentacion de 11th Asian Maize Conference which took place in Beijing, China from November 7 – 11, 2011.

1. Maize Value Chains in Nepal
D.B.Gurung*, D.B.KC**., G.O.Ferrara**., N.Gadal**., S.Pokhrel***., K.B.Koirala**.,
B.B.Hamal***., Y.R.Pandey* and R. R. Puri**
* Nepal Agricultural Research Council
***Department of Agriculture, DoA
**CIMMYT, South Asia Regional Office
1

2. Background
• Maize second important food crop in Nepal
• Staple food for hill people (>14 million people &)
44 districts food deficit )
• Very important for food security
• Contributes 2.5% in GDP, 7.5% in AGDP and 26%
to the total edible food production
• Average per capita consumption is 45.5
kg/calorie/year (it is more in hills-- vital for
survival)

3. Area, Production and Productivity of Maize
in Nepal 2010
Ecological Belts Area Share on Total
(Districts) (876,000 ha) Prodn
(1855000 mt)
Mountain (16) 20% 9.8%
Hill (39) 70% 70.1%
Terai (20) 10% 20.1%
Total (75) 100% 100.0%
Total production 1.85 million t
Average productivity 2.12 t ha-1 3

4. Area under maize, by Maize area by OPVs
growing season (2010) and Hybrid (2010)
Hybrid
Winter 5%
12%
Spring
14%
OPVs
Summer 95%
74%
Hybrids
• Winter and spring in Terai
• Summer in valley and Hills

5. Area (%) of local and improved maize varieties in eco-zones of
Nepal, 2010.
120
99
100
86 87
80
60 Improved
Local
40
20 14 13
1
0
Mountain Hills Terai
5

6. Varietal Options for Different Environments (No)
23
25
20
15
8 7
10
6
2
5
0
High Hill Mid Hill Terai Denotified Total

7. Utilization of Maize
• Grits, Chapati, Dhindo similar to Ugali, boiled, roasted and soup.
• Popped maize is very popular for snacks, mostly in hills and
rural areas.
Grits of both white and yellow types
• OPVs are more common for making grits
• Flour recovery is more in OPVs (45% White and 40% Yellow)
Ecological Production Yield Food Feed Indust Poultry Industri
Belts (mmt) (t/ha) rial feed al
(Districts) Uses 13% 1%
Mountain 0.18 96% 4% -
2.0
(16)
Hill (39) 1.30 95% 5% -
2.2
Terai (20) 0.38 10% 80% 10% Human
2.3 food
86%
7

8. Value added maize products
Cornflakes Popped corn
8

9. Common Maize Value Chains in Nepal
• Maize seed value chain
• Maize food value chain
• Maize feed value chain
• Maize industrial value chain
9

10. Maize Value Chain Actors
Hills Terai
• Limited numbers of value chain Many actors are involved in
actors in grain marketing Terai (input supply,
• Rural traders collect maize from production, processing and
large and small holder farmers marketing etc.)
and supply to the local traders
• Value addition by traders is less
than 20%
• Actors mainly perform drying of
grains and bulk packaging in
sacks
10

11. Total maize demand and its share in value
chain in Nepal, 2010
Feed Industry
0.44 mmt 0.05 mmt
(19.77%) (2.33%)
Food Seed
1.69 mmt 0.03 mmt
(76.74%) Total Quantity: 2.21 mmt (1.16%)
(Production-1.86 mmt;
Import-0.35 mmt)
11

12. Maize Seed Value Chain
Consumer/Gro 12920 t 1088 t 190.4 t 82 t 2040 t 680 t Support
wer
Rs. 55/kg Rs. 52/kg
Pvt. Labs,
Trading, Agrovet Seed Company Private
Rs.
and 190.4 t 82 t sectors,
48/kg
Processing Rs.
MoAC,
Rs. 49/kg
FIS, Pvt.
47/kg Rs.
Rs. Sectors
47/kg
47/kg
Agrovets Seed Company
Cooperatives
1360 t 2040 t 680 t
Rs. 40/Kg
Rs. Rs. Rs. SQCC,
40/kg 40/kg 40/kg RSTL,
INGOs,
Producer/P NGOs,
rocessing/ Public Sector Individual/Private Sector Agrovets,
Quality 3.6% 17,000 t 96.4% Fis, Pvt
Sector
Control
NGOs,
INGOs,
Input NARC
Supply Technology Source Seed DOA
(BS/FS)
Pvt. Sector,
Seed, Fertilizer, Importer (Fertilizer, Agrovets
Pesticides, Chemicals)

13. Maize Food Value Chain
Consumers 1386 tt 280 tt 24 tt Enabling
Environment
Rs 18-20/Kg
Retailers Rs 15-16/Kg
279.8 tt
Rs 15-16/Kg Fis,
Trading Rs 14/Kg Private
Wholesalers sectors.
304.2 tt
Rs 14/Kg
Agrovets,
Fis, Pvt
Producer/P
Sector,
rocessing , Private Sector 1690 tt Individual Farmer
packaging (70%) (30%)
NGOs,
INGOs,
NARC
Input Technology Seed DOA
Supply
Pvt. Sector,
Seed, Fertilizer, Importer (Fertilizer, Agrovets
Pesticides, Chemicals)

14. Maize Feed Value Chain
Consumer 15% 85% Enabling
Environment
Rs. 33/Kg
Marketing, Rs 32/Kg FIs, Pvt.
Processing, Dealers (100%) Rs. 32/Kg Retailers Sectors,
Packaging Nepal
Rs.30 /Kg
Processing Electricity
132 tt 308 tt Authority
Rs. 17-19/Kg Rs.21 /Kg
Fis,
Private
Marketing Wholesalers sectors.
308 tt
Rs 17-19 /Kg
Agrovets,
Production Fis, Pvt
Private Sector 440 tt Individual Farmer Sector,
NGOs,
Seed & INGOs,
Technology Technology Improved Seed , NARC
Input Agrovets DOA
Supply
Seed, Fertilizer, Importer (Fertilizer, Pvt. Sector,
Materials Agrovets
Pesticides, Chemicals)

15. Maize Industry Value Chain
Consumer 10% 90% Enabling
Environment
Marketing, Rs 168/Kg Rs. 168/Kg
Fis, Pvt.
Processing, Dealers (100%) Rs. 148/Kg Retailers Sectors,
Packaging Nepal
Rs.135 /Kg
Processing Electricity
15 tt 35 tt Authority
Rs. 17-19/Kg Rs.21 /Kg
Fis,
Private
Marketing Wholesalers sectors.
35 tt
Rs 17-19 /Kg
Agrovets,
Production Fis, Pvt
Private Sector 50 tt Individual Farmer Sector,
NGOs,
Seed & INGOs,
Technology Technology Improved Seed , NARC
Input Agrovets DOA
Supply
Seed, Fertilizer, Importer (Fertilizer, Pvt. Sector,
Materials Agrovets
Pesticides, Chemicals)

16. Constraints in Maize Value Chains
Functions Constraints
1. Input supply level Unorganized traders, Govt policies not sufficiently conducive,
quality is always questionable and curtailing
2. Producer level Unavailability of required quantities of production inputs,
increasing high cost of inputs and less aware about quality of
inputs and technologies
Lack of supportive policies ( subsidy and crop insurance)
3. Processing level Poor infrastructures and costly, Private sectors not very
interested to invest in agriculture, lack of supportive polices (
exemption of taxes for machineries)
4. Service provider level Less funding in agriculture (3.15% of the total budget),
Services are more supply demand and weak linkages and
coordination among service providers
5. Consumer level Poor marketing information , knowledge gap, weak
implementation consumer protection Act. No contract law in
the country for seed production, processing and marketing.
Not adequate education and awareness about consumption
of good and services
16

17. Way Forward
Functions Suggestions/Recommendations
1. Input supply • Quality products
• Timely delivery services
• Quality control mechanism
• Friendly policies for market actors
2. Producer level • Subsidy on inputs
• Provision of crop insurance
• Soft loan and Credits
• Capacity building
• Contract system for assured marketing
• Responsive extension services
• Timely and efficient delivery services
• Mechanization and subsidy on farm equipments and
tools
• Market information on time
• Promotion of hybrid maize varieties in Terai during
winter and summer in the hills to increase maize
production and to substitute the import
17

18. Way Forward………
Functions Suggestions/Recommendations
3. Processing • Support in developing infrastructures both at
community level and private sectors
• Credits and exemption of taxes on equipment and
machineries
• Decentralized quality control system and establish
equipped labs
4. Consumer level • Effective implementation of consumer protection ACT.
• Formulation and implementation of Contract law
• Conduct awareness and promotional activities of
goods
• Good product price through efficient and effective
value chain system
• Access to market information system through media
and communication
There should be functional linkages and sharing of information among the value
chain actors is crucial for effective marketing system of maize and maize products.
In addition Enabling environment is essential to facilitate the value chain system.
18

19. Thank you