1. Researcher
Sagar Bista
B sc. Agriculture 8th semester
IAAS, lamjung
Major advisor
Mr. Thaneshwar Bhandari
Assistant professor and Head of department
Department of Agricultural Economics and
Extension
Value Chain Analysis of Tomato Sub-sector
in Lamjung District

2. Introduction
Vegetable production and marketing is gradually emerging as an
important sub-sector contributing to 9.7% of gross domestic
product in Nepal (MOAD 2013).
 In such situations strengthening the value chain is only way to
sustain local produce in the market.
 Lamjung district with suitable agro ecological conditions have
great potential for increasing the production of tomato.
 Tomato cultivation is practiced area of 130 ha with the production
of 1820 tons which ranks sixth in the terms of vegetable
production in lamjung (MOAD 2013).

3. Introduction….Contd…
 Tomato cultivation has the highest return compared with
cauliflower and chilli in Dhankuta district of Nepal under same
cost of cultivation (USAID, 2011).
 Scattered production pockets, lack of technical knowhow , poor
and inefficient supply chain with high post-harvest loss and
unorganized market were identified as the major constraints in
tomato farming (USAID, 2011).
 Value chain analysis is important to visualize the linkages
between all the actors involved in the production and distribution
chain and shows the actor involved in the addition of value along
the chain (Schmitz, 2005).

4. Introduction Contd…
 Problems in the vegetables value chain hinder the potential
gains that could have been attained from the existing
opportunities.
 Hence the analysis of the value chain of tomato in Lamjung
helps to identify the potential value chain actors and the
technical information generated would be useful in increasing
the chain efficiency and improvement of the existing system.

5. Objectives
The objectives of the study were:
To analyze the tomato value chain including the value addition
and marketing channels.
 To map the value chains of tomato and identify the constraints
and opportunities faced by the micro actors.

6. Methodology
 Descriptive research was adopted for the study.
 Purposive sampling was followed for the selection of the actors
involved in the value chain of tomato.
 The survey included the tomato producing farmers, farmers
groups, and enablers like DADO, ASCs and NGOs along with
the input suppliers like agro vets and cooperatives.

7. Sample size
 30 Tomato producers: 4 from Besisahar, Dhamilikuwa,
sundarbazaar, Chiti and Gaunsahar, 3 each from Udipur and
Simpani VDC and 2 each from Bhotewodar and Khudi.
 6 farmers group : 2 groups each from Besisahar and
Dhamilikuwa, 1 group each from Chiti and Udipur.
 5 wholesalers: 4 from Besisahar and 1 from Bhotewodar
 28 Retailers: 9 from Sundarbazar, 6 From Bhotewodar, 2
from Udipur and 11 from Besisahar VDC
Methodology Contd...

8. Key informant survey(KIS)
Focus group discussion(FGD)
Separate pretested checklists were used for Farmers, wholesalers,
retailers and enablers.
Data analysis
The collected data were tabulated, analyzed and interpreted on the
basis of statistical tools like means, percentages and graphical
presentation and the value chain map was prepared.
Methodology Contd...
Data collection tools & techniques

9. Result and discussion
S.N Value addition
Parameters
Producers Wholesalers Retailers Consumers Total
1 Production Cost 14.53 14.53
2 Buying price 39.25 46 56
3 Transportation 2.5 2.14 0 4.64
4 Storage 0.19 0.13125 0.3212
5 Loss 1.57 2.112 3.41 7.09
6 Packaging 0.188 0.2375 0.4255
7 Sorting and grading 1.328125 1.32
8 Added cost 2.5 4.63 5.106875 12.23
9 % of added cost 20.44 37.85 41.7 100
10 Profit margin 20.65 2.92 4.61 28.18
11 % of profit margin 73.27 10.36 16.35
11 Selling price 39 46 56
Table 1: Value addition Rs/kg of tomato production
Source: Field survey

10. Table 2: Demand and supply situation of fresh tomato in lamjung
Demand Volume(Mt) Supply Volume(Mt)
Hotel and
restaurants
1795 Total
production
1850
Home consumption 1072 Import 1017
Total supply 2867 Total demand 2867
Source: Field survey and Publications of DADO, Lamjung

11. Table 3: Cost composition of tomato cultivation( 1 ropani area)
Inputs Labor Tools and
equipment
Manures, fertilizers &
pesticides
Rent Seed
cost % 55 23 15 5 2
 Highest cost was comprised by Labor(55%). Followed by tools
and equipment(23%).
 Similar results were obtained in the product chain study of
tomato in eastern Nepal conducted by CADP where the labor
comprised about 50% of the total cost of production (CADP
2010).
Source: Field Survey

12. Value chain map

13. Conclusion
 It can be concluded that the profit margin and the share in profit
is highest for farmers followed by retailers and wholesalers.
 The current production is insufficient to meet the demand of the
consumers.
 The market is experiencing typical constraints such as:
• Increased price of major raw materials,
• Severe price competition & limited value addition
• losses due to inappropriate packaging and transportation.
• Absence of organized institution and system group
marketing.

14. • Increasing the area and number of tomato farmers
• Infrastructural development(Market and storage)
• Improving the efficiency of existing extension system
• Storage facility
• Promotion of product diversification
Hence the policy level development is required in:
Recommendation

15. Acknowledgement
 Mr. Thaneshwar Bhandari
 Dr. L. P. Amgain and IAAS, Lamjung
 Department of Agricultural Economics and Extension
 RDC, Lamjung Campus
 Mr. H.B. Bista, Senior agricultural Economist (MOAD)
 My beloved family, friends and all the personnel who have
helped and cooperated with me in conducting this study.

16. Conducting FGDWholesale shop at Besisahar
Interviewing with farmer Retail shop at Bhotewodar

17. Thanks for your kind
attention