A Perspective on Agriculture Input Marketing in
Nepal-Prashant Bhandari
1. Introduction
Agriculture inputs
refers to crop related inputs like seed, fertilizer, fungicide, pesticides and
also seedlings, feeds, and machines which support crop production. The
availability, accessibility, quality and price have been major issue in this
sector from the farmer perspective. The shortage of these inputs at critical
stage of crop management has plagued Nepalese agriculture for decades. The
shortage is multifaceted- firstly the inputs aren’t available timely,
especially in the remote areas of hills, where limited stocks of input are sent
and which sadly remain only in headquarter, even not catering to the needs of
the headquarter. Secondly, the quantity distributed isn’t enough and at times
there is even no option of buying and at times unaffordable. The quality of
inputs is even questionable it is important to recognize that in agribusiness
sector, the agro-input sector is the most crucial even to attend to concerns of
food quality, food safety, and cost competitiveness. On the other hand, agro inputs
are crucial for small farmers in terms of yield enhancement, cost cutting, and
better quality production for better price realization.
Small farmers in Nepal are in dire stress due
to low farm yields, increasing cost of cultivation, unstable market prices and
lack of various other support mechanisms. The only a few ways to help such
farmers is to either help cut down their costs of production and marketing,
provide stable and remunerable market access and improve price realization or
increase yields. Therefore, there is a role for innovations, institutions, and
institutional innovations in achieving inclusive agricultural development in a
context like that of Nepalese agriculture.
There have been
not been enough studies on client oriented research, and on the on the
rationale, organization and performance of the new models in comparison with
existing channels.
2. Present
features of Agriculture Input Marketing
in Nepal
·
Government doesn’t
directly sell inputs to farmers. Government supplies inputs to cooperatives
which then distribute it to farmers.
·
The institutional
mobility of government is very slow and that coupled with beaurocracy and
existing corruption, the marketing channel turns inefficient.
·
The partition of inputs
isn’t scientific. The most rural, resource poor farmers will remain always in
the margin of current system.
·
The inputs aren’t
adequately available
·
The inputs are not timely
available
·
No differential treatment
between commercial and subsistence farmers
·
Private companies and
suppliers of input are limited to certain belts
·
Quality inputs beyond
affordability of resource constraint farmers
3. Proposed
Vision:
Realizing that the scarcity is chiefly due to inefficiency of current
marketing channel, a direct flexible model is proposed. The idea is to classify
farmers as commercial farmers and subsistence farmers. The current production
patterns will give us clues on demarcating those areas.
A) Marketing at commercial
zones
Government will directly sell the seeds and fertilizer to the commercial
farmers (determined by either total production or total cultivated area) with
option to farmers to reject government’s price and buy from market. The
government will market inputs to those farmers with recommendations from
scientists of NARC or professors of Agriculture university. Government also to
provide free consultation to farmers who sign contract to buy from government
for at least three years.
B) Marketing to Subsistence
Farmers
Firstly, identification of resource poor farmers through out the country,
estimation of their total need, cross-geographical analysis and marketing
through a newly formed village level structure called Fertilizer dal instead of existing inefficient agro co-operatives.
Compostion of Fetilizer dal:
·
Chairman: ward incharge - 1
·
Represenattive of
political parties- 7( maximum, all major parties to be represented)
·
Senior person- 1
·
Women-1
·
JTA- 1
Role
of Fertilizer dal:
·
Fertiliser dal is a group
of farmers at ward level who will negotiate with government and all
stakeholders for listed farmers in that ward.
·
Make justified demands
with government body and government market their stock to them and distribute
through the dal; government to provide
tax incentives to businessmen and shops catering to the input needs of rural
farmers
·
Members of Fertilizer dal
will not be paid rather given discount on the purchase they make with the
government and the percent of discount to be determined by the efficiency of
the distribution made by the dal.
The proposed idea of input marketing focuses mainly on the marketing of
seeds and fertilizers, however it can be applied with considered to other
inputs as well.
Role of Government:
·
Identify the need of
input through fertilizer dal and prepare for marketing it to the farmers
through the fertilizer dal
·
Consult Scientists and
professors in terms of planning, verifying of the demands made and incorporate
those suggestions for implementation
·
Market inputs to the
Fertiliser Dal under supervision of DADO and DLS
·
Establish independent
monitoring body comprised of JTAs and agriculture students enrolled in various
universities of Nepal
·
Provide Tax breaks to
private companies and suppliers supplying inputs to remote areas of the hills
·
Promote self-sufficiency
in agriculture input through gradual industrialization
·
Further expansion of easy
micro-credit and limiting bureaucratic hassle to bare minimum
4. Significance
of the proposed model:
·
Inefficient co-operative
channel of government marketing removed and replaced by more mobile and direct
channel.
·
Utilization of already
segmented Nepalese society, uniting through common goal and meanwhile
establishing an auto-balance mechanism at Farmer’s level for transparency
·
Different approach for
commercial and subsistence farmers catering to their diverse needs in terms of
quantity, frequency and types
·
Prioritizing of remote,
resource constraint farmers in terms of accessibility and affordability,
bringing them into the national mainstream
·
Quick fix possible as it
already utilizes components of existing channels like government, DADO,
suppliers except the Fertiliser Dal.
·
Quick flow of information
of demand allowing for timely response and thereby timely availability
·
Increased competition
among suppliers for remote tax-breaks
5. Limitations of the presented model
·
Direct Political role in
Fetiliser Dal could backfire.
·
Addition of new channel
could be new breeding ground for corruption
6. Conclusion:
Thus,
a marketing vision correcting the existing hurdles, with focus on farmer
tailored channel, government competing with firms, and mobilization of ward
level structure, is proposed.
