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MAIZE SECTOR ASSESSMENT AND STRATEGY NEPAL AGRICULTURAL MARKET DEVLOPMENT PROGRAMME (NAMDP) 2016

MAIZE SECTOR ASSESSMENT AND STRATEGY...maize sector assessment and strategy nepal agricultural market devlopment programme (namdp) 2016

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Page 1: MAIZE SECTOR ASSESSMENT AND STRATEGY...maize sector assessment and strategy nepal agricultural market devlopment programme (namdp) 2016

MAIZE SECTOR ASSESSMENT AND STRATEGY

NEPAL AGRICULTURAL MARKET DEVLOPMENT PROGRAMME (NAMDP)

2016

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Table of Contents

Table of Contents ................................................................................................................................................... 1 List of Figures .......................................................................................................................................................... 1 List of Tables ........................................................................................................................................................... 2 Abbreviations .......................................................................................................................................................... 3 Glossary/ terminologies .......................................................................................................................................... 4 1. Background .................................................................................................................................................... 6

Sector Description .......................................................................................................................................... 7 2.1 Basic information .................................................................................................................................. 7

2.1.1 International context .................................................................................................................... 7

2.1.2 National context ........................................................................................................................... 9

2.2 Sector Dynamics .................................................................................................................................. 12

2.2.1 Sector Map ................................................................................................................................. 12

2.2.2 Dynamics of the Core Functions ................................................................................................. 13

2.2.3 Dynamics of the Support Functions ........................................................................................... 22

2.2.4 Rules, Regulations and Government Programmes ..................................................................... 29

Analysis ........................................................................................................................................................ 32 3.1 Problems in the core functions and underlying constraints ............................................................... 32

3.2 Opportunities and sector drivers ........................................................................................................ 36

Rationale for working in the sector: summary analysis ............................................................................... 38 Strategy for Change ..................................................................................................................................... 41

5.1 Prioritisation and selection of constraints to be addressed ............................................................... 41

5.2 Vision of change .................................................................................................................................. 42

5.3 Intervention Areas and Pathways to Systemic Change ....................................................................... 42

5.4 Sustainability Analysis ......................................................................................................................... 53

List of Figures

Figure 1: Sector Map of Maize in Nepal ............................................................................................................... 12 Figure 2: Dynamics of core function in the Ramechhap District .......................................................................... 14 Figure 3: Dynamics of the core function in Okhaldhunga .................................................................................... 15 Figure 4: Dynamics of the core function in Dailekh .............................................................................................. 17 Figure 5: Dynamics of the core function in Jajarkot ............................................................................................. 18 Figure 6: Core function dynamics in Surkhet Distric ............................................................................................. 19 Figure 7: Demand supply scenario of maize in the national context ................................................................... 21 Figure 8: Flow of maize grain in Nepal ................................................................................................................. 22 Figure 9: Dynamics of maize seed in the project district ...................................................................................... 23 Figure 10: Constraint Tree .................................................................................................................................... 32 Figure 11: The three lens of rationale for working the maize sector ................................................................... 38

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List of Tables

Table 1: World Status of maize harvested hectare, production and yield and their in % ...................................... 7 Table 2: Production of Maize in 2013 ..................................................................................................................... 8 Table 3: Hectares of Maize in 2013 ........................................................................................................................ 8 Table 4: Productivity of Maize in 2013 ................................................................................................................... 8 Table 5: Area coverage, production and yield of maize in Nepal ........................................................................... 9 Table 7: Maize import and export status for last 53 years at the interval of 5 years’ periods in Nepal............... 11 Table 8: Number of maize varieties released and registered in Nepal and their yield range, including the Nepalese hybrids (SQCC, 2072) ............................................................................................................................ 24 Table 9: Fertiliser application by farmers ............................................................................................................. 25 Table 10: Distribution of land ............................................................................................................................... 27 Table 11: Trend of Maize production ................................................................................................................... 39

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Abbreviations

AIC Agriculture Input Company Ltd.

ADS Agricultural Development Strategy

CA Conservation Agriculture

DADO District Agriculture Development Office

DAG Dis-advantaged group

EM Effective Microorganisms

FAO Food and Agriculture Organization

FYM Farm Yard Manure

Ha Hectare

IS Improved Seed

LLP Low lift pump

Msl Mean Sea Level

MT Metric Tons

NARC National Agriculture Research Council

NGOs Non-Government Organisation

NSB National Seed Board

OP Open pollinated

STCL Salt Trading Company Ltd.

SQCC Seed Quality Control Centre

TLS Truthfully levelled Seed

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Glossary/ terminologies

Bari land: Refers to the un-irrigated rain fed terraces

Conservation Agriculture

Conservation farming is any system or practice which aims to conserve soil and water by using

surface cover (mulch) to minimise runoff and erosion and improve the conditions for plant

establishment and growth. It involves planting crops and pastures directly into land which is protected

by a mulch using minimum or no-tillage techniques. CA is a concept for resource-saving agricultural

crop production that strives to achieve acceptable profits together with high and sustained production

levels while concurrently conserving the environment. CA is based on enhancing natural biological

processes above and below the ground. Interventions such as mechanical soil tillage are reduced to

an absolute minimum, and the use of external inputs such as agrochemicals and nutrients of mineral

or organic origin are applied at an optimum level and in a way and quantity that does not interfere

with, or disrupt, the biological processes. CA is characterized by three principles which are linked to

each other, namely:

• Continuous minimum mechanical soil disturbance.

• Permanent organic soil cover.

• Diversified crop rotations in the case of annual crops or plant associations in case of perennial

crops

Effective Microorganism (EM)

Effective Microorganisms (EM) are mixed cultures of beneficial naturally-occurring organisms that can

be applied as inoculants to increase the microbial diversity of soil ecosystem. They consist mainly of

the photosynthesizing bacteria, lactic acid bacteria, yeasts, actinomycetes and fermenting fungi. These

microorganisms are physiologically compatible with one another and can coexist in liquid culture.

There is evidence that EM inoculation to the soil can improve the quality of soil, plant growth and yield

(Kengo and Hui-lian, 2000). EM works by getting the natural processes to function, the way nature

intended by stimulating biological activity in the soil and plant. Using EM will improve crop and pasture

yields and enhance fertiliser performance.

Good Agricultural Practices

Good Agricultural Practices are "practices that address environmental, economic and social

sustainability for on-farm processes, and result in safe and quality food and non-food agricultural

products" (FAO COAG 2003 GAP paper)

A multiplicity of Good Agricultural Practices (GAP) codes, standards and regulations have been

developed in recent years by the food industry and producers’ organizations but also governments

and NGOs, aiming to codify agricultural practices at farm level for a range of commodities. Their

purpose varies from fulfilment of trade and government regulatory requirements (in particular with

regard to food safety and quality), to more specific requirements of specialty or niche markets. The

objective of these GAP codes, standards and regulations include, to a varying degree:

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• ensuring safety and quality of produce in the food chain

• capturing new market advantages by modifying supply chain governance

• improving natural resources use, worker’s health and working conditions, and/or

• creating new market opportunities for farmers and exporters in developing countries.

These four 'pillars' of GAP (economic viability, environmental sustainability, social acceptability and

food safety and quality) are included in most private and public sector standards, but the scope which

they actually cover varies widely.

Khet land: Refers to the irrigated flat cultivated land

Productivity

Productivity is commonly defined as a ratio between the output volume and the volume of inputs. In

other words, it measures how efficiently production inputs, such as labour and capital, are being used

in an economy to produce a given level of output. Agricultural productivity is measured as the ratio of

agricultural outputs to agricultural inputs (often measured per unit of land for crops)

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1. Background

Nepal Agricultural Market Development Programme (NAMDP) is a bilateral initiative between the

Government of Switzerland and the Ministry of Agriculture, Government of Nepal. Under the Swiss

Agency for Development and Cooperation’s (SDC) Nepal Agriculture Growth Initiative (NAGI), NAMDP

aims to sustainably improve livelihoods of rural smallholders, especially disadvantaged groups and

women-headed households, through participation in commercial agriculture and ‘interconnected

markets’. The objective framework of NAMDP is based on a long-term vision of thriving and inclusive

agriculture markets that develop the comparative advantages for import substitution and export

growth and thus contribute to poverty reduction.

NAMDP- Phase 1 is a three years and ten months (March 2016 - Dec 2019) project being implemented

by a consortium of Swisscontact (as the lead) and the Center for Environmental and Agricultural Policy

Research, Extension and Development (CEAPRED). NAMDP follows Market System Development

(MSD) approach (also known as ‘Making Markets Work for the Poor’/ ‘M4P’ approach). NAMDP is

expected to produce tangible, visible and measurable impact in a number of commodity markets/

value chains and cross-sectors. The program, during the 1st half of Phase 1, will be concentrated in

two spatial clusters in Nepal; the Eastern cluster including Ramechhap, Okhaldhunga and Khotang

districts, and the Western cluster including Surkhet, Jajarkot, Dailekh, Kalikot, and Achham districts.

During the 2nd half of Phase 1, the programme will expand to other important and promising road

corridors; these may include parts of the Terai region.

NAMDP- Phase 1 covers initial 8 months’ preparation period (March to October 2016) and about three

years’ implementation period (November 2016 to December 2019). One of the objectives of the

preparation period is to conduct detailed assessments of the sectors and cross sectors identified in

the draft Programme Document. The maize sector is one of the sectors assessed.

For the purpose of this study secondary information received from the national statistics yearbook,

yearly information booklet from District Agriculture Development offices and from other relevant

publications was analysed. Primary information was collected from the different actors like farmers,

traders, local agro-vets, agriculture service centres in the project districts and key government

agencies through individual surveys, key informant interviews and focus group discussions. The

primary and secondary information on the demand and supply scenario, actors involved in the sector,

relationship between the actors were then analysed to come up with a comprehensive picture of the

sector dynamics.

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Sector Description

2.1 Basic information

2.1.1 International context

Maize, also known as corn, is one of the most ancient species cultivated in the world. The history of

maize domestication dates back to 10,000 years ago in Mexico.1 Since then, it has been grown in

several open pollinated, hybrid and genetically engineered varieties. Maize has become the most

important industrial crop in the world. It has been extensively used for food, feed and fodder. FAO

estimates that it will be the number one cereal crop by 2020.

Table 1 below shows the world maize data for the last 53 years from 1961 to 2014 at an interval of 5

years. The statistics is based on the FAO database of 15 June 2016. The table indicates that the

cultivated area for maize has been experiencing an increasing trend. However, the yield of maize has

been experiencing decreasing trend until 1981-85 but has been increasing remarkably at an increasing

rate since then.

1 ASPB (American Society of Plant Biologists). 2008. Maize (corn) may have been domesticated in Mexico as early as 10,000 years ago. Science Daily. Accessed online on June 15, 2016 (http://www.sciencedaily.com/releases/2008/06/080627163156.htm).

Duration at 5

yrs interval

Area

harvest in

Ha

Production

in MT

Yield in

MT/HA

Trend of Area

Harvested

Trend of

Production

Trend of

Increased

Yield

1961-65 2,460,111 4,244,705 1.73 Base Year Base Year Base Year

1966-70 3,065,303 3,962,543 1.29 24.60% -6.65% -25.08%

1971-75 3,144,273 3,968,776 1.26 2.58& 0.16% -2.36%

1976-80 3,400,392 3,599,249 1.06 8.15% -9.31% -16.14%

1981-85 3,939,600 3,924,470 1.00 15.86% 9.04% -5.89%

1986-90 4,244,000 5,273,400 1.24 7.73% 34.37% 24.73%

1991-95 4,422,000 6,280,330 1.42 4.19% 19.09% 14.30%

1995-00 4,728,900 6,775,990 1.43 6.94% 7.89% 0.89%

2001-05 4,848,000 7,870,161 1.62 2.52% 16.15% 13.29%

2006-10 5,030,280 9,218,843 1.83 3.76% 17.14% 12.89%

2011-14 4,445,430 8,529,168 1.92 -11.63% -7.48% 4.69%

Table 1: World Status of maize harvested hectare, production and yield and their in %

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Table 2: Production of Maize in 2013

Table 2 presents the top 10

countries based on the quantity

of maize produced per year in

2013. USA is the highest maize

producer, producing 354 million

tons and contributing 35% of total

maize produced in 2013. USA is

closely followed by China, Brazil,

Argentina, Ukraine, India, Mexico,

Indonesia, France and Canada

producing about 80% of the total

production of maize in the world.

Table 3: Hectares of Maize in 2013

Table 3 presents the top 10 countries based

on number of hectares involved in maize

cultivation in 2013. USA and China were

found to be the top two countries in terms

of hectares under maize cultivation (USA

with 35.5 million Ha and China with 35.26

million Ha). They dominate around 39% of

the total hectares under maize cultivation in

the world as per 2013 statistics. USA and

China is followed by other countries like

Brazil, India, Mexico, and others as seen in

Table 3. Together, these countries occupy

around 70% of the total maize coverage

area in the world.

Table 4: Productivity of Maize in 2013

Table 4 shows the top ten countries based on the

yield per hectare in tons. The Saint Vincent is the

highest yield receiving country, producing 24.9

tons/hectares followed by Israel, Jordan, Kuwait,

UAE, Tajikistan, Qatar, Netherlands, Greece and

Belgium. These countries are receiving yield of 11.2

tons to 24.9 MT per hectare.

Interestingly, the top ten countries with the highest

area coverage for maize production fail to establish

themselves among the top ten countries with high

maize yields.

World Rank Country’s Name Million Tons % of World

1 USA 353.70 34.79

2 China 217.73 21.41

3 Brazil 80.54 7.92

4 Argentina 32.12 3.16

5 Ukraine 30.95 3.04

6 India 23.29 2.29

7 Mexico 22.66 2.23

8 Indonesia 18.51 1.82

9 France 15.05 1.48

10 Canada 14.19 1.40

Sources: FAOSTAT

World

Rank Country

Million

Hectares (Ha)

% of

World

1 USA 35.48 19.26

2 China 35.26 19.14

3 Brazil 15.32 8.23

4 India 9.50 5.16

5 Mexico 7.10 3.85

6 Nigeria 5.20 2.82

7 Argentina 4.86 2.64

8 Ukraine 4.83 2.62

9 Tanzania 4.12 2.24

10 Indonesia 3.82 2.07

Sources: FAOSTAT

World Rank Country MT / Hectares

1 Saint Vincent 24.86

2 Israel 22.56

3 Jordan 20.10

4 Kuwait 20.00

5 UAE 20.00

6 Tajikistan 15.08

7 Qatar 12.00

8 Netherlands 11.52

9 Greece 11.50

10 Belgium 11.15

Source: FAOSTAT

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Another interesting fact observed has been that the gulf countries are able to achieve high yield of

maize which may be due to long duration of sunshine, application of optimum dosage of fertilisers

and application of proper irrigation with the irrigation facilities developed by the countries.

The major maize consuming countries are USA and China. There has been continuous increase in the

consumption of maize mainly owing to increase in demand from the meat and starch sector. There is

a growing requirement of maize from the poultry sector, which uses corn as its main feed ingredient.

USA is also the first among the major exporters of maize, followed by Argentina and Brazil. It

dominates the international trade of maize as an exporter. The recent growth of Chinese middle class

has meant a growing demand for meat and poultry with a consequent significant increase in its use of

maize by China; according to data from the United States Department of Agriculture. China has

transformed into a net maize importing country. India, the primary exporter of maize to Nepal,

produced 23.3 million MTs of maize in 2013.

2.1.2 National context

Maize (Zea mays L.) is the second biggest staple food crop after rice in terms of area and production

in Nepal and the principal food, feed, fodder, fuel crop and source of energy in the hills. It is widely

grown in all the three agro zones of Nepal: Terai and Inner Terai (below 900 msl), the mid-hills (900-

1800 msl) and high hills (above 1800 msl). It is considered a good crop for small landholders and grown

for food, feed and fodder. These days it has become one of the most important industrial crop for

poultry feed in Nepal.

Table 5 below provides information on the cultivated area, production and productivity of maize and

their changes from 1961 till 2014 presented in different periods at interval of five years. It excluded

the last period (i.e. 2011-14) comprising of only 4 years. The table shows that area under maize

cultivation has increased from 0.44 million Ha in 1961-65 to 0.89 million Ha in the period 2011-14,

thereby increasing by more than 100 percent. On the other hand, production has increased from 0.85

million tons in 1961-65 to 2.13 million tons during the period of 2011-14, which is 151 percent.

However, the yield of maize has not increased in that pace. It has increased by only 24% from 1.94 ton

per Ha in 1961-65 to 2.4 ton per Ha during 2011-14. Table 5: Area coverage, production and yield of maize in Nepal

54 Years

grouped into

periods of five

years

Annual Maize

Cultivated Area

(Thousand Ha)

Average Annual

Maize Production

(Million Tons)

Seed in

Million Tons

Seed Rate

Kg/Ha

Yield

Ton/Ha

1961-65 437.0 0.84894 0.00868 19.86 1.94

1966-70 432.4 0.79251 0.00826 19.10 1.83

1971-75 449.6 0.79376 0.01239 27.55 1.77

1976-80 446.9 0.71985 0.00956 21.39 1.61

1981-85 536.7 0.78489 0.01079 20.10 1.47

1986-90 706.3 1.05468 0.01413 20.00 1.49

1991-95 769.9 1.25607 0.01546 20.08 1.63

1996-00 801.6 1.35520 0.01638 20.43 1.69

2001-05 834.2 1.57403 0.01880 22.54 1.89

2006-10 868.5 1.84377 0.02080 23.95 2.12

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2011-14 889.0 2.13229 0.02375 26.72 2.40

Table 6: 5-years trend of maize production in Nepal

Table 6 illustrates that the production in last five years

experienced slight changes in regards to changes in area

of maize production. The productivity has remained

stagnant in the last few years.

Source: MoAD 2014/15

As one of the major cereal crops, maize is being produced in almost every district in Nepal with all the

different geographical conditions. In terms of topography, Nepal can be divided into three major

geographical zones; Terai, Mid-hills and High mountains. Terai region is located in the southern belt

of Nepal featured with plain land and adequate irrigation facilities below 900 msl. The mid hills

comprise the middle strip of land which is in the range of 900 to 1800 msl. The high hills or mountain

regions are located in the northern part of Nepal which is featured with high mountains above 1800

msl. Maize is produced in all the three regions. However, more than 70% of the total maize, 1.62

million MT, is produced in the Mid-hill region with an area coverage of 676 thousand hectares of land.

Around 20.5% maize, 468 thousand MT, is produced in the terai districts with an area coverage of 161

thousand hectares. The remaining 8.5% maize is produced in the high mountain region in more than

90 thousand hectares of land.

Maize is mostly being grown with subsistence farming. The major season for growing maize in Nepal

is the summer season. As irrigation is not available in the majority of the cultivable land so farmer

grows maize with rain-fed condition. Where irrigation facilities are available, there farmer also grow

maize in the spring season. This is a recent trend in the Terai region to grow maize in the winter season

with hybrid seed and proper irrigation facility.

The yield of maize in Nepal is very low compared to the neighbouring maize producing countries. As

per the statistical year book of 2013-14, the highest yield has been found in the Terai region, 2.9 MT

per hectare, whereas, the yield in the mid-hill region was found to be 2.39 mt/ha. The yield has been

found lowest in the high mountain region, 2.16 mt/ha.

Nepal had a good history of exporting agricultural products including maize to other countries until

few decades ago. However, the trend has changed with the emergence of growing poultry feed

industry.

Fiscal Year Area (Ha) Production (MT)

2067/68 876 1855

2068/69 906 2068

2069/70 871 2179

2070/71 859 1999

2071/72 928 2283

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Table 6: Maize import and export status for last 53 years at the interval of 5 years’ periods in Nepal

The table besides provide the

information on export and import of

maize in Nepal for the five-year

average since 1966. Maize import has

started in early 90s and since than the

export has started diminishing. The

volume of maize import is increasing

over the years as the poultry feed

industry is growing at a pace of 11%

per annum. Key informant interview

with the feed mills and large

importer, it has been revealed that

Nepal imported around 254,000

metric tons of maize from India in the last year, 2015.

Duration in 5yrs

Interval

Annual Imported

Quantity in Tons

Annual Exported

Quantity in Tons

1966-70 - 1,587

1971-75 - -

1976-80 - 2,967

1981-85 359 9,051

1986-90 2,782 3,670

1991-95 164 360

1996-00 3,565 60

2001-05 9,127 46

2006-10 56,309 210

2011-13 195,630 8

Total 38,277 1,633

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2.2 Sector Dynamics

2.2.1 Sector Map

Figure 1: Sector Map of Maize in Nepal

Farmer in Mid-hill districts

Farmer in Terai Districts

Importer imports maize from India

Local Trader

Local Trader

Local Market in Mid-hills

Wholesaler

Farmer in Rural areas

Poultry Feed Mills

Research andDevelopment (NARC)

Certification (NSC)

Industrial Quality Standard

Trade and Custom excise

Seed & Fertilizer Policy

Feed mills association

Seed FertilizerCrop Extension

Service

Financial service

Post harvest related serviceIrrigation

Co

re F

un

ctio

ns

Sup

po

rtin

g Fu

nct

ion

sR

ule

s &

R

egu

lati

on

s

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2.2.2 Dynamics of the Core Functions

To understand the dynamics of the core functions of maize sector, the secondary information has been

received from the national statistics yearbook, yearly information booklet from District Agriculture

Development office and from other literature. Primary information has also been collected from the

different actors like farmers, traders, local agro-vets, agriculture service centre in the field specially in the

project districts through individual survey, key informant interview and focus group discussion. Analysing

both primary and secondary information on the demand and supply scenario, actors involved in the

sector, relationship between the actors; the project has tried to draw the comprehensive picture of the

sector dynamics.

2.2.2.1 Dynamics of the Core Functions in the Eastern Cluster

In the first half of Phase 1 the project is mandated to work in the three districts in the eastern cluster,

namely Ramechhap, Okhaldhunga and Khotaang in the first half of Phase 1. Primary information has been

collected for the two districts, Ramechhap and Okhaldhunga and the core function dynamics of maize

sector for the eastern cluster has been drawn based on the information from these two districts.

a. Core Functions in Ramechhap District

In terms of area under maize cultivation, the district is quite advance compared to other neighbouring

districts. Maize is the number one crop in Ramechhap which is grown in 22,780 ha of land which comprises

48% of the total cultivable land with an annual production of 57405 MT. (Source: DADO Report 2070/71).

It is grown in all the different kinds of available cultivable land. The major category of cultivable land in

Ramechhap is Bari land which comprises 38,000 ha, 80% of the cultivable land. This Bari land is completely

dependent on the rain, so only one crop can be grown here in a year. Maize is the major crop grown in

Bari land during rainy season due to its suitability.

There are 9408 ha of Khet land available in Ramechhap with irrigation facilities which occupies 20% of the

total cultivable land (Source: DADO Report 2070/71). Out of total Khet land, year round irrigation is

available only in 3,100 ha of land where farmers are growing mainly rice Source: DADO Report 2070/71)

Besides rice, some other crops like wheat, potato and maize are also being grown by the farmers. In the

remaining 6,400 ha of khet land, where irrigation is available during rainy season accessing water from

neighbouring seasonal falls and canals, rice and maize are being grown (Source: DADO Report 2070/71).

As irrigation is partially available in khet land, so farmers are currently growing maize in spring season in

Khet land.

A small patch of land on the bank of the Tama-koshi river has year round irrigation facility which comprises

only 523 ha of land. During the field visit, it has been revealed that farmers have started growing hybrid

maize recently during spring season in those land which is unique for the district. There is an interesting

story of how hybrid maize cultivation has been started in that village. One of the farmers from that locality

went to visit his relatives in Terai district and saw them growing Hybrid maize. Looking at the yield of

hybrid he got very interested and collected hybrid seed from there and grew it in his village. He also took

advise on input dosage and other cultivation technique from his relatives and cultivated accordingly.

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Copying his practice, in the following year other neighbouring farmers have also started cultivating hybrid

maize in that locality. Last year, they have got a yield of up to 14 metric tons per hectare which is very

high compared to that of the local varieties in Ramechhap.

Figure 2: Dynamics of core function in the Ramechhap District

In the year 2070/71, farmers grew maize in 22,800 ha of land, however it was difficult to differentiate how

much land was khet and bari under maize production all across Ramechhap (DADO). With an average yield

of 2.6 MT/ha, a total of 60,000 MT maize was produced in the last year (DADO). All the produced maize

was used for homestead consumption, either as feed for the animal or as food for human consumption.

Farmer predominantly use their produced maize as feed for their animals (70-80%). Only a small portion,

10-20% of their total production, are being used as food for their own consumption.

Some farmers who have surplus volume of maize sell those to the neighbouring farmers or to the local

market by themselves. There are some small traders available in the district who collect maize either from

the farmers’ house or from the local weekly market. The local traders usually trade this maize in different

weekly market within the district to meet the unmet demand of the farmers for their household purposes.

From the field investigation, it has been confirmed that all the locally traded maize are being consumed

locally for homestead purposes.

During the field survey, it has also been found that price of maize in the local market was higher than that

in the Terai region and neighbouring districts, which confirms that maize produced in Ramechhap does

not go out of the district.

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DADO statistics show that Ramechhap is importing a huge volume of maize either from the neighbouring

Terai districts to meet its unmet demand of maize for homestead purpose (food and feed). A total of

40,000 MT maize was brought in from other districts.

There are three local feed mills located in Manthali, which were established recently to cater to the

increasing demand of feed from the rising poultry industry. They mainly produce smash feed for layer

poultry farm, goat farm and pig farm. As the major ingredient in the feed is maize, so they require a good

volume of maize year round. The current demand of maize from these feed mills are 400 MT per year.

Though their requirement is negligible compared to the volume of local production but they source entire

volume of 400 MT from the Terai region or from India through suppliers as because they don’t get it locally

available.

b. Core Function in Okhaldhunga District:

Compared to Ramechhap, acreage of maize in Okhaldhunga is less due to the nature of the district. Maize

was grown in 13226 ha of land that comprises 51.5% of the total cultivable land, 23870 ha. (Source: DADO

report 20170/71). Due to its high adaptability, maize is grown in all the different kinds of arable land.

Similar to other hill district, the major category of cultivable land in Okhaldhunga is Bari land which

comprises 17,200 ha, 71% of the cultivable land. As the Bari land is completely dependent on rain, so only

one crop can be grown here. Farmers mostly grow maize in Bari land during rainy season due to its

suitability.

Figure 3: Dynamics of the core function in Okhaldhunga

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Considerable area of khet land is also available in Okhaldhunga, 6,900 ha, which occupies 29% of the total

cultivable land. Out of total Khet land, year round irrigation is available only in 2,300 ha of land where

farmers are growing mainly rice. Besides rice, some other crops like wheat, potato and maize are also

being grown by the farmers in the year round irrigated land. In the remaining 4,600 ha of khet land farmers

grow rice and maize, where irrigation is available during rainy season accessing water from neighbouring

seasonal falls and canals (Source: DADO Report 2071/71). Farmers are growing maize in spring season in

Khet land with seasonal irrigation facilities.

With an average yield of 2.1 MT/ha, a total of 26,000 MT maize was produced in the year 2070/71 (Source:

DADO Report 2070/71). Almost all the produced maize was used for homestead consumption, either as

feed for the animal or as food for human consumption. Farmer predominantly use their produced maize

as feed for their animals (70-80%). Only a small portion, 10-20% of their total production, they are using

as food for their own consumption.

Some farmers who have surplus volume of maize sell those to the neighbouring farmers or to the local

market. Some small traders have also been found in the district who collect and trade maize locally in the

weekly market. However, it has been found that only a small volume of maize is being supplied to the

neighbouring Solukhumbu district by the traders. During the field survey, it has also been found that price

of maize in the local market is even higher than that in the Terai region and neighbouring districts, which

confirms that maize produced in Okhulduna is not sufficient to meet its demand.

DADO statistics show that similar to Ramechhap, Okhaldhunga is also importing substantial volume of

maize from the neighbouring Terai districts to meet its unmet demand of maize for homestead purpose

(food and feed). A total of 14,600 MT of maize was brought in from other districts.

2.2.2.2 Dynamics of the Core Functions in the Western Cluster

In the first half of Phase 1 the project has a mandate to work in the five districts in the Western cluster,

namely Dailekh, Kalikot, Jajarkot, Surkhet and Aacham. Primary information has been collected for the

three districts during the subsector assessment, Dailekh, Sukhet and Jajrkot. The dynamics of the core

function in the Western cluster has been drawn analysing the information from these three districts.

a. Core Function in Dailekh district

In terms of area under maize cultivation, the district is least developed compared to the neighbouring

districts in the Western cluster. The major category of cultivable land in Dailekh is Bari land which

comprises 25,766 ha, 74.69 % of the cultivable land (DADO, 2071/72). Maize is grown in Bari (upland)

during summer season only which completely depends on rain. Beside maize the farmer also grows wheat,

millet, buckwheat, barley and some winter vegetables.

Khet comprises of 8,731 ha, 25.30 % of the total cultivable land in Dailekh with irrigation facilities.

However, year round irrigation is available in 2,511 ha of land where farmers grow mainly rice (DADO,

2071/72). Besides rice the farmers also grows wheat, barley and gram. Farmers do not grow maize where

year round irrigation is available.

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During the field visit, it was revealed that majority of the farmers are using the local varieties and improved

varieties of seed (Manakamana-1,3,5, Arun-2, Deuti, Poshilo). None of the farmers were found growing

hybrid maize. They don’t have any idea about the commercial growing of hybrid maize.

Figure 4: Dynamics of the core function in Dailekh

In the last year, farmers grew maize in 20,150 ha of land (DADO, 2071/72) all across Dailekh district. With

an average yield of 1.9 MT/ha, a total of 39,292 MT maize was produced in the year 2071/72. All the

produced maize was used for homestead consumption, either as feed for the animal or as food for human

consumption. Farmers predominantly use their produced maize as feed for their animals (80-90%). Only

a few portion, 10-20% of their total production, are used as food for their own consumption. Some

farmers sell the produced maize in the local market and buy rice. Farmers usually sell to the neighbouring

farmers. Maize is also used to feed the mule in high mountains. From the field investigation, it has been

observed that only a small percentage of maize is being supplied to the wholesaler in Surkhet, which is a

trading hub, from where maize goes to the feed mills in Dailekh.

b. Core Function Dynamics in Jajarkot district

The major category of cultivable land in Jajarkot is Bari land which comprises 14,136 ha, 85% of the

cultivable land (DADO, 2070/71). Maize is grown in Bari (upland) during summer season only which

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completely depends on rain-fed. Beside maize the farmer also grows wheat, millet, buckwheat, barley,

etc in Bari land.

Khet comprises of 2,562 ha, 15% of the total cultivable land in Jajarkot where irrigation facilities are

available to some extent. The land where there is year round irrigation is available, farmers grow mainly

rice (DADO, 2070/71). Besides rice the farmers also grows wheat, vegetables, potatoes and spring maize.

During the field visit, it was revealed that majority of the farmers are using the local varieties and improved

varieties of seed to grow maize (Deuti, Manakamana). Only few farmers were found growing hybrid

variety of maize for the taste and all season availability. They don’t have any information on commercial

growing of hybrid maize. Even if few were aware of hybrid then they had problems on irrigation facilities

for growing hybrid maize.

In the last year, farmers grow maize in 8,266 ha of land (MoAD, 2070/71) all across Jajarkot district. With

an average yield of 1.2 MT/ha, total of 10,539 MT maize was produced in the year 2070/71. All the

produced maize was used for homestead consumption, either as feed for the animal or as food for human

consumption. Farmers predominantly use their produced maize as feed for their animals (80-90%). Only

a few portion, 10% of their total production, are being used for their own consumption.

Figure 5: Dynamics of the core function in Jajarkot

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Some farmers sell maize in the local market on demand for feeding to mule and buy rice. Farmers usually

sell to the neighbouring farmers. There are some local traders who buy maize from the farmers to sell in

the local weekly market. A small volume of maize has been found to be supplied to the traders or

wholesaler in Surkhet, from where the wholesaler supply maize to the feed mills in Terai district.

c. Dynamics of Core Function in Surkhet District

Surkhet has three distinct geography (Topography) viz, Mahabharat Range, middle plains valleys & hills

and Churia range. Mahabharat Range being high mountains is not at all suitable for agricultural activities.

Churia range is completely occupies by forest. So, crops are grown mainly in middle plain valleys and hills

with a total cultivable land of 37,444 ha.

In terms of area under maize cultivation, the district is quite advance compared to other neighbouring

districts. Maize is the third largest crop in Surkhet after rice and wheat. Maize is the major crop grown in

Bari land. Beside maize, mustard and potatoes are grown and sometimes the land is left fallow.

Figure 6: Core function dynamics in Surkhet Distric

Khet land with year round irrigation occupies 10,479 ha land (DADO, 2070/71). The major crop grown in

Khet land is rice. Besides rice, some other crops like wheat, potato and spring maize are also being grown

by the farmers. Khet land with seasonal irrigation facility is 12,288 ha. Total keht land is 14600 ha. Bari

land is 22,844 ha.

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During the field visit, it was revealed that majority of the farmers are using improved varieties (Arun-2,

Rampur Composite, Deuti, Poshilo-1, Manakamana-3).

In 2071 farmers grew maize in 16,100 ha of land all across Surkhet (DADO, 2070/71). With an average

yield of 2.38 MT/ha, a total of 38,243 MT maize was produced in the year 2071. The produced maize was

used for homestead consumption, either as feed for the animal or as food for human consumption. The

surplus volume of maize is sold to the local traders.

The maize traders collect maize from Jajarkot, Dailekh Sylan, and Rukum and sells to feed industry in

eastern part (Narayanghat, Bhairahawa, Nepaljung, Chitwan) of Nepal. Around 2-4 quintals of maize is

sold to local consumers for animal consumption. Demand of white colored hybrid maize is high in Pokhara

and Narayanghat for mule feeding.

2.2.2.3 Dynamics of the Core Functions in the National Context

Maize is one of the most important crop in Nepal. Maize is grown almost everywhere in Nepal, in all the

topographic regions; Terai region, mid-hills and high mountains region. In the last year a total of 2.28

million MT maize was produced in Nepal, of which 70% was produced in the mid-hill region. Terai region

contributed to 20% of the total supply of maize nationally while in high mountains only 8.6% maize was

produced in the last year. Yield is very low compared to the other maize producing countries in the region.

The national average yield is 2.45 MT per ha, which is highest in the Terai region with an average yield of

2.9 Mt/ha. Yield in the mid-hill region is 2.39 Mt/ha.

Maize is a traditional crop grown for food, feed and fodder. Maize demand has been constantly growing

by about 5% annually in the last decades (Sapkota and Pokhrel, 2010). The demand for maize as food is

has decreased over the years because of the changing food habit. Inhabitants in the mid-hills, in general,

are leaning towards rice. Young generation in that locality prefer rice over maize as staple food. Currently,

the per capita maize consumption in Nepal is 98 g/person/day (Ranum et al., 2014). Therefore, total

quantity of maize required as food for human consumption is around 1 million mt per year.

The locally produced maize is mostly being used to feed the cattle, buffalo, goat, pig, country chicken etc.

in rural areas of Nepal. From the field investigation, it has been found that around 70-80% of produced

maize is used for animal consumption while only 20-30% is being used for human consumption. So,

comparing the field investigation with the secondary information, even being very conservative, it can be

roughly estimated that around 2 million MT maize is required to feed the animals as raw or grinding maize

in the rural areas.

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Figure 7: Demand supply scenario of maize in the national context

The major industrial use of maize in Nepal is in the poultry feed mill industry. Key informant interviews

with the poultry feed mills owner and the member of the feed mill association revealed that about 0.8

million mt. of feed is produced annually by the feed industries in Nepal (114, registered in NFEA). Maize

being the major ingredients of feed, which comprises 60% of the total ingredient by volume, the current

requirement of maize from the feed mill industry alone is 0.48 million MT. However, to run the existing

poultry industries in Nepal at full capacity, there is a need of about 6.46 million mt. feed (Govind et al.,

2015), which stands for about 3.88 million MT of maize required annually from the feed industry. Current

production of feed is not sufficient for the industry. Nepal imports around 10-20% of ready feed as well.

Moreover, the demand for ready feed for the poultry and cattle industry is increasing at the rate of 11%

per annum. The increasing demand of poultry feed is evident from the fact that in the last two years, 4

new feed mills have been established and two more are now under construction only in Biratnagar. Thus,

the demand for maize is shifting from food to feed for livestock and poultry. For food, new types of maize-

based products such as soups, vegetables, edible oils are in demand but at a very low scale.

Maize supplied from the local sources to the feed mills are not sufficient for its total requirement. Hence,

a substantial volume of maize is also being imported from India. Findings from the key informant

interviews with the feed milers and maize suppliers revealed that around 50% of the total requirement of

maize from the poultry feed mill industry is met from the import.

Accumulating demand from all the different segments, the current national demand of maize stands for

about 3.3 million MT. On the other hand, the production during 2014 was 2.283million mt. Hence, the

deficit is around 1 million mt which is mostly being met by importing from India. According to the official

import records of 2014/15, a total of 0.29 million MT maize has been imported in the last year, which

indicates that a significant volume of maize is also being imported informally. The figure below shows the

flow of maize grain in the national context of Nepal. In the mid-hill and high mountains region, maize is

used mainly for homestead purposes; human consumption and animal feed. There is hardly any use of

maize for industrial purposes in those regions. Though maize is produced, as a major crop, in large area

of land in the mid-hills and high mountains but the production is not sufficient to meet, even, their own

Farmer in Mid-hills (1,617,911 MT /70.1%)

Farmer in Terai (468,025 MT /20.5%)

Importer imports maize from India(254,000 MT)

Local Trader

Local Trader

Local Market in Mid-hills

Wholesaler

Farmer in Rural areas(1 million MT as Food2 million Mt to feed animals)

Poultry Feed Mills(480,000 MT)

Farmer in Mountains (197,286 MT/ 8.64%)

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demand. Hence, these regions import maize from Terai region. The mid-hill districts also supply a small

quantity of maize to the high mountain region.

Field investigation shows that the eastern cluster of Terai supplies maize to the western cluster of Terai,

and mid-hills and high mountains of eastern cluster after meeting their own demand. Import from India

through eastern cluster, throughout the year, fulfils the local deficit. From the western cluster of Terai,

maize is moving to the mid-hills and high mountains of western cluster. A very low volume of maize is

coming from mid-hill district in the west, like Surkhet, to the Terai region in western cluster. It is needful

to mention that major usage of maize for industrial purposes is taking place in the eastern, western and

central cluster of Terai region as well as in the valley of Katahmandu-Patan-Bhaktapur. In the western side

as well import of maize from India fills the gap between domestic supply and demand.

2.2.3 Dynamics of the Support Functions

Seed

In both the eastern and western cluster, farmers are using open pollinated local variety or improved

variety of seed. Majority of the farmers in the project location use improved variety of seeds. However,

around 10% farmers are still using local variety of seed. Those who are using local variety of seed, use the

Figure 8: Flow of maize grain in Nepal

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retained seed from previous year’s production year after year. The farmers who use improved variety of

seed, they also use retain seed from previous years’ production. Once in 5 to 10 years, farmers buy

Improved variety of Truthfully labelled seed from DADO and Agro-vet. It has been found that only some

progressive farmers replace seed once in 3 years. DADO sell maize seed to the farmers at 50% subsidized

rate.

Figure 9: Dynamics of maize seed in the project district

Figure 9 above shows how the maize seed is being produced and supplied to the farmers. DADO has

agreement with some of the enlisted trained seed producer groups in the districts. DADO provides

foundation seed to the seed producing farmer group at 50% subsidised price to produce maize seed. Using

the foundation seed, farmer get a total yield of 2 tons per ha from which they can screen only 0.2 to 0.3

ton of seed, i.e., only 10-15% of the total production becomes seed. Farmer group sell the seed to DADO

at Rs 60 -70 per kg.

DADO then supply the improved variety of seed to the individual farmers or farmer groups at 50 to 70%

subsidized rate. In the western cluster, it has been found that farmers also sell seed to the agro-vet or

private company besides DADO to get quick money. However, the private company or agro-vet cannot

Hybrid seed

Retain seed

Improved Variety of Maize seed

TLS/IS Maize seed50% subsidy

Foundation seed50% subsidy

DADO Seed Producing Farmer Group

Agrovet

Private Company

Maize Farmer

Agrovet

Private seed companies

producing hybrid seed

Distributor

Importer imports

hybrid seed

Intrusion of hybrid seed informally through indian

border

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sell the seed to the farmers directly because of the subsidy that the farmers are receiving on price when

purchasing seed from DADO. Hence, eventually all the seed supplied to the farmers is channelled through

the DADO.

Improved seed has become popular among farmers as its yield is relatively higher (1.67 times more) than

the local seeds. About 91.5 % of the total cultivated area was covered by improved OP variety seed

contributing 94.7% of total maize production of the country (APSD, 2014). The improved variety of maize

seed production was found to be increased from 163mt in 2001 to 2,627mt in 2015.

Farmers hardly use any hybrid variety of seed in the mid hill districts. Only in few cases, it has been found

that farmers are using hybrid seed buying it from distant market. Though a good number of hybrid variety

of seed is available and becoming popular in the Terai region but most of the farmers in the mid-hill region

do not know about hybrid maize. Local private seed companies are producing hybrid variety of seed.

Besides, importers are also importing hybrid varieties of seed. All the hybrid variety of seeds are

commercially channelled to the farmers through distributors and agro-vets. The maize seed import has

been increased from 225mt in 2010/11 to 787mt in 2013/14.2 Currently, there are around 100 seed

importers in Nepal who import cereals, vegetables and other crop seeds. A high volume of hybrid maize

seed is also being imported into the Nepal market from the nearby markets in India through improper

channel.

The table below shows the number of OP and Hybrid seed variety available in Nepal. A total of 59 varieties

of maize seed are available currently.

Table 7: Number of maize varieties released and registered in Nepal and their yield range, including the Nepalese hybrids

(SQCC, 2072)

SN Description Open pollinated varieties Hybrid varieties

1 Released by NSB 21 3

2 Registered by NSB 1 34

Total 22 37

Productivity range (mt/ha) 1.5-6.08 5.14-12

In the table above, the yield potential of OP variety and Hybrid varieties are given. Though the table shows

the yield potential of OP varieties range from 1.5 to 6.08 MT/ha but during the field investigation, the

highest yield found was 3 MT/ha. Only farmers in some parts of Ramechhap were found using hybrid seed

who got yield in the range of 5 to 14 MT/ha.

2 A paper on Cereals Seed Value Chain Study in a Validation Workshop presented by MountDigit Technology P. Ltd., Dhobidhara,

Lalitpur on 14 July 2016.

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Fertiliser

Historically, Nepal has had a low level of fertiliser application. Fertiliser application in maize farming

specially in hill districts are even poorer. The practice of chemical fertiliser application in maize farming

by the farmers in eastern and western cluster are given below.

Fertiliser application by farmers:

Table 8: Fertiliser application by farmers

Fertiliser

Eastern Cluster Western Cluster

Average (Kg/ha) Average (Kg/ha)

Urea 77 50

DAP 38 0

Potash 8 0

FYM 20,000 18,000

Source: NAMDP Field Survey June/July 2016

During the field investigation, information on fertiliser application has been collected from few farmers in

both the clusters. The field findings indicate that the practice of fertiliser application seems better in the

Eastern cluster than in the Western cluster. Poor application of nitrogen is the principal limiting factor to

maize production, but other nutrient deficits, especially phosphorus and potassium, are also important.

Century long traditional farming practice, limited knowledge about fertiliser application and nutrient

management, and unavailability or timely availability of chemical fertiliser are contributing to the poor

application of chemical fertiliser in maize farming. The Agriculture Input Company Ltd. has been

supporting farmers in providing fertiliser at subsidy, however, farmers in the hills have been facing

problems in availing the fertilisers on time. Previously, fertilisers were supplied by Agriculture Input

Company Ltd, Salt Trading Company Ltd. and private sector, however, the role of private sector since

2009/10 was found to be unrecorded.3

Farmers are heavily relying on farm Yard Manure (FYM) to cultivate maize in mid hill regions. It has been

found during the field investigation that volume of FYM applied in maize farm ranges from 18000 to 20000

KG. The quality of FYM is a concern. Due to improper management of manures and FYM, most of the

nutrients are lost through the direct sunlight, and leaching. On an average 50 million MT manure (dung

and urine) is produced from cattle each year, which should be enough for the available cultivated land in

Nepal if used at the rate of about 20 MT per ha.4 In addition, an equal amount of manure can be available

from goat, pigs, sheep, and poultry. Moreover, farm yard manure (FYM) can also be produced. Limited

technical knowledge of farmers and weak extension services provided by DADO and other stakeholders is

3 MoAD. 2013/14. Statistical Information of Nepalese Agriculture. Government of Nepal, Ministry of Agricultural Development (MoAD), Singha Durbar, Kathmandu, Nepal. 4 Information taken from the Facebook of a retired Senior Agri. Expert of the Government of Nepal. Accessed on https://www.facebook.com/madan.rai.39750 on July 21, 2016.

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preventing the best us if FYM. If manures and FYM can be properly utilised, poor and improper use of

chemical fertiliser can be compensated.

Crop Protection

Crop protection is required to reduce the losses due to biotic factors such as insect-pest, rodents, snails,

diseases, etc. Mostly, Agrovets and DADO are responsible to supply agrochemicals to protect crop plants

in the districts. Agrochemicals used as pesticide in Nepal are imported from India, China and other

countries. Among imported agrochemicals in Nepal, around 80% is used in vegetable production.5 Farmers

use pesticides only if they see any disease or pest attack in their crops. In case of pest attack, farmers take

advice from agricultural service centre or from agro-vet on issues like what to apply, how much to apply

etc.

Incidence of biotic factors: Incidence of biotic (field cricket/stem borer/white grubs/ear rot/loose

smut/grey leaf spot/Downey mildew/leaf blight/stalk rot/weeds) is a problem in maize cultivation

in these clusters though not affected very frequently. Due to lack of technical knowledge on how

to deal with pests and diseases and susceptible varieties to biotic problems can be particularly

destructive in reducing yield. These problems are slightly different with particular districts.6

Incidence of abiotic factors: Incidence of abiotic (drought/hailstorm/wind/soil acidity/soil

erosion/lodging/declining soil fertility) is a great problem in maize cultivation. Moreover, soil

exhaustion is also critical in reducing farm income. Hence, use of limited quantity of fertilisers,

lack of proper crop rotation practices with legumes, soil erosion/sliding/surface run off during

rainy season, deforestation, are some factors which loss soil fertility in hills and mountains. Lack

of soil fertility leads to decrease in the yield of maize.

Pesticides are sold by the local agro-vets, who source it from the distributor in neighbouring market hubs.

Sometimes the company also supplied pesticides directly to the agro-vets shop. Pesticide Registered

Office under the Department of Agriculture is the sole organisation to control quality of agrochemicals in

Nepal. Each agro-vet has to take the certificate to trade agrochemicals in Nepal. Currently, there are more

than 150 agrovets in the NAMDP target districts.

Irrigation

Irrigation is crucial for successful maize cultivation. Based on the available database of different districts,

it showed that irrigation facilities play a great role to increase the cropping intensity and yield. Based on

the availability of irrigation, the cultivated land can be categorized into different types shown in the table

below. Distribution of land category as per the irrigation facilities in the different NAMDP target districts

are shown in Table 10.

5 Kathmandupost. 2014. Govt monitoring use of pesticides in veggie, fruits. Accessed on

http://kathmandupost.ekantipur.com/printedition/news/2014-07-10/govt-monitoring-use-of-pesticides-in-veggie-fruits.html on July 19,

2016.

6 DADOs. 2070/71. Annual Agricultural Development Programme and Statistical Book. District Agricultural Development Offices (DADOs), Okhaldhunga, Khotang, Surkhet, Jajarkot, Dailekh and Kalikot, Nepal.

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Table 9: Distribution of land

Districts Bari land

(Rainfed) Ha.

% of total land

irrigated

Khet Land (With

Seasonal irrigation

facility) Ha.

Khet Land (with Year

round irrigation facility)

Ha.

Ramechhap 37994 18.48% 6299 3109

Okhaldhunga 17265 36.82% 6479 2312

Khotang N/A 26.45% 4886 3230

Dailekh 25766 27.67% 6766 2412

Jajarkot 14136 10.09% 2562 4966

Kalikot N/A 13.39% 2845 2409

Aachham N/A 18.06% 6535 3660

Surkhet N/A 32.78% 12276 10449

Source: DADO Reports 2070/71

Bari land is located in hilly slope and depends completely on rain. Due to sloppy surface, water cannot

stand in bari land. Only one crop can be grown in Bari land in a year. As can be seen from the table above,

it occupies almost 80% of the cultivable land in the project districts.

Khet land can be located both in hilly slope or in the valley. In the hilly slope, with terrace based surface,

irrigation water can stand in the khet land. In this kind of khet land irrigation is provided from the spring

or nearby canal which remains available only during and immediately after the rainy season.

Khet land with year round irrigation facilities are mostly located in valley closer to rivers, khola, irrigation

canal or reservoir. Farmers irrigate those land using Low lift pump (LLP) or traditional methods. Few

farmers borrow or rent irrigation pump from the neighbouring farmers. There is hardly any commercial

irrigation service provider or pump supplier available in the project location.

Extension Service

Farmers require information on cultivation technique, seed variety, seed rate, dosage of fertiliser,

frequency of irrigation, pest or disease control, dosage of pesticide etc. to grow maize properly. They also

in need information on shelling, drying and other post-harvest related issues to reduce the post-harvest

loss. Farmer also needs market and price related information to plan his production and selling.

Farmers in the project districts hardly

get these information as access to the

information source is either missing or

insufficient. Agriculture service

centres which can provide credible

information to the farmers on

cultivation technique related issue

lack the capacity and are in limited

number to cater to a large number of

farmers.

Agricultural Service Centre

Agro-vet Neighbouring

farmer

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Farmers receives information on pest and disease control as well as on dosage of pesticides from the

neighbouring agro-vets. Farmers also receives information from the neighbouring farmers. However, the

quality of information is questionable as they do not have sufficient technical capacity to provide the

farmers with right advice on all occasions.

Some on-going projects and local NGOs are also providing extension service to the farmers but on an ad-

hoc basis.

Post-harvest

Proper post-harvest handling of maize is crucial to minimise losses of maize. The poor post-harvest

handling of maize is affecting farmers in Nepal, particularly in hilly regions. There are three major post-

harvest related functions; namely, shelling, drying and storing.

Shelling: Farmers shell grains from maize cob mostly using hands. It requires huge labour

involvement to de-shell maize using hands. Some manual Sheller model is available in the targeted

location but it also requires as much labour as it requires shelling with hand. There are no

mechanical Shellers available in the project location. Currently, with their subsistence farming, as

they are dealing with small volume of maize at a time, it is manageable shelling with hands. But

once farmers get involve in commercial farming of maize and sell bulk volume of maize at a time,

it will be very difficult to shell maize without mechanical shelling.

Drying: the major harvesting season of maize coincides with the rainy season, hence it becomes

a crucial issue to dry maize during the rainy season. High moisture content of maize increases the

risk of aflatoxin and other fungal attack. Majority of the farmers rely on sun for drying maize and

they dry out their maize/seed on bare grounds, dirty surface exposing it to dust and stones. Sun

drying of maize on the open ground also increases the chance of pest attack and quality

deterioration.

Storing: Farmers usually store their maize inside their house either on the floor or hang maize

cobs in the ceiling. The farmers store their maize in their living rooms which are not aerated. Those

who produce substantial volume of maize do not have sufficient space inside their house to store

maize. So they keep the maize outside hanging on bamboo bar under the open sky. Due to

improper storage, the attack of rat, other pest and fungal attack might incur loss to the farmers.

Trading

In Nepal, both formal and informal traders participate in maize (seed/food/feed) trading, but most are

informal, unregistered and unregulated. The trade has many different facets. Mainly in maize trading,

there are collectors, wholesalers and retailers in Nepal.

Most of the small farmers in the rural areas take some part of their surplus maize either to barter with

other commodity at their community or directly sell to the local market or the agents/brokers of the

wholesalers. The sale of maize at this level is often triggered by a specific family cash requirement (school

fees, a funeral, a wedding, or a land dispute) rather than being part of a longer-term commercial strategy.

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The agents/brokers work to connect external large-scale buyers/wholesalers to local farmers. They utilise

knowledge of their local region to locate maize, negotiate price with farmers, and assemble sufficient

quantities of maize for the principal buyers. They don't need any type of storage facility. They only help

to reduce the burden of buyers and farmers in terms of time and cost.

No broker for maize trading outside the districts were found during the field study in the project districts

in the Eastern and western clusters. Due to the limited quantity of maize production, all the collection of

maize grain and seed is managed by the local traders and/or cooperatives. The collected maize in the

Eastern cluster was completely sold at the local market, whereas in the Western cluster, some of it was

also sold to the wholesalers in Nepalgunj. The cooperatives perform the role of agents. They sell maize

grain and seed either to large millers or process it and sell to the retailers. They also sell to the local end

users. They have strong facilities own/rented and credit facilities.

Finance

Farmers need money to purchase seed, chemical fertilisers, agrochemicals, and labour. Usually farmers

invest in a crop from the savings from the previous crop. In most cases, savings are not sufficient enough

to invest in the crop properly. Hence they need additional financing which they cannot access currently.

There is no formal financial institute providing loan to the farmers with simple terms and condition.

However, cooperatives provide finance to the farmers though in limited scale.

2.2.4 Rules, Regulations and Government Programmes

Research and Development

National Agriculture Research Council (NARC) is a government research council with a network of research

stations to conduct research on agriculture related issues. NARC conducts research on different aspects

of agriculture. It identifies the existing problem in the agriculture and find tries to identify possible

solutions. A wing of NARC conducts research to develop new varieties of maize seed and to identify good

agriculture practices appropriate for specific variety in specific agro-ecological/climatic condition.

Successful research findings of NARC are then promoted to the farmers to improve their cultivation

practices through extension service provided by DADO. However, the needs, priorities and demands of

the farmers for improved farming thus remain unmet by the available extension work force in the country.

Registration of seed

The National Seed Board (NSB) and Seed Quality Control Centre (SQCC) are the responsible authority for

the release and registration of seed for all kind of agricultural crops. The National Seed Policy, 2056 has

given permission to the public and private sector to develop new varieties of seed for any crop, which is

also highlighted in the Seed Vision 2013-2025. NSB certifies and registers any new variety of seed

developed, multiplied or imported either through public or private sector, upon testing the quality and

performance of the variety in the local agro-climatic condition. In maize, NSB has released 23 open

pollinated (OP) varieties and 3 hybrids, and registered 32 hybrids and 1 OP maize varieties developed in

other countries. It also denotes any existing varieties if it does not perform well in the field condition.

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Industrial Quality Standard

There is no quality standard defined for the maize traded in the local market. However, the poultry feed

mill industry which is the major industry for maize has some quality parameters defined. As they prefer

high protein content in maize so they prefer protein enriched yellow maize. The feed mill industry only

buy maize with less than 14% moisture. The quality parameter also defines the maximum percentage of

broken kernels, minimum percentage of inert material, colour etc. Maize affected with aflatoxin or other

fungus is also not accepted by the feed mill industry.

Import and custom excise

As the required volume of maize for the poultry feed mill industry is not available in the national market,

a good volume of maize is being imported to Nepal every year. The feed mill enjoys preferential import

and custom duty from the government of Nepal to import maize. The trader has to give 5% import duty

to import maize whereas, the feed mill can import maize with only 1.6% import duty.

Agricultural Development Strategy (ADS) 20147

The government of Nepal has drafted an overarching policy framework in 2014, Agricultural Development

Strategy (ADS) 2014, for the overall development of agriculture sector with a vision for next 20 years and,

action plan and roadmap for next 10 years. The key objectives of ADS are to increase income of farmers,

improve access and market, and reduce post-harvest losses. Maize is one of the priority crops listed in

ADS. The ADS encourages public private partnership, private sector investment and holistic value chain

approach to develop the agricultural subsector with an objective to benefit the poor.

Maize Mission Programme

Maize Mission Program was started in 2064/65 with the objective of substituting maize import from India,

increase income of the farmers and supply raw materials for feed industries through integrated supply of

seeds, machineries and other inputs in some terai districts of Nepal. As per government reports, this

program has been successful in increasing production of maize in these districts. Since the start of the

project the total area under maize production has increased from 2,050 hectares to 10, 000 hectares and

the total annual production of maize has increased from 10,000 MT to 72,000 MT in the project districts.

Mid Hill Mega Maize programme

GoN started Mid Hill Mega Maize Program in 42 hill and mountain districts from 2013/14 to enhance

production and productivity of maize crop and to support for enhancing food security status of hilly

districts. NAMDP target districts in the Western cluster are covered by this programme. The main activities

under this programme are: distribution of subsidised seed, training of farmers, subsidy on seed transport,

subsidy on purchase of machinery (e.g. Mini/Power tiller, Accessories, Corn Sheller, Grading Machine,

Tarpaulin, Super Grain bag etc.).

7 MoAD. Agricultural Development Strategy (ADS). Ministry of Agricultural Development (MoAD), Singha Durbar, Kathmandu.

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Other relevant policies

There are many other policies such as National Cooperative policy, National fertiliser policy, agribusiness

policy, national seed policy, plant protection act, pesticide act, national agricultural policy etc. which

influence the production of maize and performance of the maize farmers.

Informal Norms in the Farmers’ Group

Majority of the farmer in Nepal are associated with farmer groups or cooperatives. Each of the

cooperatives and farmer groups has its own written constitution following which the operational

procedures of the group take place. However, there are informal norms and rules as well which the

farmers also abide by.

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Analysis

3.1 Problems in the core functions and underlying constraints

Figure 10: Constraint Tree

Unavailability of

low temperature

resistant or

drought resistant

variety

Farmers do not

have idea about

hybrid maize and

its potential

Farmers lack the

knowledge

about proper

cultivation

technique

Natural calamities like

late rain, temperature

fall etc. affect the

quality of maize

Lack of proper

drying and

storage facility

Unavailability

of mechanical

sheller

Unavailabilit

y of quality

hybrid seed

Improper post harvest

handling Current production is not sufficient for own demand

Commercial trade of maize is not available due to scale

Use poor quality retain

seed

Quality of the maize is

not good

Farmers do not consider

maize as a cash crop

Productivity of maize

is very low

Farmers income from Maize arming is low

Access to quality

informatoin on

cultivation

technique is not

readily available

Farmers do not

have knowledge

about post-

harvest handling

Do not have proper

application of

fertilizer

Do not follow

proper cultivation

technique

Farmers do not apply

sufficient quantity of

chemical fertilizer

Applied FYM is

inadequate in terms of

both quantity and

quality

Farmers lack the

knowledge on

appropriate

fertilizer dosage

Chemical

fertilizer is

not available

on time

Do not have

financial ability

to apply proper

dosage of

fertilizer

Do not have

knowledge about

proper composting

method

Raw materials

are not

sufficiently

available

Inconsistent

quality of

improved

variety of seed

produced by

farmer group

Farmers do

not practice

appropriat

seed

replacement

rate

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Though farmers in the mid-hill districts have been producing maize for centuries as one of their major

crop they grow maize through subsistence farming which does not allow them to get good income from

maize farming. So, considering ‘low income of farmer from maize farming’ as the key problem statement

in the maize sector in mid-hill districts, the constraint analysis has been performed to identify the

underlying problem or root causes. Poor income of farmers is leading mainly due to three broad constraint

areas which are described below:

a. Farmers do not consider maize as a cash crop

b. Productivity of maize is very low in the mid-hill districts

c. Quality of the maize that they produce is not good

a. Farmers do not consider maize as a cash crop

Production is not sufficient to meet own demand. As mentioned earlier, farmers in the mid-hill districts

use maize for their own consumption as food and as feed to feed their animals. Though, they grow maize

in almost all the available and suitable cultivable land the total production, in most cases, is not sufficient

for their own homestead consumption. So, they usually do not have surplus maize to trade in the

commercial market.

Maize market in the mid-hill is not connected with the commercial market of maize in Nepal. The maize

market in the high mountain and mid-hill region is more of subsistence nature which is disjointed with the

commercial maize market concentrated in the Terai region. Due to the lack of availability of maize in scale

in the mid-hill region, the traders from the commercial market are not sourcing maize from this region.

Price of maize is often higher in the mid-hill region than that in the commercial maize market where

price is with import parity. Besides the maize from the Terai region, imported maize from India plays a

crucial role in the dynamics of the commercial maize market. The feed mill industry prefers to import

maize from India instead of procuring it from the mid-hill region due to the closeness to the Indian cluster

of maize production, cheaper transportation cost and low import duty. As the price of maize in the mid-

hill region is not influenced, by and large, by the maize supply in the commercial market, hence often the

price is higher in the hill districts than that of the commercial market. This is mainly due to the lack of

connection between these two markets.

b. Productivity of maize is very low in the mid-hill districts

There are a number of reasons for the low productivity of maize in the project districts.

Farmer use poor quality of retain seed to grow maize. In both the eastern and western cluster, farmers

use either local variety or improved variety of open pollinated seed. Majority of the farmers in the project

location use improved variety of seeds. However, around 10% farmers are still using local variety of seed.

Those who are using local variety of seed, use the retained seed from previous year’s production year

after year which gives significantly lower yield. The farmers who use improved variety of seed, they also

use retained seed from previous year’s production. Once in 5 to 10 years, farmer buy Improved variety of

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Truthfully labelled seed from DADO. Though the yield potential is moderately acceptable but as the

farmers use the retained seed from their previous year’s production consecutively for quite a few years

they get much lower yield than is potentially attainable. Underlying reasons for using poor quality retain

seeds are given below.

Farmers are not aware about the frequent replacement of OP variety of seed. As mentioned

earlier, the seed replacement ratio is very poor in the project location due to the low level of

understanding and awareness of the farmers. Majority of the farmers replace seed buying

improved variety of seed from DADO or other sources once in 8 to 10 years. Only some of the

progressive farmers replace seed frequently, once in every 3 years.

Poor quality of improved variety of seed production. Improved variety of seed are produced by

seed producing farmer groups. Though they are trained but due to lack of regular monitoring and

proper supervision from DADO and AIC, the farmer group cannot ensure the quality of the seed

they produce.

Farmers are not aware about the hybrid seed. Farmers in the mid hill region mostly have no or

very low awareness about the hybrid variety of seed. They do not know that hybrid seed could

give more than double the yield that they are currently getting. Though, there are 35 hybrid

varieties of maize seed registered in the national seed board and it is widely being used in the

terai regions, farmers in the mid-hill districts are still unaware about the potential of hybrid seed.

Private companies, importer or the distributor of hybrid seed do not supply hybrid varieties of

maize seed to the markets in mid-hill districts as they do not see a demand. There is no initiative

from the private seed companies to promote hybrid maize in the project districts. The dearth of

demand of hybrid maize in the mid-hill region and lack of motivation of the private company has

created prevented the introduction of hybrid maize in the project location.

Farmers in the mid-hills do not practice proper application of fertiliser. Both the application of chemical

fertiliser as well as farm yard manure is not sufficient for proper nutrient management of the soil and to

get optimum yield. Underlying reasons for improper application of chemical fertiliser are:

Farmers lack the knowledge on appropriate dosage of chemical fertiliser. With the century long

experience of maize farming, farmers follow traditional practices of fertiliser application. They

hardly apply any chemical fertiliser because of their lack of understanding about the necessity and

appropriate dosage of different chemical fertiliser. Even if some of the farmers apply chemical

fertiliser, they apply only one spoon of urea per plant which is far less than what is required.

Chemical fertiliser is not available on time. Import and distribution of chemical fertiliser is

governed by the government mechanism. Due to the bureaucratic nature of fertiliser distribution

where AIC, DADO and private sector is involved in different roles, fertiliser is often not available

in the field when farmer requires it to apply in the crop.

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Often farmers do not have the financial capability to purchase fertiliser in required volume. To

apply chemical fertiliser in appropriate volume it requires substantial investment which the

farmer often lacks. Farmer also do not have the access to finance to purchase and apply

appropriate dosage of fertiliser.

The applied FYM is inadequate both in terms of quantity and quality. Though farmers are relying heavily

on Farm Yard Manure (FYM) to maintain the soil fertility and to get better yield but they cannot produce

adequate volume of FYM as they do not get sufficient volume of raw materials to produce their required

volume of FYM.

Moreover, farmers do not have knowledge about the proper composting method which results

in poor quality of FYM produced in the farmer’s backyard. Some techniques of composting

methods with proper combination of raw materials could improve the quality of the compost

significantly. It might also reduce the overall lead time for composting. Farmers in the mid-hill are

not aware about the technology.

Farmers do not follow proper cultivation method in terms of land preparation, weeding, irrigation and

crop protection which is also significantly contributing to the poor yield of maize. Underlying reasons are:

Farmers lack the knowledge on proper cultivation technique. Access to the quality information on

proper cultivation technique is also not easily accessible for farmers. As mentioned earlier farmers

receive information on cultivation technique from agriculture service centres, agro-vet and

neighbouring farmers. Agriculture service centres which can provide credible information to the

farmer on cultivation technique related issue lack the capacity due to the limited number of human

resources to cater to a large number of farmers. Quality of the information received from Agro-vet

and neighbouring farmers is questionable as they do not have sufficient technical capacity to provide

the farmers with the right advice.

c. Quality of the maize is not good

The following underlying reasons are responsible for low quality of maize produced by the farmers in the

mid hills.

Natural calamities like late rain or temperature fall either delaying the sowing time or affecting the

flowering and tillering of maize which eventually affect the yield and quality of maize cob and grains.

Drought resistant and low temperature resistant varieties of seed which could address the issue to some

extent are not available in the mid hill regions.

Improper handling of maize during post-harvest also deteriorates the quality of maize significantly. The

following reasons are responsible for this.

Farmers often do not have proper knowledge on post-harvest handling. Farmers do not know

how to shell maize efficiently and effectively, how to dry maize keeping the quality consistent and

how to store it to avoid the risk of quality deterioration due to pest or fungal attack.

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Proper shelling technology is not available in the hill districts. Farmers use hand to shell their

maize which is time consuming and requires substantial involvement of labour. With their current

practice of shelling they cannot shell large volume of maize at a time. Mechanical Sheller which

can efficiently shell a large volume of maize in just an hour is not available in the mid hill region.

This is also a contributing factor for maize not being a commercial product in the mid-hill region.

Farmers do not have alternative drying method or technology other than sun-drying. As the

major harvesting season of maize in the md-hill region coincides with the rainy season, so sun

drying is not always a feasible option for the farmer. Maize with high moisture content, especially

during consecutive days of rain, are prone to get affected by aflatoxin and fungal attack which

deteriorates the quality of maize significantly. There is no alternative drying technology available

in the project location. Sun drying of maize on the open ground also increases the chance of pest

attack and quality deterioration. Simple technology like use of polythene sheet can reduce the

loss which farmers are not aware of.

Improper storage is another issue which reduces the quality of maize significantly. Farmer

usually store their maize inside their house either on the floor or hang maize cobs in the ceiling.

Those who produce substantial volume of maize do not have sufficient space inside their house

to store maize. So they keep the maize outside hanging on bamboo bar under the open sky. There

is no community level storage facility available at the village level to support farmers with storage

service.

3.2 Opportunities and sector drivers

There are number of opportunities prevailing in the maize sector in Nepal to stimulate the growth in the

sector by improving productivity and income of the poor farmers, given the current scenario of the maize

sector in Nepal. The opportunities and potential of the sector are described as follows:

1. More than 70% of the total maize is produced in the mid-hill district. Around 10800 Ha of land is

cultivated under maize and 35184 HHs are already involved in maize cultivation in the NAMDP

targeted eight districts. Improving the sector in this region has a huge potential to improve the

livelihood of large number of farmers.

There is a huge demand for maize both nationally and within the regions. The demand can work as the

major driving force to carry the sector forward.

2. Local production of maize is not sufficient to meet the demand of local farmers. The unmet demand

is pushing the sector to grow further. Because of the lack of sufficient supporting services and

functions the growth is not taking place at the desired pace.

3. There is a huge demand of maize from the poultry feed mill industry which is pulling the production

of maize up nationally. The poultry industry in Nepal is growing very fast and hence, the feed mill

industry is also growing at a high rate which is recorded as 11% per annum.,This can provide an

excellent growth potential for the maize sector.

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4. Few feed mills are locally available in the mid-hill districts which are currently sourcing maize from

outside the project districts. Once connected with the local market, these can play an important role

to support the growth of the sector.

Good quality seeds and other supporting services are available in the market.

5. A number of hybrid varieties and improved varieties of open pollinated seed are available in the

market. A total of 37 hybrid varieties and 22 OP varieties are registered in the national seed board

and are being marketed and distributed to the farmers. The number of varieties are increasing every

year.

6. Private seed companies, importer and distributor of seed are available in the national market who are

interested to promote their variety of maize seed in the mid-hill regions.

7. There is an increasing number of service providers such as agrovets available in the project districts

who are selling seed, fertiliser and pesticide. This can provide incentive to the seed company as well

as pesticide company to strengthen their distribution channel by creating a provision for embedded

service of information for the farmers.

8. New technology of shelling and mechanical sheller machine is available in the terai region, which

allows the potential for easy technology transfer to address the issue of post-harvest handling.

Farmers are operated in groups.

9. Farmer groups and co-operatives are readily available in the mid hill districts and almost all the

farmers are somehow connected to farmer groups which gives the opportunity to tag service

providers with the farmers easily resulting in greater outreach.

Government priority

As one of the staple food in the mid-hill and high mountain regions the Government of Nepal promotes

the cultivation of maize to reduce food deficiency. The government is providing support in many ways to

increase the production of maize. However, subsidy given by the government may poses a threat to

involve private sector stakeholder to ensure sustainable growth of the sector. Under maize mission and

mid-hill mega maize programme GoN provides seed support in 75% subsidy, training/tours, seed transport

subsidy, equipment Support in 50 % subsidy (Mini/Power tiller, Accessories, Corn Sheller, Grading

Machine, Tarpaulin, Super Grain bag etc., improved maize area expansion, participatory variety selection,

linkages between stakeholders.

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Rationale for working in the sector: summary analysis

This section examines the maize sector through three lenses of

pro-poor relevance, growth potential and intervention

feasibility to assess whether or not the project should work in

this sector.

Pro-poor Relevance

Maize, being the second most important crop in Nepal, occupies

928,000 hectares of land which is almost 30% of the total

cultivable land. According to MoAD, maize occupies 70% area in

the mid hills followed by the Tarai (19%) and the high hills (11%).

This shows that the mid-hill is the main part of Nepal where

maize based farming system is found. The high-hills on the other

hand have food deficit zone due to lower cereal production and productivity. Around 24,14,428

number of HHs are involved in maize cultivation. There are about 36247 of farm household involved

in maize production in the eastern three districts where as there are about 34546 farm household

involved in maize production in the western five districts. More than 72% of the maize farmers have

less than 1 ha of land i.e., majority of the maize farmers are small in-terms of their land holding size.

Around 90% the maize farmers in the western cluster are small farmers who have less than 1 ha of

land on an average.

A total of 905286 number of women are living in the NAMDP targeted districts. Survey finding reveals

that a higher percentage of women as compared to men are working in maize farming. Due to the

high rate of out-migration, farming is being taken care by the women in many households. About 60-

80% of women are involved in maize cultivation in the Eastern and Western cluster. Another

interesting fact is that a significant number of women are involved in the maize sector as labour in

sowing, harvesting and post-harvest related activities. It is necessary to mention that maize requires

around 130-140 labour days per hectare of which 70% was family supplied and 30% was hired labour

(Source: Field survey June 2016)

For most poor rural families’ access to land is extremely limited. Many depend on plots that are too

small to meet their subsistence requirements. For many poor farmers having landholdings of a half a

hectare or less productivity levels remain low as a result of limited access to new farming technologies,

inputs and extension services.

As a huge number of farmers and labourers, both men and women, are involved in the maize sector,

so its development holds the prospect of raising income of numerous rural households and create

opportunities for additional employment.

Intervention Feasibility

Growth Potential

Pro-Poor relevance

Figure 11: The three lens of rationale for working the maize sector

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Growth potential

Overall the sector is growing which is evident from the

last five-year trend of area coverage, yield and

production of maize nationally in Nepal. The

production of maize has increased from 1.85 million

Mt in 2011 to 2.3 million MT which is 23% increase in

5 years. Whereas, the area under maize coverage

looks almost stagnant in the last five years, with 5%

deviation over the period.

In the three districts of the eastern cluster, a total of 153,206 MT maize was produced in 2013/14.

From the field investigation and secondary research, it has been found that there is still 40% deficit in

the eastern cluster. On the other hand, 101,464 MT of maize was produced in the five districts of

western cluster in the same year.

Maize is mainly used as food for human consumption, feed for the domestic animals and ingredients

for poultry feed mill industry. From the analysis of core function dynamics, it has been found that total

demand of maize in Nepal is 3.5 million Mt. So, the total domestic production is not sufficient to meet

the national demand. The demand for Maize to be used as food for human consumption is around 1

million MT per year, while to feed the domestic animals it is estimated that 2 million Mt maize is

required annually. The major industrial use of maize is taking place in the poultry feed mills which has

a demand of 0.5 million MT per year. As the poultry industry is increasing very fast, hence to feed the

commercial poultry industry, the feed industry is also growing at a pace of 11% per annum. Thus, the

demand for maize is also shifting from food to feed for livestock and poultry. Around 60% of the total

requirement of maize from the poultry feed mill industry is being met by importing maize from India.

Looking at the demand-supply situation in the targeted districts as well as in the national market, it is

evident that there is a huge growth potential of maize in the mid-hill regions. With the increased

production of maize in the mid-hill region, the current demand supply gap within the districts can be

reduced over the years. If the variety of seed and cultivation practice of maize can be improved in

large scale in the targeted districts of eastern and western clusters, eventually, it can also supply maize

to the Kathmandu valley and Terai regions to meet the unmet demand of maize from the feed mill

industry and hence, can substitute import after meeting its own demand.

Intervention Feasibility

The systemic constraints or underlying reasons, that have been identified from the constraint analysis,

responsible for the underperformance of the maize sector in the project districts seem feasible to

address sustainably with the given resource and expertise of NAMDP. Key constraints identified for

the maize sector in the project districts are unavailability of quality seed which can give higher yield,

inappropriate application of fertiliser for growing maize, improper post-harvest handling and lack of

linkage with the commercial maize market.

A number of good quality maize seeds including hybrid variety of maize are available in the market.

Open pollinated varieties of seeds are produced and distributed through government channels and a

Table 10: Trend of Maize production

Fiscal Year Area (Ha) Production (MT)

2067/68 876 1855

2068/69 906 2068

2069/70 871 2179

2070/71 859 1999

2071/72 928 2283

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number of private sector stakeholders are involved in supplying hybrid variety of maize. Some of the

world renowned hybrid varieties are also being imported and distributed in the market. Private seed

companies, importer and distributor of seed are interested to promote maize in the mid hill regions

to expand their business though their presence is not visible at this moment.

There are also a number of pesticide companies available in Nepal. As farmers lack the knowledge

regarding appropriate usage of fertiliser their awareness has to be raised in this regard. Both the

private seed company and pesticide company can play significant role in addressing the knowledge

gap of the farmers. New composting technology which has become successful in the neighbouring

countries, can be introduced in the project location to improve the efficiency and effectiveness of FYM

which farmer mostly use for agriculture production.

Improved shelling technology and commercial supplier of mechanical sheller is also available in the

terai region. To address the post-harvest related issues, mechanical sheller can be made available in

the mid-hill region with the support from manufacturers and suppliers in Terai region.

There are more than 200 feed mills in Nepal located in the clusters of Kathmandu-Bhaktapur-Lalitpur

valley and the Terai region. The number of feed mill is increasing due to the increasing demand of

poultry feed. The feed mills require a huge volume of maize and they currently import more than half

of their total requirement from India. They are interested to increase the supply of maize from the

local sources if the quality and price is competitive with the Indian market. The feed millers can be

used as leverage agent to open up the forward market linkage for the maize farmers in the mid-hill

region.

Maize being the priority sector for the Government of Nepal, the project will find the government

supportive in promoting maize in the mid-hill districts.

So, looking through all the three lenses, it makes sense for the NAMDP project to work on to develop

the maize sector in the mid-hill regions.

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Strategy for Change

The strategy is designed to strengthen the weaknesses prevailing in the current support service

functions and the enabling environment to address the issues responsible for the underperformance

of the core functions, especially for the smallholder farmers. The strategy starts with the prioritisation

and selection of constraints to be addressed by the project with the given resource, expertise and

scope. The strategy is then followed by (1) a vision of change, to envisage how the value chain or

market system would operate if identified problems are resolved; (2) a set of interventions which can

be targeted at specific market actors or group of market actors which can be engaged to drive change

in the system.

5.1 Prioritisation and selection of constraints to be addressed

From the constraint analysis above, it has been found that there are number of underlying constraints

in the maize sector in the project districts. First and the most important constraint is the poor yield of

maize which on the hand does not meet the demand of the farmers in the regions and on the other

hand does not allow the farmers to link with the major commercial maize market due to the lack of

scale. Absence of linkage with the commercial maize market also does not allow farmers to consider

maize as a cash crop. Both of these inter-related issues have created a vicious circle which hinders the

maize sector to grow in the mid-hill districts. Underlying reasons responsible for this situation are

prioritised below in order:

• Seed replacement rate by the farmers, in case of improved variety of seed, is very poor due to the

lack of their understanding and weak distribution system those seeds.

• Improved Variety of seed produced by the seed producer group is often not of good quality due

to lack of technical support and quality assurance

• Farmers are not aware about the hybrid variety of maize which can give more than double the

yield they are currently getting

• Suitable variety of hybrid maize is not available in the mid-hill region

• Farmers do not have the knowledge to produce quality compost using the raw materials available

locally

• Farmers lack the knowledge on proper usage of chemical fertiliser for maize cultivation

• Farmer do not have knowledge about proper cultivation technique and post-harvest handling and

access to quality information/advice is not available

• Appropriate post-harvest technologies (shelling, drying etc.) are not available

• Farmers are not connected with the commercial market of maize in Nepal

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5.2 Vision of change

Focusing on achieving the growth potential portrayed for maize sector in the previous section, a vision

of change can be outlined for the maize sector in the mid hill region. The vision of change is: to increase

the income of the farmers, including women and farmers from the disadvantaged groups, in the mid-

hill region through commercialising the maize farming with increased production and better linkage

with the commercial market.

The vison has two clear-cut objectives. One is to increase the production of maize in the mid hill region

and the other is to commercialise the maize farming in mid-hill region through linking the maize

farmers with the mainstream commercial market of maize in Nepal. As the current production of

maize in the targeted location is not sufficient compared to its total requirement, hence, the first and

foremost priority will be given to increase the production of maize mainly through improving

productivity. Development of linkage with the mainstream commercial market has to be established

in parallel so that the surplus production can be channelled to the mainstream market immediately to

avoid the risk of farmers’ disappointment.

The ultimate aim is to benefit a large number of smallholder maize farmers by achieving improved

yields and incomes through the proposed interventions.

5.3 Intervention Areas and Pathways to Systemic Change

The ultimate aim is to benefit all maize smallholder farmers by achieving improved yields and incomes

through the proposed interventions.

It is crucial that interventions are designed which are systemic so that outcomes are not dependent

upon the project or development partner for sustainability. This means that NAMDP should not seek

to provide services but rather enter the market system in a catalytic manner to tackle the service

weaknesses in existing market actors. Based on the analysis the following four intervention areas are

necessary to develop the maize sector in the mid-hill region in Nepal:

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Intervention Area 1: Promote the provision and usage of quality seed to improve the productivity of maize.

Background

Description

Potential partners Potential limitation Potential opportunities

Intervention Idea 1: Raise awareness of farmers to replace local seed with improved variety of seed

Some farmers are using

local variety of maize

which is giving less yield.

Raising farmers’

awareness to change

their local seed with

improved variety of seed

is necessary to improve

the productivity of maize

AIC and DADO being the

major responsible

authorities to produce and

distribute improved varieties

of maize seed to the farmer

are supposed to raise

awareness of the farmers

regarding improved variety

of seed. Because of the

subsidy provided on

improved variety of maize

seed, private sector, i.e.,

private seed companies or

Agro-vet does not have any

incentive to get involve in

the business of improved

variety of seed or to promote

the usage of improved

variety of seed among the

farmers.

AIC, DADO

private seed

companies, Agro-

vet

DADO could not supply maize to all the

farmers with subsidy because of the

limited capacity, so a large number of

farmers have to buy seed from the

market at market price which is being

supplied the agro-vets or other

stakeholders.

Identify the opportunities to

raise awareness of farmers

regarding replacement of

local seed with improved

variety.

Intervention Idea 2: Facilitate to improve the quality of improved variety of seed produced by the seed producer group/cooperatives

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Background

Description

Potential partners Potential limitation Potential opportunities

Seed producer groups are

formed and supported by

DADO or AIC, in some

districts. The members of

the seed producing

groups are trained by

DADO and AIC on proper

cultivation technique,

sorting, grading and

screening to build their

capacity to produce

better quality improved

variety of seed.

DADO technicians are

supposed to monitor and

supervise the farmer group

on a regular basis to ensure

the quality of the seed. With

the limited human resources

DADO cannot ensure regular

supervision and monitoring.

DADO, private seed

companies

Current modality of seed production and

distribution does not allow the private

sector to get involve in ensuring quality of

the seed production.

Involvement of private

sector could improve the

situation of monitoring and

supervision, hence could

improve the quality of seed.

DADO’s long term objectives

and strategies need to be

clarified to design feasible

intervention to address this

issue seed quality.

Intervention Idea 3: Facilitate seed companies to encourage farmers using hybrid variety of maize alongside making the hybrid seed available in the targeted

location:

Although a number of

composite varieties have

been released for

cultivation, their larger

spread is impeded by

non-accessibility of seeds

to the farmers. Some of

the farmers in remote

areas either using local

seed or improved seeds

but in most of the terai

hybrid seeds are used

Those who are using local

variety of seed, use the

retain seed from previous

year’s production year after

year. DADO sell maize seed

to few farmers at subsidized

rate. Large private seed

companies or importers

need to understand their

business regarding hybrid

maize seed in the mid-hill

regions. Upon

DADO,

NGOs/INGOs, Seed

companies,

There is high resistance by civil society

organisations in hybrid seeds.

Finding right marketing enterprises and

their commitment is difficult.

Establish and strengthen

distribution networks,

ensuring both availability

and access to quality seed in

new prospective areas.

Embed other essential

information (for example,

about improved cultivation

technologies, application of

appropriate dosage of

fertilizer etc.) with their

products for farmers.

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Background

Description

Potential partners Potential limitation Potential opportunities

seeds coming through

informal channel from

India.

The existing varieties

does not perform well in

the field condition. The

productivity of maize in

Nepal is less as compared

to other countries.

understanding the existing

business model and

incentives, they have to

develop win-win business

model to promote hybrid

maize cultivation in the

region. Farmers are more

demanding high yielding

variety of maize seed.

Community based maize

seed production program

needs to be implemented in

inaccessible areas and

minimum support price

should be declared for

maize seed/grain growers

before planting season.

Increase Public investment

for breeding and varietal

development and seed

related infrastructure and

creation of additional

support services such as

laboratories and education

and developing strong

regulatory mechanism.

Intervention Area 2: Promote the provision of information on cultivation technique and proper application of inputs.

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Background

Description

Potential

partners

Potential limitation Potential opportunities

Intervention Idea 1: Raise awareness of farmers on cultivation technique and proper application of inputs

Many farmers in rural areas do not

have the most up-to-date

information on how to grow maize

efficiently and economically.

Improving their knowledge of new

techniques and technologies, in

addition to providing them with

any physical resources necessary

for implementation, can

dramatically increase the farmers’

level of productivity.

There are many challenges facing

today’s farmers. The nature and

scale of these

challenges vary according to farm

small land areas with hand tools

and without the use of any

petrochemical inputs that results

in degraded soil fertility.

AIC and DADO being the major

responsible authorities to produce and

distribute improved varieties of maize

seed to the farmer are supposed to

raise awareness of the farmers

regarding improved variety of seed.

Because of the subsidy provided on

improved variety of maize seed, private

sector, i.e., private seed companies or

Agro-vet does not have any incentive to

get involve in the business of improved

variety of seed or to promote the usage

of improved variety of seed among the

farmers.

DADO

private seed

companies, Agro-

vet

DADO could not

provide technical

services to all the

farmers because of

the limited resources,

so a large number of

farmers have to be

connected from the

market at market

players which

provides agriculture

inputs together with

other embedded

services.

Private investment could be

increased for additional

support services such as

invest in correct application

technologies that improve the

use of inputs, adopt increased

crop diversification and more

extensive integrated crop

rotation cycles, implement

reduced tillage and no-till

cultivation techniques to

improve soil conditions and

invest in more efficient

irrigation technology etc.

Support smallholder’s

farmers on increased

knowledge and access to

improved maize varieties,

farm machinery, and

equipment.

Intervention Idea 2: Promoting growth of maize and soya bean

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Background

Description

Potential

partners

Potential limitation Potential opportunities

There is great variability in

agronomic practices, and in

particular, farmers' maize

husbandry differed markedly from

national recommendations for

plant population, agronomic

inputs and genotypes used.

Farmers regularly employed

practices that were not even

officially recognised by the

national research and extension

services, such as thinning of maize

for livestock fodder, growing the

crop in association with trees for

fodder, and relay cropping with

finger millet, their priority being to

optimize overall output of the

farming system rather than

maximizing maize productivity.

There are substantial opportunities for

increased maize and soya utilization

for feed mills. Currently, less than 10%

of maize supplies go into the poultry

feed industry, although demand is

much greater than this supply. Limited

supply of both maize and soya for feed

production has led to constraints in

the growth of the poultry industry,

resulting in significant growth in

imports of poultry and other meats for

consumption. Estimated demand for

maize for poultry feed is projected to

grow from 73,000 metric tons in 2010

to 118,100 metric tons by 2015.

Food and Feed

Industry

Agro-vet

Seed Suppliers

Support farmers to fully

benefit from adopting

agronomic practices such as

crop rotation, intercropping,

crop protection, soil and

water management

conservation farming, etc.

Increase awareness of

recommended input and

agronomic management

methods, promote

sustainable cropping systems

to reduce the prevalence of

mono-cropping, increase

focus on integrated crop and

pest management methods

and make appropriate

chemical inputs available for

weed & pest management.

Intervention Idea 3: Raise awareness of farmers to use organic matter to increase organic biomass in the soil

The cultivation of maize resulted

decline of soil fertility since maize

is heavy feeder. Various types of

human activity decrease soil

organic matter contents and

biological activity. Severe soil

erosion takes out the potential

Soil health is the key to producing a

good yield. Farmers have shown

increased concern about the

environmental and economic impacts

of traditional crop production that has

stimulated interest in alternative

systems. There is a need to promote

Organic fertiliser

producing

companies, AIC,

Salt Trading

Company, Agro-

vets

Producers of compost

fertilisers lack

capacity to produce

more compost

fertilisers and train

farmers.

Promoting compost, cover

crops/green manure crops,

crop rotation

perennial forage crops

zero or reduced tillage,

agroforestry, the production

of high yielding varieties and

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Background

Description

Potential

partners

Potential limitation Potential opportunities

energy source for soil microbes,

resulting in the death of

the microbial population and thus

of the soil itself.

Increasing the organic matter

content of soils or maintaining

good levels requires a sustained

effort that includes returning

organic materials to soils and

rotations with high-residue crops

and deep- or dense-rooting crops.

It is especially difficult to raise the

organic matter content of soils

that are well aerated, such as

coarse sands, and soils in warm-

hot and arid regions because the

added materials decompose

rapidly. Soil organic matter levels

can be maintained with less

organic residue in fine textured

soils in cold temperate and moist-

wet regions with restricted

aeration.

and maintain soil biological processes

and minimize fossil fuel inputs in the

form of fertilizers, pesticides and

mechanical cultivation.

The demand for organic food has been

increasing by the day but the country’s

total commercial production of organic

fertilisers is below one per cent.

Organic fertiliser producers have been

producing just 0.73 per cent of the

current requirement of around three

million metric tonnes.

There are difficulties

in producing compost

fertiliser at mass scale

because of fighting to

get more subsidies

from the government.

Government may not

be able to provide

subsidy on compost

fertilisers being sold

in the market.

the return of crop residues

will help to maintain soil

organic matter at a

satisfactory level. Promoting

the use of effective

microorganism (EM) is also

necessary.

Intervention Idea 4: Promoting private soil testing services

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Background

Description

Potential

partners

Potential limitation Potential opportunities

Declining soil fertility especially in

hills is a problem that affects

agriculture as a whole in Nepal,

not just maize. Indeed, because

maize is a relatively heavy user of

soil nutrients, compared to other

cereals, encouraging maize

production potentially runs the

risk of aggravating this issue.

Appropriate use of composts (organic

or chemical) requires that farmers first

know the existing levels of soil fertility.

Government soil testing facilities have

limited access but the emergence of

new soil testing kits offers the

opportunity for quick and relatively

cheap testing services. These, however,

are almost unknown in the area.

Organic fertiliser

producing

companies, AIC,

Salt Trading

Company, Agro-

vets

Supporting the introduction

of soil testing facilities by new

private providers in specific

areas.

Intervention Area 3: Promote the practice of appropriate post-harvest handling.

Background

Description

Potential

partners

Potential

limitation

Potential opportunities

Intervention Idea 1: Promoting short-term storage arrangements for maize

Most smallholder farmers lack

adequate post-harvest storage

and handling capabilities that

result in substantial levels of

spoilage and loss of harvested

produce.

Proper storage of maize is important for two

reasons. First, maize grain absorbs moisture

from air, which stimulates the growth of fungi

and moulds, which in turn release toxins that

make it unfit for consumption. Secondly, if

farmers can store their excess produce for a

short time of period, when the market is most

saturated, they can get a better price later on,

when there is more room in the market. While

long-term storing of maize is expensive and

DADO,

Private

Seed

Company

Investment by private entrepreneurs of

storage bag produces, metal bin

producers, Silos producers helps farmers

getting better prices for their crops over a

longer period of time, which stimulates

production increases. Increase farmer

awareness of and access to effective on-

farm storage,

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Background

Description

Potential

partners

Potential

limitation

Potential opportunities

requires special management, short-term

storage is less demanding and more affordable.

Intervention Idea 2: Increase access to post-harvest processing technologies

Postharvest losses vary greatly

among production areas and

seasons. As a product moves in

the postharvest chain, post-

harvest loss may occur from a

number of causes, such

as improper handling or bio-

deterioration by

microorganisms, insects,

rodents or birds etc.

A number of technologies in post-harvest

mechanization (e.g. threshers, millers, etc.) have

been developed over the past decades. Many of

these have great potential to increase

productivity, reduce losses and improve income

of farmers. But the technologies are not scaled

up and remain in the hands of technology

originators and research centres. The

government should incentivize and motivate

entrepreneurs to produce, disseminate and

popularize those technologies which can

measurably improve the income of smallholder

farmers.

Support to increase access to post-

harvest processing equipment and

technologies, increase farmer access to

community-level storage facilities with

skilled personnel.

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Intervention Area 4: Establish linkage between the maize producer in the mid hill region and the mainstream commercial market of maize.

Background

Description

Potential

partners

Potential limitation Potential opportunities

Intervention Idea 1: Promoting trade and marketing arrangements

The trade of maize in Nepal is

relatively unimportant for

human consumption, but

important only for feeds for

poultry and livestock. There is no

any restriction importing maize

from India.

The AIC, the government

undertaking to trade agricultural

inputs, has not completely

withdrawn itself from the seed

industry nor it has been

supplying maize seeds

effectively.

There are many trade barriers,

those includes import/export

ban SPS requirements, duties

imposed on boarder, changes in

trade requirements which are

ad-hoc and often not

communicated on time.

Trade in maize is largely localized

within the districts in western

districts and even imported in

eastern districts. In the terai and

highly accessible areas in the

central

and western mid-hills, farmers

with larger quantities of maize sell

to traders at the farm gate while

those with smaller quantities

transport it to traders’ shops in

nearby trading centres. Most of

the feed mills were imported

maize from India.

Food and

Feed mills,

Agro-vets

Lack of

marketing

information,

inability to frame

proper marketing

plans, not having

proper

technical know-

how, inability to

adapt to the

changes in the

business

environment

Food and feed industries are major user of

maize. Food and feed industry will have to

meet new and different needs from their

consumers. The food industry will require

support to meet the new challenges and

opportunities. Food industry will demand

that agriculture produces a wider range of

qualities in its products.

Cost of production, fair trade concept,

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Intervention Area 5: Promote diversified uses of maize for commercial market.

Background

Description

Potential

partners

Potential limitation Potential opportunities

Intervention Idea 1: Raise awareness of consumers on the use of maize products

Maize is the second major food staple

in Nepal mostly eaten in different

preparations. This proportion is higher

in low-income groups. However, the

trend is changing and growing eating

maize in urban areas in diverse

preparations. Raising awareness on

different varieties of maize in a real

circumstance is an issue, because of the

consumer preferences.

Maize became more important

when

demand for food by non-farming

groups increased.

One of the reasons maize is in high

demand as a food crop is its high

energy and nutritional value. It is

rich in Vitamins A, C and E, several

essential minerals, and contains up

to 9 percent protein. It is also rich

in dietary fibre and carbohydrates

which are a good source of energy.

It has high demand on feed as well.

Many of our daily diets contain

maize either directly or indirectly.

Production of meat, eggs and dairy

products (like milk and

yoghurt) would be difficult without

maize, which is a hugely important

ingredient in animal feed.

TV, FM Radio,

Food and

Feed Industry

A strong public awareness

campaign to inform

consumers is needed,

based on a sensory

evaluation and the mass

media, in particular on

radio in the local language.

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Background

Description

Potential

partners

Potential limitation Potential opportunities

Intervention Idea 2: Facilitate to grow different variety of maize produced by the seed producer group/cooperatives

Maize has different uses. There are

different products of maize. Corn

flakes, grit, maize rice, flour for bread

(roti and bakery), maize brew (beer,

local beer, roasted maize, green cob,

steamed maize, thickening agent, oil,

starch, glucose, syrup, ethanol etc.

Maize plant is also used as fodder for

livestock.

There are a number of different

types of maize like field corn,

popcorn, sweet corn, baby corn

etc.

Hybrids have played a very

important role in the development

of private seed industries in the

country.

Private seed

companies,

Food and Feed

Companies

There is a difficulty to

manage seed supply.

Production is affected by

of abiotic and biotic

stresses, poor soil fertility,

lack of access to key

inputs, low levels of

mechanization and poor

post-harvest

management.

Need of adequate

demonstrations of new

varieties and extension

support to increase

farmers’ awareness.

5.4 Sustainability Analysis

For the future vision of a functional market system, who will do what function, and who will pay for it is a major consideration. The framework looks at the

existing and potential future incentives and the capabilities of market actors. Based on the who does and who pays viewpoints, the sustainability analysis of

the sector is given below.

Activities Programme scenario Future Scenario

Who does? Who pays? Who will do? Who will pay?

Seed suppliers support the provision and usage of quality seed to improve the productivity of maize

Raising awareness to

replace local seed with

improved variety of seed.

• Private seed companies and

seed suppliers; Farmers

groups and cooperatives

• NAMDP may

bear the cost

partly.

• Private seed companies and seed suppliers; Farmers groups and cooperatives

• Private seed companies and seed suppliers; Farmers groups and cooperatives

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Activities Programme scenario Future Scenario

Who does? Who pays? Who will do? Who will pay?

Facilitation to improve the

quality of improved variety

of seed.

• Private seed companies and

seed suppliers.

• NAMDP may

bear the cost

partly.

• Private seed companies and

seed suppliers.

• Private seed companies and

seed suppliers.

Encouraging farmers using

hybrid variety of maize. • Private seed companies

• NAMDP may

bear the cost

partly.

• Private seed companies and

seed suppliers.

• Private seed companies and

seed suppliers.

Promote the provision of information on cultivation technique and proper application of inputs

Raising awareness on

cultivation technique and

proper application of

inputs.

• Private sector (Food and

feed industry, input

companies and suppliers)

• NAMDP may

bear the cost

partly.

• Private sector (Food and feed

industry, input companies and

suppliers)

• Private sector (Food and feed

industry, input companies and

suppliers)

• Farmers

Promoting growth of maize

and soya bean.

• Private sector (Food and

feed industry).

• NAMDP may

bear the cost

partly.

• Private sector (Food and feed

industry).

• Private sector (Food and feed

industry).

• Farmers

Raising awareness to use

organic matter to increase

organic biomass.

• Agro-vets.

• Organic fertiliser production

company.

• Farmers Field Schools (FFS).

• NAMDP may

bear the cost

partly.

• Agro-vets.

• Organic fertiliser production

company.

• Organic fertiliser production

company.

Promoting private soil

testing services.

• Organic fertiliser production

companies.

• Local Resource Persons.

• Private soil testing service

providers.

• NAMDP may

bear the cost

partly.

• Private soil testing service

providers.

• Farmers, Farmers groups and

cooperatives.

Promote the practice of appropriate post-harvest handling

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Activities Programme scenario Future Scenario

Who does? Who pays? Who will do? Who will pay?

Promoting short-term

storage arrangements for

maize.

• Private sector metal bin

producers, Improved Crop

Storage (PICS) bag selling

company.

• NAMDP may

bear the cost

partly.

• Private sector. • Farmers, Farmers groups and

cooperatives.

Increasing access to post-

harvest processing

technologies.

• Agro machinery sells

company.

• Food and feed industry.

• NAMDP may

bear the cost

partly.

• Agro machinery sells company.

• Food and feed industry

• Farmers, Farmers groups and

cooperatives.

Establish linkage between the maize producer in the mid hill region and the mainstream commercial market of maize

Promoting trade and

marketing arrangements. • Food and feed industry.

• NAMDP may

bear the cost

partly.

• Food and feed industry. • Food and feed industry.

Promote diversified uses of maize for commercial market

Raising awareness on the

use of maize products. • Food and feed industry.

• NAMDP may

bear the cost

partly.

• Food and feed industry. • Food and feed industry.

Facilitating to grow

different variety of maize. • Food and feed industry.

• NAMDP may

bear the cost

partly.

• Food and feed industry.

• Food and feed industry

• Farmers, Farmers groups and

cooperatives.

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Annexes

Annex 1. Released and registered open pollinated (OP) and hybrid (HB) varieties of maize in Nepal8

SN Varieties Year OP/HB Duration

(days)

Yield

(mt/ha

)

Hills/Mountain

s (H/M)

Additional

recommended

areas

A Released

1 Khumal Pahelo 1965 OP 120-130 4.9 H

2 Rampur

Composite

1975 OP 110-115 4.4 H Terai, Inner Terai

and Besi

3 Arun 2 1981 OP 80-90 2.2 H Terai

4 Manakamana 1 1987 OP 120-130 4.0 H Terai: WS

5 Ganesh 2 1989 OP 150-180 3.5 M Terai and Inner

Terai: WS

6 Rampur 2 1989 OP 105-110 4.0 Besi & Taar Terai and Inner

Terai

7 Arun 1 1995 OP 90-100 4.0 H Western Terai

8 Ganesh 1 1997 OP 175 5.0 M

9 Manakamana 3 2002 OP 142 5.5 H ER, CR and WR:

1000-1700m

10 Deuti 2006 OP 130-135 5.7 H

11 Sitala 2006 OP 130-135 6.08 H

12 Manakamana 4 2008 OP 117 5.3 H East-West: less

than 1600 m.

13 Posilo Makai 1 2008 OP 145-155 5.3 H East-West: less

than 1600 m.

14 Manakamana 5 2010 OP 140-145 5.27 H East of Karnali

15 Manakamana 6 2010 OP 140-145 5.34 H East to Mid-

Western

16 Khumal Hybrid

2

2014 HB 152 (WS)

138 (SS)

9.08

8.5

H Rainy season (RS)

17 KYM 23 2014 OP 68 (days to

silking)

2.5 H RS

18 KYM 35 2014 OP 66 (days to

silking)

1.5 H CR or WR: 700-

1400m

19 Resunga

Composite

2014 OP 127 5.2 H CR & WR: RS

20 Arun 3 2015 OP 100 3.9 H MWR: SS

21 Arun 4 2015 OP 113-115 4.2 H MWR: SS

22 Arun 6 2015 OP 90 3.5 H MWR: SS

B Registered

8 SQCC. 2072. http://sqcc.gov.np/en/

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1 Bayo 9681 2010 HB 90-110 6.5-8 H WR: RS

2 Rajkumar 2010 HB 100-110 8-9 H WR: RS and ET:

WS

3 Nutan (KH 101) 2010 HB 90-92 6.5-8 H CR: RS and ET: WS

4 DKC 7074 2011 HB 85-95 6-8 H CH: RS and CT: WS

5 30 P 30 2011 HB 100-155 6-7 H CH: RS and CT: WS

6 30 B 30 2011 HB 105-120 8-9 H CH: RS and CT: WS

7 Bisko 940 2011 HB 135-140 7.13 H CT

8 C-1921 2011 HB 140-167 (WS)

105-110 (RS)

5.14-

7.5

H

9 Godawari 989 2011 HB 105 7.36 H (Besi &Tar) ER or CR

10 Early 2 2011 HB 105 5.69 H (Besi &Tar) ER or CR

11 Gulmi 2 2014 OP 125 5.4 H Gulmi &

Arghakhachi: 700-

1400 m Note: ER, Eastern Region; CR, Central-Region; WR, Western Region; SS, Summer Season; WS, Winter Season, and CT, Central Terai

Annex 2. List of seed importers in Nepal (SEAN, May 11, 2016)

SN Name Company District, Place

1. Upendra Sah Green Land Traders Jhapa, Birtamod

2. Kedar Baral Subani Krishi Bhandar Jhapa, Birtamod

3. Kamal Baral Mechi Agrovet Jhapa, Birtamod

4. Kishore Parajuli Purbeli Agro Trader Jhapa, Birtamod

5. Bilas Yadav PL Krishi Bhandar Jhapa, Damak

6. Basanta Neupane Babin Krishi Bhandar Jhapa, Damak

7. Padam Budhathoki Shekhara Krishi Bhandar Jhapa, Damak

8. Punya Prasad Bhattarai Bhattarai Agrovet Pharma Jhapa, Damak

9. Hari Prasad Bhattarai Dipika Krishi Kendra Morang, Biratnagar

10. Binod Shrestha Sai Ram Agro Traders Morang, Biratnagar

11. Manoj Goel Manoj International Morang, Biratnagar

12. Om Thapa Purbanchal Agro Traders Morang, Biratnagar

13. Yesonta Singh Koshi Agro Centre Morang, Biratnagar

14. Jaya Narayan Adhikari Munu Krishi Bhandar Morang

15. Gopal Basnet GH Agrovet Trader Morang

16. Dilip Karki Sagarmatha Agro International Morang

17. Kumar Nepal Semi Selli Agrovet Morang

18. Askar Ali Rosan Agro Trader Morang

19. Jhamak Rayamajhi Om Shanti Agro Trader Morang

20. Shushil Santhaliya Aananda Agro Traders Morang

21. Shushil Santhaliya Isha Agro Traders Morang

22. Mana Kumari Adhikari Birat Agricultural Business House Morang

23. Ram Pratap Yadav Bajaranja Agro Trader Sunsari, Duhabi

24. Surya Narayan Yadav Sagarmatha Agro Saptari

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25. Bal Govinda Das Pradip Beej Bhandar Saptari, Rajbiraj

26. Ram Krishna Das Khadhya Beej Bhandar Saptari-7

27. Turanti Das Turanti Beej Bhandar Saptari-9

28. Prabhu Shah Prabhu Khad Beej Bhandar Saptari-9

29. Sonai Dash Sonai Beej Bhandar Saptari-9

30. Surya Narayan Yadav New Sagarmatha Agrovet Saptari-9

31. Raj Kumar Mahato Daya Ram Agrovet Siraha, Golbazzar

32. Ramendra Yadav Sampad Biu Utpadan tatha Bikri

Kendra

Siraha

33. Arabinda Subedi Nepal Agro Centre Dhanusha, Janakpur

34. Ram Naresh Gupta Ankit Enterprises Sarlahi, Barhathawa

35. Manoj Shah Manoj Beej Bhandar Rautahat, Garuda

36. Bijaya Shah Kisan Beej Bhandar Rautahat, Garuda

37. Yogendra Ray Yadav Agrovet Concern Rautahat, Gaur

38. Ram Naresh Gupta Gupta Malkhad Pasal Rautahat, Gaur

39. Ram Naresh Gupta Gupta Beej Bhandar Rautahat, Gaur

40. Bidhyananda Jha Neha Agro Traders Bara, Kalaiya

41. Sunil Kumar Sah Arabinda Agro Bara, Kalaiya

42. Raja Sah Raj Beej Bhandar Bara, Kalaiya

43. Suman Kushahawa Kushwaha Beej Bhandar Bara, Jeetpur

44. Nanhen Khan Sahin Seed Centre Bara, Jeetpur

45. Rajeshwor Prasad New Nepal Beej Bhandar Bara, Kalaiya

46. Abadhesh Kumar Jha Neha Agro Traders Bara, Kalaiya

47. Chhote Lal Prasad Krishak Beej Bhandar Parsa, Birganj

48. Kedar Khadka East-West Nepal Parsa, Birganj

49. Vijaya Gupta Jaya Laxmi Seed Centre Parsa, Birganj

50. Bijaya Kumar Gupta Om Beej Bhandar Parsa, Birganj

51. Birendra Prasad Kalwar Shubha Beej Bhandar Parsa, Birganj

52. Bishwa Raj Baniya Pashupanchhi tatha Kheti Sewa Makawanpur, Hetauda

53. Mitra Raj Dawadi Dawadi Agrovet Centre Chitwan, Narayanghad

54. Saroj Sapkota Panchkhel Beej Bhandar Kavre, Panchkhal

55. Arun Lal Shrestha Annapurna Beej Bhandar Kathmandu, Kalimati

56. Basanta Chandra

Marahatta

Gorkha Seeds Kathmandu, Kalanki

57. Kiran Nimbus Kathmandu, Kalimati

58. Madhusudan Shrestha Kasthamandap Trade Point Kathmandu, Kalimati

59. Prahlad Prasad Timilsena Timilsena Seeds Kathmandu, Kalimati

60. Ram Krishna Tulsayan Jay Kisan Seed Kathmandu, Teku

61. Suresh Gurung Karma Groups Kathmandu, Swoyambhu

62. Nem Maharjan Nepal Seed Company Lalitpur, Nakkhu Dobato

63. Tanka Chaudhary National Agro Centre Lalitpur, Lagankhel

64. Birendra Yadav Universal Seed Company Rupandehi, Bhairahawa

65. Lalajee Siddhartha Agrovet Rupandehi, Bhairahawa

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Ek Narayan Paudel Siddhartha Agri Centre Dang

66. Babu Ram Baral Prithivi Agro Centre Dang, Tulsipur

67. Ek Narayan Paudel Siddhartha Agri Centre Dang, Ghorahi

68. Kamal Subedi Global Agro Trade Banke, Nepalganj

69. Umanath Dawadi Chitwan Agrovet Banke, Nepalganj

70. Radheshyam Gupta, Shashi Agrovet Banke, Nepalganj

71. Shreedhar Gyawali Trimurti Agro Centre Banke, Nepalganj

Umanath Dawadi Chitawan Agrovet Centre Banke, Nepalganj

72. Tara Thapa Shining Star Agrovet Banke, Nepalganj

73. Lamsal Agro Traders Banke, Nepalganj

74. Ramesh Bahadur Shah Munal Agrovet Centre Banke, Nepalganj

75. Binod Tiwari Tiwari Krihi Bikas Farm Banke, Nepalganj

76. Ram Prasad Acharya Acharya Agrovet Centre Bardiya, Gulariya

77. Puni Ram Chaudhari Debit Agrovet Centre Kanchanpur, Krishnapur

78. Laxmi Kant Dhakal Krishak Sahayog Kendra Kailali, Dhangadhi

79. Bishnu Raj Burlakoti Kisan Agrovet Centre Kailali, Dhangadhi

80. Bhupendra Thapa Pet Vet Centre Kailali, Dhangadhi

81. Kabi Raj Bhatta Basuling Agrovet Centre Kailali, Attariya

82. Hari Lal Sapkota Dinesh Brother's Agrovet Centre Kailali, Sukhad

83. Tulsi Ram Paudel Bageshowri Agro Farm Kailali, Tikapur

84. Puni Ram Chaudhari Debit Agrovet Centre Kanchanpur, Krishnapur

85. Pushpa Raj Bhatta Kisan Agro Centre Kanchanpur,Mahendranagar

86. Kamal Thapa Pragati Agrovet Kanchanpur, Mahendranagar

87. Sundar Gautam Sammi Agrovet Centre Kanchanpur, Mahendranagar

88. Dhani Ram Rana Rana Agro Centre Kanchanpur, Tribhuvan Basti

89. Sarita Gautam New Sarita Gautam Kanchanpur, Belauri

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Annex 3. List of Agro-vets for seed and/or pesticide trading in different NAMDP districts9

SN Name of the traders Address License

No.

Contact No.

A Khotang

1 Himalaya Agrovet Centre Khotang Bazar-9 036-420233

2 Bajimaya Agrovet & Seed Centre Diktel-4

3 Saiju Krishi Samagri Bhandar Diktel-2

4 Saurabh Agrovet Centre Diktel-1

5 Krishi Samagri Bhandar Diktel-1

6 Joshi Agrovet Centre Diktel-1

7 Ganga Agrovet Centre Diktel-1

8 Kisan Agrovet Centre Khotang Bazar-9

B Okhaldhunga

1 Shrestha Agrovet Centre Okhaldhunga-6 4514

2 Bebisar Agrovet Centre Okhaldhunga-5 4515

3 Gurung Agrovet Centre Salleri-1 4161

4 Karki Agrovet Concern Okhaldhunga-7 4162

5 Shrestha Agrovet Taluwa-6 7736

6 Karki Agrovet Concern Baruneshwor-3 7635

7 Sharada Agrovet Pokhare-8 9954

8 Pariwartan Agrovet Ragaji-2 9952

9 Shangrila Agrovet 9950

10 Sagarmatha Agrovet Centre Ketuke-4 9951

11 Shrestha Agrovet Si. Na. Pa.-5 9953

12 Krishi Agrovet Manebhyanjyang-4 9158

13 Baniya Agrovet Kuntadevi-4 8132*

14 Dhamala Agrovet Mulkharka-8 8423

15 Sagarmatha Agrovet Fetiguth-3 8135

16 Kabita Agrovet Moli-1 7934

17 Anjana Agrovet Pokhare-1 7933

18 Ghising Agrovet Khijiphalate-3 7932

19 Rumja Agrovet Rumjatar-12 7926

* = Certificate No. (without License)

C Surkhet

1 Bijaya Agrovet Centre Birendranagar -6 5128 083-521323

2 Pariwartan Agrovet Centre Birendranagar -6 3095

3 Bulbule Agrovet Centre Birendranagar -6 4003 083-521138

4 Sris Agrovet Centre Birendranagar -6 5303,

5851

083-522484

5 Shital Agrovet Trading Centre Birendranagar -6 5132 083-520778

9 DADOs. 2070/71. Annual Agricultural Development Programme and Statistical Book. District Agricultural Development

Offices (DADOs), Okhaldhunga, Khotang, Surkhet, Jajarkot, Dailekh and Kalikot, Nepal.

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6 Prahlad Pangali Agrovet Centre Birendranagar -6 5302 083-523936

7 Kiran Agrovet Centre Maintada -3

8 Bihani Agrovet Centre Maintada-3 083-

9 Jaya Krishna Agrovet Centre Maintada-3

10 Gnwali Agropharma Ramghat-5 5131

11 Gnwali Agrovet Centre Ramghat-5 5130

12 Krishak Agrovet Centre Chhinchu-7 5129 9848015668

13 Bishal Agrovet Centre Chhinchu-7 5339 083-540137

14 Paudel Agrovet Centre Chhinchu-7 5338 083-540121

15 Bhattarai Agrovet Centre Birendranagar-6 3592 083-521008

16 Paudel Agrovet Centre Malarani-7 1942

17 Govinda Agrovet Centre Malarani-7 2961

18 Amrit Agovet Centre Sahare-8 2962

19 Om Agrovet Centre Uttarganga-8 5526 083-524118

20 Birendra Agrovet Centre Bi.Na.Na.Pa.-1

21 Usha Agrovet Bi.Na.Na.Pa.-6 5132 083-520778

22 Pradip Agrovet Centre Dhumkhare-9

23 Om Agrovet Centre Satakhani-3

24 Samjhana Agrovet Centre Mehalkuna-9 2963

25 Dipak Agrovet Centre Kunathari-1

26 Aryal Agrovet Centre Bi.Na.Na.Pa.-9

27 Dilip Agrovet Centre Satakhani-7

28 Giri Agrovet Centre Babiyachour-2

29 Milan Vet Centre Gumi-2

30 Bastola Krishi Bikas Pharma Bidhyapur-4

31 Dipak Agrovet Centre Kunathari-4

32 Birendra Agrovet Centre Gutu-8

33 Lakhan Agrovet Centre Gutu-8

34 Dibya Agrovet Centre Malarani-7

35 Srijana Agrovet Centre Bi.Na.Na.Pa.-2

36 Srijana Agrovet Centre Garpan-1

37 Saraj Agrovet Centre Jarbuta-4

38 Adhikari Agrovet Centre Salkot-1

39 Tiwari Agrovet Centre Bi.Na.Na.Pa.-3

40 Shahi Krishi Beej Bhandar Babiyachour-2

41 Om Agrovet Centre Latikoili-2

42 Giri Agrovet Centre Matela

43 Basanta Agrovet Centre Sahare-8

44 Ashish Agrovet Centre Guto-5

D Jajarkot

1 Ganesh Agrovet Jagatipur-9

2 Prime and Prince Agrovet Centre Vur-7, Fera

3 Kisan Agrovet Khalanga-2, Thanti

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4 KP Agrovet Khalanga-3, Gairekhali

5 Kalimati Agrovet Lahan-6, Kalimati

6 Bheri Rapti Agrovet Centre Dhime-4, Gharanga

Note: In Jajarkot only two Agrovets are registered officially, however, they have not mentioned their names in the report.

E Dailekh (Chemical Fertilizer

Traders)

1 Devendra Bahadur Budha Na.Na.Pa.-1, Dailekh Bazar

2 Narayan Pd. Sharma Na.Na.Pa.-6, Ganesh Chowk

3 Ram Pd. Sharma Na.Na.Pa.-6, Dailekh Bazar

4 Ganesh Pd. Sharma Na.Na.Pa.-6, Dailekh Bazar

5 Surya Bdr. Thapa Na.Na.Pa.-6, Ganesh Chowk

6 Shobha Thapa Dullu-6, Dullu Bazar

7 Bhakta Bdr. Shahi Jambakandh-2, Lainchour

8 Thir Bahadur Khadka Lyatibindrasaini-6

9 Nawajyoti Krishi Upaj Bazar

Byabasthapan Samiti

Baraha-1

10 Kalika Suppliers Lakandra-6

11 Prabal Khadhya tatha Khudra Pasal Jambhukandh-4

12 Bhawani Store and Order Suppliers Bisala-3

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Annex 4

Annex 4.1. Area (ha) and production (mt) of maize in Cluster 1 under Mid-Hill Mega Maize Production Programme in 2070/71 and 2071/72 (CDD,

2070/71 and 2071/72)

S

N Variety

Khotang Okhaldhunga Ramechhap

Area (ha)

Production

(mt) Area (ha)

Production

(mt) Area (ha)

Production

(mt)

2070/71 2071/72 2070/71 2071/72 2070/71 2071/72 2070/71 2071/72 2070/71 2071/72 2070/71 2071/72

1 Manakamana-3 375 375 835 835 390 390 975 975

2 Ganesh -1 125 125 250 250 20 20 50 50 155.2 155.2 388 388

3 Arun 2 4 4 10 10 143.4 143.4 286.8 286.8

4 Rampur Composite 66 66 165 165

5 Manakamana-4 123 123 307 307

6

Deuti/Manakamana

-3 230.6 230.6 577.3 577.3

7 Ganesh-1/ Arun-2 10 10 17.5 17.5

Total 500 500 1085 1085 603 603 1507 1507 539.2 539.2

1269.

6

1269.

6

Annex 4.2. Area (ha) and production (mt) of maize in Cluster 2 under Mid-Hill Mega Maize Production Programme in 2070/71 and 2071/72

(CDD, 2070/71 and 2071/72)

S

N Variety

Jajarkot Dailekh Surkhet Aachham

Area (ha)

Production

(mt) Area (ha)

Production

(mt) Area (ha)

Production

(mt) Area (ha)

Production

(mt)

2070/71 2071/72 2070/71 2071/72 2070/71 2071/72 2070/71 2071/72 2070/71 2071/72 2070/71 2071/72 2070/71 2071/72 2070/71 2071/72

1

Manakaman

a-3 115 115 270 270 209 209 627 627 300 300 750 750

2 Arun-2 32 32 79 79 5 5 10 10

3

Rampur

Composite 15 15 30 30 86 86 258 258

4 Posilo 80 80 165 165 18 18 54 54

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5 Deuti 530 530 1030 1030 121 121 363 363 400 400 1000 1000

6 Arun-1 10 10 15 15

7 Unknown-1 400 600 1000 0

Total 400 600 1000 0 750 750 1510 1510 466 466 1381 1381 705 705 1760 1760