Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S20102. GINGERStrengths Traditional crop skilfully incorporated into farmingsystem Possibility of inter-cropping with maize, bean, andvegetables; so, a very profitable crop Very nominal labour cost for weeding Fertile red soil and hill climate of Nepal highly suitablefor producing ginger with excellent aroma and othervaluable chemical contents Preference for Nepalese ginger by consumers indomestic and export markets Ease of entry into ginger farming and marketing duein part to existence of established cooperatives formarketing the crop Significant contribution of this sector to farmers’income, employment, and overall rural developmentOpportunities Increasing use of crop by Ayurveda pharmaceuticalindustries in Nepal and India Promotion of new and diversified spices High potential for product diversification—jam, jelly,candy, sauces—and other opportunities for valueaddition Potential for increasing production area Government’s classification of ginger as a high valuecrop and existence of supportive policies Introduction of Ginger and Spice DevelopmentProgramme by Department of Agriculture (DoA) toprovide technical support for farmersWeaknesses Perishable nature of product No permanent solution to the problem of GanoKuhine (rhizome rot) and lack of technicians to dealwith this problem No agro service centre for ginger Lack of good storage, including cold storage; so, highrisk of post-harvest damage Lack of post-harvest technical services Intermittent listing of ginger as a restricted item byIndiaThreats Very high price fluctuations High dependence of market price in Nepal on gingerproduction and pricing in India Indian government’s discouragement of import ofginger from Nepal whenever Indian ginger productionis high Loss of up to 30 per cent ginger in the field and duringstorage due to rhizome rot disease More efficient production in hilly areas of India as wellas in TibetActions Introduce higher yielding and better quality varieties of ginger. (The Government GingerResearch Farm has released a new improved variety suitable for Nepal’s soil and climate thatcan maintain the Bose nature and quality of ginger. Multiplication of this seed can provide anexcellent opportunity for improving the quality of Nepalese ginger.) Examine/implement programmes for aggregation and consolidation of the industry(cooperatives, marketing associations) so as to improve marketing efficiency and obtain TPC. Implement focused programmes to expand ginger farming areas, production, and yield in majorareas/districts. Encourage contract farming for ginger. Provide training in post-harvest handling. Establish ginger collection centres (similar to vegetable collection centres) by involving farmers’groups, local government, DOA and traders. Conduct regular business meetings of entrepreneurs, investors, farmers, and technicians toaddress various production- and trade-related issues. Diversify into processing ginger extracts (oleoresin). Encourage processing of ginger for product diversification and value addition within the country,including simple drying. Resolve the unexpected and ad hoc import restrictions imposed by India through tradenegotiations.270NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT