Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010exporters. Nepal permits all Indian trucks to travel anywhere into Nepal’s territory for 72 hours for a nominalfee; Nepali traders are demanding reciprocity from India. At the same time, in the absence of institutionalarrangements for money transfer, almost all export transactions take place in cash. This creates an extra riskfor traders According to traders, these non-tariff barriers (NTBs) are less prevalent at the moment (late 2009),with prices being rather high and exports moving smoothly. However, once prices are low again, the use ofNTBs might increase again.Major Competitors in the World Market: China dominates the world market, with a share of world exports of62 per cent in 2008. It is followed by Thailand (8 per cent), Nigeria (3 per cent), India (3 per cent), and Nepal(2.4 per cent). Nepal has around a 50 per cent share in the Indian market, with China and Nigeria being themain competitors (besides competition from domestic production).World Market Prospect: The world market for ginger has been highly dynamic over the last eight years. Worldexports almost tripled in value terms and almost doubled in volume terms between 2001 and 2008. One ofthe largest and fastest growing import markets is India. The major challenge for Nepal is to increase its directexports to third countries and to add more value to the produced ginger, or produce a level of quality thatwould be suitable for major import markets such as Japan.Index 3: Domestic Supply ConditionsProducers: Most small holder farms in Nepal are involved in ginger production, but often only for householdconsumption. It is grown in all districts of Nepal (except in the high hill districts), but Salyan, Palpa, Tanahu,Syangja, Kaski, Nawalparasi, Bhojpur, and Ilam are the major ginger producing districts that are relativelyeasily accessible by road transport. Dried ginger is produced only in the western region of the country.A large number of private traders, assemblers, middlemen, wholesalers–are involved in the business. Mostof the exporters are also wholesalers. There are a few cooperatives at farm level that are also undertakingdomestic marketing. Those cooperatives are still not involved in export business. Practically, all farmers andprocessors along the supply hain are small family businesses.Production Capacity: Both area and production of ginger have increased significantly over the recent years,with a small increase in yield. The total acreage of land under ginger cultivation has more than doubled duringthe last decade: 14,000 ha in 2007/08, up from 5,300 ha in 1994/95. Still more acreage can be brought underginger cultivation.Table 2.6Ginger: Acreage, Production, and YieldYear Area (ha) Prod. (MT) Yield MT/ha2000/01 8,956 84,366 9.422001/02 9,189 87,909 9.572002/03 11,480 140,056 12.202003/04 11,830 150,593 12.732004/05 11,930 152,704 12.802005/06 12,994 154,197 11.872006/07 13,170 160,576 12.192007/08 14,007 161,171 11.5130NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT