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Final Report on:Feasibility Study of Market Hub Construction at Khurkot (Sindhuli)

and Dhalkebar (Dhanusha) of Nepal

Submitted to:Agri-business Promotion and Marketing Development Directorate

Department of AgricultureHarihar Bhawan, Lalitpur, Nepal

Submitted by:Agri Professional Consultants Pvt. Ltd.

Kathmandu, Nepal10 Ashadh 2074

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Abbreviation

ABPMDD Agri-business Promotion and Marketing Development DirectorateADS Agriculture Development Strategy 2015-2035APMC Agricultural Produce Market Center(s)CCI Chamber of Commerce and IndustryDADO District Agriculture Development OfficeDCC District Coordination CommitteeFGD Focus Group DiscussionICT Information Communication TechnologyMIS Market Information SystemMMC Market Management CommitteePCAA Participatory Convergent Analytical ApproachPESTLE Political, Economic, Social, Technical, Legal and Environmental

Conversion Factor

1 ha = 1.48 bigha = 30 kattha = 20 ropani1 bigha = 0.68 ha = 20 kattha = 13.32 ropani1 maund = 37 kg2074 BS = 2017/18 AD

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Table of Content

Content Page

Cover PageAbbreviationTable of Content

1 Background 6

2 Objective 10

3 Scope of Study 10

4 Methodology and Approach4.1 Methodology 114.2 Approach 12

5 Policy Outline 14

6 Work and Manning Schedule6.1 Work Schedule 146.2 Manning (Experts Name, Roles and Responsibilities) Schedule 15

7 Deliverables and Action Plan (Gant Chart) 16

8 Feasibility of Market Hub in Khurkot8.1 Introduction 168.2 Current Activities in Agriculture Produce Collection Center Khurkot 178.3 Main Crops of Sindhuli 178.4 Market Window Analysis 198.5 Mapping Agriculture Markets in Sindhuli District 228.6 Existing Markets Surrounding Khurkot 228.7 Traded Agricultural Commodities in Khurkot 238.8 Investment in Construction of Market 248.9 SWOT Analysis 258.10 Possible Negative Impact of Market Development in Khurkot 278.11 Recommendations 27

9 Feasibility of Market Hub in Dhalkebar9.1 Introduction 399.2 Current Activities in Dhalkebar Agriculture Hat Bazar 399.3 Market Window Analysis 429.4 Mapping Agriculture Markets in Dhanusha District 44

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Content Page9.5 Existing Markets Surrounding Dhalkebar 459.6 Traded Agricultural Commodities in Dhalkebar 469.7 Investment in Construction of Market 489.8 SWOT Analysis 489.9 Possible Negative Impact of Market Development in Dhalkebar 519.10 Recommendations 51

List of Tables: Khurkot, SindhuliTable 1: Current income and expenditure of MMC, Khurkot 17Table 2: Future income and expenditure of MMC, Khurkot 17Table 3: Main crops in Sindhuli 18Table 4: Overall ranking of agricultural commodities 19Table 5: Area and production of important fruit crops in Sindhuli district in FY2071/2072

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Table 6: Production, requirement and marketable surplus of cereal, pulse andvegetable in Sindhuli district

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Table 7: Existing Markets Surrounding Khurkot 22Table 8: Supply of agricultural commodities from Khurkot to other markets 23Table 9: Supply of agricultural commodities from other market areas to Khurkot 23Table 10: Fish production from pond fish farming from Sindhuli and adjacentdistricts

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Table 11: Contribution for construction of market hub 25

List of Figures: Khurkot, SindhuliFigure 1: Location map of KhurkotAgriculture Market Center 28Figure 2: Proposed design of basement in Khurkot Agriculture Market Center 30Figure 3: Proposed design of ground floor in Khurkot Agriculture Market Center 31Figure 4: Proposed design of first floor in Khurkot Agriculture Market Center 32Figure 5: Proposed design of top floor in Khurkot Agriculture Market Center 33Figure 6: Proposed design of canteen in Khurkot Agriculture Market Center 34Figure 7: Proposed design of gents toilet in Khurkot Agriculture Market Center 35Figure 8: Proposed design of ladies toilet in Khurkot Agriculture Market Center 36Figure 9: Proposed design of fish/meat market shutters in Khurkot AgricultureMarket Center

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List of Tables: Dhalkebar, DhanushaTable 1: Physical facilities in Agriculture Produce Market Center, Dhalkebar 39Table 2: Market management committee 40Table 3: Officials and workers in Dhalkebar Market Center 40Table 4: Producer trader ethnic groups in Dhalkebar market center 41Table 5: Top ten agricultural commodities based on total amount of annualtransaction

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Table 6: Top ten agricultural commodities based on total quantity of annual 42

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Content PagetransactionTable 7: Top ten agricultural commodities based on area, production and value ofproduction

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Table 8: Production, requirement and marketable surplus of cereal, pulse andvegetable

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Table 9: Pond fish production in Dhanusha and adjacent districts 44Table 10: Markets nearby Dhalkebar 45Table 11: Major traded crops in Dhalkebar 46

List of Figures: Dhalkebar, Dhanusha

Figure 1: Ground floor design of proposed mini-hub in Dhalkebar 54Figure 2:First floor design of proposed mini-hub in Dhalkebar 55Figure 3: Top floor design of proposed mini-hub in Dhalkebar 56

PhotosPhoto 1: No provision of drains for exclusion of rainwater from market premises 49Photo 2: Store Building of market hub at Dhalkebar, Dhanusha 50

AnnexAnnex 1: Checklist for Market StandardAnnex 2: Checklist for Production or Supply of Major Agriculture CommoditiesAnnex 3: Checklist for Market Management CommitteeAnnex 4: Checklist for Focus Group Discussion of activities related to promotionof market development in the districtAnnex 5: Checklist for analysis of strengths, weaknesses, opportunities andthreats (SWOT) of agricultural marketing and market hub development in bothlocationsAnnex 6: List of participants in consultative meeting in Khrukot, SindhuliAnnex 7: List of participants in Junar Pocket Khaniya Khark, SindhuliAnnex 8: List of participants in consultative meeting in Dhalkebar, DhanushaAnnex 9: Team of Experts in PRA in Sindhuli and DhanushaAnnex 10: List of participants in pre-validation workshop

References

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Feasibility Study of Market Hub Construction at Khurkot (Sindhuli)and Dhalkebar (Dhanusha) of Nepal

1. Background

Nepal's agricultural production system is dominated by smallholder farmers scattered in widearea with subsistence type of farming. Small quantity ofagricultural products produced bysmallholder farmers in a widely scattered area severely constrains the efficient marketing ofproducts to enhance production and productivity. In the absence of assured market,agricultural production and productivity have not been growing as expected (ABPP, 2063).Hence, interventionsare needed in marketing system of agricultural products in the country. Inthis backdrop, Agri-business Promotion and Marketing Development Directorate (ABPMDD)advertised request for "Feasibility Study of Market Hub Construction at Khurkot (Sindhuli) andDhalkebar (Dhanusa) of Nepal" and Agri Professional Consultants Pvt. Ltd., Kathmandu,Nepal was awarded the task through competitive bidding process.

Market hub is a strategically located place where major facilities/infrastructures and services toproducers, traders and consumersfor agricultural market operations are housed, where mosttrading activities originate or terminate, where agriculture commodities are collected fromproduction pockets of different districts, and where producers, traders and consumers aregathered to sell and buy the produce. It is a location where producers sell their produce,wholesalers and retailers work as a bridge between producers and consumers, and whereproducts are sold and bought at mutually agreed price.Thus, construction of market hub is animportant initiative for easingall stakeholders i.e. producers, traders (wholesalers and retailers),consumers, and service providers (transporters, handlers, bankers/financing institutions) forselling and buying of agricultural commodities.

Besides production, marketing of agricultural commodities are equally important to gain goodreturn. Transformation of subsistence and scattered farming system into a modern, intensive,competitive and business-oriented one is essential to enhance production and productivity.With past development efforts, production and consumption of cash crops have increased butnot up to the level of expectation. Public dominance in service delivery is gradually erodingwhereas cooperative, community and private sectors have effectively evolved and involved totake it over.

Presently, 1,767 market structures have been constructed and are functioning throughout thecountry. Among them, 27 are wholesale markets, 149 retail markets, 553 collection centers and1,038 haat bazars (ABPMDD, 2016). Some of them are not functioning well, mainly due to somereasons like - construction being done without feasibility study, market structures not linked byroad, irregular supply/availability of products, structures not planned well etc. Hundreds ofmarkets have been developed by district and local level public, private, NGOs, projects,cooperatives etc. There are about 1,038 periodic rural markets popularly known as "haat bazar"

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spread over the country and these are mainly concentrated in eastern and central Terai regions(MDD, 2053). These markets are the center for rural economic activities, outlets for gross ruralfarm production, and vehicle for agricultural commercialization. However, due to poor linkageof these markets with the production pockets/areas, these markets are not running efficiently(NAES, 2003).

Over the years, significant efforts have been made in market and marketing development. Atdistrict and local levels, large number of small infrastructures have been developed by agencieslike District Agriculture Development Offices (DADOs), District Development Committees(DDCs), municipalities, various donor assisted projects and NGOs and are in increasing trend.This number is growing encouragingly. However, institutional aspects such as software andhuman-ware development and market standards are not growing at the same pace. Markethub is a new concept for Nepal and also envisioned by the Agriculture Development Strategy2015-2035 (ADS).

In these days, demand for vegetables, fruits, fish, cereals and flowers are increasing, mainly dueto urbanization (where 35% of the total population lives) and consciousness about nutritiousfood. This provides a great opportunity for enhancing commercial production of vegetables,fruits, fish, cereals and flowers in rural areas. To materialize such opportunities, a systematicapproach for marketing of these products through the construction of appropriate marketingstructure or hub in appropriate location is essential. ABPMDD is supporting construction ofmarket infrastructures in road corridors and urban areas.

Nepal is rich in fresh fish biodiversity. It occupies only 0.1 percent of global land area whereasnative fish covers 2.6 percent and 23.3 percent of world and Indian sub-continent of freshwaterfish respectively. Total of 230 native fish species belonging to 104 genera, 34 families and 11orders are reported in Nepal (Rajbanshi, 2012). Nepal is endowed with vast aquatic resourcesthat constitute 5.5 percent of total land area of Nepal. Only 2 percent of estimated 818,500 hawater surface area of Nepal is utilized for aquaculture and capture fisheries. Capture fisheries arean old tradition in Nepal and contribute approximately 30.9 percent of the total fish production(69500 metric tons) in the country (DoFD, 2014/2015). Modern aquaculture started in late1950,S in Nepal. Aquaculture production is mainly from pond fish farming of Terai region(86.4%) and contributes 69.1 percent in total fish production of Nepal (DoFD, 2014/2015).Nowa days cold and fresh water fish farming in the hilly reason has been in increasing trend but themajor fish production districts are Bara, Dhanusha, Saptari, Rupandehi, Mahottrai, Sirha whichincludes seven carp species: Bighead carp (Aristichthys nobilis), Silver carp(Hypophthalmichthys molitrix),Grass carp (Ctenopharyngodon idella), Rohu (Labeo rohita),Naini (Cirrhinus mrigala), Bhakur (Catla catla) and Common carp (Cyprinus carpio) frompond fish farming in Nepal. Besides, African magur (Clarias gariepinus), Pangas (Pangasiushypophthalmus), GIFT Tilapia (Oreochromius niloticus) are also produced in the country. Theper capita fish production in Nepal is 2.5 kg in 2014/15, which is very low in comparison toneighbor countries like India (9 kg), Bangladesh (18 kg), and China (35 kg). The fish demand isfulfilled by import of fish from India. The fish species imported are Pangasius (Pangasiushypophthalmus), Rohu (Labeo rohita) and Naini (Cirrhinus mrigala). It is imported in insulated

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box of Styrofoam preserved with ice loaded in truck mainly from Andrapardesh. The total freshfish import was 9,963.06 metric ton in 2012/13 from India (Mishra and Kunwar, 2014).

Fish is an extremely perishable food item. The caught fish quality depends on the handling andpreservation, the fish received from the hands of the fishers after capture (Gupta and Gupta,2008). Therefore, cold chain storage facility is important component in fish marketing.

Fish market is a place where the fishes and fish products of commercial importance are subjectedto sale. Regulation of fish production and consumption through sale is known as fish marketing.Market infrastructure includes wholesale market, retail market and fish retail outlets (Gupta andGupta, 2008). Fish marketing system in Nepal varies from place to place. Large numbers ofintermediaries are involved in the distribution process of fresh fish marketing. Farmersthemselves either sell their fish from the production site or send it to local markets. In case ofhuge production, fish is generally marketed through contractors. There are also farmer’sorganizations that produce fish and sell them through cooperatives (Mishra and Kunwar, 2014).For live fish, the venders buy fish from fish producing farmers and they sale to local retailors ordirectly to the hotels and consumers. In the local market, they transported live fish in the hundieswith water. For the distant market, they transported live fish in the plastic tank capacity of 200-250 liter water loaded on the truck. Iced fish in bamboo basket lining with protective layers ofleaves are also practiced in Nepal (Present study).

The establishment of domestic markets plays a very crucial role in the development of fisheriessector in the country. Apart from ensuring nutritional and food security, it also helps inminimizing post-harvest losses, increase revenue, enhance employment opportunities and offershigh standards of hygiene and sanitation leading to food safety.

In this backdrop, feasibility studies for market hub in Sindhuli and Dhanusha districts formarketing of agriculture produces were administered to help farmers, traders and consumersto buy and sale agricultural commodities. The market hub feasibility study in two districts isexpected to help construct market hub in an appropriate way to provide facilities to farmers,consumers and traders. Such development is expected to help consumers get quality producefrom a specified location while it will help government agency to regulate the marketingactivities. This study conducted feasibility of market hub construction in two places - Khurkotand Dhalkebar for different kinds of agricultural commodities. Khurkot is the junction ofSindhuli, Udayapur, Ramechap, Khotang, Okhaldhunga and Solukhumbu districts. Khurkot islocated in a strategic place in the B.P. highway corridor and it is center for six districts but alsohas forward linkage with large market centers like Banepa, Kathmandu, Lalitpur and Bhaktapur.

Most of the markets have simple storage facilities like store rooms, wire cages, etc. These areallocated to users, as guided by their board regulations or market operation guidelines/workingprocedures. However, such facilities are lacking in most of the small markets. None of themarkets have got cold storage facility. Processing facilities are lacking in all market centerswhich has been major impediments to the value addition of the products. Due to poor marketintegration and lack of appropriate MIS, farmers and traders have been unable to reappotential benefits from their agricultural marketing and inter-market trade is ill developed. Due

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to this, often farmers and traders roam around distant markets for trading when morefavorable conditions prevail in nearby markets. In all such cases, it is consumers who have tobear the costs of all these situations.

Generally, price is determined competitively through negotiation between sellers and buyersaccording to prevailing market demand and supply situations and it fluctuates even three timesin a day. Prices are usually higher in the early trading hours (morning) due to presence of manybuyers while it goes down during later (evening) hours because of traders’ tendency to dispose-off all unsold produce of the day and begin next morning’s business with fresh stock. Buyers inall types of markets have freedom of choice for buying produces from any traders to satisfytheir preference for quality and price. Sellers, however, opt to sell to anyone, but prefer to sellto those buyers offering better price and/or having bigger demand. In distribution andwholesale markets, and to a little extent also in retail markets, there are some sort of regulartrading relationship among some sellers and buyers.

Grading, weighing and standardization processes are not so much practiced in Nepalese marketcenters. Kalimati disseminates the market information through radio, television and newspaperand some commodities in web page also. Information is also available on notice board as well.Investment for development of market infrastructures (such as cold stores, market sheds/stalls,godowns/stores, market approach roads, gravity ropeways etc.) should be increased. Privateand community investments, as well as multi-stakeholders’ partnership should be encouragedby offering financial incentives, tax relaxation, technical supports and tieing-up profit/returnand management authorities (MMC formulation etc.) with the level of investment. Market hubsshould be linked together with major production areas through users’ friendly functional MIS,using modern Information Communication Technology (ICT) means like internet, cell phones,FM radios, etc.

Nepalese agriculture has high potential to increase its production and productivity through itsdiversification and commercialization. Markets are strong vehicles for achieving agriculturalcommercialization. Though insufficient, there are quite a sizeable number of market centers inthe country. However, these market centers have not been running very effectively andefficiently, mainly due to inadequate and weak institutional arrangements as well as withoutmaintaining any standards of market. So, these developed market centers are unable to provideall the facilities required by farmers, traders and consumers in coordinated way. Such weakinstitutions can hardly meet their aims, and satisfy prime needs and expectations of thestakeholders. At present, the traders' dominance has overarched role and stake of otherplayers, in most of the markets.

In this background, it was thought imperative to analyze existing institutional arrangements ofthese markets and identify possible improvement measures for its strengthening andprerequisite for feasibility study of market hubs or centers. The study is important to explorethese issues, advise whether or not feasible to construct market hub at the identified locationsand make necessary suggestions for the future market development, including prescription ofappropriate physical infrastructures and their design aspects.

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2. Objectives of the Study

The main objectives of this feasibility study for market hub construction are to:

analyze crop production and requirement of market at specified locations and futuretrends;

recommend specific locations are feasible for market hub construction or not; suggest the market hub design and plan of action for sustainability in future; and suggest the command area, other appropriate support services for the improvement of

agricultural marketing systems.

3. Scope of Study

a. This study will analyze national policies and strategies on agricultural market constructionand development.

b. For each district under study, the study team will:

analyze present production situation of major agricultural products such as major cereals,vegetables, fruits, spices, fishes and other high value crops (at least 10 commoditiesaccording to district potentials);

forecast the production and marketable surplus of major agricultural commodities asmentioned above for coming 20 years;

analyze strengths, opportunities, weaknesses and threats (SWOT) of agricultural marketingand market hub development for proposed market locations;

prepare a list of agriculture markets(wholesale market, collection centre, haat bazar, andretail markets) in both the districts, and explore their existing and potential tradelinkagewith proposed market hubs;

recommendmarket hub construction is feasible or not in specified locations, with technicalreasons. If feasible, prepare a standard design of market hub for each selected site of therespective district; and

suggest appropriate support strategies and actions for developing other services such asagricultural marketing information, regulation, institutional development, cooperative orgroup marketing, marketing training, reduction of high price spread, women participationon agricultural marketing, transport services, cold chain etc. (20 years).

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4. Methodology and Approach

4.1 Methodology

a. Situation Analysis

Review of Literature: Existing national policies and strategies on agricultural marketconstruction and development have been reviewed and analyzed by the team of experts.These documents mainly included - Agriculture Development Strategy-2015-35 (ADS),National Agriculture Policy 2004, Agri-business Promotion Policy 2006, market relatedstrategies, programs, guidelines and directives (Nirdeshika), agriculture development andagriculture marketing regulations, agriculture commodities’ area, production and prices, etc.Internet surfing have also been done to study the market models in other countries likeBhutan, India Bangladesh etc.

Field Visit: The consulting team visited the sites, command area, district headquarters tocollect the general information, detail information based on the checklist and questionnaire(details presented in the Annex). The team visited the sites in two times. First, visit tospecified sites and next to the district headquarters to interact with the concerned officialsand other key stakeholders like producers, traders and consumers.

Field visit at Khurkot and Dhalkebar market were done to access the feasibility of fish marketat these places. Visit to district headquarters and interaction with the DADOs and fish expert,and with key stakeholders like fish producers, fish traders and fish consumers were performedto know the current status of fish production, consumption, and marketing systems in Sindhuliand Dhanusha districts. Focus Group Discussion (FGD) were conducted with fish producingfarmers, fish traders (wholesalers and retailers), fish consumers and service providers(transporters, handlers) of both study sites. Published report, article were used to validate thefeasibility of fish market at these places.

Stakeholder Consultation Meeting: The team consulted with the following stakeholders tocollect basic requirement for the construction of market hub. The consulted stakeholdersmainly included ABPMDD, Market Management Committee (MMC), DADOs, Municipalities,Road, Electricity, Telecom, urban development/town planning authority, DCC, CCI etc.

Focus Group Discussion (FGD): FGDs was conducted with APMC, producer farmers, traders(wholesalers and retailers), consumers and service providers (transporters, handlers,bankers/financing institutions etc.) of both the study sites.

Key Informant Survey (KII): KII was conducted with some entrepreneurs including Junartraders.

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b. Data/Information Analysis and Report Preparation

After the site visits and discussions with the stakeholders and review of policies, the teamgathered information and data from primary and secondary sources. The data was analyzed bythe statistician/management expert together with Agri-economists. After obtaining the results,the team leader collected the information from the technical experts and preparedthe reports.

i. If not feasible-suggestions with reason/rationale: The team prepared the conditions or criteriain consultation with the client-ABPMDD. Based on the criteria/conditions, the data wasanalyzed to draw conclusion on: whether or not the sites are feasible for the construction ofmarket hub. If not feasible, the team pointed out the weaknesses and reasons.

ii. If feasible-suggestions with planning framework including the followings: If the team findsthe sites are feasible, the team will analyze the following:

Identification of Spatial Hub

The team defined or delineated spatial hub (i.e. defining market catchment ofproduction/supply and trade-flow) including identification of marketing linkage/network.

Defining Operational Hub

The team assessed, identified and suggested the Technical/Functional (Operational) aspects ofmarketing development in both the proposed sites of market hub. For this the technical teamshall assess all the fundamental elements of marketing, i.e. the 4-Ps (Place, Product, Price andPromotion). The consultant shall analyze and suggest appropriate strategies, planning andmanagement functions and requirements for the effective and sustainable futuristic marketdevelopment at both the sites. This includes key aspects of the ‘Hardware’, ‘Software’ and‘Humanware’ development of agricultural market(ing) development at each of these two sites.

4.2 Approach

This study used three approaches to assess the feasibility for market hub construction at twospecific sites.

a. Participatory Convergent Analytical Approach (PCAA)

Situation Analysis:Analysis of present situation of major agricultural products such as majorcereals, vegetables, fruits, spices, and other high value crops (at least 10 commoditiesaccording to district potentials) was done. Forecasting of production and marketable surplusof these agricultural commodities was done for coming 20 years.

A list of agriculture markets (wholesale market, collection centre, haat bazar, and retailmarkets) in the district was also prepared.

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Experience and Information of Users/Beneficiaries:Experience and information of thebeneficiaries like road access, electricity, storage facilities etc. and potentialities and futureexpectations were used to conduct the feasibility study.

Technical Expertise and Knowledge of Experts (Consultant Team): The experts as proposedin the proposal are experienced and have capability to assess the feasibility for market hubconstruction. Besides them, Fisheries expert and Floriculturist cum ornamental horticulturistwere also proposed by the firm.They were also used to explore the potentiality of fish,flower, floral products and ornamental plants/agro products’ marketing in both the markets.Both of these markets have ample potentials for fish and flori-business, and the Khurkotmarket has high potentiality for marketing of fresh fish from Sunkoshi river.

b. SWOT Analysis

Analysis of strengths, weaknesses, opportunities and threats (SWOT) of agricultural marketingand market hub developmentof both the locations was be done by the team. The results werepresented in bullet form.

c. PESTLE (Political, Economic, Social, Technical, Legal and Environmental) Analysis

This is a new tool to assess the general scenarios of the sites and environment. This involvescommitment and support from district as well as local level leaders of political parties for thestudy and the market hub construction. It is needed because political conflict will hamper thestudy and the recommendations. The team coordinated with the political leaders to get supportto complete the study. Socio-economic condition of the farmers from study area wereassessed.Legal documents like regulations, directives, procedure, guidelines, policy, plan/programs,strategies (ADS) relating to market developmentwere reviewed and the supportingprovisions/statementswere highlighted. Assessment was also done for whether or notconstruction of market hub at selected sites disturbs the environment, and also if there is anyexisting or potential serious environmental risks, hazards or threats to be considered; alongwith suggesting possible mitigation measures (if known or available) or precautions to be taken.

The study made recommendation whether or not market hub construction is feasible inspecified locations. If it is feasible, the study team prepared a standard design of market hubfor each selected site of the respective district.

The study suggested appropriate support strategies and actions for developing other servicessuch as agricultural marketing information, regulation, institutional development,cooperative/group marketing, marketing training, reduction of high price spread, womenparticipation on agricultural marketing, transport services, cold chain etc.

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5. Policy Outline

For several decades the focus of government intervention was on production. Since few pastdecades, the focus has been on post-production activities. The recent policy documentsincluding ADS focus on value chain and post production aspects of agriculture development.Hence, following important policy documents that relate to agriculture as well as marketdevelopment in the country were reviewed:

Agriculture Development Strategy-2015-35 (ADS); National Agriculture Policy 2061; Agri-business Promotion Policy, 2063 and the 14th Plan 2073/74-2075/76; Agricultural Marketing Management Directives, 2017 (2073 BS); Kalimati Fruit and Vegetable Market DevelopmentBoard Formation Order 2056; Agri-produce Marketing Infrastructures Directive 2068; and Acts and regulations related to marketing.

ADS has clearly targeted agribusiness as one of its four major priority outputs for which marketcentres and Market Information System (MIS) have been identified as key means. Market hubsshould be developed with future plan and plan of action before they are constructed orestablished. Therefore, feasibility study for the construction of market hub is highly essential inthe modern era to encourage the producers and satisfy the consumers.

National Agriculture Policy 2004 specifically aims (the second objective of the policy) at makingagriculture competitive in the regional and global markets through commercialization. Agri-business Promotion Policy, 2063 indicates the need for setting standards for the promotion ofagriculture market. Agricultural Products Market Operation and Management Directive, 2053guides for the operation of agricultural market centers and has sets of standards for agriculturemarket. Recent replacement of this directive by a new “Agricultural Marketing ManagementDirectives, 2017” is a big leap forward for the establishment, operation and management of alltypes of agricultural produce market centers in the entire country. Agri-produce MarketingInfrastructures Directive 2068 has set standard for construction and management of agriculturecommodity marketing infrastructure. Kalimati Fruit and Vegetable Market Development BoardFormation Order, 2056 has set detail standards for the operation of market.

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6. Work andManning Schedules

6.1 Work Schedule

# Experts Timeline(Weeks)

Remarks

1 Team Leader 9 weeks Field work-3weeks and desk work-6weeks2 Agri. Economists 7 weeks Field-3weeks and desk work-4 weeks3 Horticulturists (Pomologist,

Olericulturist, Ornamentalhorticulturist/Floriculturist)

7 weeks Field-3weeks and desk work-4 weeks

4 Agronomist 3 weeks Field work-1week and desk-2 weeks5 Architect Engineer/Associate 2.5 weeks Field-1 week and desk work-1.5 weeks6 Structural/Civil

Engineer/Associate3 weeks Field-1weeks and desk work-2 weeks

7 Management & ICT Expert 2 weeks Field work-1 week and desk-1 week8 Fisheries Expert

(In house; as required)1.5 weeks Field work-1 week and desk- 0.5 week

9 Statistician(In house; as required)

1 week Desk work-1 week

10 GIS Expert(In house; as required)

1 week Desk work-1 week

Inputs: Office, desk work and field work

6.2 Manning Schedule (Experts’ Name, Role and Responsibilities)

# Position Name Major Roles and Responsibilities1 Team Leader Dr. Shiddi Ganesh

ShresthaConsultation workshop, site visit, draft report,timely reporting and final report preparation,recommendation-feasible or not by the team

2 Agri-Economist Dr. Sudha Sapkota SWOT analysis, field visit and data collection3 Agri-Economist Mr. Thaneshwor

BhandariKIS, FGD, data collection, tabulation andanalysis-present and future predictions

4 Horticulturist(Pomologist)

Mr. S.K. Verma/Mr. D.K. Saraf

Field visit, data collection, discussions andpomology section reporting

5 Horticulturist(Olericulturist)

Dr. Arvind K.Shriwastav/Mr. Fuleshwar P.Singh

Field visit, data collection, discussions andolericulture section reporting

6 Horticulturist(Floriculturist)

Dr. Umed Pun Field visit, data collection, discussions andhorticulture section reporting

7 Engineer-Civil Er. Dinesh KumarMahato/

Field visit, land availability and suitabilityassessment, design and work estimate of market

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# Position Name Major Roles and ResponsibilitiesEr. Sumit K. Singh hub

8 Engineer-Architech

Er. MadhusudanBaral

Field/sites visit and full phase designing of thehub

9 Management&ICT Expert

Mr. Suwarn K.Singh

Data collection, processing, analysis, collectionof secondary information,

10 Agronomist Mr. SubashChandra Joshi

Field visit, data collection, discussions andagronomy section reporting

11 FisheriesExpert Dr. Md. AkbalHusen

Field visit, data collection, discussions andreporting

Support staff:From firm roaster.

7. Deliverables and Action Plan (Gant Chart)

# Activities Time line (Weeks)*1 2 3 4 5 6 7 8 9 10 11 12

1 Preparation, submission & workshop of inception report2 Discussion, Revision, finalization & approval of checklist by

ABPMMD3 Review of existing policy, acts, regulation, strategies, guidelines,

directives and programs related to market hub construction,production of crops & commodities

4 Field survey and study5 Field survey report6 Pre-validation (Field Survey Report sharing) workshop7 Draft report8 Validation workshop9 Final report

*Subject to client’s timely response

8. Feasibility of Market Hub in Khurkot

8.1 Introduction

The study team visited the market site in Khurkot together with some local people. Existing sitetogether with the possible lands for expansion of the proposed market as well as existingfacilities available in the market sites were visited.

The proposed Khurkot Market site is located in Golanjor Rural MunicipalityWard No. 7 ofSindhuli district on Bardibas-Banepa Highway, about 74 Km away from Dhulikhel city ofKavreplanchok district. The land suggested by concerned authorities is located around 400meterto the south of Sunkoshi river.The proposed market site is located at strategic point orjunction connecting Ramechhap, Khotang and Okhaldhunga districts through road networks.Altogether, 7 ropani 8 aana land (having in three kittas, two in adjoining and one in across theroad side of site) is available for the market development from Golanjor Rural Municipality. Theterrain of land is almost flat i.e. ideal for construction of engineered infrastructure. The study hasfound tremendous opportunity for further market extension in Khurkot.

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The office building having three rooms was constructed and 10 shutters and 4 store rooms areunder construction supported by Agri-business Promotion and Marketing DevelopmentDirectorate (ABPMDD) of Department of Agriculture (DoA).The site is located well above thelevel of river. Hence, one of the benefits of the proposed site is no or less problem in drainingrainwater from the site.

8.2 Current Activities in Agriculture Produce Collection Center, Khurkot

At present, hat bazaar is organized only twice a week on limited scale. The producer farmerthemselves sale their produce in Khurkot during Hat Bazar.A managementcommittee,comprising 5 male and 1 female members, is in place to operate the hat bazaar.

The market center does not have information on the volume of transaction. Current transaction ofthe market is very low with heterogonous products. If the marketing strategies have beendeveloped and strengthen all the stakeholders that is from producer to seller a regular supply oforganic product for consumer and employment in local area could be created, Hence, now themonthly income of the committee through hat bazaar tax (service tax) is also nominal i.e. onlyRs. 48,000 in a year (Table 1). Similarly, the annual expenditure is also just Rs. 13,200. Suchactivities will help to scale up market activities in future.

Table 1: Current income and expenditure of MMC, Khurkot

# Income Amount, Rs. Expenditure Amount, Rs.1 Hat tax (4 hats/month or 48

hats/year)48,000 Hat tax collector @ Rs.

500/month6,000

Sweeper @ Rs. 600/month 7,200Total 48,000 13,200

The income from the rented market sheds and store is expected to increase to 160,000 (Table 2)after market-sheds and stores are completed.

Table 2: Future income and expenditure of MMC, Khurkot

# Income Amount, Rs. Expenditure Amount, Rs.1 Hat tax (4 hats/month or 48

hats/year)32,000 Hat tax collector @ Rs.

500/month6,000

2 Rent from 14 Shutters @Rs. 1,000/month

14,000 Sweeper @ Rs. 600/month 7,200

3 Office space @ Rs.1,200/month

144,000

Total 160,000 13,200

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8.3 Main Crops of Sindhuli

After site visit, then consultation meeting began with self-introduction of participants and studyteam. The discussion started with the listing of main crops and commodities in Sindhuli district.The list of main crops of Sindhulit district has been presented in Table 3. Sindhuli andRamechhap are the major districts for Junar production in Nepal.

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Table 3: Main crops of Sindhuli

# Crops # CropsFruits Oilseed

1 Junar 1 Mustard2 Orange 2 Sesame3 Lime 3 Flax (Alas)4 Lemon 4 Niger (Jhuse Til)5 Pear 5 Sunflower6 Pineapple Cereals7 Mango 1 Paddy8 Litchi 2 Maize9 Banana 3 Millet

10 Papaya 4 Wheat11 Jack Fruit 5 Buckwheat12 Guava 6 Barley13 Pomegranate Pulses14 Custard Apple 1 Blackgram

Vegetables 2 Horsegram1 Potato 3 Dixie Lee Pea (Masyang)2 Tomato 4 Cowpea3 Cauliflower 5 Soybean4 Cabbage 6 Lentil5 Chilly 7 Kidney Bean (Rajma)6 Broad Leaf Mustard 8 Pigeon Pea (Rahar)7 Carrot 9 Gram8 String Bean9 Bean Flower

10 Radish Chrysanthemum (Godawari)11 Squish Marygold (Sayaptri)12 Cucumber Valvety Flower Makhmali/Supari Phul)13 Bottle Gourd Beli (Jasminum sambac)14 Pumpkin Birds of Paradise15 Ridge Gourd Jasmine (Chameli)16 Snake Gourd Jai17 Okra Poinsettia (Lalupate)18 Amaranthus (Latte) Rhododendron19 Colocacia Fish20 Colocacia Leaves 1 Fresh river water fish21 Yam22 Drumstick (Swejan/Sital Chini)23 Pea24 Onion25 Green Garlic

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# Crops # CropsSpices

1 Ginger2 Turmeric3 Coriander4 Fenugreek (Methi)5 Carom/Thyme Seed (Jwano)6 Garlic7 Red Pepper (Timur)8 Cardamom9 Cinnamon/Bay Leaves

10 Mint (Pudina)

Now-a-days floriculture is emerging as business for Nepal and the Nepalese people. Theimportance and need of flower is increasing day by day in the domestic markets due to upgradingof educational and economic status as well as foreign mobility of the Nepalese people. There is agreat potentiality for export of Nepalese flower and ornamental plants to foreign countries.Present level of production of flower and ornamental plants is insufficient for domestic market.Yearly import of flower is about Rs. 80-100million. Sindhuli district has different kinds offlower and ornamental plants due to geographical variation.Market hub in Khurkot will be verymuch useful for flower market and help to reduce imports and increase export.

Currently, the farmers are cultivating Merigold, Chrysanthemum, Globe Amaranth, Balsum,Dahlia, Periwinkle, Moss Rose etc. only for their home decoration. Around Khaniyakharka beltdifferent kinds of Rhododendron and fern species are growing naturally. Fern is the essentialitem for bouquet preparation. In future fern may be a commercial business in the area. Atpresent, there is only one nursery with an area of 0.03 ha in Sindhuli.

8.4 Market Window Analysis

The market window technique is considered a simple, inexpensive, and reliable screening devicefor investigating the market potential for different crops. For this crops or commodities can beranked based on future potential, area or production or value of production or quantity/volume oftrade or value of trade.

The study team facilitated the participants to prioritize 10 crops and commodities on the basis oftheir importance, area and future potential. This has been done in order to guide for designing themarket center. Fish, kiwi and flower were the emerging crops and commodities. Ranking ofthese crops is presented in Table 4.

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Table 4: Overall ranking of agricultural commodities

# Prioritized Commodities1 Junar2 Pulses3 Tomato4 Leafy vegetables and squish5 Potato6 Cucumber and pumpkin7 Cabbage and cauliflower8 Banana, pineapple, litchi and mango9 Bean and string bean

10 Ginger, cardamom and turmeric11 Fish, kiwi and flower

Sindhuli district is popularly known by the name of Junar fruit in the country. Therefore, theparticipants ranked Junar as the first crop of the district. Junar, an excellent local variety of sweetorange (Citrus sinensis) is most important fruit crop of Sindhuli and its adjoining district ofRamechhap.Due to different level of intervention from government and non-government sectors substantialarea under Junar cultivation is increasing annually in Sindhuli district. The size of the individualorchard ranges from 20 to 600 plants. At present, the area under Junar cultivation in Sindhuli andRamechhap is 910 and 1,160 ha respectively in 2014/15. The production in these districts isestimated at 770 and 623 mt respectively in 2014/15. In the year 2071, about Rs. 260 millionworth of Junar fruit was traded from Sindhuli district only (DADO progress report, 2071/2072).

Crops can be ranked based on area, production and value of production as presented below.Accordingly, 11 crops come into the picture. Maize ranks the first in terms of area, producionand value of production.

# Crop Ranking based onArea Production Value of production

1 Paddy 2 2 22 Maize 1 1 13 Wheat 4 5 84 Millet 3 6 75 Oilseed 5 8 46 Potato 7 4 57 Vegetable 6 3 38 Mandarin orange 13 10 109 Sweet orange 8 7 6

10 Banana 11 9 911 Litchi 10 11 11

Note: Analysis based on Statistical Information on Nepalese Agriculture 2014/15. Agri-business Promotion and StatisticsDivision, MoAD, Kathmandu, Nepal.

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The population of Sindhuli district is 296,192 and the average national population growth is 1.35percent (National Census, 2068). In the fiscal year 2071/2072, out of 7,218 ton of Junar fruitproduced in Sindhuli district about 6,500 ton (extrapolated) worth Rs 260million was estimatedtraded (DADO,2072). The rest is assumed consumed at household level in the district. The otherprioritized fruit crops being grown in Sindhuli district are Mango, Litchi, Banana, and Pineapple. Butthe production of these crops is not at commercial level. Hence, the marketable surplus is also notsignificant for scale of trading. The area and the production of the above mentioned crops areincreasing every year. The production status of these fruit crops are given in the Table 5.

Table 5: Area and production of important fruit crops in Sindhuli district in FY 2071/2072

# Fruit Area, ha Productive Area, ha Production, ton1 Junar 1160 623 72182 Mango 152 95 11403 Litchi 406 284 14204 Banana 390 234 23405 Pineapple 178 125 1250

Source: Ministry of Agricultural Development, 2071/2072

The other important crops produced in commercial scale in Sindhuli district are: pulses; tomato;leafy vegetables and chayote; potato; cucumber and pumpkin; cabbage and cauliflower; banana,pineapple, litchi and mango; beans and string bean; ginger, cardamom and turmeric; and fish.The area and the production of these crops are increasing every year and there will be need fortrading the marketable surplus that will come from the individual farmer in future.Production, requirement and marketable surplus of cereal, pulse and vegetable is presented inTable 6. Only the vegetable has marketable surplus in Sindhuli district.

Table 6: Production, requirement and marketable surplus of cereal, pulse and vegetable inSindhuli district

Year Population

Cereal, mt Pulse, mt Vegetable, mtProductio

nRequireme

ntMarketable surplus

Production

Requirement

Marketable surplus

Production

Requirement

Marketable surplus

2015 125420 1037 247852016 305164 145994 361619 -215626 1010 2688 -1679 24926 18310 66172017 158960 1022 256882018 171926 1034 264502019 184892 1046 272122020 197858 1058 279742021 312448 210824 370251 -159427 1070 2753 -1682 28735 18747 99892022 223790 1083 294972023 236757 1095 302592024 249723 1107 310212025 262689 1119 317832026 316532 275655 375090 -99436 1131 2789 -1657 32544 18992 135532027 288621 1143 333062028 301587 1156 340682029 314553 1168 348302030 327519 1180 355922031 316013 340485 374475 -33990 1192 2784 -1592 36353 1093 35260

Note: Cereal included paddy, maize, wheat flour and millet with the consumption of 127, 21, 28 and 9 kg/person/year respectively. Pulse included lentil andblackgram with the consumption of 5.35 and 3.46 kg/person/year respectively. Consumption of vegetable is 60 kg/person/year.

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8.5 Mapping Agriculture Markets in Sindhuli District

# Type of Market In CentralRegion, No.

In SindhuliDistrict, No.

Name & Address of Sindhuli Markets

1 Hat Bazar 308 3 1. Khaniyakhark Bazar, Ratanchura 22. Junar Utpadak Sahakari Sanstha Ltd; Sindhulimadi3. Mahabharat Dugdha Utpadan Sahakari Sanstha

Ltd; Khukhark2 Collection Center 158 2 1. Krishi Upaj Sankalan Kendra, Kamalamai

Nagarpalika 62. Krishi Upaj Bajar Sankalan Kendra, Khurkot

3 Wholesale Market 12 - -4 Retail Market 79 - -Total 557 5 -

8.6 Existing Markets Surrounding Khurkot

Information was collected about the existing markets surrounding Khurkot. The participantsreported that there are about nine markets nearby Khurkot (Table 7). Interaction meeting wasalso held in Agriculture Produce Marketing Center located in Sindhuli Madi.

Table 7: Existing markets surrounding Khurkot

# Name of Market # Name of Market1 Ramechhap Bazar (Ramechhap) 6 Baridibas2 Manthali Ramrek (Ramechhap) 7 Dhalkebar (Dhanusha)3 Ghurmi (59 km from Khurkot in Udayapur) 8 Charikot (Dolakha)4 Sindhuli Madi (Sindhuli) 9 Jiri5 Lalbandi (Sarlahi)

Agriculture Produce Marketing Center is a wholesale cum retail market established in SindhuliMadi with the support from different agencies. This market caters 15 percent of local produceand 85 percent of produce imported from Lalbandi, Dhalkebar and Hetauda markets. About 4-5tons of vegetables and 500 kg of fruits are traded daily in this market. In season, Junar is alsobeing traded through this market to some extent. Three shutters for farmers and nine shutters forfarmer’s groups/cooperatives are allotted during the harvesting season to market the Junar fruit.The monthly income of this market is Rs. 20,600 from the rented shutters and store rooms (66 inno.) and service tax.

Many temporary collection centers are in operation nearby production pockets, which facilitateto feed the agricultural produces in the proposed Khurkot wholesale market for large scaletrading. The proposed market center is also well connected with other major wholesale marketsthrough road network such as Ramechhap Bazaar, Manthali Bazaar, Khurmi (Udayapur),Sindhuli Madi, Lalbandi, Bardibas, Charikot, Jiri, Banepa and Khaniya Kharka.

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8.7 Traded Agricultural Commodities in Khurkot

The participants provided information about the agricultural commodities which are suppliedfrom and to Khurkot market. These are presented in Tables 8 and 9.

Table 8: Supply of agricultural commodities from Khurkot to other markets

# Commodity Supply to1 Paddy Ramechhap2 Tomato & potato (off-season) Banepa (Kavre), Sindhuli Madi, Charikot (Dolakha),

Lalbandi3 Junar, lime, lemon Banepa, Bardibas4 Chilly (green and dry) Ramechhap5 Wheat and maize Ramechhap6 Khuwa and milk Khalte (Sindhuli)7 Green leafy vegetables Manthali (Ramechhap)8 Cucumber and pumpkin Kathmandu, Banepa and Manthali9 Green corn Banepa and Sindhuli Madi

Table 9: Supply of agricultural commodities from other market areas to Khurkot

# Commodity Source1 Seed potato Dorahma (Ramechhap), Jiri (Dolakha), Banepa (Kavre), Terai2 Potato and onion Banepa, Bardibas3 Pulses Terai and Ramechhap4 Rice Terai and India5 Wheat and flour Terai and India6 Paddy seed Terai7 Edible oil Terai8 Fish Terai9 Mango Terai

10 Grape India11 Banana Terai

The demand for fish in the hotels around the Khurkot market is high. The peoples are becominghealth consciousness now-a-days. They prefer white meat (fish) rather than red meat. As thelocal settlements and populations will be increased around the Khurkot area and along with B.P.Highway, demand for fish will be increased. On the otherhand, land is available (around 2roponi) adjacent to Khurkot market near refreshment center. In future, its demand center will becity market of Banepa, Kathmandu, Lalitpur and Bhaktapur. Additionally, it is linked by B.P.Highway and Pushpalal Highway (Madhya Pahadi Lokmarga), Kodari/Araniko Highway foreasy fish transportation and trade. The development of fish market facilities adjacent to Khurkotmarket is feasible to fulfill future demand of fish in the hotels and people living around Khurkot.Hence, itis recommendedto establish retail outlets and small scale retail units in Khurkot market.

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The following arrangement should be made for fish market development in the Khurkot i.e. forretail outlets and small scale retail units.

The fisherman of Majhi basti settled on the bank of Sunkoshi River near to khurkot market,capture fish from Sunkoshi River daily and marketed fresh in the hotels around Khurkot area.There are 200 number numbers of fishermen in the Mahji basti of Sunkoshi River near Khurkotmarket. They catche Sahar (Tor putitora), Gounch (Bagarius sp.), Bam (Mastacembelus spp.),Buduna (Garra annandalei), and Jalkapur (Clupisoma gaura) fish species from Sunkoshi River.The Mahji fishers harvest around 100-120 kg fish daily from Sunkoshi River and sale in thehotels of Khurkot area along the B.P. Highway.

The demand for fish is high in the hotels along the B.P. Highway of Khurkot area. It is due topeople's perception that these hotels provide fresh fish of Sunkoshi River. In the khurkot area,one hotel needs around 40 kg.fish daily. To fulfill the demand, 100-200 kg of fish is brought inthe hotels of Khurkot and adjacent area by Sindhuli based fish wholesalers. The Sindhuli basedfish wholesalers receive fish daily from contractor of Bardibas. Bardibas contractor collect andtransport live fish from different places of Mahottari, Dhanusha, Rauthat and Bara districts ondaily basis. Live fish is transported in pick up van or in mini truck holding fish in plastic tanks of200-250 liter capacity with aeration facilities. In one mini truck, they can load around 200-250kg.of fish in four to six 250 liter capacity tank. After receiving fish by Sindhuli wholesaler, theyprocess the fish (deguts, clean and make piece) and keep in defreeze, and then supply nextmorning to the Khurkot hotels. The fish species Naini (Cirrhinus mrigala) and Silver Carp(Hypophthalmichthys molitrix) are mostly supplied to hotels in the Khurkot area. The peopletravelling in the B.P.Highway used to buy fish from hotels near Khurkot market and take theirhome town to Kathamndu and Dhulikhel. The production from pond aquaculture in Sindhuli andadjustment districts is very low (Table 10).

Table 10: Fish production from pond fish farming from Sindhuli and adjacent districts

# District Area, ha Production, mt Yield, kg/ha Surplus/Deficit1 Sindhuli 4 9.2 2316 Deficit2 Udayapur 26 72 2773 Deficit3 Ramechhap 1 0.75 1500 Deficit4 Khotang 3 4.5 1500 Deficit

At present, no facilities for fish marketing have been devolved in the Khurkot market. Noinfrastructures have been developed for retail outlet, small scale retail units for fish sale, and fishretain facilities in the existing market facilities of Khurkot market. The willingness of localfishermen as well as local people to make use of the proposed land (adjacent to Khurkot market)to develop marketing facilities for fish market is the main strength of this place.

8.8 Investment in Construction of Market

As per FGD with the stakeholders, land and 15 percent contribution can be obtained from thelocal government. However, the cash investment for construction should come from the FederalGovernment (Table 11).

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Table 11: Contribution for construction of market hub

Collaborators Cash Kind RemarksFederal Government √Provincial GovernmentLocal Government √ (land) Land ownership to be kept with

local governmentMarket Management Committee √ √ Minimum of 15% contributionOthers

8.9 SWOT Analysis

Discussion was held about the strengths, weaknesses, opportunities and threats (SWOT) ofmarket development in Khurkot. The outcome of SWOT analysis has been presented below.

Strengths

Khurkot market is linked with BP Highway, Mid-hill Highway (Madhya PahadiLokmarg),and Manthali Road. Therefore, it is located in a highly accessible junction.

There is bridge over the river near Khurkot making easy access of the people from across theriver

Sindhuli has a specialized product that recognizes the district and it is "Junar".So there areopportunities for post-harvest operations.

Khurkot has its own land, therefore, is secured for the ownership. Information Center beside Khurkot market creates opportunities to develop e-business in the

future and would be helpful to manage the risk with help of different forms ofcommunications.

Presence of refreshment and service center in Khurkot market site added recreation andrefreshment to both buyer and sellers .

Availability of regular shuttle bus service beside Khurkot market add frequent mobility ofpeople leads to increased transaction.

There is city hall beside Khurkot market. Presence of security (Police Office) beside Khurkot market definitely secured the people for

marketing transaction. Traffic Police at the entrance of Khurkot market is an advantage for good traffic

management. Land for playground beside Khurkot market could be available where agriculture fairs or

exhibitions can be organized and game spectators/watchers may visit and purchase goodsfrom Khurkot market.

The support of all political parties for market development will eventually lead success ofconstruction and there are no disputes.

Khurkot has been proposed as a model city. Possibility of expansion of trade in future. No one is displaced due to Khurkot Market development.

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Weaknesses

The land area for hub is inadequate and scattered. The site has insufficient water. Weak financial resource. Home delivery system is popular around Khurkot market center wherein producer farmers

sale and deliver agriculture products to the consumers house. The construction of existing infrastructure is budget based without long term planning vision. No standard system for grading, standardization and costing/pricing system in place. Price is fixed by the traders based on arrival of commodities from Terai. However, local

production fetches Rs. 2-3 per kg higher than Terai products owing to product of cold areaand no use of pesticides.

Post-harvest handling is very weak. Need pro-cooling and grading. In future, problem may arise for vehicle movement, parking and load-unload with the growth

of the market. At present, Khurkot market does not have land for waste management.

Opportunity

Nearby Koshi river could be the great source of water for drinking, cleaning, sanitation etc.Since the level of river is below the site level, water need to be pumped from Koshi river.The site has adequate sunshine, therefore, further construction of solar power can be utilizedfor pumping water from the river into the water reservoir (to be constructed in higherelevation above Highway) during day time. Beside this fresh fish production and marketingcan be started.

There is a good scope for the development of specific commodity markets if lands areavailable in a scattered area. Amenities like lodge and restaurant can be constructed (in 2ropani land of DADO located nearby) to facilitate the producer farmers coming from distantlocations.

Need to strengthen and improve the capacity on market management. Need for development of Apps for pricing, weather forecast and insurance. Electricity facility in the site increased the way for cold chain possibilities for even milk, fish

and poat harvest products. Great scope exists in making organic manure from market wastes because the producer

farmers grow crops organically. Great scope for promoting organic products in the department stores in the local restaurants

(because the passengers plying in BP Highway are mostly high income passengers who areconscious about health and nutrition and more importantly daily transaction of theserestaurants in Khurkot is about Rs. 1.5 to 2.0 million) and department stores in Kathmandu.

The demand for agriculture commodities are increasing because the restaurants and hotels inKhurkot keep open 24 hours due to continuous flow of vehicles mainly with passengers.

The scope for daily instead of weekly hat market is increasing. Possibility of large scale sale of cold and fresh water fish through the development of modern

fishing in nearby Koshi river. The restaurants in Khurkot have their unique type of fishcooking skill.

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Threats

The site looks fragile for flood from nearby stream. In 2041 BS flood entered into the marketsite and swept several houses including some people. According to local people the returnperiod of such flood is about 60-70 years.

Regular trade for agricultural commodities has not yet been established.

8.10 Possible Negative Impact of Khurkot Market

Pollution from wastes Pollution from toilet Nearby police post is severely affected due to pollution Problem of drinking water

Suggestions:

MMC operate market as per guideline Monitoring and supervision to be done by Federal Government A board to be constituted above MMC The members in the board to be nominated by the government As provisioned in new market guideline, a representative from FNCCI to be included in MMC

8.11 Recommendations

Although Khurkot is situated in a strategic location but it is not feasible for Market Hubmainly due to limited area for accommodating major facilities for market operation. This wasdiscussed during pre-validation workshop in ABPMDD. However, the study team hasproposed professionally engineered infrastructure for the development of a market center withmulti-storey building. The location map designs for basement, ground floor, first floor, topfloor, canteen, gents and ladies toilets are presented in Figures 1-8.

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Figure 1: Location map of proposed agriculture market hub in Dhalkebar

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Figure 2: Proposed design for basement, ground floor, first floor, top floor and canteen.

31

Figure 2: Proposed design for basement.

32

Figure 3: Proposed design for ground floor.

33

Figure 4: Proposed design for first floor.

34

Figure 5: Proposed design for top floor.

35

Figure 6: Proposed design for canteen.

36

Figure 7: Proposed design for gents toilet.

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Figure 8: Proposed design for ladies toilet.

Following are the reason for proposing such multi-storey market center:

Shortest connecting route for eastern Terai with Kathamndu and the number of middle tohigh income passengers is increasing.

A police station is located in between the proposed sites is an added advantage for securitypoint of view and for mitigating conflicts and other issues, if any.

Establishment of fish retail outlet

There should be provision for reinforced concrete fish landing facilities (100 m2) with tiles inthe floor and with proper roofing where the landed fish is received, weighed and auctioned(50 m2), washed, sorted and filleted if necessary. Live fish holding tank should be constructedfor holding live fish with necessary equipment (aerator). Hygienic stalls with tiles flooring,fish dressing unit in a pucca house with proper roofing should be constructed and continuouselectric supply should be ensured. An overhead tank for continuous supply of water should be

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provided for better maintenance of hygiene. Ice plants and the surplus chill store room neededfor the unsold fish stored for the next day. Display unit with facility for cutting and displayfacilities should be made with strong tiles. Waste management system with proper drainageshould be made. At the retail outlet, provision for communication facilities and restroom andtoilet facility should be developed. Compound wall with gate should be constructed forprotection.

Figure 9: Proposed fish/meat market shutters

Establishment of small scale retail units

Provision of few fish retail stalls (30 square feet) should be made with ample space forfilleting and washing. The stalls should be constructed of reinforced concrete stalls with wellventilation facilities with roof and electric supply. The working surfaces should be coveredwith tiles for cutting, dressing and display facilities. Live fish display facilities should be alsodeveloped. These stalls should be facilitated with insulated fish boxes, deep freezer forstorage, electronic balance, equipment for fish dressing and packaging. Sufficient watersupply with overhead tank should be provided. Drainage facilities and hygiene maintenanceprovision should be developed.

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Solid waste management is a major concern as the market center development may generatehuge amount of wastes from the traded products. Notably, the area of the proposed market siteis very limited. Hence, an appropriate site should be chosen for solid waste management. Thesolid waste management should be done such that it does not contaminate river.

Such wastes are valuable raw materials for making high quality compost manure for organicfarming. So, as suggested during interactive discussion meeting, plan should be made forrecycling wastes instead of their mere disposal. Provision should also be made for selling suchcompost from the market center. There is high possibility of selling organic product inKhurkot market areas because of high income passengers traveling in this route.

As per people of Khurkot there is occurrence of landslide every 60-70 years. So, it would bebetter if watershed management programs are implemented in the upstream.

Soil should be tested for studying safe bearing capacity of soil for the construction of multi-storey market center.

A board to be constituted above MMC and the members in the board to be nominated by thegovernment. As provisioned in new market guideline, a representative from FNCCI to beincluded in MMC.

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9. Feasibility of Market Hub in Dhalkebar

9.1 Introduction

The study team visited the market site in Dhalkebar of Dhanusha district together with somelocal people and members of Market Management Committee (MMC). Existing site togetherwith the potential lands for expansion of the proposed market as well as existing facilitiesavailable in the market sites were visited.

The Market site is located in Mithila Municipality - 5, Dhalkebar of Dhanusha district along theleft side of East West Highway. It has easy access for Dhanusa, Mahottari, Sarlahi and Sirahadistricts. It has an area of 1 bigha 3 kattha and 6 dhur (84,920.58 sq.ft.) and has infrastructureslike store, Kishan shed, administration building, open shed, shutter rooms and rest rooms (Table1). Hat Bazar is organized thrice in a week or 156 times in a year.

Table 1: Physical facilities in Agriculture Produce Market Center, Dhalkebar

# Description # Description1 Shutters - 32 7 Guard/watchman room – 22 Wholesale stalls - 32 8 Open bath room – 23 Store rooms - 4 9 Cattle shed – 14 Open shed - 40 10 Toilet (male -5 & female -4) – 95 Open shed farmers (20'x70') - 1 11 Drinking water well – 16 Administrative building [three storey,

office room -1, training hall -1, guestroom (with 26 beds) – 4]

12 Entrance gates - 2

The land suggested for further expansion of market hub is under discussion but there isavailability of land area of 1 to 1.5 bigha (72,893.20 sq.ft. to 109,339.8 sq.ft.) to be purchasedfrom the private owner at the back of the market center. The owner does not have road access tohis 3 bigha land. So, negotiation could be done with him by availing road access in his land forreasonable/justifiable valuation of his land. In other word, both parties should be benefited. Localgovernment and MMC need to invest for this purpose.

Also the location of Dhalkebar can be considered as a center of State (Pradesh)-2 whichincreases of possibility of expansion of market activities. Hence, for development of newinfrastructures national building code & soil test is suggested in case of high rise structures.

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9.2 Current Activities in Agriculture Produce Collection Dhlkebar

At present there is a 9-member MMC (Table 2) and six officials and workers in Dhalkebarmarket center (Table 3).

Table 2: Market management committee

# Position Name Representation1 Chairperson Mr. Ram Kishun Thakur Trader2 Member Rajindra Das Trader3 Member Mr. Bijay Kumar Sah Trader4 Member Mr. Thakai Sah Farmer5 Member Mr. Ram Swarth Mahato Farmer6 Member Mr. Arun Kumar Mahato Farmer7 Member ...... VDC8 Member Mr. Surendra Goit DADO9 Member Secretary Mr. Shambhu Nath Das Manager

Table 3: Officials and workers in Dhalkebar Market Center

# Post Name1 Manager Mr. Shambhu Nath Das2 Computer Operator Miss. Neelam Kumari Rokka3 Office Assistant/Watchman Mr. Mante Bahadur Dhanamagar4 Daily wager labor Mr. Bhola Mahato5 Daily wager labor Mr. Ram Sudaya Mahato6 Cleaner Mr. Singheswor Mallik (Dhum)

The income sources of Market Management Committee (MMC) are as follows:

Contract of market Rent from shutter/shed/stall/store Entrance fee of vehicles Bed charge of guest room Rent from training hall Rent from restaurants Rent from plastic crate Penalty for delayed payment Other miscellaneous fees

In FY 2072/73 the market center received grant amount of Rs. 1.2 million. The MMC completedfollowing physical infrastructures with the grant money.

Iron mesh put above compound wall Iron gates installed in both entrance gates

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Grills installed in the windows of the shutters constructed in FY 2070/71 Paintings done on the physical infrastructures completed in FYs 2070/71 and 2071/72 Concrete roof constructed and water tank installed above open shower room Basin and tap installed in comfort room/toilets

Success stories of market operation:

Hat Bazar being organized thrice in a week by organizing an additional Hat Bazat day onFriday in addition to the previously twice a week Hat Bazar on Sunday and Wednesday.

MMC was successful in relocating Hat Bazars which used to be organized along the sides ofHighway which used to be highly risky for accidents.

MMC was successful to organize office, training and guest rooms systematically.

Problems encountered in market management:

Tripartite agreement between VDC, school and market centers on 2056/6/19, 2057/7/11 and2073/7/21.

The locality around market center is potato and jaggery production areas but the cold storesrequired for these products do not exist in the market center.

The market center lacks several physical infrastructures required for the smooth functioningof the market.

Market center does not have pick-up van for transportation of goods. The electricity charge is high. There is no uniformity in the market in terms of grades and standards.

Role and responsibilities of supporting organizations:

VDC: Jointly contracting out market center by VDC, school and market centers and avail 30percent contract amount to MMC.

DADO: Technical support, monitoring, supervision and evaluation. School: Contract out market and collect collect contract amount. Agri-business Promotion and Marketing Development Directorate (ABPMDD):

Technical monitoring, supervision and evaluation of the project and award projects includingsupport for training, workshop, visit and guidance to the project.

Different projects: Coordination with different projects to systematically manage physicalfacilities of market information system, strengthen capacity of MMC members andemployees, and obtain support for grading, packaging and transportation vehicles.

Producer cum Trader Farmers in Dhalkebar

There are about 70 ethnic families who are engaged in farming as well self-trading of theirproducts in Dhalkebar market center. The list is presented in Table 4.

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Table 4: Producer trader ethnic groups in Dhalkebar market center

# Ethnic Group No. of Families Commodity1 Koiri/Mahato 30 Vegetables2 Kalwar 15 Vegetables

5 Jaggery (Sakkhar/Gud)3 Sah/Teli 10 Rice and pulses4 Yadav 10 VegetablesTotal 70

9.3 Market Window Analysis

The market window technique is considered a simple, inexpensive, and reliable screening devicefor investigating the market potential for different crops. For this crops or commodities can beranked based on future potential or area or production or value of production or quantity/volumeof trade or value of trade. The agricultural commodities ranked based on total amount of annualtransaction is presented in Table 5. Sunflower was found the first in the rank with an annualtransaction of Rs. 4.7 million.

Table 5: Top ten agricultural commodities based on total amount of annual transactionRank Agriculture

produceUnit Annual traded

quantityAverage price,

Rs/unitTotal amount oftransaction, Rs.

1 Sunflower oil Liter 31900 147.58 47078022 Mustard oil Liter 26900 157.12 42265283 Ginger (hill) kg 43650 68.33 29826044 Chilly (green) kg 48700 56.28 27408365 Fine rice kg 46200 59.22 27359646 Chilly (dry) kg 10330 245.66 25376687 Apple kg 20170 125.19 25250828 Dry garlic kg 15950 144.76 23089229 Potato (red) kg 74800 26.54 1985192

10 Onion (dry) kg 41500 46.68 1937220

Note: Based on information (Shrawan 2072 to Ashadh 2073) obtained from Agriculture Produce Hat Bazar, Dhalkebar.

The agricultural commodities ranked based on quantity of annual transaction is presented inTable 6. Green chilly was found the first in the rank with an annual transaction quantity of 48.7ton.

Table 6: Top ten agricultural commodities based on total quantity of annual transactionRank Agriculture produce Quantity,

kgAverage

price. Rs./kgTotal amount oftransaction, Rs.

Rank based on amount oftransaction

1 Green chilly 48700 56.28 2740836 22 Cauliflower (Terai) 48115 32.94 1584908 53 Fine rice 46200 59.22 2735964 34 Banana 45400 36.67 1664818 45 Mango (Other varieties) 45005 34.02 1531070 66 Ginger (hill) 43650 68.33 2982605 17 Mango (Culcuttiya) 42000 26.77 1124340 98 Coarse rice 39500 35.13 1387635 89 Pumpkin 39000 21.94 855660 10

10 Pointed gourd 33600 42.9 1441440 7Total 431170 - 18049276 -

Note: Based on information (Shrawan 2072 to Ashadh 2073) obtained from Agriculture Produce Hat Bazar, Dhalkebar.

44

Crops has been ranked based on area, production and value of production as presented below.Accordingly, 12 crops come into the picture. In terms of area, producion and value of productionpaddy, sugarcane and vegetable rank first, second and third (Table 7).

45

Table 7: Top ten agricultural commodities based on area, production and value ofproduction

# Crop Ranking based onArea Production Value of production

1 Paddy 1 2 22 Maize 6 83 Wheat 2 3 34 Lentil 3 5 45 Pigeonpea 5 7 106 Grasspea 107 Oilseed 7 9 78 Sugarcane 6 1 59 Potato 9 4 6

10 Vegetable 4 4 111 Mango 8 8 912 Litchi 10 11

Note: Analysis based on Statistical Information on Nepalese Agriculture 2014/15. Agri-business Promotion and StatisticsDivision, MoAD, Kathmandu, Nepal.

Production, requirement and marketable surplus of cereal, pulse and vegetable is presented inTable 8. Only the vegetable has marketable surplus in Dhanusha district.

Table 8: Production, requirement and marketable surplus of cereal, pulse and vegetable

Year Population

Cereal, mt Pulse, mt Vegetable, mtProducti

onRequire

mentMarketable

surplusProducti

onRequire

mentMarketable

surplusProducti

onRequire

mentMarketable

surplus2015 264435 5756 1000152016 803785 247423 952485 -705062 5644 7081 -1438 94182 48227 459552017 244657 5589 960022018 241891 5534 978222019 239124 5480 996412020 236358 5425 1014612021 852097 233592 1009735 -776143 5370 7507 -2137 103281 51126 521552022 230825 5315 1051012023 228059 5261 1069202024 225293 5206 1087402025 222526 5151 1105602026 899589 219760 1066013 -846253 5097 7925 -2829 112380 53975 584042027 216994 5042 1141992028 214227 4987 1160192029 211461 4933 1178392030 208695 4878 1196582031 937881 205928 1111389 -905461 4823 8263 -3439 121478 56273 65205

Note: Cereal included paddy, maize, wheat flour and millet with the consumption of 127, 21, 28 and 9 kg/person/year respectively. Pulse included lentil andbalckgram with the consumption of 5.35 and 3.46 kg/person/year respectively. Consumption of vegetable is 60 kg/person/year.

46

Scenario of Fish in Dhalkabar Periphery

Dhanusha is famous for pond fish production. About 120-150 kg fish is required daily for thehotels around the Dhalkebar area. Around 400-500 kg fish is traded on the market day. Live fishis brought from Bara, Sarlahi, Mahottari, Dahnusha, Siraha and Rauthat districts to sale in theDhalkebar market. Till date, no facilities have been developed for wholesaler, retailer and smallscale retailer for selling fish and also fish retain facilities in the existing market facilities ofDhalkebar market. At present, fish is sold outside the market (on the side of the road) on themarket day and daily. The fish is kept openly on the plastic and processed on the spot and sold.Hygiene is not maintained.

The fish production from pond fish farming of the Dahnusha and adjacent districts is surplus(Table 9). Silver carp, Bighead carp, Grass carp, Rohu, Naini, Bhakur and common carp aremain fish species which supplied in the market of Dhanusha. The capture fishery are done byMajhi community from the rivers of the Dhanusha and adjacent districts and they sale their fishfresh in the nearby market of their resident river. The following rivers are used for the capturefishery: Bighee, Charnath, Gap Ghagar, Hardinath, Kamala, Rato, Bidhee, Sunjoree, Selar, Kol,Dugdhawati. Banke, Bindhi, Goge, Jangha, Megha Bagmati riverLakhandei RiverJhim River,Mainabari, Gagana, Kutti, Balan and Kalyan. No data for fish catch from these rivers areavailable.

Table 9: Pond fish production in Dhanusha and adjacent districts

# District Area, ha Production, mt Yield, kg/ha Surplus/Deficit, mt1 Dhanusa 801 3648.9 4555 Surplus2 Mahottari 604 2682 4440 Surplus3 Sarlahi 300 1304.5 4348 Surplus4 Siraha 604 2584.5 4279 Surplus5 Bara 945 4785.7 5064 Surplus

9.4 Mapping Agriculture Markets in Dhanusha District

# Type of Market In CentralRegion, No.

In DhanushaDistrict, No.

Name & Address of Dhanusha Markets

1 Hat Bazar 308 15 1. Yadukuha Bazar, Yadukuha 32. Sabaila Bazar, Sabaila 93. Krishi Upaj Baar Samitai, Dhalkebar 34. Gudari Bazar Dhanushadham, Dhanushadham 15. Prewa Bazar, Parewa 96. Janmurahi Chowk Bazar, Mithiliswor Mauwadi 67. Kushmaha Bazar (Pashu Hat), Satokhor 28. Kurtha Bazar, Kurtha 59. Baidahi Bazar, Itaharba 910. Narsid Bazar, Basadiya 511. Saraswoti Bazar, Kanakpati 412. Barmajhiya Bazar, Barmajhiya 413. Laxminiya Bazar, Laxmipur Bageda 514. Sapadi Bazar, Sapadi 715. Mathidan Bazar, Satepar 9

47

# Type of Market In CentralRegion, No.

In DhanushaDistrict, No.

Name & Address of Dhanusha Markets

2 Collection Center 158 18 1. Krishi Upaj Nirman Upabhokta Samiti, Nagarain 32. Janata Krishi Sahakari Sanstha Ltd; Yadukuha 13. Krishi Upaj Sankalan Kendra, Phulgama 74. Krishi Upaj Sankalan Kendra, Sigyahi Madan 85. Krishi Upaj Sankalan Kendra, Dhanushadham 16. Krishi Upaj Sankalan Kendra, Dhabauli 87. Krishi Upaj Sankalan Kendra, Mithilieswor8. Krishi Upaj Sankalan Kendra, Dhanauji9. Krishi Upaj Sankalan Kendra, Machijhitkaiya10. Krishi Upaj Sankalan Kendra, Laxmipur11. Krishi Upaj Sankalan Kendra, Sabela 912. Krishi Upaj Sankalan Kendra, Aurahi 413. Krishi Upaj Sankalan Kendra, Umaprempur 914. Krishi Upaj Sankalan Kendra, Sinurjoda 815. Krishi Upaj Sankalan Kendra, Sunardhukarhi 216. Krishi Upaj Sankalan Kendra, Chakkar 217. Krishi Upaj Sankalan Kendra, Dubarkot 818. Krishi Upaj Sankalan Kendra, Deuri Parbaha 5

3 WholesaleMarket

12 2 -

4 Retail Market 79 3 -Total 557 38 -

9.5 Existing Markets Surrounding Dhalkebar

Information was collected about the existing markets surrounding Dhalkebar market center. Theparticipants reported that there are about four markets nearby Dhalkebar (Table 10) which havegood chain or linkage.

Table 10: Markets nearby Dhalkebar

# Name of Market Brief Description1 Badahari

Agriculture HatBazar

Located in highway. Currently, it has 3 bigha public land andadditional 5-10 bigha can be obtained from the government. Mainlymeat (buffalo, pig and fish) items are traded in this Hat Bazar.

2 Lalgadh Located opposite Police Post. The market is organized daily.Currently, the market center is 100 meter long along the road. SinceBP Highway passes through this market center, it can be relocated in300 meter inside the highway in 5 kattha private land and there is thepossibility of using additional waste land on the bank of river for themarket.

3 Laxminiwas Located in Labkush or Koteswor VDC around 3.5 km from highway.The market has 4 kattha public land. DADO has constructed abuilding and the market is operated by MMC.

4 Puspalpur Located along highway in Puspalpur-11 and 300 meter below theforest. The area of land is 12 kattha and is owned by an individual.Currently, boring is in process.

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9.6 Traded Agricultural Commodities in Dhalkebar

The list of major traded crops and commodities in Dhalkebar has been presented in Table 11.

Table 11: Major traded commodities in Dhalkebar

# CropsFruits

1 Apple2 Orange3 Suthani4 Lemon5 Pear6 Pineapple7 Mango (Maldah, Amrapali, Dusheri, Culcuttiya, Others)8 Litchi9 Banana

10 Papaya11 Jack Fruit12 Grape (white and black)13 Keshor14 Bel15 Bayar16 Musk Melon17 Water Melon18 Coconut19 Amala20 Pummelo21 Badami22 Guava23 Pomegranate24 Custard Apple

Vegetables1 Potato2 Tomato3 Cauliflower4 Cabbage5 Chilly Green6 Brinjal7 Carrot8 String Bean9 Bean

10 Sweet Potato11 Squish12 Cucumber

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# Crops13 Bottle Gourd14 Pumpkin15 Squash Pumpkin16 Pea17 Okra18 Sword Bean19 Broccoli20 Colocacia21 Radish22 Drumstick (Swejan/Sital Chini)23 String bean24 Onion25 Bottle Gourd26 Pointed Gourd27 Snake Gourd28 Ridge Gourd29 Jhiguni30 Broad Mustard Leaf32 Spinach Green32 Cress Green33 Fenugreek Green34 Saunf Sag35 Laf Sag36 Thadiya Sag37 Pumpkin Tips38 Green Onion39 Yam (Red and White)40 Coriander Green41 Pirar42 Ole (improved and local)43 Simala Chilly44 Mushroom45 Barela

Spices1 Ginger2 Turmeric3 Coriander4 Dry Garlic5 Dry Chilly

Oilseed1 Mustard2 Soybean3 Sunflower

Cereals

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# Crops1 Paddy (fine and coarse)2 Wheat Flour

Pulses1 Blackgram2 Pea3 Lentil4 Pigeon Pea (Rahar)5 Gram

MeatGoatChickenFish

9.7 Investment in Construction of Market Center

Collaborators Cash Kind RemarksFederal Government √Provincial GovernmentLocal Government √ (land) Land ownership to be kept with

local government because disputecan be solved locally or landownership can be kept with State ofFederal Government

School/Campus ? ?Market Management Committee √ (30%) √Farmers and traders As shareOthers

9.8 SWOT Analysis

Discussion was held about SWOT of market development. The outcome of SWOT analysis hasbeen presented below.

Strengths

Market hub is linked with East West and BP Highways. It is centrally located in terms of production pockets and settlements. Presence of large numbers of commercial vegetable growers around the market center would

fulfill the supply of fresh product demanded Organic production can be promoted in production pockets in order to benefit both producer

farmers, consumers and environment. The market center has its own land in the name of government. There is possibility of expanding area.

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Large transaction during Hat Bazar day i.e. Rs. 1 to 2 million or 50 ton on the day of HatBazar. The transaction (both demand and supply) for grains, vegetables and fruits is inincreasing trend.

The market is in operation as per guideline. No one is displaced due to Dhalkebar Market development.

Weaknesses

The current land area for hub is inadequate. There is no space to stand in the morning duringHat Bazar. Additional 1 bigha will be adequate for the next 15 years.

There are no adequate space for major products of the district such as jaggery (Sakkhar/Gud)and fish.

During the season of mango and water melon the current space is adequate for only 50percent production of these crops.

The site has insufficient water. There is drainage layout inside market premises but there is no outlet for drainage because

the level of market premise is 3-4 ft. below the main road outside.

Photo 1: No provision of drains for exclusion of rainwater from market premises

The existing infrastructures are considered either inadequate or inappropriate. For example,the level of market space (the height and the level of store house and sheds in center is low,there is ventilation problem in the shutters).

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Photo 2: Store building of agriculture market center at Dhalkebar, Dhanusha

The shutters have been merely used as store. Producer farmers did not get space to sale theirproducts because the store renters keep their products in front of their shutters.

;No standard system for grading. Traders still use Tokari and stones for weighing. The traders weigh 2-4 kg more in one maund (40 kg.) while buying products from producer

farmers for sorting the low standard products. Post-harvest handling is very weak. Need pre-cooling and grading. Problem for vehicle movement, parking,load and unload. Daily trade for agricultural commodities has not yet been established. Inadequate drinking water,. At present, the market center does not have land for waste management.

Opportunity

There is possibility of area expansion. There is 3 bigha private land just behind the marketcenter but the owner does not have road access to his land. So, negotiation could be donewith him by availing road access in his land for reasonable/justifiable valuation of his land.In other word, both parties should be benefited. Local government and MMC need to investfor this purpose.

There is a good scope for market hub development with all amenities like construction oflodge, restaurant and shower rooms to facilitate the producer farmers coming from distantlocations.

Need to strengthen and improve the capacity on market management. Need for development of Aps for pricing. There is electricity in the site. Great scope exists in making organic manure from market wastes to promote organic

farming. The scope for daily instead of periodic Hat Bazar is increasing.

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Threats

Still there is dispute between school and MMC regarding sharing the income. Yet there is no provision for cleaning and planned waste management. No fire extinguishing system in place.

9.9 Possible Negative Impact of Dhalkebar Market Hub

Pollution from wastes Pollution from toilet Problem of drinking water

9.10 Recommendations

The existing area in Dhalkebar is already congested for Hat Bazar which is organized thrice ina week. Although Dhalkebar is situated in a strategic location but it is not feasible forMarket Hub mainly due to limited area for accommodating major facilities for marketoperation.

Long term infrastructure development or improvement options could be: (a) improvement ofexisting structures and amenities; and (b) overhauling for development of mini-hub

Option 1: Improvement of existing structures and amenities

The present infrastructure requires some revisions and addition of new structures as givenbelow.

The height of Kishan shed is reported considered not appropriate. So, stakeholderssuggested for increasing the height of these sheds.

Removal of side walls of Kishan Shed. One of the major problems during monsoon is the escape of rain water from the market

hub periphery. Hence, a well-managed drainage system is required with an outlet. Solid waste management is major concern as the market withstands tones of production.

Waste management system should be developed to ensure hygiene in this market. The toilets are not sufficient for the number of people who are coming during Hat Bazar.

So, present toilets should be improved and few additional toilets need to be constructedwith regular water supply (Figure 3).

There is also demand for new administration block. The existing administration buildingneeds renovation.

The shutter rooms located at the side of East West Highway are faced internally. There isalso need for putting ventilation in such shutters. Shutters should be installed towards thehighway side for leasing them for traders of inputs, tools and machinery so that producerfarmers will have easy access to such items when they come for Hat Bazar. In addition, ifit is faced towards highway it will contribute in crowd management inside the marketpremise.

54

Need to install weighing bridge. Need to strictly define and follow standard weights, measures and grades. Install Electronic Hoarding Board to display price in order to avoid cheating of producer

farmers. Establish information center, mobile application and FM broadcasting. Need to keep fire extinguishing cylinders and train staffs to use them in case of

emergency. Regular checking and filling and refilling mechanism should be in place. Need to install equipment/machinery to test pesticide residue. Dismantle shed for cattle which is of no use now. Need to have technical unit within the market premise to provide technical advice and

training on crop cultivation, harvesting, grading, packaging, storage, transportation, credit,insurance etc. to the farmers and traders.

Observation tours to be organized for farmers, traders and MMC staffs. Formulate clear bylaws or guideline or working guideline for MMC, staffs, farmers,

traders and consumers. Establish close links with the other market centers like Badahari, Lalgadh, Laxminiwas,

Puspalpur etc. The marketing of fish holds a very significant role in providing good quality and hygienic

fish to the consumers at reasonable prices. Fish marketing system plays an important rolein the fishery trade. The major fish production center of Nepal are Bara, Dhanusha,Mahottari, Sarlahi and Sirha disticts which are located to 1-4 hour distance of pick up vandrive from Dhalkebar market. Dhalkebar market is linked by highway, agriculture andrural roads for easy transportation of fresh fish. Most of the fishes are brought live in theDhalkebar market from these districts. In the future, it could be a hub for fish collectionand distribution centers. Under the “Prime Minister Agriculture Modernization Project”,Bara district has already been declared as fish super zone and possibly Dhanusha districtwill be upgraded to fish zone from fish block in near future. The fish production will beincreased in these districts in future. Presently, MMC of Dhalkebar is willing to allocate 3-4 stalls for fish market. However, the allocated space is not enough for the development ofwholesale cum retail fish market. Fish market needs to be developed in the separate areaor sufficient area should be allocated in the one corner of the existing market facilities.The people of this place having oppositions to establish a fish market with othercommodities in the existing Dhalkebar market. During the field study it was found thatthere was strong willingness of local fishermen to make use of the proposed landing andmarketing facilities in Dhalkebar market.

The fish which is sold outside in open area, along the roadside, should be brought to oneplace by providing a common platform for wholesale as well as retail market developmentin the Dhalkebar market. This will establish a relationship between the supplier andconsumer with stable and reasonable price as well as ensure the supply of hygienic fish tothe consumer. The following provision should be made for establishment of fish market(wholesale cum retail fish market or small retail outlet) in Dhalkebar area. The proposedshutters facing on the road side will be used for fish stalls together in addition to input andmachinery shops.

Digital scale/balance for weighing should be provided for fish trade. The communicationfacilities should be provided to the fish trader/retailor. Continuous water supply should be

55

provided in this market for fish processing and hygiene maintenance by building anoverhead tank. Provision for some fish retail market stalls (30 square feet) should beconstructed with ample space for filleting and washing fish. The stalls should have wellventilation facilities electric supply. The working surfaces should be covered with tiles forcutting and dressing facilities and display facilities. Live fish display facilities should alsobe developed. These stalls should be facilitated with insulated fish boxes, deep freezer forstorage, electronic balance, equipment for fish dressing and packaging. Sufficient watersupply with overhead tank should be provided. Drainage facilities and hygienemaintenance provision should be developed.

Training to fish venders, fish whole sellers and fish retailors

The main drawback of the retail market is the delivery of poor quality fish due to poorhandling, storage and transportation systems. Fish is highly perishable commodity. Fishspoilage begins rapidly after harvest. Proper knowledge from harvesting to marketing isrequired for the supply of hygienic and quality fish to the consumers. There is lack ofknowledge for handling, transportation and storage methods to whole sellers, vendors andretailors. Therefore, training to fish venders, fish whole sellers and fish retailors is neededto supply hygienic and quality fish to the consumer.

Option 2: Overhauling for development of mini-hub

Since Dhalkebar is not feasible for Market Hubbut the study team has proposedprofessionally engineered infrastructure for the development of a Mini-hub. There is astrong possibility of flourishing such mini-hub in near future at Dhalkebar, Dhanusha dueto its strategic location and numerous big markets nearby like Bardibas, Mahendranagar,Janakpur, Lalbandi, Nawalpur, Hetauda and several others.

The recommendations for Mini-hub development are as follows.

Additional 1-1.5 bigha land adjacent to the existing site should be made available. Land filling in the entire premise upto 1-2 ft. higher than road level should bed done. Drainage structure currently lain underneath of market premise should be revisited for

making it more efficient. Its outlet should be connected with the main drainage on theroad side beside the main gate.

Three storey open shed to be developed similar to Balkhu. The proposed design ispresented in Figures 1-3.

56

Figure 1: Ground floor design of proposed mini-hub in Dhalkebar

57

Figure 2: First floor design of proposed mini-hub in Dhalkebar

58

Figure 2: Top floor design of proposed mini-hub in Dhalkebar

Facilities and amenities like weighing bridge, cold storage for potato, cold room for 20ton, modern training hall, guard room, lodge, restaurants, shower rooms, toilets (insideand outside the market on the road side and production of biogas for water heating),boring, water supply etc. should be developed.

It is recommended to strictly define and follow standard weights, measures and grades,establish information center, mobile application and FM broadcasting, keep fireextinguishing cylinders and train staffs to use them in case of emergency withregularchecking and filling and refilling mechanism should be in place, installequipment/machinery to test pesticide residue, establish a technical unit within themarket premise to provide technical advice and training on crop cultivation, harvesting,grading, packaging, storage, transportation, credit, insurance etc. to the farmers andtraders, observation tours to be organized for farmers, traders and MMC staffs,formulate clear bylaws or guideline or working guideline for MMC, staffs, farmers,

59

traders and consumers, and establish close links with the other market centers likeBadahari, Lalgadh, Laxminiwas, Puspalpur etc.

As per PESTLE analysis all agree to develop the current market site as market hub.

60

Annex:Checklists

Some checklists have been prepared and presented below and these will be restructured andfinalized in consultation with ABPMDD officials.

Annex 1: Checklist for Market Standard

Primary information/data on existing market infrastructures will be collected and assessedagainst the market standard. The parameters for for such standard are as follows.

Land area for market development Ownership of the land Market sheds - dimension and construction materials Roof height and roof construction material Dimension of each chamber/stall/shop and flooring type Consideration of sunlight Ambient temperature and impact of sunlight Office space Comfort room (toilet) Waiting room Lodging facilities for distant traders and producer farmers Restaurants Electricity, light and drinking water facilities Garbage management and sanitation Parking area Market intelligence (information of price, volume/quantity and market centers) Banking facilities (and ATM) Fire extinguishing facilities Management committee (composition, rules, functioning etc.)

In addition, survey team (wherever relevant) will also explore possibilities of recycling ofwastes, installation of cooling chamber and cold room, basic processing unit, fruit ripeningchamber, Security Police Post, weighing bridge (Dharmakanta), pesticide residue analysisfacility orrapid diagnostic laboratory, possibilities of area expansion (through purchase or longterm lease), producers as members of the market hub, auction sale, etc.

Annex 2: Checklist for Production/Supply of Major Agriculture Commodities

The team will analyze present production situation of major agricultural products such asmajor cereals, vegetables, fruits, spices, fishes and other high value crops (at least 10commodities according to district potentials). The names of commodities will be decided in themeetings held in the field. Forecast of the production and marketable surplus of majoragricultural commodities as mentioned above for coming 20 years will be done. The secondary

61

information from Statistical Information of Nepalese Agriculture will be used for this purposeas listed below.

Khurkot Market:

Area, production and yield of major crops/commodities:

Crop/Commodity: Crop1, Crop2, ....... Crop10, Commodity1, Commodity2 .... Commodityn)

S.No.

District Area,ha

Production,mt

Yield,mt/ha

Consumption,mt

Surplus/Deficit,mt

1 Sindhuli2 Udayapur3 Ramechap4 Khotang5 Okhaldhunga6 Solukhumbu

List of agriculture markets:

S.No.

District WholesaleMarket

CollectionCenter

Haat Bazar RetailMarkets

1 Sindhuli2 Udayapur3 Ramechap4 Khotang5 Okhaldhunga6 Solukhumbu

Monthly retail/wholesale price of major crops/commodities:

Crop/Commodity: Crop1, Crop2, ....... Crop10, Commodity1, Commodity2 .... Commodityn)

S.No.

District &Khurkot Market

Baisakh Jestha Ashadh Shrawan Bhadra Aswin Kartik Mangshir Poush Magh Falgun Chaitra

1 Sindhuli2 Udayapur3 Ramechap4 Khotang5 Okhaldhunga6 Solukhumbu7 Khurkot Market

Sources of Major crops/commodities to Khurkot Market:

S.No.

Crop orCommodity

Source 1 Source2 Source3 Source4 Source5 Source6 Source7 Source8

1 Crop1

2 Crop2

3 Crop3

4 Crop4

5 Crop5

62

S.No.

Crop orCommodity

Source 1 Source2 Source3 Source4 Source5 Source6 Source7 Source8

6 Crop6

7 Crop7

8 Crop8

9 Crop9

10 Crop10

11 Commodity1

12 Commodity2

13 Commodity3

N Commodityn

Note: Source could be any district from hill, mountain, Terai or others.

Major crops/commodities distribution channel from Khurkot Market:

S.No.

Crop or Commodity Intended Market

1 Crop1

2 Crop2

3 Crop3

4 Crop4

5 Crop5

6 Crop6

7 Crop7

8 Crop8

9 Crop9

10 Crop10

11 Commodity1

12 Commodity2

13 Commodity3

N Commodityn

Dhalkebar Market:

Area, production and yield of major crops/commodities:

Crop/Commodity: Crop1, Crop2, ....... Crop10, Commodity1, Commodity2 .... Commodityn)

S.No.

District Area,ha

Production,mt

Yield,mt/ha

Consumption,mt

Surplus/Deficit,mt

1 Dhanusa2 Mahottari3 Sarlahi4 Siraha

List of agriculture markets:

S.No.

District WholesaleMarket

CollectionCenter

Haat Bazar RetailMarkets

63

1 Dhanusa2 Mahottari3 Sarlahi4 Siraha

Monthly retail/wholesale price of major crops/commodities:

Crop/Commodity: Crop1, Crop2, ....... Crop10, Commodity1, Commodity2 .... Commodityn)

S.No.

District &Dhalkebar Market

Baisakh Jestha Ashadh Shrawan Bhadra Aswin Kartik Mangshir Poush Magh Falgun Chaitra

1 Dhanusa2 Mahottari3 Sarlahi4 Siraha5 Dhalkebar Market6 Indian Boarder

Market

Sources of Major crops/commodities to Dhalkebar Market:

S.No.

Crop orCommodity

Source 1 Source 2 Source 3 Source 4 Source 5 Source 6 Source 7 Source 8

1 Crop1

2 Crop2

3 Crop3

4 Crop4

5 Crop5

6 Crop6

7 Crop7

8 Crop8

9 Crop9

10 Crop10

11 Commodity1

12 Commodity2

13 Commodity3

N Commodityn

Note: Source could be any district from hill, mountain, Terai, India or others.

Major crops/commodities distribution channel from Dhalkebar Market:

S.No.

Crop or Commodity Intended Market

1 Crop1

2 Crop2

3 Crop3

4 Crop4

5 Crop5

6 Crop6

7 Crop7

8 Crop8

9 Crop9

10 Crop10

11 Commodity1

12 Commodity2

64

S.No.

Crop or Commodity Intended Market

13 Commodity3

N Commodityn

Annex 3: Checklist for Market Management Committee (MMC)

Year of establishment: ....... Registered with: .........Composition of committee members:

S. No. Name Post Remarks1234567

Major roles and responsibilities of MMC:

1. ............................2. ............................3. ............................4. ............................5. ............................

Current handling of products:

# Commodity Source Quantityor Volume

Price per unit Further sold to Type of packaging

12345

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Problems encountered and suggestions to solve problems:

S. No. Problems Suggestions to solve problems

Annex 4: Checklist for Focus Group Discussion of activities related to promotion of marketdevelopment in the district

District: ...................................... Location: .......................

List of participants:

# Name Post Organization Signature12345

Program activities related to agriculture marketing information:1. ..............................................2. ..............................................3. ..............................................

Program activities related to institutional development:1. ..............................................2. ..............................................3. ..............................................

Program activities related to cooperative/group market management:1. ..............................................2. ..............................................3. ..............................................

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Program activities related to agricultural marketing training:1. ..............................................2. ..............................................3. ..............................................

Program activities related to women participation in market management:1. ..............................................2. ..............................................3. ..............................................

Annex 5: Checklist for analysis of strengths, weaknesses, opportunities and threats (SWOT) ofagricultural marketing and market hub development in both locations

Strengths:

......................... ......................... .........................

Weaknesses:

......................... ......................... .........................

Opportunities:

......................... ......................... .........................

Threats:

......................... ......................... .........................

Measures to make operation and management of agriculture market more effective: ......................... ......................... .........................

67

Points to be considered for SWOT analysis:

Production Access of producer farmers to markets Producers' organization Transportation Involvement of farmers in marketing system Marketing facilities Pricing mechanism Market infrastructure Market time table Marketing information system Representation of producer farmers in MMC Waste management system Electricity and water supply Grading, standardization and packaging system Amenities like restaurants, toilets, lodging etc. Linkage with distant markets Risks and hazards, and their mitigation/precaution measures Any other relevant information or/and suggestions

68

Annex 6: List of participants in consultative meeting in Khrukot, Sindhuli

69

70

Annex 7: List of participants in Junar Pocket Khaniya Khark, Sindhuli

71

Annex 8: List of participants in consultative meeting in Dhalkebar, Dhanusha

72

73

Annex 9: Team of Experts in PRA in Sindhuli and Dhanusha

# Name Specialization1 Prof. Dr. Arbinda Shrivastav Vegetable Expert2 Dr. Sudha Sapkota Nepal Agri. Economist3 Dr. Md. Akbal Husen Fish Expert4 Mr. Devendra Kumar Sarraf Fruit Expert5 Mr. Drona Raj Kafle Flower Expert6 Mr. Sumit Singh Civil Engineer7 Ms. Purna Laxmi Sulpiya Market Expert8 Mr. Lalan Kumar Singh Zone Chief, Prime Minister Agriculture Modernization

Project9 Dr. Shiddi Ganesh Shrestha Agri. Economist

Annex 10: Annex 10: List of participants in pre-validation workshop (16/3/2074)

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DADO.2014. Annual Report 2071/2072. DADO, Sindhuli.

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Mishra, R.N., Kunwar, P.S. 2014.Status of Aquaculture in Nepal.Nep. J. Aquac.Fishe.1, 1-17pp.

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Rajbanshi, K.G. 2012. Biodiversity and distribution of freshwater fishes of CentralNepalHimalayan Region.NEFIS, 65p.