Value Chain Analysis and Marketing Efficiency of Onion Seed Production in Rukum West District of Nepal

Abstract

Onion consumption in Nepal is increasing, but domestic onion seed production meets less than 20% of demand, resulting in heavy reliance on imports. Rukum West district has strong potential for onion seed production, yet small-scale farmers dominate and face low productivity and marketing constraints. This study analyzed the onion seed value chain and the marketing efficiency of producers using primary data from key value-chain actors and applying descriptive analysis. Results showed that onion seed production costs NPR 376,806 per hectare with a benefit–cost ratio of 1.57 and an average yield of 549.55 kg/ha, with land preparation being the major cost. Seed collectors captured the highest benefit–cost ratio, marketing margin, and net value addition, while agro-vets outside the district gained the least. Among the value chain actors, the benefit-cost ratio was highest (1.64) in seed collectors, and lowest (1.06) in agro-vet (out of Rukum west district). The majority of seed producers (40%) were received the market information (the price of seed), 38.33% of seed producers were informed after harvesting, and 21.67% of seed producers were informed at the trading time. The highest quantity of seed was hold by the seed collector (75.18%) and the low volume (5.54%) was hold by agro-vets (local level). The highest marketing margin 36.11 (NPR740.17/KG) was received by seed collectors among the middleman with the highest marketing cost of NPR 59.83/KG. In the value chain, highest net value added by collectors (NPR 727.84/Kg) and lowest (NPR 181.31/Kg) value added by agro-vet (out of Rukum west district). Among the 8 prevalent existing value chain, highest marketing efficiency was found in value chain-VIII (7.28). The lowest marketing efficiency was revealed in value chain-II which was 0.94 respectively. The study revealed that value chain-II was the lowest efficient chain but the percentage of seed moves through this chain was (64.98%) the highest of total seed.