Analysing the barriers for value-chain development of commodities

ADB commissioned WLC to analyse the barriers for value chain development of commodities. The assignment carried out in depth assessment of using value chain approach, to develop model for each value chain activities and processes; and to provide data and insights for generating an intervention and addressing any trade barriers. 

WLC team carried out literature review, consulted reports, discussed with ADB, HIMALI and AEC teams, carried out field visits at districts, carried out individual and group discussions and consultations, workshops and collected data. The team adopts value chain approach to frame the study.

The team identified seven major trade barriers (with regard to HIMALI investments), which are: selection of entrepreneurs, volume during trade, inadequate value addition possibilities, marketing pitfalls, registration of land for cultivation and selection of multiple value chains. The study also addresses the latent issue of disease and pest. 

The study proposed practical solution to the problems. The risks associated with these recommendations were also assessed and mitigation measures proposed. 

The study concluded importance to develop quality led market chain by working together in pertinent market parameters. The effort at present is found to be in isolation and joint visioning from respective stakeholders is necessary for development of this quality led channel. There is also need for regular dialogue for various stakeholders to meet and iron out problems and find solutions for scaling up the business. This study has been analysed through Regional Value Chain analysis lens, in context of within the national border, and independent study has to be further elaborated and cross checked by carrying out a study beyond the border’s regional value chain assessment considering shifting end markets to China and India.