Market-Based Incentives for Conserving Diversity on Farms: The Case of Rice Landraces in Central Tarai, Nepal - PowerPoint PPT Presentation

About This Presentation
Title:

Market-Based Incentives for Conserving Diversity on Farms: The Case of Rice Landraces in Central Tarai, Nepal

Description:

Market-Based Incentives for Conserving Diversity on Farms: The Case of Rice Landraces in Central Tarai, Nepal Devendra Gauchan University of Birmingham, UK and – PowerPoint PPT presentation

Number of Views:186
Avg rating:3.0/5.0
Slides: 25
Provided by: LEL52
Category:

less

Transcript and Presenter's Notes

Title: Market-Based Incentives for Conserving Diversity on Farms: The Case of Rice Landraces in Central Tarai, Nepal


1
Market-Based Incentives for Conserving Diversity
on Farms The Case of Rice Landraces in Central
Tarai, Nepal
  • Devendra Gauchan
  • University of Birmingham, UK and
  • In Situ Agrobiodiversity On-Farm Project Nepal
    (NARC/LIBIRD/IPGRI)
  • Presented at BIOECON Conference, Venice, Italy,
    28-29th August 2003

2
Presentation Outlines
  • Background to study
  • Market Incentives Crop Genetic Diversity
  • Research Methods
  • Findings Market share, market channels, price
    and margin analysis and Market Participation
  • Summary and conclusions
  • Implications for policy and research

3
Background to Study
  • Rice-a globally important food crop also for
    Nepal
  • Landraces- sources of global crop genetic
    diversity and livelihood security for farmers in
    agroecosystems
  • Markets can provide signals for farmers decisions
    to maintain or abandon diverse landraces (LR)
  • Markets if function well, could be cheapest
    instruments to conserve agrobiodiversity on-farm
  • However, so far, market studies have focused
    mainly modern varieties (MV)- studies on market
    and policy incentives disincentives to maintain
    landraces are lacking

4
Rice Varietal Diversity
Landrace Intermediate
Landrace-Early maturing
Landrace-Late maturing
5
Market Incentives and Issues
  • Markets may be thin for LRs Price signals may
    be limited use to provide incentives to cultivate
  • Markets may function poorly- farmers produce for
    own consumption affecting choice of varieties
  • The attributes that farmers demand for production
    own consumption may not be recognised and
    valued by other consumers
  • Price premium may not transmit consumer demand
    for quality when attributes are not transparent

6
Market Policy Incentives Disincentives
  • Technological change, with development of
    markets provide incentives for Modern Varieties
    over Landraces.
  • Input markets biased to MVs with direct seed
    subsidies or hidden subsidies on other inputs
    (e.g. fertilizers).
  • Information problems inherent in new seed
    technology biased for MVs through public
    extension trainings
  • Asymmetry of information and poor flow of market
    information in landraces .

7
Case Study Purpose
  • Advance scientific understanding of the
    incentives the farmers have to grow landraces as
    the market environment changes in Nepal
  • Study premise If the superior traits of
    landraces recognised and valued in markets -they
    could deliver incentives in the form of price
    premiums

8
Map of Nepal and Study Site
Terai
Bara Ecosite
9
Research Methods
  • Baseline household survey of farmers (N202)
  • Key Informant Survey, Focus groups and other
    Informal methods (e.g. direct observation)
  • Market channels, market actors product flow
  • Marketing costs and Margin Analysis
  • Market price analysis Price Differentials
    between LR and MV and Within LRs

10
(No Transcript)
11
Market Channels
  • Producer-Sellers
  • Local market intermediaries Golas, Bania,
    Kutuwa, Paldar, Kawarni etc.
  • Small-scale local processors e.g. custom mills
  • Large scale trader processors e.g.
    Millers(de-huskers)
  • Exporter /importer of milled rice, parboiled rice
  • Wholesalers of milled rice
  • Retailers
  • Local farmer urban consumers

12
Market Channels Practices
Small scale traders
Collection point at Gola-Large-scale traders
13
Rice Market and Landraces
  • Less than half of the households sell rice
  • Farmers grow 53 varieties of which, 33 are LRs
  • Two landraces were formally traded in market
  • Market recognises only phsically observable
    quality i.e coarse and fine grain types
  • Many coarse LRs traded informally in small scale
    irregularly and are of heterogenous grain types
  • Fine grain aromatic Basmati LR traded in formal
    market in small scale

14
Market Shares for Landraces
15
Market Price and Margin Analysis
  • Price Differentials between LR MV high and
    observable for some landraces
  • The ratio of average farmgate and market price to
    those of similar MVs for Basmati LR is gt 1 whilst
    for the coarse grain Mutmur LR lt 1
  • Coarse grained landraces considered poor quality
    in formal market lower margins and profits
  • Though profit margins for local Basmati-fine
    landrace is high, its market is affected by the
    supply of cheaper Basmati from across the border

16
Market Participation Rice Diversity
  • Farmers selling rice have larger farm, more
    literate and wealthy as compared who donot sell
    rice
  • Farmers selling rice grow more no of varieties
    both LRs and MVs have larger area in MVs
  • Higher of farmers selling rice maintain more
    combination of LRs MVs
  • Farmers growing marketable landraces (Basmati)
    were better off with less off-farm work

17
Varietal Ratings for Attributes
  • Inferior physical attribute is valued in market
    but not their superior agronomic attributes
  • Basmati rated higher for consumption but low for
    agronomic attributes
  • Coarse grained LRs Mutmur rated higher for
    agronomic attributes but lower for consumption

18
Disincentives to Landraces
  • Landraces face disincentives both from market and
    policy environments
  • Market development favouring modern varieties
    (MV) over landraces
  • Seed and input subsidies directed to MVs
  • Public funded extension and training support
    given for only MVs

19
Summary and Conclusions
  • Mostly informal and thin market for landraces
  • Superior Traits in LRs are not recognized in
    market -except consumption traits of aromatic
    varieties
  • Price signals for many landraces are not
    generally transmitted from consumer to producers
  • Farmers growing Basmati landrace are better off
    than other landraces growers
  • In contrast to coarse types, market incentives
    for high quality aromatic Basmati landrace is
    high.

20
Implications for Research Policy
  • Value addition market linkage of landraces with
    high social value is needed
  • However, further analysis of costs and
    benefits-before specific mix of policy
    intervention
  • Not all the landraces are equal Market dev.
    incentives may favour one landrace to other types
  • The tacit assumption that the poor who maintains
    rice landraces needs further empirical work
  • The genetic contribution of landraces types is
    unknown if poor maintain unqiue alleles, then
    there may be trade off in efficiency vs equity.
  • THANK YOU

21
Market Price and Marketing Margin
LRsMutmur Basmati MVsChina-4 Sabitri
22
Rice Variety Choices and Market Participation
()Pairwise T- Test () Chisquare Test
significant (Plt 5) level
23
Wealth, Farm Size, Literacy Market Participation
()Pairwise T- Test () Chi-square Test
significant (Plt 5) level
24
Sauce-Economic Status of Growers of Basmati MVs
()Pairwise T- Test () Chi-square Test
significant (Plt 5) level
Write a Comment
User Comments (0)
About PowerShow.com