Mott MacDonald | Unlocking Opportunities for the Private Sector in Nepal Promoting greener and more inclusive growth
6.1.4
Limited access to storage facilities
The problem on limited access to storage facilities was more prevalent among respondents in Karnali followed by Lumbini. The most pressing problem among market actors is the lack of cold storage facilities for perishable products. During peak harvest seasons, market actors are compelled to sell fresh produce immediately. This results into supply glut and, consequently, low prices. Processors are also only able to take in volume according to their production capacity. Once the peak season lapses, the market resorts to importation to fill up the demand. The lack of adequate and appropriate storage facilities also depresses further potential surpluses for export sales and processing. Products are also damaged due to poor storage practices. Among agribusinesses engaged in the production and/or trade of cardamon, for example, the general sentiment is that access to a warehouse will help improve their bargaining position as they can store the cardamon for a longer period of time. The stored produce can also serve as collateral for taking loans from local banks under a warehouse receipt system. Warehouse can also improve the bargaining positions of other crops.
Figure 33. Extent that limited access to storage facilities hinders business growth of Agribusinesses
February 2022
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