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Figure 32. Extent that insufficient supply of raw materials hinders business growth of Agribusinesses
from Unlocking Opportunities for the Private Sector in Nepal Promoting greener and more inclusive growth
6.1.3 Insufficient supply of raw materials
Although none of the respondents considered insufficient supply of raw materials to be a “serious problem”, a greater majority especially in Lumbini and arnali saw it as a “moderate problem.”
Figure 32. Extent that insufficient supply of raw materials hinders business growth of Agribusinesses
Shortage of supply. In some cases, shortage of supply was caused by extreme weather conditions resulting to low yield. In other instance, the difficulties in accessing sufficient supply were due to the COVID-19 lockdown.
Others pointed out that supply issue was not necessarily in terms of quantity but more of getting sufficient volume of materials of the right quality.
Many of the raw material problems can be traced to fragmented supply chains, weak vertical relationships, and information asymmetry.
Likewise, given that many of the farmers are not organized, the costs incurred by agribusinesses when sourcing from hundreds of small farmers is high.
