Value Chain Analysis of Sugarcane Sub-Sector in Kanchanpur District, Nepal

Published: 14 November 2022| Version 1 | DOI: 10.17632/dt7mnwvzsb.1
Lok Raj Joshi,
Prachi Bista,


There are many crops grown in the country, sugarcane is one of the major industrial crop of southern part of Nepal. Sugarcane sub-sector has been facing many productions and marketing constraints in Nepal. Such a back drop, the study was conducted in April to May, 2022 to analyze the different socio-economic factors of sugarcane farming and different actors involved in the value chain. The study was conducted in Punarbas and Belauri Municipality of the Kanchanpur district purposively. One hundred five samples were taken randomly, each 38 from Punarbas Municipality and 67 from Belauri Municipality area. Similarly, two sugar mills namely, Bhagewshor sugar mill and Mahakali sugar mill were selected as the processor. The average area under the sugarcane farming was 2.18 hectare per household. The average year of experience of farmers in sugarcane farming was found 10.71 years. The average day of payment from the sugar mill was 27.52 days to the farmers after sale. The average variable cost, gross income from the main crop were NRs. 258905/ha and NRs. 467611/ha, respectively and that of ratoon crop were NRs.132149/ha and NRs. 370510/ha. The B/C ratio of main crop was 1.81 and that of ratoon crop was 2.83. Both sugar mills plays an important role in the easy distribution of quality setts, pesticides, micronutrients, and extension services. The gross income of the main crop was significant to the organic manures, fertilizer, land preparation, irrigation, and labor cost with positive coefficients. Labor and insecticides/pesticides were over utilized and manures, fertilizers, land preparation, sett, and irrigation were underutilized in the study area. The value chain actors were input suppliers, sugarcane farmers, processors, wholesalers, retailers, and consumers. Farmers were directly involved in the selling of the raw sugarcane to the processor and after processing the sugar in mills which was supplied through wholesalers, retailers, and consumers. The study revealed that unavailability of inputs (mainly fertilizers) in time, labor shortage in peak time, irrigation difficulty, insect pest infestation and technical know-how were the major production problems. As sugarcane is both cash and industrial crop, a detailed analysis of its value chain aspect is beneficial for farmers, sugar mills and policy makers.


Steps to reproduce

Primary data were collected from the survey (individual interviews, rapid market survey, and case study of sugar mills). the data were analyzed by using STATA, SPSS, Excel-2016. Different socioeconomic tools were used.


Sugarcane, Value Chain