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Govt forms task force to reduce gap between farmgate and consumer prices

The “Task Force for Recommendations on Supply Chain Improvement,” formed under the coordination of Agriculture Department Deputy Director General Dr Divas Raj Bista following consultations among the Ministry of Agriculture, Forests and Environment and other stakeholders, is studying ways to ensure farmers receive better prices while consumers pay less.
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By REPUBLICA

KATHMANDU, Aug 13: The government has formed a task force to study ways to reduce the wide price gap between farmers and consumers and improve the agricultural supply chain.



The “Task Force for Recommendations on Supply Chain Improvement,” formed under the coordination of Agriculture Department Deputy Director General Dr Divas Raj Bista following consultations among the Ministry of Agriculture, Forests and Environment and other stakeholders, is studying ways to ensure farmers receive better prices while consumers pay less.


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According to the task force’s preliminary study, up to five layers of intermediaries are currently involved between farmers and consumers in the agricultural supply chain. The government aims to reduce these unnecessary layers to two or three.


The task force estimates that implementing supply-chain reforms could increase farmers' prices by up to 30 percent.


To identify concrete measures, the task force has been collecting field data from 12 major agricultural markets and production areas across the country. It will recommend measures including demand-based farming, better storage, processing and packaging, and a market information system to reduce post-harvest losses.


The government also plans to encourage new technologies and delivery startups that can help deliver agricultural produce directly from farms to consumers.


The task force, which has been collecting data for the past 15 days, is expected to submit a report within a month with concrete policy decisions and implementation measures.

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