Back to news

Upgrading Ginger Value Chain

2 mins Read

70% Complete

ICIMOD’s Rural Livelihoods and Climate Change Adaptation in the Himalayas (Himalica) pilot project in Myanmar has facilitated linkage between private sector actors and communities. This is expected to overcome key constraints in ginger value chain and build trust among actors working at different nodes of the value chain.

ICIMOD and the Myanmar Institute for Integrated Development (MIID) are jointly implementing pilot projects in six villages in Kalaw and Nyaung Shwe in Shan State under the Himalica initiative. Promotion of ginger value chain is one of the key interventions of the pilot project. Although the villages have good potential for ginger production, value chain analysis has identified a couple of key constraints – lack of trust between traders and producers, and low bargaining power of the communities due to unsystematized production and poor market linkages.

In a bid to tackle these challenges, the project looked into a number of issues: (i) factors that contributed to lack of trust; (ii) interest of private entrepreneurs and their specific requirements in terms of quantity, quality, delivery mechanism, etc; and (iii) strengths and comparative advantages of communities. The project, together with local stakeholders, then designed a strategy that emphasized strengthening groups and using a collective approach to supply ginger in bulk from one place. On a cost-sharing basis, six collection points/ginger seed banks (one in each village) have been established and capacity of community groups enhanced so that they can make a collective deal with the traders.

Farmers now bring their produce to a common collection point

On the other hand, an anchor company was identified which expressed interest in receiving a continuous supply of good quality ginger from Shan State. As part of market making exercise, the project team facilitated dialogue between communities and the regional agent of Phyo & Kyaw Co. Ltd., Win Myat Htun, from Taungyi. The agent saw the business benefits as the company could source bulk quantity of ginger from one collection point and make a collective deal rather than negotiating with a number of individual suppliers.

The company’s agent has so far visited the pilot site 20 times on his own tractor to buy ginger. Farmers brought ginger to the collection point and sold it collectively. The project provided a weighing scale. A total of 149 metric tonnes (95,268 viss) of ginger were sold to the anchor company at an average price of MMK 335 per kilogram, bringing in total revenue worth MMK 49,500,000.

Farmers say the price at which they sell now is 10 percent higher than the price in Heho market, and the weighing scale has ensured that the payment is made based on standard unit. Further, farmers are able to save on transportation cost and time.

At the invitation of MIID, the managing director of Phyo & Kyaw Co. Ltd., Kyaw Min Oo, came to the pilot villages from Yangon on 25 March 2016 and met the communities of three villages (Pantin, Thayetpin, and Kyaung Nar). At the meeting, Kyaw Min Oo made a commitment to buy ginger in the coming years as well. The price will be 10 MMK higher than in Heho. The company has also expressed interest in buying turmeric from the villages and promised to provide business-embedded services like the supply of quality seeds and fertilizer to grow turmeric. The company will not charge any interest on the money provided for purchasing seeds and fertilizer, and the communities will pay back the exact amount at the time of harvest.

Stay current

Stay up to date on what’s happening around the HKH with our most recent publications and find out how you can help by subscribing to our mailing list.

Sign Up

Related content

Continue exploring this topic

17 Mar 2017 Himalica
Brand HIMALICA – Green Products from the Mountains soft-launched at the Sixth Nepal International Trade Fair

Nepali Prime Minister Pushpa Kamal Dahal inaugurated the Sixth Nepal International Trade Fair in Bhrikutimandap, Kathmandu, Nepal, on 16 March ...

17 Nov 2015 News
ICIMOD Hosts REDD+ Himalaya Workshop

  The International Centre for Integrated Mountain Development (ICIMOD) under its regional REDD+ Himalaya initiative supported by the German Federal Ministry ...

13 Dec 2016 News
Mountain Festival Held in Pokhara to Mark International Mountain Day

ICIMOD and others marked International Mountain Day 2016 in Pokhara at the third annual Mountain Festival. The Nepal Mountaineering Association ...

13 Dec 2017 News
Field excursion to Sikkim’s spring revival sites

The International Centre for Integrated Mountain Development (ICIMOD) organized a filed excursion for 15 Bhutanese representatives to spring revival sites ...

27 Jan 2016 News
R software Training Makes for Better Data Analysis

Twenty-one participants attended a four-day training “Introduction to Data Analysis with R” organised by the Cryosphere initiative of the International ...

Code of conduct being formalized for gender and social inclusion in the brick sector

A national consultation workshop on a social Code of Conduct (CoC) for Nepal’s brick sector was held in Kathmandu on ...

10 Jun 2020 Cryosphere
Ice-dammed lake in Hunza created by Shisper Glacier surge breached for the second time in 2020

Clearly reinforcing the critical importance of glacier monitoring, an ice-dammed lake formed by the surging of Shisper Glacier breached for ...

25 May 2017 Himalica
High-level Bangladeshi Delegates visit Dabur Nepal’s Ashok Medicinal and Aromatic Plants Centre in Banepa

The Chittagong Hill Tracts of Bangladesh hold great promise for the production and commercialization of non-timber forest products such as ...