Market Dynamics and Seasonal Pricing of Major Vegetables in Kathmandu Valley

Abstract

The off-season vegetables are regarded as important agricultural commodities in Nepal, offering significant commercial potential. These vegetables have been identified as valuable value chains that can improve the livelihoods of small-scale farmers through advancements in production and marketing techniques. This study examines the price flexibility and seasonality patterns of major vegetables in Kathmandu Valley, Nepal, with the aim of providing policy recommendations to address the inelastic demand and reduce import dependency. The analysis reveals mixed elasticity in the demand for tomatoes, with inelasticity from November to March and higher elasticity from April to June. Potatoes exhibit predominantly inelastic demand, while onions demonstrate mixed elasticity with inelasticity from July to October and elasticity from November to April. Additionally, cauliflower and cucumber show high inelasticity during the harvesting season and comparatively elastic demand during off-seasons and pre-harvesting periods. The study also identifies high seasonality in the prices of cauliflower and cucumber, moderate seasonality in onions, and low seasonality in potatoes and tomatoes. Considering the high import share of vegetables in Kathmandu Valley, recommendations are provided to reduce import dependency and promote domestic production. These include supporting local farmers through incentives, access to quality inputs, and agricultural training programs. Improving post-harvest infrastructure, such as storage facilities and transportation networks, is crucial to minimize spoilage and optimize the supply chain. Enhancing market efficiency through streamlined supply chains and transparent pricing mechanisms can benefit both farmers and consumers. Promoting value addition in vegetables, investing in research and development for improved varieties, and fostering collaboration and networking among stakeholders are suggested to enhance productivity, competitiveness, and market expansion. While these recommendations focus on increasing domestic production and market efficiency, further analysis of import dynamics and trade policies is necessary to effectively reduce imports and ensure a balanced market supply.