A CASE STUDY OF VEGETABLE MARKETS IN

CONTEXT OF KATHMANDU METROPOLITAN CITY

A Project Work Report

Submitted By
Madan Mahato
TU Regd. No.7-2-589-202-2016
Exam. Roll. No: 5890192
Rajarshi Janak Campus, Janakpur

Submitted To
The Faculty of Management
Tribhuvan University
Kathmandu

In Partial Fulfillments of Requirement for the Degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Kathmandu, Nepal

February 2020

1
 DECLARATION

I hereby declare the Project Work Report entitled “A CASE STUDY OF

VEGETABLE MARKETS IN CONTEXT OF KATHMANDU
METROPOLITAN CITY” submitted to Tribhuvan University, is a record of
original work done by me under the guidance of Mr. Linkan Kumar Karn,
Faculty Member, Rajarshi Janak Campus, and Janakpur. The report is
submitted in the partial fulfillment of the requirement of Degree of 4-year
Bachelors in Business Studies (BBS). The results mentioned in this Project
Work Report have not been submitted to any other University or Institute for
the award of any degree.

………………………..

Madan Mahato

BBS 4th year

Rajarshi Janak Campus

Date: ……………….

2
 Supervisor’s Recommendation
The project work report entitled “A CASE STUDY OF VEGETABLE
MARKETS IN CONTEXT OF KATHMANDU METROPOLITAN CITY.”
submitted by Madan Mahato of Rajarshi Janak Campus Janakpur, is
prepared under my supervision as per the procedure and formats requirements
laid by the Faculty of Management, Tribhuvan University, as partial
fulfillment of the requirements for the degree of Bachelor of Business Studies
(BBS) .I, therefore , recommend the project work report for evaluation.

…………………

Mr. Linkan Karn

(Project Work Supervisor)

Rajarshi Janak Campus

Date:

3
 Endorsement

We hereby endorse that the project work report entitled “A CASE STUDY
OF VEGETABLE MARKETS IN CONTEXT OF KATHMANDU
METROPOLITAN CITY” submitted by Madan Mahato of Rajarshi Janak
Campus, Janakpur in partial fulfillment of Rajarshi Janak Campus, Janakpur in
Partial fulfillment of the requirements of the degree of 4-year Bachelor of
Business Studies (BBS) for external evaluation.

…………….. …………………..

Dr. Binod Lal Karn Mr. Neeraj Kumar Jha

(Chairman of Research Committee) Assistant Campus Chief

Date:………… Date:……….

4
 ACKNOWLEDGEMENTS
This project work report entitled “A CASE STUDY OF VEGETABLE
MARKETS IN CONTEXT OF KATHMANDU METROPOLITAN
CITY.” has been prepared in partial fulfillment for the degree of Bachelor of
Business Studies (B.B.S) under the supervision of Mr. Linkan Karn, Lecture,
Rajarshi Janak Campus, Janakpur. It is my privilege of getting helps and co-
operation from different persons. It is not possible to enumerate the names of
all them. However, it will be matter of injustice if I forget the names of those
personalities whose valuable suggestions and co-operation escorted this
project work report.

First and foremost, I would like to offer special thanks to Dr. Binod Lal Karn,
Chairman, Management Research Committee, Rajarshi Janak Campus,
Janakpur, Mr. Neeraj Kumar Jha and Mr. Sanjeev Thakur, Assistant Campus
Chief (co-founder) of Rajarshi Janak Campus and Mr. B.D. Jha, Founder of
Rajarshi Janak Campus, Janakpur, Tribhuvan University and all the
professors, Lectures as well as staffs of Rajarshi Janak Campus whose
suggestion made me able to finalize the study.

I especially appreciate my parents and my entire family member who always

gave their continuous inspiration, support and help.

I am very thankful to the librarians of Rajarshi Janak Campus for their kind
co-operation. I am alone responsible for whatever weakness it may still
contain.

Last but not the least; I would like to thank all helping hands that assigned me
directly or indirectly to complete this project work.

Madan Mahato

Rajarshi Janak Campus, Janakpur

5
 CHAPTER -ONE
Introduction
1.1 Background of the study

The term public market has changed in meaning over time and still differs
from place to place. In the United States, a public market has traditionally
been defined as a municipally owned and operated building where vendors sell
fresh food from open stalls. They typically focus on the sale of a full array of
fresh, healthful, value added, and prepared foods – often locally grown or
produced. They usually include a seasonal, outdoor farmer’s market
component.

Public markets are located in and/or create a public space in the community.
This is the visible aspect of a market – the creation of an inviting, safe, and
lively place that attracts a wide range of people. As an effective place where
people mix, public markets can become the heart and soul of a community, its
common ground, a place where people interact easily, and a setting where
other community activities take place.

In case of Nepal, public market refers to vegetable markets, which offer fresh
fruits and vegetables. Basically these markets can be permanent, semi-
permanent (morning- evening shift) and mobile vendor (source: RECPHEC,
Mapping Vegetable Markets and Vendors in Kathmandu Metropolitan City).
The study will focus mainly on permanent vegetable markets and semi-
permanent vegetable markets of Kathmandu Metropolitan City.

In case of Kathmandu, “Permanent markets have fixed locations and include

many vendors under one roof. Vendors are required to pay rental fees for the
area they occupy. They have hoarding boards, or formal signs, that identify the
name of the market. Permanent markets are typically open throughout the day.
These markets sell all types of fruit and vegetables. These markets act as a
wholesale market for vegetable and fruits with small vendors purchasing from
these markets for their business. Generally the public purchases food at these
permanent markets for larger meals prepared at feast and festival times”
(source: RECPHEC,Mapping Vegetable Markets and Vendors in Kathmandu
Metropolitan City). However, semi-permanent (morning/ evening) markets
have no specified area of permanent structure; and they usually occupy parts
of rights-of-way or spaces adjacent to temples, hence most of them are not
6
required to pay rent. These markets provide variety of fresh seasonal
vegetables and fruits (source: RECPHEC, Mapping Vegetable Markets and
Vendors in Kathmandu Metropolitan City). In this report, the term vegetable
market will be used for the study.

1.2 Rationale of the study:

The traditional city of Kathmandu has provision of public market spaces at
different pockets (open spaces, chowks, pati, sattal, bahals etc.) within
walkable range, where farmers could sell their fresh produces. These spaces
are vibrant and usually located at the nodes of major pathways, and they were
sufficient to cater the needs of people previously. At that time, there was no
need of any sort of written policies, bylaws, rules and regulations to operate
the vegetable market; everything happened naturally and efficiently. Farmers
would sell their vegetables without involvement of middlemen, they would
manage their own vegetable wastes in form of fertilizers, they would sort out
their transportation and storage issues at individual level; all these activities
occurred naturally in a self-sustaining manner.
But the rapid urbanization of Kathmandu led to dramatic population growth
and scarcity of agricultural lands (figure 1), decreasing agricultural production
and increasing demands; making previous pockets of traditional vegetable
market obsolete. According to 2011 census, population of Kathmandu city
alone is 1,744,240; however, it is believed that the unofficial number might be
very high compared to this census data. So, the demand for vegetables cannot
be met locally, vegetables need to be imported from surrounding as well as
farther areas.
Efficient transportation, handling, storage and marketing of these large amount
of vegetable produces nationwide, is a tremendous challenge for vegetable
markets. In order to carry out the function systematically and efficiently, plans
and policies regarding vegetable market needs to be formulated, which should
address various present day issues sufficiently. Besides, public markets are
important for providing income, employment, goods and services to poor
people in Nepal. Further, vegetable markets are basically for the supply of
fresh vegetables and fruits. Nowadays, due to busy life schedule usually
people prefer processed food available within their vicinity, which led to
increase in several nutrition related diseases. Thus planning of vegetable
market is really necessary in the city. However, “it is found that the vegetable
markets are not planned in reasonable walking distance in Kathmandu

7
 Metropolitan City” ” (source: RECPHEC, Mapping Vegetable Markets and
Vendors in Kathmandu Metropolitan City). Furthermore, the existing
vegetable markets are not functioning efficiently, the need of appropriate
policies, bylaws, rules and regulations are felt due the degrading state
(physically, environmentally, socially and managerially) of these marketing
facilities.

Also urban areas in Nepal are mostly short of open spaces so socialization and
availability of fresh air for healthy living is difficult. Further, the recent
disaster, 25 April earthquake that caused huge loss of lives and property
valued the need of open spaces for evacuation and shelter. Thus the study for
the better planning of vegetable markets is necessary to be accomplished.
1.3 Objectives of the study:
The major objective of the study is to understand the policy environment and
develop recommendation based on the study, which protects and promotes
systematic development of vegetable markets. The specific objectives are:
 To study and understand the existing problems and issues of vegetable
markets.
 To review the existing reports and policies related to vegetable markets.
 To recommend the policies for better planning and management of the
vegetable markets in KMC.

1.4 Study of the Methodology:

1.4.1 Preliminary Data Collection:
The study includes review of existing reports, publications and national and
international policy and planning documentsfor vegetable markets.

1.4.2 Reconnaissance Survey:

A reconnaissance survey was carried out on selective permanent and semi-
permanent vegetable markets around Kathmandu municipality. Its major
purpose is to get ground level view on current scenario and context of the
vegetable markets in KMC, which has been helpful in understanding the issues
and problems of the vegetable market. The survey basically involved
observation of the vehicular traffic flow, pedestrian flow, activities of the
vegetable market (buying, selling, loading, unloading, handling, packaging,
processing, bargaining etc.). It also involved preliminary visual assessment of
environmental aspects such as, waste generation, cleanliness, noise pollution,
air pollution, and drainage.
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1.4.3 Field Investigation and Visual Survey:
The field investigation and visual survey has been carried out on the selected
vegetable markets of KMC on different time periods of the day. This consisted
of in- depth site observation and interviews with the concerned stakeholders.
Formal interview with the representative of Kalimati Fruits and Vegetable
Market Development Board has been conducted, regarding the scenario
vegetable market, its issues and achievements. Similarly, informal focus group
discussionhas alsobeen carried out with the shop owners, users and local
people of the vegetable market.
This investigation is directed towards various aspects such as market
management, market information, market infrastructures, and macro level
planning.
1.4.4 Data Analysis:
All the primary and secondary data from field investigations, visual survey,
interviews, and desktop research are studied and analyzed; based upon which
the problems and issues related with vegetable market are identified. These
identified issues are categorized into several groups for convenience of study,
and these issues act as the base for making probable recommendations.
1.4.5 Conclusion and Recommendations:
Based upon the study, data collection, and analysis key recommendations for
the systematic development and functioning of vegetable market is made.
1.5 Scope and Limitations of the Study:
The study has following scope and limitations:
 The study is focused on Kathmandu Metropolitan City.
 The study is carried out mainly for permanent vegetable markets, with brief
study of semi-permanent vegetable markets.
 Due to time and resource constraints, the study is majorly based on insightful
observations, interviews, formal and informal discussions; hence detailed
physical/ social/ economical survey needs to be carried out further.
 The study is focused on market infrastructure rather than other vague policies
such as farmer’s protection, liberalization etc.
1.6 Literature Review:

Policy:
In simplest terms a policy is a decision or action by someone in authority
effecting the opportunities and responsibilities of others and applying to those
in similar circumstances; for instance, the rules established to run a market and
the action of the market manager are a form of internal policy applying to all
9
 vendors1. A policy may affect a market directly; for instance, health rule on
what can food products can be sold; or the effect may be more indirect i.e.
government discounts on certain seeds, fertilizers etc.
Policy Framework:
The vegetable market system needs a policy framework for systematic and
efficient functioning and its development; typical marketing policies include
(White, 1999):
 Liberalization of agricultural marketing and removal of price control to
increase the variety and quantity of market intermediaries.
 Encouraging farmers’ groups and cooperatives in producing and marketing
higher value crops;
 Upgrading rural markets to reduce post-harvest losses and to improve
handling;
 Improving access to market facilities by:
o increasing the density of rural markets so that the average distance of farmers to
market facilities is reduced;
o facilitating construction of a network of wholesale markets, possibly in
collaboration with the private sector;
 Encouraging the export of vegetables and fruits;
 Establishing an effective market information service to promote trading;
 Improving urban nutritional standards by increasing the availability of fresh
produce in urban areas;
 Enhancing the revenue-earning base of local government; and
 Enhancing the capacity of communities and small-scale entrepreneurs to
operate and maintain infrastructure.
Organizations to be involved:
The policy making process is an intensive task, which needs involvements
from various stakeholders and institutions/ organizations. According to White
(1999), major organizations that needs to be involved with the marketing
policy development are as follows:

 Ministry of Agriculture (including research & post-harvest bodies)

 Ministry of Trade and Supply and Customs Department *
 Standards Organization
 Environmental Protection and Public Health Bodies *
 Ministry of Urban Planning
 Main Municipalities and District/Provincial Authorities
 Export Councils and Trade Organizations
 Chambers of Commerce
 Farmers’ associations
 Representatives of private-sector trading interests and consumer groups
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 The understanding of vegetable market system is vital for appropriate policy
interventions. The vegetable market functions in a structure made up of
various marketing channels performing in a hierarchical order. The wholesale
(permanent) vegetable market is one of the marketing channels, so in order to
understand its role in the market system, whole marketing channels needs to
be understood clearly.
Marketing Channels:

Agricultural produce such as vegetables and fruits are usually mobilized

through various types of marketing channels. So it is very important to define
the types of marketing channels, their linkages and functions, in order to make
any effective interventions in a marketing system. The rural-urban linkage in
market is generally facilitated by various a network of market intermediaries
usually consisting of: farmers selling directly in market, petty traders and
assemblers, wholesalers/ semi- wholesalers, commission agents/auctioneers/
brokers, transporters/ transport agents,
and retailers. These market intermediaries get generally active through various
types of marketing channels are discussed below:

Rural Primary Markets:

In this type of channel producers are involved by direct sales of small

quantities of produce to village traders, which is further distributed to rural
consumers through retailers. These markets form part of a trade network and
are normally arranged on a periodic basis commonly organized at a central
place in a village.
Assembly Markets:

These markets are larger in scale than rural markets where greater quantities of
produce are traded by producers or traders. These assembly markets are
usually located beside main highways or other transportation nodes. Usually
the produce is bought by traders or collection agents on their own, or on behalf
of urban wholesalers.
Wholesale Markets:

Terminal wholesale and semi-wholesale markets are located within or near

major cities (normally with population exceeding 0.5 million). These markets
are basically supplied by rural assembly centers or directly from farms, either

11
 by traders or by large farmers. Although traders predominantly handle the
transactions, many wholesale markets incorporate “farmer’s market”, where
farmers can sell directly to retailers.

Retail Markets:

These markets are intended to serve directly to the consumers, found in main
urban areas, such as provincial, town and city centers. These retails markets
may provide semi-wholesale functions too, creating provision for “farmer’s
market”; which is very common in developing countries.

Other Marketing Channels:

Especially in horticultural produces channels other than markets often exist,

which include on-farm sales, where collectors purchase the produce (generally
under contracts between the producers and distributors) and arrange transport
to wholesale outlets packing houses or supermarkets.
The study focuses upon the wholesale (permanent) vegetable market; hence
the details of market infrastructures regarding the wholesale vegetable market
needs to be understood. The study of wholesale market infrastructures
involves various aspects, which determines the market feasibility, planning
and design.
1.7 Market infrastructures:

Site Location:
For urban wholesale market its location is the major factor for its success. The
location is strongly guided by the transportation system of the place, modes of
transportation and transit stops. The preferred location for markets is usually
with good access to major road system, along with compatible land uses (such
as catering and agri-business industries). Urban retail markets must be
convenient for customers, usually within waking distance of the
neighborhood. However, these location requirements needs to be checked
against other factors such as suitability of site in terms of its cost, present
ownership, size, suitability for construction and availability of services. The
optimum site location is very crucial, as it will reduce financial costs of
transportation for both buyers and sellers, lowering costs of the produces. This
reduced cost will facilitate energy savings and reduce environmental pollution.
Internal Traffic Flows and Congestion:
Traffic congestion usually occurs when access to the market is limited to only
12
 one operating entry and exit; which is usually favored by the market authority
to control entry for maximizing revenues, as entry gates are used as check
points for revenue generation. The congestion is further intensified if the lead-
in length of the internal access road is very short and vehicular activity
(parking, loading and unloading activities) within the site is not rigorously
controlled. However, congestion can be controlled if road patterns are
regulated in one-way system and the market trading hours are extended or
changed. But, still it will depend upon the controlling of internal vehicular
activities, with effective traffic management.
Market Lay-out:
The efficiency and the success of any market is greatly influenced by its
physical lay- out. The market lay-out needs to achieve:
 an unobstructed traffic circulation pattern and effective parking control with
adequate parking facilities being provided;
 maximum possibility for interaction between the market users leading to the
possibility of optimum price formation;
 provision and full utilization of support facilities;
 adequate arrangements for display and sale of produce to maintain produce
quality; and
 efficient produce handling (such as by pallets and forklifts).

Space Utilization in Markets:

Lay-out of market should be such that optimum space utilization can be
achieved, which is one of the keys to success. The major decision is to
determine the “core” space of the market; i.e. space where sales occur. This
space includes both the area occupied by the traders and local circulation area
needed for convenient flow. The area can be totally indoors or combination of
covered space (stalls) facilitated by external gangways or access platforms.
General space requirements for a market can be obtained as follows:

 2 to 4 square meters per trader in small retail markets and, a space around 100
square meters per trader for wholesale market can be taken.
 Administrative office space shall be 10 to 15 square meters per office worker.
 Tentative space for cleaner’s store and guardhouse can be around 10 square
meters for small market and 20 to 30 square meters for a larger market.
 Private toilet space of 2 square meters per 25 market employees (separating
male and female) may be provided.
 Public toilet space of 2 square meters per 1,000 peak period market users

13
 (separating male and female) may be provided.
 Space for specialized uses should also be considered including auction slab,
fruits ripening rooms and public cold stores.
 Requirements of ancillary space should also be considered banks, catering
facilities, sales outlet for packaging materials etc.)
Total of these figures is termed as net usable space, however further
allowance of 10 percent should be added for general pedestrian circulation,
such as main walkways; and the obtained area is total usable space. Normally,
5 percent further allowance should be made to total usable space, considering
the area that building structure and infill wall occupies; depending upon the
irregularity of site up to 10 percent shall be added. The final total area
obtained is termed as the gross market area, usually this space is considered as
covered space.

Estimating overall supply, demand and consumption.

It is important to estimate the total supply, demand and consumption of any
agricultural produce, in order to review the adequacy of existing facilities or
projection of demand for new facilities. A typical method of estimation is
explained in the box below (White, 1999):

Box 1-1 Estimating overall supply, demand and consumption

14
 Based upon this estimation of overall supply, demand and consumption total
sales area required is determined, considering the economic aspects.
Site size:
The total site area required to accommodate the given covered space
area(including sales, utility, administration, and other amenities) should be in
the ratio of between 1:4 and 1:3, but can be in the range of 1:5 to 1:2.5
depending upon the context. The overall site area required in square meters
can thus be obtained by multiplication of the gross market area and factor of
2.5 to 5, allowing traffic circulation, parking and site landscaping.
Desirable Market Characteristics:
The main factors to be considered while designing a new market or improving
an existing one are as follows:
 Provision of adequate space is essential, for sales areas, administration,
storage, specialized facilities, circulation and parking.
 The provisioned space should allow for future expansion needs as well as
flexibility according to changing social and economic circumstances of the
market.
 This flexibility should be addressed by building design as well.
 The building design should avoid different levels with road as far as possible
for use of simple handcarts and sophisticated handling facilities.
 In simple rural and urban retail markets, especially for peak periods, emphasis
should be given to the use of low-cost covering of sales area, by using
permanent light-weight shade structures or retractable blinds.
 For traffic control segregation of pedestrian and hand-cart movement from
heavy delivery vehicles must be carried out.

Social and environmental impact of marketing projects:

A review of environmental and social impact needs to be carried out before
planning any market projects, in feasibility study stage of the project.
Common social and environmental impact issues of a marketing project are as
follows:

 Land acquisition and resettlement impact.

 Air, groundwater, soil pollution, noise pollution and effluent disposal.
 Handling, storage and transport of hazardous materials.
 Potential asbestos, dust and fiber pollution issues.
 Solid-waste management.
 Occupational health and safety implications.
 Energy conservation.
15
  Natural environment, heritage and landscape impact implications.
 Emergency, security and safety plans.
Defects in the Market System:
Defects in the market system hinders its efficiency, which creates negative
impacts upon the users of the market, be it buyers, sellers or management
sector. The general defects of existing market may be categorized into
following aspects (White, 1999):

Physical aspects:
 Poor site location and road access is often the main issue affecting the market
system.
 Insufficient sales space, particularly of temporary spaces at peak periods and
during peak seasons, leading to produce being sold in the open, with
consequent spoilage.
 Similarly, poorly designed and constructed sheds, makes the marketing
process inefficient and inhibits customer flow.
 A general lack of building and facilities maintenance.
 Insufficient circulation space and traffic management measures, leading to
vehicular and pedestrian congestion.
 Lack of parking provision and areas for unloading.
 Poor condition of roads and paving.
 Inadequate drainage and severe flooding problems, leading to produce losses
and potential health problems.
 Inadequate site security and overnight storage facilities.
 Inadequate hygienic provision for meat, poultry and fish handling, including a
lack of refrigeration facilities.

Social and managerial aspects:

 Difficulties in enforcing market bye-laws and regulations.
 An inefficient or uncontrolled use of market sales space with low sales
volume per trader and, often, low rents or charges;
 A high, unmet, demand for places in the market, frequently combined with
high-profit margins for traders; and
 Market management, which establishes no clear relationship between revenues
and costs, leading to the market being under-funded, especially for repairs and
maintenance.
Market Information System:
Vegetable marketing information system (VMIS) can be defined as the
method of generating information on time to assist farmers to take appropriate
decisions for selling their produces at the appropriate time (Awasthi, 2007).

16
Based upon these information farmers, traders, government officials,
consumers and concerned stakeholders can perform their activities effectively
and efficiently, boosting competitive vegetable market.

Market Information System in context of Nepal:

In 1960, development of marketing information system was initiated by the
Department of Agriculture in a limited scale. After establishment of
Department of Food and Agricultural Marketing Services, the collection and
compilation of market prices expanded in terms of the geographic coverage,
type of prices, and commodity coverage. In recent times, the dissemination of
the market information has greatly improved from the earlier times.

Vegetable and Fruit Wastes:

Waste management, especially at wholesale markets is one of major issues,

waste reduction should be adopted as a precautionary step, which will reduce
load on waste management. Considerable amount of fruit and vegetable
wastes are produced on daily basis due to lack of proper post-harvest facilities
at the fruit and vegetable wholesale markets.Based upon a survey of three
major market centers at Narayangadh, Pokhara and Kalimati fruit and
vegetable wholesale market, major causes of losses of produces appeared to be
– lack of cold storage facility (67% of respondent’s opinion), inappropriate
packaging and poor handling (22%), and poor quality of produce (11%)
(Devkota et al., 2014). While the types of losses occur during handling are loss
due to rotting (51%), mechanical damage (22%), and physiological loss
(27%). However the survey suggested that the improvement over the
prevailing marketing functions can contribute in reducing post-harvest losses
of the horticultural produces. As 32% of the respondents believed availability
of cold storage at market centers can reduce the losses; good packagaing
system (30%), avoidance of oversupply of produces (14%), grading of
commodity before delivery by the producers (14%), careful handling and
transportation facility (10%). Majority of respondents in
Narayangadhfavoured cold storage facility, while in Kalimati good packaging
and handling was considered most important aspect.
Waste Reuse and Recycle:
The waste generated at the wholesale horticulture market is usually organic in
nature, hence easily degrading. If, properly managed there is a lot that can be
generated from these organic waste, but incase of mismanagement it produces
17
 headache for the authority, as these degrading wastes creates nuisance (smell,
dirt, spreading of disease etc.) which are vary difficult to handle.
Inference:
Policy for vegetable market needs a policy framework, which should address
multifaceted issues and this involves collaboration with different stakeholders
and organizations. The vegetable markets are perceived in different markets
forms, as there are various marketing channels through which the vegetable
produces move from producers to consumers, and all of these operate in a
hierarchical structure; which is very necessary to understand the context of
permanent and semi-permanent vegetable markets.
There are various factors to be considered while designing market
infrastructures. Site location is one of the major factors determining success of
the market. Similarly, internal traffic flows and congestion should be
considered, along with loading unloading spaces. Market layout should be
efficient and space utilization should be proportionate to different activities.
Sales area could be determined by estimating overall supply, demand and
consumption; and based upon the proportionate built up and open space area;
site size can also be calculated.
Likewise, desirable market characteristics should be considered while
planning and designing the vegetable market. Market system should be
analyzed in terms of physical aspects, social and managerial aspects, and
environmental aspects.
Different aspects of Market Information System should be explored, because
of their importance in competitive and fair market. Major issues such as
vegetable waste management should also be considered and planned in
advanced.
Vegetable Market in Local Context:

Vegetable Sector in the Context of Nepal:

The vegetable sector in Nepal has grown rapidly, between 2000 and 2020,
overall vegetable production has increased by an average of 6.9% per annum
(45% overall), which is ahead of overall average population growth of 1.47%
over the same time period2. The area cultivated for vegetables has increased
significantly (33.2% increase – 4.6% annually), but there is no increase in total
arable land area over this time period, which indicates that vegetables are
displacing crops. The average yield of vegetables has also increased by 2.2%
on average annually (17.7% overall) 3.It is also noted that Nepal’s per capita
vegetable has increased from 49kg/person/year to 60 kg/person/year, but still
18
 below the human vegetable nutritional requirement of 104kg/person/year over
the last two decades (Awasthi, 2007).

According to the 2009/10 Nepal Vegetable crops survey, vegetable farming is

considered as a common and important source of subsistence for over 3.2
million families (69% of all households) in Nepal; 17% of which are female-
headed. However the majority (90%) of producers have less than 0.5 hectare
(ha) of land available to them and grow mainly for subsistence, with only 18%
growing for the market and only 5% deriving their main income from
vegetables (7% in the hills and 4.5% in the Terai). For 12% of growers,
vegetable farming (income and consumption) sustains them all year round,
with a further 37% being sustained for 4-6 months. Compared to staple crops,
vegetables can be grown year-round, which provides an opportunity for extra
income generation, but in-turn also intensifies cropping patterns over the
year4.

It is estimated that there are more than 247 cultivated vegetable crops, and
more than 50 crops are common in Nepal. Due to the wide range of climatic
conditions (ranging from alpine temperate to tropical), it is possible to grow
almost all types of vegetables within the nation (Awasthi, 2007).
The most prevalent vegetable crops grown in Nepal include (in terms of total
hectare of area): cauliflower (33,172 ha), tomato (19,724ha), cabbage (14,306
ha), pumpkin (9,757ha), cucumber (8,634ha), eggplant (8,172ha), okra
(7,473ha) hot pepper/chilly (7,007ha) and bitter gourd (4,250 ha)5.
In Nepal, there are 33 market centers for fruits and vegetables, 21 collection
centres, 8 wholesale markets and 4 retail markets constructed in the initiation
of government, while some are managed by the private sector (Awasthi,
2007).
Vegetable Market in the Context of Kathmandu:
The agricultural fertile land of Kathmandu are being encroached by built up
spaces, catering increasing demand of shelter, hence Kathmandu is not
sustainable in itself in terms of vegetable production. It is estimated that
around 50 to 60% of total demand of vegetables in Kathmandu is fulfilled by
vegetable production in hilly areas (Kavre, Dhading, Bhaktapur, Lalitpur,
Makwanpur, Kathmandu, Nuwakot, Sindhupalchok, Gorkha, Dolakha,
Rasuwa etc.), while remaining demands are sourced from Terai region, India
and China.
These large imports of vegetable produces and demands led to establishment
19
 vegetable markets, including wholesale and retail markets, semi-permanent
markets like haat-bazars, roadside vendors and mobile vendors. The
vegetables are also being sold on local retail shops (kiranapasal), people
without easy access to vegetable markets usually purchase from these shops;
however vegetables are being sold at few big departmental stores, which are
mostly used by upper middleclass people. The tendency of the majority of
people is to find the best market price for the vegetables, for which they are
drawn to places where there are more than one vendor available, so they can
compare for lowest price and quality also. People needing low quantity of
vegetables usually go to semi-permanent vegetable markets, and who needs in
large produce usually go for wholesale markets.The mechanism of vegetable
supply in Kathmandu, and different aspects involved, from vegetable
production to consumption. there are numerous vegetable markets within
Kathmandu Valley, among them Kalimati Vegetable Wholesale Market, under
government undertaking, is the largest market of Nepal.Other wholesale
markets (primary and secondary) in Kathmandu city can be located in the
respective areas - Tukucha, Balkhu, Kalanki, Baneshwor, Koteshwor, Balaju,
Chakrapath, Khusibu, Boudha, Minbhawan -2nos., BijuliBajar, Naksal,
Chabahel, Jorpati, Samakhusi, NakhuDobato, Sano Bharyang.
Semi-permanent Vegetable Market:
Semi-permanent markets usually have to clear demarcation of space or any
permanent structure, and timing of market is usually morning and evening
only. Most of these vendors are not required to pay rent, as they typically parts
of rights-of-way or spaces adjacent to temples (source: RECPHEC, Mapping
Vegetable Markets and Vendors in Kathmandu Metropolitan City).These
markets are usually located within the walking distance from the residential
areas, near the transit nodes or social spaces.

SLinkages with permanent vegetable market:

Sources of vegetable produces for semi-permanent vegetable markets are
permanent (wholesale) vegetable markets, local farmer’s market and nearby
agriculture farms. Although the traders of semi-permanent brand their
vegetable produces as local products, it is believed that most of these produces
are from the wholesale markets.

Linkages with social and cultural aspects of the people:

These semi-permanent markets are vibrant areas, as variety of social activities
occur in these areas. During traditional times, these market areas used to be a

20
 social space, where people interacted, socialized and traded the produces.
These market places were located at the transit nodes, temple areas and other
open spaces; so these spaces became part of the daily life of the people.

Importance in urban planning aspects

These semi-permanent vegetable markets should serve as a breathing space for
the urban people, amidst the traffic congestion and scarcity of the open space
in urban areas. In traditional times these spaces were sufficient to cater the
social, cultural and economical needs of the people, but in modern times with
increase in population, change in lifestyle led by technological advancements,
these spaces are hardly sufficient. These spaces merely act as the congested
trading spaces, often hampering the nearby traffic flow. However in traditional
urban core, these spaces are within walkable distance from residential areas,
but in comparatively newly formed settlements, these types of spaces are not
provisioned efficiently in planning level. It should be noted that efficient
planning and allocation of these markets are essential for wellbeing and
efficiency of a community.
Objectives of the Board:
 To develop market for increasing production of fruits and vegetables within
the country.
 To ensure competitive flow of fruits and vegetables from production areas to
urban consumption areas, encouraging strong and complete market, through
proper utilization of the resources.
 To increase production and productivity of fruits and vegetables by creating
market facilities and opportunities.
 To strengthen economic aspect of Kalimati market management, and function
with service oriented and commercial ethics.
 To contribute the economic sector through increased productivity and ……,
based upon geographical attributes.

Policy of the Development Board:

 Market service, facilities and infrastructures are to be provided only to
Nepalese citizens.
 To strengthen and develop the relationship between the market and production
center.
 To ensure proper commercial use of the committee’s services, facilities and
infrastructures.
 To play important role in agro-market sector through co-operation with
21
 government and other institutions.
 To strengthen implementation aspects through timely adjustments in plans and
policies.

Works to be carried out by the Development Board:

 To make policy regarding market management and its implementation.
 To determine minimum standards for quality and quantity of produces being
sold at the market.
 To manage staffs required for market management, along with providing
incentives and services for the staffs.
 To increase it’s working area, in order to direct markets established through
Nepal government or other sectors.
 To carryout works regarding packaging, grading and quality determination of
agricultural produces.
 To give market facilities to the wholesale and retail traders, along with fruits
and vegetable producers.
 To determine rates for providing market services and facilities.
 To solve the issues regarding market functioning.
 To maintain healthy environment of the market area by proper cleaning.
 To carry out works for development for manpower of the board.
 To carry our other important miscellaneous works for market management.
 To carry out other important miscellaneous works regarding sales and
purchase of agricultural produces.

Market Facilities of Kalimati Fruits and Vegetables Market: Wholesale

Market:
Kalimati fruits and vegetables market is majorly a wholesale market, which is
being functioning in the building and sheds. 322 stalls are being allocated for
wholesale marketing, among which 26 stalls are allocated for famer groups/
co-operatives. Main customers of the wholesale markets are wholesale and
retail traders of other markets, including cycle traders, cart traders, hotel,
hostel, restaurant, and schools; while regular people are also being catered.
Retail Market:
There is provision of retail market, in order to cater the people trading small
quantity of produces. Total of 81 stalls are being allocated for this purpose.
Traders have to take permit from the board in order to trade in this space,
monthly rent are fixed according to the space occupied by the traders.
Farmers’ Market:
sThere is provision for farmers to sell their fresh vegetable produces on daily
22
 basis in the Kalimati market area. Two sheds ahead of entry gate, and hard
paved open space in front of it are provided for this purpose. The market is
allowed to open for two times a day, from early morning to 9 a.m. and from 4
p.m to late evening. In order sell their produces farmers have to pay minimal
amount of NRs 10 each time they use the space to sell. It is estimated that 75
to 150 farmers arrive on daily basis to the Kalimati market to sell their
vegetable produces, and majority of farmers are believed to be of Kathmandu.
Fish Market:
Although this is a fruits and vegetable market, strangely there is provision for
fish market too. Twelve cages near the ice plant are allocated for the fish
market. Initially the market was at Khichapokhari, which is being re-
established in this market. Around 10 metric ton of fish are imported on daily
basis to the Kalimati market.

Other Market Facilities:

There is provision for storing seasonal fruits like orange, papaya and others
with the market, in vacant spaces, sheds and other alternative spaces. Some
spaces are also provided for fruits, seeds, fertilizers, dairy products and agro
products, along with necessary materials.
Physical infrastructures of the market:
The total site area of the market is 45 ropanis (22,893 sq.m.). There are
various services and facilities provided by the Kalimati market:
 Multipurpose building - 4903 sq.m.
 Wholesale market building (old fish shed) – 508 sq.m.
 Wholesale market sheds – 48 stalls
 Retail market sheds -2 nos.
 Farmers’ market – 2 sheds and hard paved open space infront
 Farmers’ market shutters – 6 nos.
 Fish market – 12 cages
 Ice-plant 220 sq.m., 15 metric ton daily production
 Cold room 4.5 metric ton storage capacity, Freezer room 9 metric ton storage
capacity
 Administration building – 792 sq.m.
 Storing cages – 24 nos.
 Building with 12 shutter shops (near administrative building and farmers’
market)
 53 rooms above Multipurpose building and fish market
 Bank area (currently used as garlic and ginger trading space)
 Restaurant – 1 nos.
 Mesh/ Canteen – 4 nos.
 Electricity station

23
  Generator – 250 KVA capacity
 Water tank – 160,000 litres capacity; with deep tubewell
 Water purification plant
 Toilets
 Black topped road
 Parking area
 Loading/ Un-loading area, etc.

Market security service:

There is provision of 24 hours security for the committee and market users.
Total of 30 staffs are related to security services among total of 79 staffs of the
market.

Waste collection and management:

Huge amount of waste is generated in the market on daily basis due to the
nature of vegetable produces. Waste collection and management is being
carried out with involvement from private sectors.

Market information service:

The board has managed to collect current rates of produces from the market
during morning and daytime; in order to inform farmers, traders and
concerned stakeholders about the current trading rates of the produces. The
information is conveyed through various means – digital scrolling board in the
market, daily bulletins, news channels, emails, websites etc.

Quantity and Quality Controlling:

In order to strive the market towards healthy, competitive and qualitative
market, the committee has been carrying out quantity and quality controlling
of the produces being traded in periodic basis; in co-ordination with Nepal
Standards Department.
Market transaction nature:
In 2070, total market import was 220600.268 metric ton, including 80.46%
vegetable produces, 12.76% fruit produces, 4.63% masala produces, 1.85%
fruit produces and 29% other agro produces. Although the market is
opened 24 hours for importing produces, imports are usually brought during
nighttime. Whereas majormarket trading period is considered to be from 3 or 4
am early morning to 10 to 11am.Wholesale trade is the major activity in the
market compared to other forms of trade. Market usually contains both
seasonal and unseasonal agro produces.The market imports are usually made
through farmer himself, middlemen, traders and their representatives.

24
 The price fixing of produces is usually carried out by bargaining among
farmers
/suppliers, and traders; the committee is not involved in determining price of
produces. The price of vegetables if greatly influenced by its market demand
and supply, quality, source of supply, consumer’s desire, context and time
factor.

Major supply sectors for the market:

Most of the produces are supplied nationally; while 24.37% are imported form
India, and 1.67% from China.

Issues related with the DevelopmentBoard:

Major issues related with the Development Board (based upon annual
publication book 2075/76) are mentioned below:
 Uncontrolled entry/exit of agro produces transport vehicles in the market.
 Problem in additional market extension within the site area.
 Problem in waste management and scarcity of dumping sites.
 Difficulty in enhancing and strengthening the skills of manpower involved in
the market, both traders and staffs.
 Minimal use of technology and machineries for handling, packaging and
grading of produces.
 Problem in internal import and transportation of agro produces.
 Lack of co-operation with other agro markets, including government and non-
government sectors.

25
 CHAPTER - TWO
RESULTS AND ANALYSIS

Based upon the literature review, site study, interviews and observations
following analysis are carried out regarding vegetable markets in KMC.

2.1 Issues related with vegetable market:

2.1.1 Solid Waste Management:

Solid waste management seems to be one of the major issues of the permanent
vegetable market following are its major issues and problems:
 Solid wastes are not properly cleaned from the market stalls, access paths,
roads, and storage and collection points. This is due to various reasons:
- Lack of awareness among farmers, sellers and buyers regarding management
of vegetable waste.
- Difficulty in cleaning due to nature of waste and habit of waste disposal from
both sellers and buyers, and the waste starts decaying at those places.
- Difficulties in monitoring of waste management, as number of users are very
high especially during peak hours; but it is also a result of inefficient
management.
 Due to improper solid waste management, the hygienic aspects of the market
were very much compromised, dirt and smell all over the area.
 Waste management has been carried out on contract basis, individual stalls
pay cleaners to clean and carry their vegetable related waste from stalls to
common disposal area within the market area; other set of individuals are
responsible for collecting waste from common areas to disposal vehicles; and
then the solid waste are disposed to dumping site or composting sites.
Although the system sounds efficient, it is very inefficient based upon the site
observations and interviews.
 Composting of the solid waste from the market has not been successful; one of
the reasons is all kind of waste being dumped to same place, segregation being
major issue for the waste handlers.
 2.1.2 Environmental Pollution:
 The noise pollution caused by marketing activities and from moving vehicles
cause constant strain to the ears of the users and nearby residences.
 Considerable air pollution is noticed during peak hours of vehicular entry and
exit periods, further aggravated by traffic congestion.
 Often there are complaints from the surrounding environment regarding smell,
noise pollution, and sewage of market being infiltrating into the nearby wells
of neighborhoods.

2.1.3 Physical Aspects:

 The location of vegetable market in residential cum commercial area is
causing nuisance to the neighborhood and traffic congestion in the area.
 The physical infrastructures regarding road, pavement, water supply system
and drainage are in dire state, due to lack of proper maintenance.
 Sales spaces are insufficient during peak hours of trading.
 Drainage problem is prominent mostly due to clogging of the solid waste in
the drainage.

2.1.4 Traffic Congestion:

 Vehicle parking areas are poorly managed and insufficient giving rise to
traffic congestion.
 The traffic congestion appeared not only inside but outside of the market too,
as the market gate opens in the busy main road (which is also a highway and
inner-city road). So during entry and exit of vehicles from the gate there is
always vehicular traffic disturbance in the major road causing lengthier traffic
jams.
 Haphazard loading and unloading spaces within the market premises
aggravates traffic congestion and confusion among the visitors of the market,
as it affects pedestrian circulation within the market.
2.1.5 Management Issues:
 There are no rules and regulations/ laws regarding functioning of the vegetable
market, which needs to be addressed timely for efficient market system.
 Although space for farmers market is provided, people are using footpath for
trading, causing congestion in the market. There are also cases of non-farmers
occupying the space whole day, exceeding trading hours of the farmers
market.
 Secondary renting provision seems to be working in the market, although it is
 not clearly visible. It is also difficult for the market committee to monitor such
things because of socio cultural aspects of our society; for instance a trader
may bring new person and say he is the family member or friend who is to
help him.
 Priority given to the old traders of the wholesale market may be de motivating
factor for the new traders and hinder the essence of the competitive market.
 Although cold storage is desirable facility for a wholesale vegetable market,
based upon market activities it is observed that most of the fresh vegetables
are sold within a day, and for next day people prefer another lot of fresh
vegetables compared to one stored in the cold storage; also traders wouldn’t
like to pay extra for cold storage facilities. There is total of 13.5 metric ton
cold and freezer room in fish market, which is hardly used by the fish traders.
 The development board (management) has no role in fixing price of vegetable
produces; the management leaves it to the free market principle. But there are
complains that the price of the vegetables are fixed by single authority in
Kalimati market (small group of people/ brokers), based upon which price at
other markets are fixed.
 There is no provision of limiting the maximum number of traders in the
wholesale market, leading to inefficient and chaotic market environment.
 The informal interviews suggested that the rent is taken even from illegal stalls
at footpath area inside the market, thus one paying higher rent in permanent
stalls and selling same produces suffer.

 Manpower per stall – Retail – owner and helper , Wholesale- owner, helper
and staff.; and these names aren’t mentioned in identity card of the owner;
making it difficult to monitor if the sellers of the stalls are the original owners
of the stalls.
 It was suggested that Middleman sells vegetable at expensive rates before
farmer’s arrival or in absence of farmer and in low rate in front of farmer,
taking extra amount to the pocket of middleman, causing farmers and
consumers to suffer; which indicates towards major involvement of
middlemen and lack of monitoring mechanisms from the management.
 The tendency of disposing vegetables instead of selling it at cheaper rates was
also known through informal interviews, this activity harms both producer and
consumers.
 Fish market in vegetable marketcreates more unhygienic condition, smelly
areas for people buying vegetables, which questions the suitability of placing
 unmanaged fish market near vegetable produces.
 There is no provision of grading or packaging in the major wholesale market.
 There is no emergency or safety plans during the scenario of disasters like
earthquake or fire hazards.

2.1.6 Macro level Planning:

 There is no planning approach, where importance and accessibility of
vegetable markets are considered, in terms of location and scale of the market.
 There is no motivation for fresh vegetable consumption from the government,
regarding the market facilities, infrastructures, planning and policies.
 Involvement of middlemen increases when farmers couldn’t reach to
wholesale markets on their own, poor infrastructural facilities are often the
causes of this phenomenon.
 The current Market Information System lags the need of current market, as
farmers haven’t been able to benefit from the Market Information System as it
only gives rates of the wholesale market, as farmers needs rates of local
market where they can sell their produces.
 No provision of cold storage facilities near production areas, which results in
tremendous amount of post-harvest wastage of vegetable produces.
 Chemical testing facility only in wholesale market causes wastage of
produces, time and energy, incase vegetables are found chemically
unacceptable.
 There are no collection centers near the production area, as a result seasonal
surplus produces are often wasted, which could have been stored at sold later,
resulting in mutual benefits for both producers and consumers.
 There are no proper plans and policy for treatment of solid waste generated
from the vegetable markets, these wastes could have been reused and recycled
for economic benefits.
 Co-operatives functioning in the market are mostly concerned with monetary
transactions, not involved in vegetable market development aspects.
Key Stakeholders:
The following key stakeholders and institutions are identified in planning and
management of vegetable markets in KMC:
Ministry of Agricultural Development (MoAD):
The Ministry of Agricultural Development is the central apex body of
Government of Nepal, responsible for agriculture and allied fields. The vision
of the ministry is to improve “To improve the standard of living of the people
through sustainable agricultural growth by transforming the subsistence
farming system to a competitive and commercialized one.” The ministry is
responsible for formulation of plans and policies related to agricultural
activities, promotion of agri-business, evaluation and monitoring of related
activities, maintaining statistical records, ensuring food security and others.

Ministry of Urban Development (MoUD):

MoUD is responsible for overall planning, development and management of
urban areas with a vision to make urban areas and settlements managed, clean,
beautiful and inclusive of proper infrastructures and services. It closely works
with municipalities. Department of Urban Development and Building
Construction (DUDBC)is a department functioning under Ministry of Urban
Development, which is actively working in the urban development, building
and environment sector. It is responsible for formulating different policies,
guidelines and byelaws. Given, the importance of different forms of vegetable
markets in urban scale, MoUD could include the aspects of vegetable markets
along with open spaces in future plans, policies, guidelines and byelaws.

Ministry of Land Reform and Management:

The ministry has formulated Land Use Policy 2069 B.S., and after the mega
earthquake of 2072 B.S., the ministry has re-formulated the policy as the Land
Use Policy 2072 B.S., considering the impacts of natural hazards like
earthquake and other calamities. The ministry has zoned the land use into
various sectors like agricultural, residential, commercial, cultural and
archaeological, industrial etc. The agricultural land use zone could be planned
following the principle of sustainability, and land use plan should be
implemented strictly. Similarly, large-scale wholesale vegetable markets needs
to be zoned considering its surrounding activities.

Ministry of Federal Affairs and Local Development (MoFALD):

The Ministry is responsible for coordinating, supporting, facilitating,
monitoring and evaluation of decentralized local development programs and
activities conducted by local governing bodies- District Development
Committee, Municipality and Village Development Committee, in accordance
to Local Self-Governance Act (1999). The Ministry has formulated and
implemented Environment Friendly Local Governance Framework (EFLGF),
which is now being implemented at District, Municipal and VDC level. The
ministry is responsible for coordinating with the local level governance like
VDCs and Municipalities.
Kathmandu Valley Development Authority (KVDA):
KVDA was established in 2012 and the Authority has with primary mandate
to prepare and implement an integrated physical development plan for
Kathmandu Valley, and the apex governing body chaired by the Minister of
Urban Development. It has authority to prepare related by-laws, regulating
mechanisms, guidelines, standards and tools. It has published ”Atlas of Open
Spaces” in 2015 which has listed all the probable open spaces in Kathmandu
Valley which can be utilized during disasters. It can co-ordinate with other
stakeholders to provision semi-permanent vegetable markets in these open
spaces, as new open spaces needs activities to sustain.

Kathmandu Metropolitan City (KMC):

KMC is a local body working in accordance to Local Self-Governance Act
(1999). KMC is responsible for management of the semi-permanent vegetable
market areas, including area designation, its maintenance, waste collection and
disposal. KMC is also responsible for regulating and managing the dumpsites
for the wastes collected from the vegetable markets. KMC is also responsible
for regulating vehicular traffic flow in semi-open vegetable market areas, as
these areas are often congested, KMC can ban or time vehicular flow in these
semi-permanent vegetable markets, mostly in traditional urban core.
Department of Archeology (DOA):
Department of Archeology established in 1953 A.D. under the Government of
Nepal, is primer organization for the archaeological research and protection of
the cultural heritage of the nation. Most of the semi-permanent vegetable
markets in urban core are scattered around the monuments with archaeological
importance. And these market areas are often crowded and congested by
pedestrian and vehicular traffic flow. DOA needs to monitor, maintain and
preserve the cultural heritage under their jurisdiction by formulation of
appropriate plans and policies to sustain and preserve these cultural heritages.
This will preserve the local character of the semi-permanent vegetable markets
inside the traditional urban areas.
Kalimati Fruits and Vegetable Market Development Board:
“Kalimati fruits and vegetable wholesale market development board” was
formed, under Development Board Act-2013, in 2051 B.S. However, the
board was again re- established as “Kalimati fruits and vegetable market
development board” under Development Board Act-2013 in 2058 B.S.; to
broaden the responsibility of the committee. It is the major stakeholder for
vegetable market in KMC; as its major objectives are - to develop market for
increasing production of fruits and vegetables, to ensure competitive flow of
vegetables, to contribute economic sector through increased productivity.
However the market is responsible for efficient distribution of vegetable
produces from production centers to retail and consumer sectors, price fixation
of vegetable produces, and market information.
 CHAPTER - THREE
Conclusion and Recommendations

3.1 Conclusion:
The vegetable sector market in context of Nepal is expanding, and Nepal is
already sustaining itself in terms of fresh vegetable produce. In order to
properly manage, control and develop the vegetable market, comprehensive
vegetable market policy is required. From this study, the major aspects to be
addressed by the policy are considered as improvement of Market Information
System, Market Infrastructures, and Waste management system. It should also
give emphasis to inclusion and placement of markets in city planning and
design along with systematic management of existing markets in the city. This
will act as guidance for opening new markets, and for the systematic
development of existing markets. Various environmental aspects should also
be considered while planning and designing for (wholesale) vegetable
markets, EIA should be carried out for before commencing any type of
vegetable market projects.

3.2 Recommendations and Policies:

The policy needs to be addressed at various levels, and include all the
important aspects of the vegetable market. From the review it is found that
there are no specific guidelines or policies that directly address vegetable
markets as part of city development. Based upon the literature review and
study of vegetable market in local context following policy recommendations
are made for vegetable market of Kathmandu, under different aspects.

Macro Level Planning:

 To increase vegetable consumption, it is necessary to develop marketing
channels in coordination with vegetable production; as after production
marketing is most important function consisting of assembling, processing and
distribution of vegetable produces (Awasthi, 2007).
 Some financial arrangements must be made for farmers when his produces
leaves his possession, as it takes time (cleaning, grading, processing,
packaging) before it reaches in the acceptable state for the consumer; and this
should be provisioned by the marketing itself (Awasthi, 2007).
 Availability of fresh produces in urban areas should be increased in order to
improve urban nutritional standards.
  Policies related to vegetable market should be incorporated in Land use
planning, building byelaws, environmental acts/ policies, and urban policy as
well.
 Access to the major market (wholesale market) from production areas should
be improved.
 Development of market infrastructures needs to be carried out to improve
market competitiveness and reduce the number of middlemen or their profit
margins (Ranathilaka, 2014)
 Effective Market Information System should be provided to promote trading
which benefits the producers first.
 Collection centers near production area should be provided, with proper
facilities like cold storage, while the entry points of vegetable containers could
be equipped with chemical testing lab to discourage use of harmful chemical
in the vegetables.
 Private and Sahakari (Co-operatives) involvement in market development
should be initiated (Agri-Business Policy, 2063).
 The organic waste generated from the vegetable market should be reused and
recycled, i.e. reusing by stall-feeding to live stock, and recycling into valuable
organic fertilizer by composting and vermin composting (Devkota, 2014).
 Scale and location of vegetable market needs to be planned according to the
population density, demand, supply and consumption pattern of the targeted
areas.
Physical Aspects:
 Location of the site of wholesale vegetable market should be near agri-
business industries and catering services; and the site should be connected
with the major road system.
 Location of small vegetable markets should be included in any new town
planning and design.
 Conditions of roads and paving should be improved.
 Sufficient drainage system should be provided and timely monitoring and
maintenance should be carried out.
 Space for parking should be sufficient and planned efficiently.
 Space for loading and unloading should be planned systematically, with
sufficient space.
 Storage facilities should be sufficient and fulfill requirements of a proper
store.
 Sales space should be sufficient, considering the peak period activities.
 The ratio of built-up space to open space should range between 1:2.5 to 1:5,
depending upon the context.
 Concept of multistory vegetable market can also be explored to optimize the
scarce land with better management and increasing the serving capacity for
growing demands.

Social Aspects and Managerial Aspects:

 Enforcement of bye-laws and regulations should be carried out through proper
monitoring mechanism.
 Awareness among the various stakeholders of the market should be created
regarding waste management habits, i.e. farmers should screen useless
produces in the their fields, traders should also screen undesirable produces in
the collection center, and the sellers and buyers in the market should manage
the vegetable waste in desired location only.
 The revenues generated from the market should also be allocated for
maintenance of market infrastructures (road, water supply, waste management
etc.)
 The price fixing mechanism of the produces should be monitored and
analyzed by the concerned authority (Kalimati Fruit ad Vegetable Market
Development Board).
 Market Information System (MIS) should not only include, price, volume,
sources of arrival of vegetables and fruits like Kalimati Fruits and Vegetable
Market Development Board, but the MIS should also be developed to educate
the farmers to clean and screen the unnecessary residues of their vegetables at
 source, which can be utilized as compost (Awasthi, 2007).
 Uniform national grading system should be introduced, which contributes in
determining the price of similar products.
 Gap between farm gate price and price paid in wholesale markets by the
consumers should be narrowed, with strong monitoring of middlemen
involvement.
 Facility of the e-commerce should be explored for commercial agricultural
markets (The Agri-Business Promotion Policy, 2063).
 Effective facility and monitoring system should be incorporated regarding the
cold storage facility, packaging, handling and transportation, grading of the
vegetable produces; as these factors will significantly reduce post-harvest
wastage of vegetable produces.
 Efficient waste collection system should be provided in the site, including
screening of wastes according to their nature (organic and inorganic); and
provision of regular transportation the collected waste to dumping site or
composting site should be managed.
 Secondary and tertiary renting of the vegetable stalls at wholesale market
should be discouraged, as both producers and consumers are cheated and
middlemen take more benefits in this system. This can be discouraged by
mandatory enlisting of names of owner, staff and helper associated with the
stall along with their photos in the identity card placed at stalls. Electronic
system of attendance could also be provisioned for original stall owners at the
market for their daily attendance.
 Maximum number of traders needs to be determined by any wholesale market,
ensuring rights of the traders and enhancing quality and efficiency of the
market area.

Social Security Aspects:

 Emergency, security and safety plans should be formulated ahead of such
disasters. For instance, escape routes and fire-extinguishing mechanisms
should be provisioned regarding fire hazards; whereas escape routes, open
safety space should be allocated regarding earthquakes.
 Security within and outside the market should be ensured, regarding thefts and
other social outrages; through coordination among well equipped security
staffs, use of CCTV cameras, law enforcements etc.
 Occupational health and security needs to be ensured among the workers/
staffs of the committee.
 Environmental Aspects:
 Comprehensive Environmental Impact Assessment should be carried out
before formulating large-scale Wholesale vegetable market projects.
 Land acquisition and resettlement impacts should be addressed by the study.
 Impacts regarding air, groundwater, soil pollution, noise pollution and effluent
disposal should be analyzed.
 Aspects of natural environment, heritage and landscape should also be
considered.
 Mandatory rules for waste segregation, its recycle and reuse should be
provisioned and implemented, using organic waste as fertilizers and feeders;
and inorganic wastes should be recycled as far as possible, discouraging waste
dumping culture; which will have positive environmental and economic
impact.

References:

 A Report on Value Chain Analysis of Off-Season Vegetables (OSV), 2011,

High Value Agriculture Project in Hill and Mountain Areas (HVAP), Ministry
of Agriculture Development, Government of Nepal,

 Annual Publication Book, 2070/71, Kalimati Fruits and Vegetables Market

Development Board, Ministry of Agriculture Development, Nepal
Government.

 Awasthi, B.D. , 2007,Relevance of market information system to environment

protection, Journal of Agriculture and Environment Vol8 (2007) ,

 Devkota A.R., Dhakal D.D.,Gautam D.M., Dutta J.P., (2014), Assessment of

Fruit and Vegetable Losses at Major Wholesale Markets in Nepal,
International, Journal of Applied Sciences and Biotechnology.
 Hamilton, N.D., 2005, Farmers Market Policy – An Inventory of Federal,
State, and Local Examples,

 Mapping vegetable markets and vendors in Kathmandu Metropolitan City,

Resource Centre for Primary Health Care (RECPHEC),

 Nepal Government Central Bureau of Statistics (2011) Vegetable Crops Survey

of Nepal 2009-10. Kathmandu, Nepal: Nepal Government Central Bureau of
Statistics.

 Ranathilaka, M.B., 2014, Market Efficiency on Vegetable Commodities in

Developing Country: Case Study from Dambulla Wholesale Market in Sri
Lanka, International Journal of Agricultural Research

 The Agri Business Promotion Policy, 2063, Ministry of Agriculture and

Cooperative.

 Vegetable Sectore in Nepal: Rapid Post Earthquake Market Analysis,

 White, J.T., 1999, Market Infrastructure Planning – Aguide for decision

makers, FAO Agricultural Services Bulletin.