The study applied the Structure-Conduct-Performance framework to analyze lentil value chain in Nepal. Study utilized data from 155 traders, and analyzed through value chain mapping, empirical methods and Ordinary Least Squares regression with robust standard errors. Top four traders controlled 64% of purchases, with around 36% produced locally showing moderate market competition. The lentil value chain has a price spread of 42.13% and marketing efficiency of 2.60, with processors holding substantial market power and earning the highest profit share (36.02%) and value addition (37.59%). Storage facilities (β = 0.867, p < 0.01), ownership of transport (β = 0.525, p < 0.05), proximity to buying markets (β = −0.199, p < 0.05), training (β = 0.850, p < 0.01) and marketing cost (β = 0.065, p < 0.1) were the significant factors affecting marketing margin. Structural factors (0.359) exerted the strongest influence on market performance, followed by control (0.167) and conduct (0.082) variables. Overall, the results highlight those structural factors like storage and transport and control factors particularly training are the primary drivers of market profitability. Targeted improvements in infrastructure and logistics, along with better coordination, skill development, yield enhancement, credit access, and supportive policies can boost Nepal’s lentil sector.
Ghimire et al. (Tue,) studied this question.