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Rural Urban Agriculture Market System:



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Rural Urban Agriculture Market System Challenges and Opportunities A Case Study Eastern Nepal Masters Project for the partial fulfilment of Masters degree Yale School of Forestry and Environmental Studies Submitted by Raji Dhital May 2004 Candidate for Masters of environmental Science 2004 Submitted to Colleen Murphy Dunning Director Hixon Center for Urban Ecology 1 Acknowledgement I am grateful to my advisor Dr William Burch Yale School of Forestry and Environmental Science for being patient with me and guiding me through my confusions I am indebted to the Hixon Center for Urban Ecology and Tropical Resource Initiative for providing me the funds for this research and an opportunity to explore my own country better I offer my sincere gratitude to the respondents of my research area Rangeli Katahari and Britannia who made this research an enjoyable learning experience for me with their generosity I also highly appreciate the help of the staffs of Rural Urban Partnership Project Nepal especially Dr Ramesh Munankami Ms Indira Rai and Mr Arjun Thapaliya for guiding me in this research and introducing me to the farmers and businessmen Last but not the least I thank from my heart Mr Sumit Pokhrel for being with me whenever and wherever I needed him Thank you all for making this research possible 2 Abstract For Nepal still surviving on agrarian economy agriculture market between rural and urban areas serves as the main linkage that shapes socio economic and ecological dynamics of the nation Addressing the rural urban linkages is necessary because the phenomenon of urbanization in the third world like Nepal has been inevitable but unplanned Since 80 of people in Nepal are farmers it is impossible to analyze the nature of socioeconomic processes of Nepal without linking these processes to the rural urban interactions between these farmers and the urban population Detailed analysis of rural urban market mechanisms showed that urban markets show the potentials for the development of rural areas in Nepal Agriculture market is the main source of agriculture income for the farmers and provides a resort even to the marginal farmers when they need cash However local national and transnational forces like unequal landholding distribution governmental policies that do not provide any economic incentives and competition with subsidized products from India do not support the benefit for small farmers Due to high investment and low returns the agriculture market with the urban areas alone is not able to sustain farmers and compels them to look for the non farm jobs and migrate in the urban areas changing the ecological and sociological dynamics of both rural and urban areas The phenomenon like migration exerts a pressure on the natural resource of the urban areas and the villages become dependent on the remittance economy of the migrants These rural urban mechanisms are accelerated by adverse state policies and transnational trade agreements 3 Chapter 1 Error Bookmark not defined Introduction and Background Error Bookmark not defined 1 1 STUDY AREA ERROR BOOKMARK NOT DEFINED 1 2 OBJECTIVES ERROR BOOKMARK NOT DEFINED Chapter 2 Error Bookmark not defined Literature Review Error Bookmark not defined 2 1 RURAL URBAN INTERACTIONS ERROR BOOKMARK NOT DEFINED 2 1 THE NATURE OF MARKET SYSTEMS MICRO LEVEL GEOPOLITICS AND CULTURE ERROR BOOKMARK NOT DEFINED 2 2 TREND OF URBANIZATION IN NEPAL ERROR BOOKMARK NOT DEFINED 2 3 FARMERS IN NEPAL AND THEIR INVOLVEMENT IN AGRICULTURE MARKET SYSTEM ERROR BOOKMARK NOT DEFINED 2 4 TRADE RELATIONS INSIDE AND OUTSIDE THE BORDER ERROR BOOKMARK NOT DEFINED 2 5 THE RURAL FARMERS AND URBAN NOBLEMAN HISTORY OF URBAN RURAL RELATIONS ERROR BOOKMARK NOT DEFINED Methodology Error Bookmark not defined 3 1 INTERVIEWS ERROR BOOKMARK NOT DEFINED 3 2 RESPONDENTS PROFILE FOR FARMERS ERROR BOOKMARK NOT DEFINED 3 3 SECONDARY DATA SOURCES ERROR BOOKMARK NOT DEFINED 3 4 SOURCES OF ERROR ERROR BOOKMARK NOT DEFINED Results and Discussions Error Bookmark not defined 4 1 EXISTING SOCIO ECONOMIC CONDITIONS AND DETERMINING FACTORS AT LOCAL LEVEL ERROR BOOKMARK NOT DEFINED 4 1 1 Landholding Error Bookmark not defined Source Field study 2003 Error Bookmark not defined 4 1 2 Production modes Error Bookmark not defined 4 1 3 Income vs Expenditure Error Bookmark not defined 4 2 MARKET MECHANISMS ERROR BOOKMARK NOT DEFINED 4 2 1 Primary markets or haats Error Bookmark not defined 4 2 2 Intermediate markets Secondary markets Error Bookmark not defined 4 2 3 Tertiary market system Error Bookmark not defined 4 2 4 The urban players Error Bookmark not defined 4 3 RURAL URBAN INTERACTIONS AND THEIR IMPLICATIONS ERROR BOOKMARK NOT DEFINED 4 3 1 Investment for production Error Bookmark not defined 4 3 2 Product and Capital Flow Error Bookmark not defined 4 3 3 Flow of People Migration Error Bookmark not defined 4 3 4 Implications in Lifestyle Error Bookmark not defined 4 4 3 5 Implication in production and consumption systems Error Bookmark not defined 4 3 6 Rural Urban Perception on Market System Error Bookmark not defined 4 4 RURAL AND URBAN MARKET IN RELATIONS WITH THE STATE ERROR BOOKMARK NOT DEFINED 4 5 RURAL URBAN MARKET SYSTEM AND INDIAN INFLUENCE ERROR BOOKMARK NOT DEFINED Conclusion Error Bookmark not defined References Error Bookmark not defined Annex List of Tables Table 1 Number of Town Cities Town and Cities in Nepal during different Consensual Period Error Bookmark not defined Table 2 Landholding capacity in Nepal with respect to regions Error Bookmark not defined Table 3 Characteristics of forms of production Error Bookmark not defined Table 4 Export Commodity Error Bookmark not defined Table 5 Nepal s trade with India Error Bookmark not defined Table 6 Age and family size of the respondent Error Bookmark not defined Table 7 Gender of the respondent Error Bookmark not defined Table 8 Usage of local and improved seeds for rice wheat and paddy cultivation Error Bookmark not defined Table 9 Average Spending Error Bookmark not defined Table 10 Production investment per Bigha Error Bookmark not defined Table 11 Usage of fertilizers per a single farmer Error Bookmark not defined Table 12 Empirical Inflow to Rangeli and Katahari Error Bookmark not defined Table 13 Empirical outflow from Rangeli and Katahari Error Bookmark not defined List of Figures Figure 1 Percentage Contribution of GDP Error Bookmark not defined Figure 2 Landholding Capacities of Farmers in Nepal Error Bookmark not defined Figure 4


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