United Nations
Information Centre | Nepal
Markets and Cash Research Project: Preliminary findings 10 Nov 2009 WFP Nepal Food Security Monitoring and Analysis Unit
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This update outlines preliminary findings from WFP Nepal’s research project on food markets and cash interventions in the Mid and Far West Hills and Mountains (MFWHM). The study focuses on the trade corridor along the Karnali highway (Kalikot, Jumla and Mugu districts – see map) where markets do not function well and food prices are high. It aims to understand the barriers to effective markets in MFWHM and explore ways that WFP Cash for Work interventions might be used to stimulate markets, alongside other approaches. Markets are critical for food security in Karnali. Households in the three study districts access markets for 50% of their rice needs but lack purchasing power, so they travel an average of 2 days’ round trip to access lower priced road head markets. A kg of rice costing Rs 25 in the plains costs Rs 65 or more in mountain markets.Transport prices are by far the most significant determinant of food prices in the hills and mountains – as much as 60% in Mugu. Markets in the mountains are poorly linked to Nepalgunj meaning food price decreases in the plains are not necessarily passed on, and supply is erratic. Cash For Work has a significant but short term impact on local economies, stimulating markets and reducing migration; if used appropriately and at critical periods, it might have an exponential effect and form an important part of a broader food security strategy. Further research is ongoing on how CFW could be used to stimulate markets. The Karnali Highway development has increased food availability, reduced prices and price variability, but the price decrease has been less than expected – partially due to rising global food prices and the poor quality of the unsealed road. Ongoing research will explore the full range of causes. Road development can help address food insecurity but only in tandem with increased income opportunities, credit and market facilities. Road construction was cited by 25% of traders as the reason for opening their shop where they did.

#MarketAndCashResearchProject #FoodSecurity #Transport #FoodPrices
Publisher:
WFP ,   (2009 )
Type / Script:
Bulletin or Poster in English
Keywords:
FOOD, FOOD SECURITY, HIGHWAY, INTERVENTION, HOUSEHOLD, FOOD PURCHASING POWER, ROAD DEVELOPMENT, MARKET, LOCAL PRODUCTION, TRANSPORT, INCREASE FOOD AVAIBILITY, FOOD PRICES, OPPURTUNITIES
Thematic Group:
 WFP : Food and Emergency humanitarian logistict support
Thesaurus:
10.01.00  -  Food And Nutrition
Reference Link:
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