4 SARTFP GENDER PLATFORM KNOWLEDGE SERIES Large Cardamom and Allo in Nepal: Women home-based workers see opportunities expanding, but barriers remain Í @WORLDBANKSASIA n High profit margins in cardamom and increasing demand for allo are creating new opportunities and attracting more women home-based workers. n While there is growing potential for large cardamom and allo, women home-based workers are involved primarily in the earlier stages of production that are strenuous and less profitable, but not in the later more lucrative stages of marketing and trade. n Removing barriers—including inefficient production processes, lack of access to and training on improved technologies, absence of strategies to reach wider markets, and insufficient access to finance—will help to ensure that women home-based workers can reap the benefits from the expanding cardamom and allo market. A brief on findings from the study: Understanding the Role of Women Home-Based Workers in Large Cardamom and Allo Value Chains in Nepal 2 | L A R G E CA R DA MOM AN D AL LO I N N E PAL L A R G E CA R DA M O M AN D AL LO I N N E PAL Allo: Himalayan Giant Nettle Cardamom pods. Source: Nepal National Sector Export Policy: Large Cardamom, 2017–21,” GoN and ITC. Nepali women who do home-based work in the production of large cardamom and allo regard Methodology and Study Areas these products as attractive income sources.1 Ne- n The study was conducted in the north- pal is the world’s largest producer and exporter of eastern districts of Taplejung and Sankhu- large cardamom. In 2016–17, the country’s export wasabha for cardamom and allo value of large cardamom was valued at NPR 3.8 billion chains, respectively. (approximately US$37.5 million).2 Allo, of high cul- n The methodology included a stakehold- tural importance for indigenous communities in er mapping; interviews with producers, northeastern Nepal, is increasingly recognized as collectors, processors, traders, and sellers; a top natural fiber with growing demand. and interviews with representatives from the government, trade associations, non- Both cardamom and allo value chains demon- governmental organizations, and donor strate large potential for women to reap economic agencies.   benefits through improved business practices and products. The World Bank supported the study, n Fifty-seven interviews, of which 37 were “Understanding the Role of Women Home-Based with women, were carried out with par- Workers in Value Chains of Large Cardamom and ticipants in the large cardamom value Allo in Nepal,” to analyze the roles and working chain. Likewise, 56 interviews, of which 43 conditions of women and men in the supply were with women, were conducted with chains, identify bottlenecks for women to engage participants in the allo value chain. in profitable activities, and recommend ways to remove barriers and enhance women’s economic opportunities in the value chain.3 depend on cardamom as their primary cash crop. Over 75 percent of farmers interviewed for the study said that large cardamom accounted for KEY FINDINGS more than 60 percent of their cash income. Like- wise, allo processing contributes significantly to Cardamom and allo production are important the income of many families traditionally engaged income sources for women home-based work- in subsistence farming of crops such as rice, mil- ers. Farmers, who are mostly involved in dairy lets, and corn. Eighty-three percent of farmers farming, livestock rearing, and vegetable growing, interviewed for the allo value chain assessment 1 Large cardamom is an expensive spice. Allo is the local name for Himalayan Giant Nettle, which grows abundantly in mountain and hill areas across Nepal at elevations between 1,200 and 3,500 meters above sea level. 2 Trade and Export Promotion Center, Government of Nepal. 3 The World Bank’s South Asia Region Trade Facilitation Program’s (SARTFP) Gender Platform supported the study in coordination with the grantee “Advancing women's enterprises for economic impact in the farm/non-farm value chain and regional trade” (P161779). The study was carried out in partnership with HomeNet South Asia; Women in Informal Employment: Globalizing and Organizing (WIEGO); and SABAH Nepal. HomeNet South Asia is a regional network of home-based workers in South Asia. WIEGO is a global network focused on strengthening livelihoods of poor people, especially women in the informal economy. SABAH Nepal is a social business organization that supports a network of women home-based workers. L A RG E CA RDA M OM A N D A LLO IN N EPAL | 3 Women involved in processing cardamom — tail cutting, grading — work as wage laborers. Source: Understanding the Role of Women Home-Based Workers in Value Chains of Large Cardamom and Allo in Nepal reported that the largest share of income comes as SABAH Nepal, Sana Hastakala, and Allo Samaj from allo-related activities. For 64 percent, allo-re- prize the fiber for producing luxury handicrafts lated activities are the primary source of income such as bags, scarves, and notebook covers for and for 22 percent of the farmers, it complements sale in domestic and international markets. Such income from commercial farming, including organizations are creating opportunities for wom- cardamom. en by introducing them to new skills, equipment, operational processes, and markets outside the High profit margins in cardamom and increas- local area. While selling beyond the local market is ing demand for allo are creating new oppor- a new phenomenon, women home-based work- tunities and attracting more women home- ers are interested in moving up the value chain. based workers. Profit margins for large cardamom Among the 34 respondents for the allo value chain are wide with most farmers interviewed making assessment, 68 percent reported an increase in anywhere from 20 percent to 400 percent de- production over the last couple of years. In addi- pending on the productivity of land, proximity to tion, about 70 percent had added higher-level allo markets, cost of inputs, and proximity of irrigation processing activities and produced new or bet- facilities. About 40 percent of cardamom farmers ter-quality products. Overall, women were keen interviewed wanted to move up the value chain to learn new skills and designs, with 67 percent of within the next three years. While most respon- the respondents expressing desire to move up the dents preferred to sell products after sorting and value chain. tail-cutting, one respondent already involved in an enterprise expressed an interest in processing While there is growing potential and interest cardamom to make spices for tea. Enterprises that in cardamom and allo, women home-based process cardamom into higher value-added prod- workers are involved primarily in the earlier ucts such as spice-powder, cardamom fiber, and stages of production that are strenuous and cardamom oil are small in number. However, they less profitable, but not in the later more lu- tend to employ women and are creating oppor- crative stages of marketing and trade. In the tunities for women in the processing stage of the cardamom supply chain, as shown in Figure 1, value chain. home-based farmers, predominantly women, har- vest, clean, and dry the crop, mostly in traditional Growing consciousness of the benefits of natural furnaces. Women carry out the drudgery while fibers over the last two decades has increased men track prices, deal with traders, and transport international demand for allo-based products. products for sale. Men sell the packed cardamom Profit margins are high for weaving cloth and to village vendors who then sell it to local and dis- product-making. Handicraft manufacturers such trict traders, who carry out further cleaning and 4 | L A R G E CA R DA M O M AN D AL LO I N N E PAL Figure LARGE1: CALarge Cardamom R DA M O M AN D AL LO I Value Chain Map N N E PAL Input supply Harvesting, Trading and Processing / postharvesting, Collecting transportation Wholesaling Domestic market drying Hills Water Domestic market Commercial farms (0.1%) Energy (5% of production) - Firewood (Land leased by - Electricity private cooperatives - Fuel (India) and cooperatives International market Labour force Wholesalers and Small farms holders traders at central (95% of production) markets in 99% Transporters Local traders Birtamod, Fikkal, Long distance India Machineries - Harvesting Village - Tractor vendors Cleaning and Dhankuta (#2) - Cleaning grading (99% of trade) Bhutan - Sprayer - Drying in bhatti Indian Traders - Sprinkler traditional (95%) -Cleaning New Delhi: Garodia market improved (5%) -Regrading Kolkata: Amartola and -Tail cutting Armenian street Fertilizers District Siliguri: Alupatti New Market traders -Packaging Cleaning and Pesticides grading Packaging & raw materials Nurseries Pakistan (59.6%)* Other destinations - Fibre –UK (11.5%)* - Plastic Private > #150 Wholesalers granules –UAE (11%)* Cooperatives Karachi: Jodia market –Kuwait (2.8%)* - Sewing Lahore: Akabari Mandi - Jute bags Rawalpindi: Ganj Mandi –Saudi Arabia (2.4%)* Cardamom –Others (12.6%)* Development International Centre component Government farms (#2) Supplying countries to Pakistan National - India (57.8%) component -Dolkha - China (22%) -Rukum - Guatemala (13.9%) - Viet Nam (6.2%) Source: “Nepal National Sector Export Policy: Large Cardamom, 2017–21,” GoN and ITC. grading. Female traders are rare in the value chain, Figure 2: Allo value chain map and male traders sitting at the top of the value Export Export Customs, NCC, chain reported the largest profit margins, some- FNCCI times above 700 percent. Consuming Consumers (village, district, national) From the local or district traders, cardamom is sold Cloth manufactures at to wholesalers and traders in the central markets Kathmandu and big cities of Birtamod, Fikkal, and Dhankuta. Here, further Manufacturing Cloth manufactures cleaning, regrading, tail-cutting, sorting, and pack- at district Collectors weave thread and clothes I/NGOs, MEDEP BFIs, PS, EbA aging takes place. Large numbers of women work Regional Traders in the processing units in Birtamod as wage labor- (Dang, NPJ etc.) ers. After processing, 99 percent of the cardamom Local and BFIs, DCCI is exported with over 90 percent going to India. District Village level traders level trading Village level traders Allo production is much more arduous than large Trade of coarse fiber cardamom. Indigenous communities like Rais, Gu- CBOs, NGOs, EbA, Processing Processors/Collectors rungs, Sherpa, Magars, Kulung Rais, and Tamangs RPs/DFOs, BFIs have traditionally processed allo and used allo Collection Collectors cloth and products for rituals. The knowledge and Production Government, Leasehold and practice of harvesting, processing, and producing CommunityForest, Fallow lands allo products are deeply ingrained in the indige- Function Actors Enablers nous culture and passed on through generations. Source: “Value chain of Allo of Panchase protected forest area,” BARDAN, GoN, UNDP, 2014. In the allo value chain, mapped in Figure 2 and pictured in Figure 3, women are the primary har- Post-harvest activities are backbreaking. Women vesters. They harvest allo in the winter, when the peel the bark; dry, cook, and wash it in running plant produces better-quality fiber, stings less, water; and pound the bark before spinning it to and when people are free from farming activities. make yarn and later thread. As a result, women Harvesting allo entails long treks and sometimes experience aching eyes and body pain. The pro- staying in the forest for two to four days. cess is exacerbated by the use of traditional tools L A RG E CA RDA M OM A N D A LLO IN N EPAL | 5 Figure 3: Allo production is arduous and women use customary tools Kulung women harvest Drying the bark Peeled bark is boiled Bark is washed Bark is mixed with allo and extract bark in traditional vessels in flowing water clay to soften it and beaten Later is it beaten to Nettle is spun to yarn using Thread is ready it is Allo products: scarves, remove the clay traditional wooden tool woven in traditional bags, wallets, caps, shoes handlooms or knitted Source: Nettle Society like cooking vessels, spindles, and looms. Occa- their daily routines. Men, on the other hand, con- sionally, younger women barter dried bark for tribute as traders and shopkeepers.  thread because transforming the bark to thread is a laborious job, which a lot of elderly women All farmers involved in cardamom and allo do. The younger women find it easier to provide production face challenges when trying to im- bark to elderly women who convert it to thread prove the quality of products and command and provide it back for a small amount of money, better prices. For instance, disease control, high- or sometimes grains or vegetables. er-grade seeds, better production protocols and drying techniques, and more efficient tail-cutting Once the thread is ready, it is sold in local markets or processes and grading methods would help im- to traders from other parts of the country for cash. prove large cardamom quality. Seventy-seven Some women process the thread to make tradi- percent of the respondents mentioned that crop tional items such as scarves, embroidered jackets, diseases were a major constraint for growth in car- bags, sacks, mats, and headbands to carry baskets; damom production. Moreover, high input costs for these items are both for domestic use and for sale labor, water, fertilizers, and pesticides also compel to traders at local, regional, and national levels. En- farmers to compromise quality. In allo production, trepreneurs and trading and business groups are the drudgery affects quality. Improved refining increasingly becoming a key part of the allo value techniques and better skills in producing luxury chain. All activities prior to sale are dominated by allo products can help to increase product quality women, who have integrated allo production into and consequently income. 6 | L A R G E CA R DA M O M AN D AL LO I N N E PAL L A R G E CA R DA M O M AN D AL LO I N N E PAL Stakeholders expand opportunities with new skills, technology, and markets: Diverse organizations are coming together to support women home-based workers in cardamom and allo. SABAH Nepal supports processing of cardamom into products such as tea powder in Taplejung. Himalica and Chandan Fibre, which produce cardamom spice power and fiber, respectively, are creating opportunities for women in the processing stages of the value chain. The Federation of Handicraft Associations of Nepal, Fair Trade Group Nepal, and the Handicraft Design and Development Centre support design and product development, and marketing of allo-based products. SABAH Nepal, Sana Hastakala and Allo Samaj are connecting women to markets, information, and improved technologies. Sana Hastakala and Allo Samaj are experimenting with mechanization of thread-making and weaving to improve quality and efficiency. The Nepal Innovation Technology and Entrepreneurship Center is developing machines for cooking, beating, and washing allo. The International Centre for Integrated Mountain Development, the German Agency for International Cooperation, and the United Nations Development Programme are encouraging Nepal’s allo commercialization journey through research, piloting, and policy support. Key barriers for women to increase income are limited and the tail-cutting process is or move up the value chain include: inefficient. When working with allo, women use customary cooking vessels, spindles, n Traditional practices and technologies: and looms. Women depend on traditional practices n Access to finance: Access to finance is a ma- and technologies to process cardamom and allo, which adds to the drudgery and jor constraint for many women entrepreneurs inefficiency. Women engaged in cardamom and home-based workers, but it is particularly use traditional drying techniques such as concerning for women involved in cardamom furnaces, in the absence of modern dryers production. The study indicates that traders and grading methods. Irrigation facilities also function as lenders and take advantage L A RG E CA RDA M OM A N D A LLO IN N E PAL | 7 Entry points for World Bank projects to support women working in the allo and large cardamom value chains The study’s recommendations provide several entry points for World Bank projects. The SARTFP Gender Platform recom- mends that project teams consider the following: n Expand analysis on home-based workers in cardamom and allo, including better understanding of the dynamics in this foundational study; there is much to understand. A similar study is being carried out in Bhutan following release of the report in Nepal. The Bhutan work will be focused exclusively on cardamom and a comparative analysis, as there is a lot to learn from Nepal.   n Large infrastructure projects in eastern hills can consider home-based work in cardamom and allo value chains as liveli- hood options for households, particularly for women, that may be affected by construction activities. n As allo is harvested primarily during winter, livelihood interventions can explore its potential as a complementary live- lihood activity. n In addition to trading allo products, processing allo is a cultural heritage that showcases rich indigenous knowledge and tradition. Economic opportunities can be created by promoting tourism activities around allo production and processing. n Design initiatives that support women home-based workers to process higher-quality cardamom and provide them with opportunities to expand the large cardamom value chain with high-quality products. Maya Gurung, Large Cardamom Entrepreneur from Taplejung in Eastern Nepal, with products made from cardamom fibre. Richa Bhattarai/World Bank of this relationship to not pay extra for pro- n Gender norms: Women’s caretaker roles, cessed cardamom. their responsibility for household chores, n Knowledge and skills: As women predomi- limited mobility, and exclusion from finan- nantly engage in harvesting operations, they cial decisions affect their productivity and have limited skills in processing and trans- therefore income from cardamom and allo forming. Product quality could be enhanced production. by expanding the knowledge base on seed varieties and processing techniques for carda- How to support women home-based workers mom, and by improving practices along the to advance up the value chain and increase entire value chain for allo. returns? 8 | L A RG E CA RDA M OM A N D A LLO IN NEPAL The study proposes the following set of recommen- and improve product quality. For the allo sector, dations to address barriers faced by women produc- provide training to women on marketable de- ers and promote their movement up the cardamom signs to promote sales. For cardamom, skills to and allo value chains. process the capsules to produce spice, good es- sence, perfumes, and medicines can help with advancement up the value chain. Research and policy advocacy n Train and educate women on the need to main- n Improve the collection and analysis of gen- tain a high standard of product quality to ac- der-disaggregated data to improve the planning quire larger market shares locally and to access and design of activities that support the carda- markets beyond Nepal. mom and allo value chains, especially for women. n Design and implement policies and women-cen- Access to credit tered strategies to create an enabling ecosystem n Facilitate access to credit for farmers (particu- where women can move up the value chains. larly large cardamom farmers) to reduce their n Conduct research to estimate the economic dependency on traders for finance. losses resulting from the suboptimal working n Design financial products to support women’s conditions of home-based workers.   entrepreneurship. n Strengthen attention to the allo value chain to benefit women home-based workers. Specif- ically, the government may consider affording Explore new products allo “national fiber” status to attract investment. n Explore and invest in products that have the po- n Recognize and raise awareness about the signif- tential to contribute to women’s economic ac- icant role of women in large cardamom and allo tivity and income. For example, cardamom pow- production to enhance their returns.  der-based products have the potential to bring an attractive return for women home-based workers.  Technology and training for efficiency, quality products, and improved working conditions Regional collaboration for solutions and markets  n Provide technology to reduce drudgery and im- prove quality. Examples of technologies needed n Strengthen national capacity and regional co- include modern dryers (double drum dryers) for operation with India and Bhutan to reduce cardamom, alternatives to firewood stoves, safer crop-related disease, a major constraint for large substances to soften bark, and improved spin- cardamom production.  dle and loom design. n Improve exchange of ideas between Nepal, In- n Organize and train female farmers engaged in dia, and Bhutan to improve production and ex- large cardamom or allo to enhance efficiency pand market reach.   This note is prepared by the South Asia Regional Trade Facilitation Program (SARTFP) Gender Platform, which provides technical support and knowledge generation and sharing on the linkages between gender and trade—with a focus on women’s economic empowerment— to SARTFP-funded activities and other Bank-supported tasks that are closely aligned with SARTFP objectives. The World Bank SARTFP, supported by the Government of Australia’s Department of Foreign Affairs and Trade (DFAT), seeks to improve cross-bor- der trade and connectivity in the Eastern Corridor of South Asia (specifically Bangladesh, Bhutan, Northeast India, and Nepal), with an emphasis on generating and sharing knowledge on ‘what works’ in promoting women’s economic activity. The program achieves this through three the- matic pathways— transport connectivity, trade facilitation and trade policy, and local enterprise development and economic opportunities.