Institutions and livelihoods in Nepal’s tea value chain : a policy paper

This paper compares the livelihoods of farmers in Nepal who grow tea for local markets with those who adopt organic and other food standards for export markets. It illustrates how a livelihood approach can be integrated into value chain analysis to understand the impact of interventions on the welfare of households. Findings show that specific institutional factors, such as labour allocation rules, factory grading practices, and support for on-farm learning affect whether individual farmers can benefit from upgrading their production. Outmigration from rural areas could threaten these benefits. Reconciling institutional, livelihood and value chain analysis yields insights into rural transformation