38423-022: Raising Incomes of Small and Medium Farmers Project | Asian Development Bank

Nepal: Raising Incomes of Small and Medium Farmers Project

Sovereign (Public) Project | 38423-022 Status: Active

ADB is helping Nepal’s poorest farmers shift to high-value commodities. The project will help reduce market and business risks for small and medium farmers in 10 districts in the less-developed western region of the country. It will build supply chain links to buyers and markets, improve postharvest facilities, and provide agribusiness support.

Project Details

Project Officer
Rana, Arun S. South Asia Department Request for information
  • Nepal
  • Grant
  • Agriculture, natural resources and rural development
Project Name Raising Incomes of Small and Medium Farmers Project
Project Number 38423-022
Country Nepal
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0233-NEP: Raising Incomes of Small and Medium Farmers Project (formerly Crop Diversification and Commercialization Project)
concessional ordinary capital resources lending / Asian Development Fund US$ 20.10 million
Grant: Raising Incomes of Small and Medium Farmers Project (formerly Crop Diversification and Commercialization Project)
Government of Netherlands US$ 490,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Sector / Subsector

Agriculture, natural resources and rural development / Agro-industry, marketing, and trade

Gender Equity and Mainstreaming Gender equity

The project will reduce the market and business risks for small and medium farmers who diversify into high-value commodities (HVCs) in 10 districts of Nepal's Mid-Western

Development Region and Far-Western Development Region.

Project Rationale and Linkage to Country/Regional Strategy The project, while complimenting on-going initiatives in the rural sector, including those in irrigation, rural infrastructure, commercial agriculture and rural finance, will continue to facilitate diversification and commercialization of agriculture in regions with highest poverty levels in Nepal. It will also contribute to enhanced food security and poverty reduction by supporting the transition of the rural poor and socially excluded groups from a largely subsistence economy to a commercial one.
Impact Increased profitability of small and medium farmers in 10 project districts
Project Outcome
Description of Outcome Increased production of HVCs by small and medium farmers
Progress Toward Outcome

509 AGF subprojects granted, with supply agreements with the traders.

Out of the total awarded SPs, 176 are cooperatives, 189 are farmers groups, 141 are agri-entrepreneurs, & 3 are market committees. Of the total, 177 SPs are completed and 332 are under implementation.

HVC being produced in additional 7,028 ha (additional 0.5 ha of additional land brought under HVC production by participating farmers and 0.27 ha on an average by DGMF group members ); projected income of participating farmers group/cooperative members is NRs109,441.00 per household per year, where as income of agri-entrepreneurs is estimated at NRs. 737,000.00 per household per year. The total employment generated is 444,431 person days.

Implementation Progress
Description of Project Outputs

HVC value chains in the Mid-Western Development Region and the Far-Western Development Region are supplying markets

Business plans for producing and adding value to HVCs in the project regions

Effective project management

Status of Implementation Progress (Outputs, Activities, and Issues)

Output 1:

Over 1,730 supply agreements signed between primary producers and post-harvest VC actors (traders and processors) facilitated by the DCCI. However, only 509 have been approved.

2 pilot and 6 general call covering all project districts administered.

Out of 509 AGF sub projects, 176 subprojects awarded to Cooperatives, 189 to DGMs, 141 to Entrepreneurs and 3 to Market Committees. Out of total 110 post-harvest grants awarded for value chain infrastructures; 17 female owned enterprises supported; 153 AGF SPs awarded to cooperatives providing input to groups and cooperative members (636 farmers groups with 11310 households).

Output 2:

1,956 junior staff and officers from DOA, DADO, RADs and resource/training centers trained/strengthened. Women participation is 86% in groups and 55% in cooperatives. 590 farmers groups involved in HVC production with supply agreements. Female occupy 55% in executive committee member and 51% in key decision making positions in cooperatives. Over 90% of the approved applications being disbursed within 30 working days. 69 DP, IP and women headed groups with 4,264 member farmers producing HVC with grant support. 121 cooperatives supported in improving their financial system and governance. Potential entities for using alternative energy is being explored.

Output 3:

PMU established in Nepalgunj and fully staffed.

Liaison office in Kathmandu established and fully staffed

National Level Service provider contracted, and mobilized

Two regional level service providers for DGMF contracted, and mobilized.

Ten district level service providers contracted and mobilized.

PPMS established and operational.

Geographical Location Baitadi, Banke, Bardiya, Dadeldhura, Dailekh, Dang Deukhuri District, Darchula, Doti, Kailali, Surkhet
Safeguard Categories
Environment B
Involuntary Resettlement FI
Indigenous Peoples FI
Summary of Environmental and Social Aspects
Environmental Aspects

Raising Incomes of Small and Medium Farmers Project (RISMF) will ensure that:

(i) All investee projects using ADB funds are screened against the Prohibited Investment Activities List (PIAL) of the ADB Safeguard Policy Statement.

(ii) All investee projects using ADB funds with potential significant environmental and/or social impacts are reviewed and evaluated against the safeguard requirements of the ADB Safeguard Policy Statement.

(iii) All investee projects are reviewed and evaluated against the national laws, regulations and standards on environment, health, safety, involuntary resettlement and land acquisition, indigenous peoples, and physical cultural resources.

As provisioned in project document, each business plan include environmental management plan and proposal evaluation committees carefully review possible environmental impacts of each plan before approving for financing.

Involuntary Resettlement None
Indigenous Peoples None
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholders such as Ministry of Agriculture Development, Department of Agriculture, Agro-Enterprise Center, Nepal Rastra Bank, District Agricutlure Development Offices, district cooperatives, NGOs, and farmers were consulted during the project preparation.
During Project Implementation Last review mission fielded from 6 to 11 August 2017.
Business Opportunities
Consulting Services A number of NCB pakages completed to procure goods/office equipment. No packages for civil works.

National Level Service provider, two regional level service providers for DGMF and ten district level service providers contracted and mobilized.

Consulting packages of onfarm technical support, project management support, and technical support for value chain development recruited and mobilized.

Responsible ADB Officer Rana, Arun S.
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Ministry of Agricultural Development
Singha Durbar,
Ministry of Agriculture and Cooperatives
Singh Durbar, Kathmandu
Concept Clearance 09 Aug 2010
Fact Finding 11 Aug 2010 to 12 Nov 2010
MRM 29 Apr 2008
Approval 24 Nov 2010
Last Review Mission -
PDS Creation Date 26 Apr 2010
Last PDS Update 06 Sep 2017

Grant 0233-NEP

Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Nov 2010 16 Mar 2011 14 Jun 2011 30 Jun 2018 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 25.43 Cumulative Contract Awards
ADB 20.10 24 Nov 2010 18.48 0.00 92%
Counterpart 5.33 Cumulative Disbursements
Cofinancing 0.00 24 Nov 2010 17.05 0.00 85%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Unsatisfactory

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

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Tender Title Type Status Posting Date Deadline
Value Chain Infrastructure Engineer Individual - Consulting Active 23 Oct 2017 29 Oct 2017
Team Leader/Value Chain and Inclusive Business Expert Individual - Consulting Active 23 Oct 2017 29 Oct 2017

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan