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Nepal: Raising Incomes of Small and Medium Farmers Project

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

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
Country
  • Nepal
Modality
  • Grant
Sector
  • Agriculture, natural resources and rural development
 
Project Name Raising Incomes of Small and Medium Farmers Project
Project Number 38423-022
Country Nepal
Project Status Closed
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
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
Description

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

- High value commodity (HVC) production expanded on additional 8,706.89 ha.

- Additional 0.65 ha. of additional land on average brought under HVC production by participating small and medium farmers (additional 0.45 ha. on average by disadvantaged groups and marginalized farmer group members).

- Currently, women participation is around 65% and projected cash income of participating women increased to NRs. 121619 annually.

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:AGF grants awarded to 645 subprojects - Cooperative: 216 - Farmer Group: 280 - Agri-entrepreneurs: 146 - Market Committee: 3Further details of sub projects are as follows:- 22 post-harvest grants have been awarded to cooperatives- 100 post-harvest grants awarded for value chain infrastructure- 3 SPs awarded from marketing committee for market infrastructure development- 147 medium sized enterprises supported. Out of which 63 enterprises supported for HVC processing.- 25 female owned enterprises supported.- 194 AGF SPs awarded to coops providing input to groups and coop members (21778 households).- At least 860 farmer groups with 21778 member farmer households supported in HVC production, including land lease to fulfil the respective supply agreement between FGs and HVC traders/buyers.- 280 DGMF groups with 6739 member farmers producing HVC with grant support.- 156 AGF SPs grant awarded to coops under the category 2- farm development and technology.- 77 SPs awarded on innovative farm development and new technology demonstration.Output 2:- More than 2585 supply agreement between primary producers and post-harvest VC actors (traders and processors) facilitated by the DCCI; however, only 645 have been approved.- 216 Cooperatives supported in improving their financial system and governance rules.- 6 post-harvest related sub-projects are using alternative sources on energy.- AEC contracted for AMIS; fully staffed; scoping AMIS completed; market information system (SMS, Price Broadcasting from local FMs, and one mobile apps lunched).- Political reformation dismissed DADOs, RADs and resource/training centers. Land management, Agriculture and Co-operative ministry has been formed in the province level and Agriculture Knowledge Centers are created under the provincial ministry. However 1773 junior staff and officers form DOA, DADO, RADs and resource/training centers strengthened.- The women participation is 88.13% in the groups and 48.63% in cooperatives860 farmers groups involved in HVC production with supply agreements.- 81.91% of executive committee member are female and 89% in key decision making positions (in FGs).- 30.55% of the executive members are women and 39% in key decision making positions in cooperatives.Output 3:The project was managed effectively with high level of governance and accountability. PMU established in Nepalgunj and fully staffed during the entire period of the project. National Level Service provider contracted, and mobilizedTwo regional level service providers for DGMF contracted, and mobilizedTen district level service provider contracted and mobilized. PPMS prepared; M&E workshop held; web-based MIS developed/established and data has been entered.
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) ensured the following during its implementation:(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 Regular review mission were fielded to ensure that the project was on track and to track its performance indicators. All the related stakeholders were duly consulted during the project implementation.
Business Opportunities
Consulting Services A number of NCB pakages completed to procure goods/office equipment. No packages for civil works.
Procurement

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,
Kathmandu,
Nepal
Ministry of Agriculture and Cooperatives
Singh Durbar, Kathmandu
Nepal
Timetable
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 26 Sep 2019

Grant 0233-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Nov 2010 16 Mar 2011 14 Jun 2011 30 Jun 2018 30 Jun 2019 31 Mar 2020
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 18.50 0.00 92%
Counterpart 5.33 Cumulative Disbursements
Cofinancing 0.00 24 Nov 2010 18.50 0.00 92%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

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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Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Impact Evaluation Study Firm - Consulting Closed 28 Dec 2018 26 Jan 2019
District Monitoring Officer (Bardiya) Individual - Consulting Closed 28 Jul 2018 03 Aug 2018
District Monitoring Officer (Baitadi) Individual - Consulting Closed 28 Jul 2018 03 Aug 2018
District Monitoring Officer (Dang) Individual - Consulting Closed 28 Jul 2018 03 Aug 2018
District Monitoring Officer (Surkhet) Individual - Consulting Closed 28 Jul 2018 03 Aug 2018
District Monitoring Officer (Darchula) Individual - Consulting Closed 28 Jul 2018 03 Aug 2018
District Monitoring Officer (Dailekh) Individual - Consulting Closed 28 Jul 2018 03 Aug 2018
District Monitoring Officer (Dadeldhura) Individual - Consulting Closed 28 Jul 2018 03 Aug 2018
District Monitoring Officer (Kailali) Individual - Consulting Closed 28 Jul 2018 03 Aug 2018
District Monitoring Officer (Doti) Individual - Consulting Closed 28 Jul 2018 03 Aug 2018
District Monitoring Officer (Banke) Individual - Consulting Closed 28 Jul 2018 03 Aug 2018
Value Chain Infrastructure Engineer Individual - Consulting Closed 28 Jun 2018 04 Jul 2018
Value Chain Infrastructure Engineer Individual - Consulting Closed 23 Oct 2017 29 Oct 2017
Team Leader/Value Chain and Inclusive Business Expert Individual - Consulting Closed 23 Oct 2017 29 Oct 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
DISTRICT NGO DADELDHURA Grant 0233 15 Aug 2018 MULTIPURPOSE DEVELOPMENT SOCIETY DADELDHURA J DADELDHURA NEPAL NEPAL Ministry of Agriculture and Cooperatives Consulting Services 126,766.00

Procurement Plan