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 Name||Raising Incomes of Small and Medium Farmers Project|
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|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|
|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.
|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)||
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).
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.
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|
|Summary of Environmental and Social 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.
|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.|
|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|
Ministry of Agricultural Development
Nepal 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|
|Approval||Signing Date||Effectivity Date||Closing|
|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%|
|Cofinancing||0.00||24 Nov 2010||17.05||0.00||85%|
|Status of Covenants|
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.
The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
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.
|Title||Document Type||Document Date|
|Raising Incomes of Small and Medium Farmers Project: Financial Intermediary: Environmental and Social Management System||Environment and Social Management System Arrangements||Nov 2010|
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
|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|
No contracts awarded for this project were found
|Title||Document Type||Document Date|
|Raising Incomes of Small and Medium Farmers Project||Procurement Plans||Mar 2014|