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|
|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||
436 AGF subprojects granted, with supply agreements with the traders.
HVC being produced in additional 7,219 ha; and participating farmers producing HVCs 0.302 ha on average. 73,657 mt of vegetables, fruits, seed, spices, and honey produced. Out of the total, value added in 16,353 mt of HVCs. Cash income of participating women projected to increase to NRs 98,396 per annum from high value crop sale compared to baseline NRs 10,270 from High value crops.
Out of the total awarded SPs, 162 are cooperatives, 169 are farmers groups, 104 are agri-entrepreneurs, & 1 is market committee. Of the total, 119 SPs are completed and 317 are under implementation.
|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 1,715 supply agreements signed between primary producers and post-harvest VC actors (traders and processors) facilitated by the DCCI. However, only 436 have been approved.
2 pilot and 5 general calls covering all project districts conducted. A total of 990 grant applications/business plans received. 436 AGF subprojects awarded till date.
Proposal under 5th call being administered and 103 proposals are at the final stage of evaluation.
Out of 436 AGF sub projects, 162 subprojects awarded to Cooperatives, 169 to DGMs, 104 to Entrepreneurs and 1 to Market Committee. 19 subprojects awarded to cooperatives for post-harvest value addition activities. 68 SPs awarded for post-harvest operation/value chain infrastructure. 68 medium sized enterprises supported. 13 female owned enterprises supported. A total of 12,343 members of 113 farmer groups supported in HVC production, including land lease to fulfill respective supply agreement between FGs and HVC traders/buyers.
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||Up to 17 districts of the Midwestern and Far Western Development Regions of Nepal|
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 27 May to 17 June 2016.|
|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||27 Mar 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||19.26||0.00||96%|
|Cofinancing||0.00||24 Nov 2010||13.91||0.00||69%|
|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.
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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.
|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.
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