Nepal: Nuts and Fruits in Hilly Areas

Sovereign (Public) Project | 48218-006

The project focuses on the mid and high hills areas of Nepal to address: (i) an increasing gap between horticulture demand and supply, and trade deficit; (ii) more concentrated poverty in the hilly areas; and (iii) growing opportunities to develop the horticulture sector in the country and its potential in the hilly areas. The impact of the project will be livelihood improved for rural households. The outcome of the project will be beneficiary farmers' agricultural income from climate resilient farming of fruits and nuts increased.

Project Name Nuts and Fruits in Hilly Areas
Project Number 48218-006
Country Nepal
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Nuts and Fruits in Hilly Areas Project
concessional ordinary capital resources lending / Asian Development Fund US$ 50.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Agricultural production - Agro-industry, marketing, and trade

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project focuses on the mid and high hills areas of Nepal to address: (i) an increasing gap between horticulture demand and supply, and trade deficit; (ii) more concentrated poverty in the hilly areas; and (iii) growing opportunities to develop the horticulture sector in the country and its potential in the hilly areas. The impact of the project will be livelihood improved for rural households. The outcome of the project will be beneficiary farmers' agricultural income from climate resilient farming of fruits and nuts increased.
Project Rationale and Linkage to Country/Regional Strategy Fruit demand in Nepal is increasing as a result of urbanisation, the rising middle-class population, improved knowledge of nutrition and increased tourist flow while rice, while wheat and maize constitute more than 30% of the country's agricultural GDP. Horticulture production is not meeting demand and a trade deficit in vegetables, fruits and nuts is rising sharply. The cost of fruit, nut and potato importation increased by 136% and the cost of processed horticulture product importation by 235% between 2013 and 2017. During the same period, vegetable exports declined by 44 percent, and fruit and nuts by 96 percent, with beverages (coffee, tea) and spices rising by just 1 percent. 12. Horticulture production that is mostly favorable in mid and upper hills areas are not meeting its potential mainly because of the low productivity, limited access to financing, high post-harvest losses, shortage of labour and climate change impacts. Recently, emerging niches for specialized horticulture production are improving hilly area household income and reducing labor migration, providing a favourable environment to build upon these opportunities
Impact

Livelihoods improved for rural households

Resilience of farmers to climate change improved

Outcome

Beneficiary farmers' agricultural income from climate resilient farming of fruits and nuts

increased

Outputs

Institutional capacity for nursery and horticulture sector management improved

Fruit and nut production and productivity of project farmers increased

Value addition to fruit and nut enhanced in hilly areas

Geographical Location Bagmati Province, Gandaki Pradesh, Karnali Pradesh, Province 1, Sudurpashchim Pradesh
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services All consulting services will be carried out using the ADB Procurement Policy (2017, as amended from time to time) and the Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Procurement All procurement activities will be undertaken following the ADB Procurement Policy (2017, as amended from time to time) and the Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Responsible ADB Officer Kim, Sunae
Responsible ADB Department South Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SARD
Executing Agencies
Department of Agriculture
HMGN, Harihar Bhawan
Lalitpur
Nepal.
Ministry of Finance
The Government of Nepal
Singha Durbar
Kathmandu, Nepal
Timetable
Concept Clearance 07 Jun 2021
Fact Finding 19 Jul 2021 to 02 Aug 2021
MRM 30 Sep 2021
Approval -
Last Review Mission -
Last PDS Update 07 Jun 2021

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Title Document Type Document Date
Nuts and Fruits in Hilly Areas Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Jun 2021

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.

None currently available.


Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

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Contracts Awarded

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Procurement Plan

None currently available.