Asian Development Bank to help agriculture in Nepal

The Asian Development Bank has decided to grant 18 million dollars of assistance to Nepal's Eastern Development Region, to help with agricultural commercialization in order to expand economic opportunities for the rural poor.

The project is aimed at bringing together farmers, traders, and processors to work toward improving the efficiency of production, marketing, and processing of high value crops in the region, like vegetables, fruits, tea, and spices.

According to an official release, the project will be carried out in 11 districts: Dhankuta, Ilam, Panchtar, Terhathum, Udayapur, Jhapa, Morang, Saptari, Siraha, Sunsari, and Taplejung.

"The project will help these districts build on existing strengths by helping the farmers to become more involved in commercial agriculture, and helping processors and traders to improve their links to farmers and small entrepreneurs," said Jiangfeng Zhang, an ADB Project Economist.

"In doing so, the project will accelerate the process of agricultural commercialization in the region and, consequently, reduce poverty," Zhang added.

The project will help subsistence and semi-commercial farmers adopt high value crops to improve returns, and to become more knowledgeable and capable in participating in commercial activities.

Commercial farmers will be trained on social issues, gender concerns, and environmental responsibility. The landless will be assisted through training to become employed in agriculture-related activities.

The project will promote the socially inclusive participation of all stakeholders, including the poor, disadvantaged, and women in commercial agriculture, and help them receive fair benefits from such participation; and in turn contribute to restoring peace and stability in the region.
A commercial agriculture fund will be established to provide a facility for the community to make investments in local market infrastructure, such as collection centers, small markets, storage centers, and farm-to-market road improvements. Commercial Agriculture Alliance (CAA), a non-profit company, has been established to manage the fund.

The fund will also support non-infrastructure investments that can add value to the agriculture products, such as pest management techniques, promotion of improved cultivation practices, greenhouse equipment, and laboratory equipment for product testing and quality control. Promotional activities like trade fairs will also be supported.

The project's total cost is estimated at 24.1 million dollars, with ADB financing amounting to 18 million dollars. The Nepal Government will contribute 800,000 dollars, CAA members 4 million dollars, and the balance will come from district development committees and the farmer communities.