Value Chain Development of Fruit and Vegetables in …...3 Project Title Value Chain Development of...
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Value Chain Development of Fruit and Vegetables in Nepal
(2018-2022 / USD 5,500,000)
P r o j e c t D o c u m e n t
05.04.2018
UNDP Nepal
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Project Title Value Chain Development of Fruit and Vegetables in Nepal
Organization UNDP Nepal office
Mr. Renaud Meyer, Country Director, [email protected]
Ms. Sophie Kemkhadze, Deputy Country Director, [email protected]
+977 01 522 3200
Date of Submission 14 February 2018
Target Country Nepal
Project
Location
40 urban municipalities and rural municipalities in districts adjoining two road corridors in
Provinces 3 and 4:
Arniko and BP highway (Banepa-Sindhuli-Bardibas) road corridor (Kavre, Dolakha,
Ramechhap and Sindhuli, Districts); and
Kathmandu-Pokhara road corridor (Dhading, Makwanpur, Chitwan, Nawalparasi, Tanhun,
Gorkha, Kaski, and Syanja Districts)
Beneficiaries Direct beneficiaries:
9,960 smallholder farmers growing fruit and vegetables in the target areas;
20 collection centres and satellite markets;
cooperatives managers and operators (150 participants for training on cooperative
management and 60 participants to exposure visits);
extension officers, junior technicians, private extension providers and lead farmers (1,125
participants for training on extension and production technology); and
government staff working on extension and postharvest loss management (40 participants
to exposure visits from the Department of Agriculture, the Nepal Agriculture Research
Council (central level) and state government (state level).
Indirect beneficiaries:
25,000 target farmers’ households and farmers and their households outside the target
group who will be eventually benefit from adoption of new postharvest technology;
100 private extension providers (agro-vets)
other private service providers in the transportation and packaging material supply
sectors;
consumers; and
staff of the Ministry of Agricultural, Land Management and Cooperatives and the Nepal
Agriculture Research Council.
Project Period June 2018 – December 2022 (54 months)
Goal and
Objectives
The goal is to improve incomes of smallholder farmers through value chain development of
vegetables and fruit in Provinces 3 and 4 in Nepal.
Contributing outcomes and indicators
Sustainable Development Goals:
1.4. By 2030, ensure that all men and women, in particular the poor and the vulnerable, have
equal rights to economic resources, as well as access to basic services, ownership, control
over land and other forms of property, inheritance, natural resources, appropriate new
technology and financial services, including microfinance.
1.4.1. Proportion of population living in households with access to basic service
2.3. By 2030, double the agricultural productivity and incomes of small-scale food producers,
in particular women, indigenous peoples, family farmers, pastoralists and fishers, including
through secure and equal access to land, other productive resources and inputs, knowledge,
financial services, markets and opportunities for value addition and non-farm employment.
2.3.1. Volume of production per labour unit by classes of farming/pastoral/forestry
enterprise size
2.3.2. Average income of small-scale food producers, by sex and indigenous status
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2.4. By 2030, ensure sustainable food production systems and implement resilient agricultural
practices that increase productivity and production, that help maintain ecosystems, that
strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and
other disasters and that progressively improve land and soil quality.
2.4.1. Proportion of agricultural area under productive and sustainable agriculture
2.a. Increase investment, including through enhanced international cooperation, in rural
infrastructure, agricultural research and extension services, technology development and plant
and livestock gene banks to enhance agricultural productive capacity in developing countries,
least developed countries.
2.a.1. The agriculture orientation index for government expenditures
2.a.2. Total official flows (official development assistance plus other official flows)
to the agriculture sector
2.c. Adopt measures to ensure the proper functioning of food commodity markets and their
derivatives and facilitate timely access to market information, including on food reserves, to
help limit extreme food price volatility.
2.c.1. Indicator of food price anomalies
12.3. By 2030, halve per capita global food waste at the retail and consumer levels and reduce
food losses along production and supply chains, including postharvest losses.
12.3.1. Global food loss index
UN Strategic Plan 2018-2021:
Outcome 1: Growth and development are inclusive and sustainable, incorporating productive
capacities that create employment and livelihoods for the poor and excluded
UN Development Assistance Framework:
Outcome 1 sustainable and inclusive economic growth.
Proportion of population living below the national poverty line (Baseline: 21.6% in
2017 | target: 13.8%)
1.2. Employed people living below USD 1.25 per day in total employment
(Baseline: 22% | target: 12.2%)
1.3. Average hours spent in domestic work by women (Baseline: 14 hours per day |
target: 10.27 hours per day)
1.4. Share of bottom 40 percent in total income (Baseline: 11.9% in 2016 | target:
15%)
1.5. Households with inadequate food consumption (Baseline: 15.5% | target:
10.5%)
1.6. Prevalence of undernourishment (Baseline: 36.1% | target: 20.6%)
1.7. Population below minimum level of dietary energy consumption (Baseline:
22.8% | target 14.3%)
1.8. Percent of migrant workers with skilled jobs (Baseline: 30% | target: 40%)
Country Programme Document:
Outcome 1 By 2022, impoverished, especially economically vulnerable, unemployed and
under-employed and vulnerable people, have increased access to sustainable livelihoods, safe
and decent employment and income opportunities.
Output 1.1: Policy, institutional and capacity development solutions lead to
improved disaster and climate resilient livelihoods, productive employment and
increased productivity in rural areas
Output 1.3: Improved national capacities in planning, monitoring, financing and
reporting on 2030 Agenda
The project has limited contribution to gender equality (Gender marker: GEN1).
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Justification for
Intervention Nepal’s agriculture shows weak growth rates with low productivity. This is for several
reasons including access to inputs, quality of extension packages, quality and reach of
extension support, and access to finance. While most cultivated areas are devoted to cereals,
there is a still growing food trade deficit. The deficit is not solely a function of domestic
production levels and other reasons include low marketed volumes and high rates of loss
between the farm and the consumer. Efficient crop handling, adequate market infrastructure,
and marketing are also important in minimizing postharvest losses and achieving the best
possible prices for farmers.
Against this backdrop, the project focuses on increasing production; reducing postharvest
losses; and improving the marketing system for selected fruit and vegetables in Provinces 3
and 4. Cooperatives and farmers’ groups will have better access to production technology, as
well as improved crop production practices. Postharvest technologies will be developed and
rolled out in collaboration with the Nepal Agriculture Research Council, reducing the share of
postharvest losses. Support to physical facility, organization management, and price
information will be given to collection centres and satellite and wholesale markets to enhance
market linkages.
programme
Expected
(Project)
Outcomes
and Indicators
Project outcome 1: improve agricultural productivity through increased capacity of
government agencies and better access to production technology by farmers.
% increase in gross margin of selected commodities by collaborating farmers
Project outcome 2: reduce postharvest losses of selected fruit and vegetables by postharvest
technology development.
% decrease in postharvest losses occurring from farm to collection centre
(measurement by volume or value: to be decided)
Project outcome 3: better market linkages at local level
% increase in the volume of selected commodities traded at collaborating collection
centres and satellite markets
Expected
(Project)
Outputs and
Indicators
Project Output 1.1: identify potential fruit and vegetables production pockets and conduct
gross margin analysis.
% increase in yield of selected crops for collaborating farmers (% women or those
from socially disadvantaged groups by 2022)
# of baseline surveys done
# of gross margin analyses produced
Project Output 1.2: improve access to production technology
# of people (% women or those from socially disadvantaged groups) received
training programmes
# of farmers received extension
# of manuals developed and printed
# of cooperatives receiving and managing revolving funds
Project Output 2.1: strengthen the capacity of the Nepal Agriculture Research Council
# of staff hired and engaged in postharvest technology development
# of staff of the Nepal Agriculture Research Council receiving training and
exposure visits
# of research projects financed on postharvest management financed
# of the Nepal Agriculture Research Council laboratory furnished with postharvest
technology development related equipment
Project Output 2.2: develop postharvest losses reduction management technologies by the
Nepal Agriculture Research Council (NARC)
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# of postharvest technologies developed, verified, recommended by the Nepal
Agriculture Research Council by year 3
# of developed technology tested, verified and recommended by the Nepal
Agriculture Research Council
# of financial analysis report produced
# of manuals produced
# of dissemination strategy developed
Project Output 2.3: transfer postharvest technology to farmers with improved access to input
support
# of people (% women or those from socially disadvantaged groups) receiving
training programmes
# of farmers receiving extension
# of manuals produced
# of cooperatives receiving and managing revolving funds
# of farmers adopting and using the verified postharvest technology (definition of
adoption will be specified)
Project Output 3.1: improve functions of collection centres
# of collection centres receiving support for physical facilities
# of cooperative operators and members receiving training programmes
# of persons (x% female and those from socially disadvantaged group) joining
exposure visits
Project Output 3.2: promote market information system
# of collection centres/wholesale markets using improved market information
network
# of cooperatives receiving equipment for the physical support for market
information system
Intended
Activities
1.1.1. Identify pocket areas, collaborating municipalities, cooperatives, farmers, extension
officers and informal extension providers.
1.1.2 Conduct a baseline survey (including production cost, current gross margins,
productivity, marketing system, and use of postharvest technology) as a basis for
assessing financial incentives for farmers to participate and estimates of ex-ante
economic impact.
1.1.3. Conduct gross margin analysis for target crops with and without the project.
1.2.1. Provide training programmes on production technology and improved production
practices to extension officers.
1.2.2. Provide extension to cooperatives and farmers
1.2.3. Develop and print manuals
1.2.4. Support the operation of the revolving fund for input support to cooperatives
2.1.1. Provide technical inputs for the postharvest technology research (horticulture
specialist and intern)
2.1.2. Organize exposure visit or observation tour for government officials working on
postharvest management
2.1.3. Provide financial support to research on postharvest technology conducted by
students mastering in agriculture science-related matters
2.1.4. Improve the physical facilities at the postharvest laboratory at the Horticulture
Research Division, the Nepal Agriculture Research Council
2.2.1. Develop postharvest technology (including, variously, varietal screening,
management practices, harvesting, picking methods and timing, cleaning, grading,
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sorting, packaging, and transportation)
2.2.2. On-farm testing of developed technology
2.2.3. Analyse financial incentives for farmers’ adoption of postharvest technology (both
existing and new postharvest technology)
2.2.4. Develop and print manuals on postharvest technology (including development of
protocol and standard of grading and packaging)
2.2.5. Prepare detailed roll-out strategy for technology dissemination (both existing and
new postharvest technology)
2.3.1. Provide training programmes to public extension officers as well as non-government
extension providers on postharvest technology
2.3.2. Provide extension on postharvest technology to cooperatives and farmers
2.3.3. Support the operation of the revolving fund for input support to enable adoption of
postharvest technology
3.1.2. Provide physical support to collection centres and satellite markets
3.1.3. Provide training on postharvest handling and marketing of fruit and vegetables to
operators of collection centres and satellite markets
3.1.4. Conduct exposure visit or observation tours for managers and operators of collection
centres
3.2.1. Strengthen the market information system at collection centres and satellite markets
3.2.2. Provide support to ICT service and equipment if necessary
Cross-cutting
Issues
Consideration
UNDP is committed to mainstreaming social and environmental sustainability and attainment
of socially and environmentally beneficial development outcomes. Annex 3 is the Social and
Environmental Standards to enhance positive social and environmental opportunities and
benefits and ensure avoidance of adverse risks and impacts. Through application and regular
monitoring of Social and Environmental Standards, UNDP enhances consistency,
transparency, and accountability of its decision-making processes and actions.
Human rights: the project focuses on small-scale farmers and their economic, social and
cultural rights in 3 dimensions: availability, accessibility, and quality. The project facilitates a
wider coverage of extension services, provision of better physical and economic accessibility
to well-equipped collection centres and satellite markets. 00095359. For accountability and
rule of law, the project would establish complaint and redress mechanisms so that
beneficiaries and stakeholders can demand accountability at all stages of the policy and
programme cycle. Information sharing will be organized so that beneficiaries and
stakeholders are well informed, have access, and have capacity to use it.
Gender equality and empowerment: the promotion of gender equality and empowerment are
central to the mandate of UNDP. During the identification of collaborating farmers, pocket
areas, and cooperatives, data collection and consultation are to be made to identify women,
indigenous people, and those from socially disadvantaged groups and learn their different
needs and constraints. This is to make sure that project interventions benefit women, men,
and socially disadvantaged groups meaningfully and equitably, proving equitable access to
project resources. In addition, this is to avoid or minimize any unintended gender-based
discrimination or inequalities. During project implementation, regular gender-responsive
monitoring will be conducted. Mid-term and end-of -project reports will conduct gender
analysis.
Environmental sustainability: a possible negative impact of the project to environment would
be increased vegetables and fruit waste in collection centres and satellite markets, due to
increased outputs over the next five years. When the project conducts the baseline survey,
consultation will be arranged to understand the environment-related status in each pocket area
to make sure that project interventions do not affect the natural environment or greenhouse
gasses. Measures could be designed and regularly monitored during the project
implementation. The project will also address the issue and minimize its support to pesticides
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that produces significant level of impact to environment during the operational guideline
development for the revolving fund.
Arrangement The project will be implemented through UNDP’s National Implementation modality.
Cooperating agencies include the Ministry of Agricultural, Land Management and
Cooperatives, Department of Agriculture, the Nepal Agriculture Research Council, and State
and municipal level government bodies. Local partners such as input suppliers and local
commodity market owners will be also engaged.
Implementation
Structure
The implementation structure sets out an organizational chart. The structure consists of
Project Board, National Programme Director, National Project Manager, programme
assurance and project staff. The Ministry of Agriculture, Land Management and Cooperatives
will depute a Joint Secretary to work as National Project Director. The Nepal Agriculture
Research Council will be co-implementing agency. KOICA and UNDP will act as senior
suppliers in the Project Board, which is the decision-making body responsible for project
implementation.
Project Budget Total Cost: USD 5,500,000 (USD 5,000,000 from KOICA and USD 500,000 from UNDP)
2018: USD 325,695
2019: USD 1,233,582
2020: USD 1,706,782
2021: USD 1,508,531
2022: USD 725,411
Plan for
Monitoring and
Evaluation
Monitoring and evaluation plan details planned activities, timeframe, and corresponding
budgets. An inception workshop will be held to build ownership and identify roles and
responsibilities of stakeholders. Regular progress monitoring, risk monitoring, social and
environment standard monitoring will take place. UNDP will conduct audits regularly to
ensure transparency and accountability.
Plan for
Reporting
to KOICA
Half-yearly, yearly, mid-term and end of project reports will be produced according to UNDP
monitoring and quality assurance rules and procedures. A detailed reporting plan is set out at
4.5.3.
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Table of Contents
1. Situation Analysis
1.1. Context of the Project
1.1.1. Map of target country and project site
1.1.2. Country context
1.1.3. Overview of the current situation
1.2. General Information on Organization
1.2.1. Overview of Organization HQs
1.2.2. Overview of CO in target country
1.2.3. Strategies and activities for responding to the problem
1.2.4. Organization’s capacity on implementing the project
1.2.5. Cooperating organizations in target country
2. Justification
2.1. Problem Statement
2.1.1. In-depth situation analysis at the project site
2.1.2. Assistance from other organizations to the project site
2.2. Needs Assessment
2.2.1. Description of target group (beneficiaries) and stakeholders
2.2.2. Needs of beneficiaries
2.2.3. Justification for intervention
2.3. Feasibility of the Project
2.3.1. Relevance
2.3.2. Effectiveness and Efficiency
2.3.3. Impact
2.3.4. Sustainability
2.3.5. Cross-cutting issues
3. Project Description
3.1. Goal and Objective
3.2. Expected Results
3.2.1. Logical framework of the project
3.2.2. Expected outcomes
3.2.3. Expected outputs
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3.3. Project Activities
3.4. Project Implementation
3.4.1. Implementation structure
3.4.2. Legal status of cooperating organizations
3.4.3. legal context
3.4.4. Responsibilities of cooperating organizations
3.4.5. South-South and Triangular cooperation
3.4.6. Communications plan among all stakeholders
3.4.7. Work plan and time frame
3.4.8. Budget plan
3.5. Result Management Plan
3.5.1. Risk management plan
3.5.2. Knowledge management plan
3.5.3. Monitoring and evaluation plan
3.5.4. Transition or Exit strategy
3.6. Partnership with Donors
3.6.1. Result of meetings with KOICA country office in target country
3.6.2. Plan for reporting, meeting, ceremony
3.6.3. Visibility and public relations plan
3.7. Procurement
Annex 1. Brief on the Nepal Agriculture Research Council
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1. Situation Analysis
1.1. Context of the Project
1.1.1. Map of target country and project site
A map of the target road corridors (Kathmandu-Pokhara road corridor and Arniko and BP highway
road corridor) is at figure 1. These road corridors comprise 12 districts and 62 municipalities. Districts
are shown in the figure 1, while potential municipalities are shown in grey in the figure 2.
<Figure 1: Map of project target areas>
Municipalities have been chosen since they embrace production of the long list of commodities for
which production and postharvest technology will be considered. During the baseline survey, crop
pocket areas which will be the target of the assistance will be identified. About 40 municipalities
pocket areas which may be targeted for the project.
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1.1.2. Country context
The Federal Democratic Republic of Nepal is a landlocked central Himalayan country in South Asia,
located between China and India. It contains a diverse geography including fertile plains, sub-alpine
forested hills, and eight of the world’s ten highest peaks including Mount Everest and Kanchenjunga.
As of July 2017, Nepal’s population was nearly 30 million, with more than 125 ethnic groups. 19% of
total population reside in urban areas, with Kathmandu as the capital city. 65% of the whole
population aged 15 and over are literate.
Nepal is classed as a least developed country, with about one-quarter of its population living below
the poverty line. Sharp reductions in poverty have been achieved, with absolute poverty decreasing
from 42% in 1995 to just under 22% in 2015. The human development index increased from 0.279 in
1980 to 0.558 in 2016. GDP in 2016 was USD 21.14 billion, while the GDP per capita was USD 7291.
It has high dependency on remittance, accounting for about 30% of GDP. Agriculture is one of the
main industries of the economy. The sector was accounted for over 30% of the GDP in 20162,
providing employment for almost two-thirds of the population.
The announcement of the new constitution in 2015 has changed the country into a federal democratic
republic by making 7 provincial states and 751 rural municipalities (gaunpalika in Nepali) and urban
municipalities (nagarpalika). States or provinces are defined by schedule 4 of the new constitution,
grouping together the existing districts. There shall be village bodies, municipalities, and district
assemblies at the local level3.
1.1.3. Overview of the current situation
Nepal’s agriculture shows weak growth rates. Productivity and competitiveness are low, adoption of
improved technology is limited and, even though most cultivated area is devoted to cereals, there is a
growing food trade deficit and malnutrition is high. Some subsectors such as dairying, poultry, tea,
vegetables, vegetable seed, and fisheries show dynamism, but overall, these positive signs are not yet
sufficient to lift many people engaged in agriculture out of poverty, make a dramatic dent in
malnutrition, and assure food security4.
Agriculture will nonetheless continue to be an important source of growth, jobs and poverty reduction
in Nepal, at least over the medium-term. It has a key role in promoting growth and poverty reduction,
as the second greatest source of value-added in the economy and the largest source of employment. It
contributes over one-third of GDP, while about 92% of the poverty reduction achieved over the last
seven years took place in rural areas. Poverty reduction therefore depends in part on better agricultural
productivity such that rural households sell more of their produce in the market, and at the same time,
opportunities are created for surplus labour to be productively employed outside agriculture (into
urban areas or the non-farm rural economy).
The government wants to increase domestic production of fruit and vegetables, in part for import
substitution. Import penetration is strong because of tariff-free trade between India and Nepal
(because of the 1996 Trade and Transits Treaty), while imports from China are also significant. In
contrast, and given the scale of the Indian economy and the subsidies available to Indian farmers,
Nepalese products are not competitive in Indian markets.
1 World Bank. https://data.worldbank.org/indicator/NY.GDP.PCAP.CD (access on January 31, 2018). 2 World Bank. h https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS (access on January 31, 2018). 3 The Constitution of Nepal (2015) 4http://www.MoALMC.gov.np/downloadfile/ADS%20Final%20Report%20-%20as%20of%2023%20september,%202014_1411534253.pdf
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Nepal is a food importer with an agricultural trade deficit. This is mainly because domestic production
has not kept pace with demand (with growth strongest in urban areas), leading to increased
dependence on imports. In 2010, agricultural imports represented 250% of agricultural exports, with
the agricultural trade deficit at NRs 350 million. This is despite substantial increases in Nepal’s
vegetable production area and, whereas the area under production in 1991 was some 140,500 ha, by
2014 it had increased to 255,000 ha.
The trade deficit is not solely a function of domestic production levels and, in some cases, there are
imports even where domestic output is sufficient to cover demand. The reasons are low marketed
volumes, as well as high rates of loss between the farm and the consumer. At the same time, low
productivity is widespread in agriculture in Nepal, with yields well below potential. This is for several
reasons, including access to inputs, quality of extension packages, quality and reach of extension
support, and access to finance. Commercialization is also held back by small farm size, with the
average farm size about 0.7ha. Average farm size is also falling and in 1995/96, it was 1.1 ha5.
1.2. General Information on Organization
1.2.1. Overview of organization Headquarters
Founded in 1965, United Nations Development Programme (UNDP) is the United Nation’s global
development network, advocating for change and connecting countries to knowledge, experience and
resources to help people build a better life. It works in about 170 countries and territories to eradicate
poverty and reduce inequality and exclusion. UNDP supports policy development, leadership,
partnership, institutional capacity development, and building resilience with a focus on sustainable
development, democratic governance and peacebuilding, and climate and disaster resilience.
<Figure 2: Development progress in numbers, 2014-2016>
<Source: UNDP6>
During 2014-2016, UNDP contributed to sustainable development by supporting nearly 28 million
people (51% women) with improved livelihoods initiatives in 119 countries and creating over 2
million new jobs. Efforts for building resilience resulted in 1,239 disaster and adaptation plans putting
into place in 58 countries and improved access to energy for more than 5.3 million people in 50
countries.
5 NLSS-III 2011, Government of Nepal, National Planning Commission Secretariat, Central Bureau of Statistics 6 UNDP. www.undp.org (accessed on January 3, 2018).
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The UNDP Strategic Plan 2018-2021 commits to the principles of universality, equality, and leaving
no one behind. It promises UNDP to better respond to three sets of development settings: poverty
eradication, structural transformation for sustainable development, and resilience building to shocks
and crises. To address them, the Strategic Plan suggests following 6 signature solutions: keeping
people out of poverty; strengthen effective, inclusive, and accountable governance; enhance national
prevention and recovery capacities for resilient societies; promote nature based solutions for a
sustainable planet; close the energy gap; and strengthen gender equality and the empowerment of
women and girls.
UNDP proposes to deliver signature solutions through two approaches: country level support for the
Sustainable Development Goals and a global development advisory and implementation services. The
first approach will help resolve country-specific solutions and support governments to align its
national development plans with SDGs. The latter will facilitate the development of innovative, data-
driven solutions built on improved data and analytical capacities and a strong knowledge management
system.
UNDP is today a leaner and more efficient organization. For two consecutive years, the Aid
Transparency Index has recognized UNDP as the most transparent development agency in the world.
UNDP puts in place an open data system7 where detailed information of UNDP’s 4,562 projects in
170 countries and territories are disclosed.
<Figure 3: UNDP’s projects and budgets, 2017>
<Source: UNDP8>
UNDP’s headquarters is in New York City with 10 Representation offices and Regional Centres in
Belgium, Switzerland, Denmark, USA, Japan, Egypt, Thailand, Turkey, Fiji, and Panama.
Overview of County Office in target country
7 http://open.undp.org 8 UNDP. http://open.undp.org/#2017 (accessed on January 31, 2018).
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Since 1963, UNDP Nepal has pursued equitable and sustainable human development through poverty
eradication, livelihood development, and resilience building, while laying down a strong foundation
for a society based on rule of law with an inclusive and participatory democracy. UNDP Nepal
concentrates its effort for greater impact in the most remote, poor and/or conflict-affected areas of the
mid- and far-western development regions and the Terai.
The inclusive economic growth unit of UNDP Nepal office will oversee the project implementation,
quality assurance and reporting. UNDP will assign a Programme Analyst from this unit for the project.
Other professionals under various units such as the strategic planning and development effectiveness
unit, the gender equality and social inclusion team will contribute as needed. To enhance visibility and
facilitate communication activities, project staff will work closely with the communication team. The
project staff will work with operations teams for project staff recruitment and management,
procurement, and financial aspects.
<Figure 4: Organogram of UNDP Nepal>
Strategies and activities for responding to the problem
UNDP actions and programmes are defined in its Country Programme Document, with the most
recent for Nepal covering the period 2018-2022. It has three outcomes: increased access to
employment and livelihoods, strengthened democratic institutions for the rule of law, social justice,
and human rights, and enhanced resilience to natural hazards and climate change.
In 2017, UNDP Nepal delivered assistance of nearly USD 22 million. The largest portion went for
inclusive and sustainable growth (33%), followed by climate change and resilience (21%), and
democratic governance (16%).
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< Figure 5: UNDP Nepal’s projects and budgets, 2017>
<Table 1: Projects of UNDP Nepal, 2017>
Project Expense
1 Micro-Enterprise Development Programme IV $4,223,934.00
2 Electoral Support Project $3,902,726.00
3 Rule of Law and Human Rights Protection $3,196,317.00
4 Livelihood Recovery for Peace Project $901,417.00
5 Comprehensive Disaster Risk Management Programme $1,390,713.00
6 Local Governance and Community Development Programme $1,188,275.00
7 Nepal Climate Change Support Programme $942,220.00
8 Renewable Energy for Rural Livelihoods ( $655,065.00
9 Support to Nepal’s Transition $734,808.00
10 Building Back Better in Nepal $866,516.00
11 Strategic Plan Support Project $641,460.00
12 Community Based Flood and Glacial Lake Risk Reduction $398,654.00
13 Management Support to Country Programme Implementation $344,941.00
14 Conflict Prevention Programme $457,285.00
15 Effective Development Financing & Co-ordination $407,887.00
16 Green Climate Fund Readiness in Nepal $249,798.00
17 Support to Participatory Constitution Building in Nepal $397,336.00
18 Public Administration for State Reform $221,067.00
19 Capacity Strengthening of National Reconstruction Authority for Resilient
Reconstruction
$191,020.00
20 Strengthening National Planning & Monitoring Capacity $114,136.00
21 UN -REDD Programme $95,310.00
22 Support to Knowledge and Lifelong Learning Skills-Skills $136,427.00
23 Transitional Justice $71,725.00
24 Developing Climate Resilient Livelihoods $2,192.00
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<Source: UNDP9>
1.2.2. Organization’s capacity for implementing the project
UNDP and value chain development
Development of inclusive markets in agriculture and trade (Uganda, 2012-2015) focused on creating
market access for small scale farmers and improving the value of agricultural produces. Farmers were
trained on postharvest technologies to ensure higher yields and better prices for their products. In
2015, average area planted increased from 1.766 acres to 3.071 acres. The average yield for the rice
crop increased from 328kg per acre to 614kg per acre. The project evaluation report emphasises the
importance of involving local governments in project management cycle. This way will help enhance
ownership of local partners and project sustainability.
Producer group and value chain development (Armenia, 2015-2018) 10 intends to help the
Government of Armenia develop agricultural value chains. It focuses on helping producer groups
engaged in value addition. Further assistance was made to develop value chains for improved access
to affordable and better-quality food. So far, 41 primary producer groups received training in
cooperative establishment, business skills development and business plans preparation. To improve
harvesting, postharvest techniques, and storage, the project provided training programmes to
cooperatives and orchardists. For buckwheat, automatic retail packaging equipment was installed in
the processing factories. This allowed the packing of all types of cereals from 40 grams to 2kg.
Pro-poor horticulture value chains in upper Egypt (Egypt, 2009-2012) was a joint programme
between the International Labour Organization, UN Industrial Development Organization, UN
Development Fund for Women, and UNDP. It was designed to promote viable equitable partnerships
between small farmers and private sector investors in upper Egypt. The programme supported small
farmers through their farmers’ associations to deliver needed business services, thereby enabling them
to participate in the governance of the supply chain.
UNDP Nepal and agriculture
UNDP Nepal office has a strong track record in providing technical assistance for improved economic
opportunities for vulnerable groups and social inclusion through livelihood development. Given the
national context that two thirds of population are involved in agricultural activities, UNDP
programmes and projects have made interventions in agriculture-related infrastructure development,
training local beneficiaries (including farmers for business development), and policy-level support.
Micro Enterprise Development Programme (MEDEP, 1998-2018) Not only producing micro
entrepreneurs in the agricultural sector (ranging from primary production such as vegetable farming to
value addition of agriculture products like milk processing), a lot has done by MEDEP for agriculture
development. It produced the feasibility study for establishing the export agriculture production
village, with a focus on ginger and fresh vegetables. MEDEP also supported local empowerment at
policy level. It helped National Micro Entrepreneurs Federation Nepal to conduct dialogue with the
Ministry of Agricultural, Land Management and Cooperatives, resulting in drafting the 5-year
Strategic Plan of Agro Business Promotion Policy.
Community Infrastructure Livelihood Recovery Programme (CILRP, 2015-2017) In coordination with
the Ministry of Agricultural, Land Management and Cooperatives, the Ministry of Cooperatives and
9 UNDP. http://open.undp.org/#2017 (Accessed on January 31, 2018).
10 http://www.am.undp.org/content/dam/armenia/docs/Pro%20Doc%20UNIDO-
UNDP%20ENPARD%20Armenia%20TA%20(final%20final%20final).pdf
18
Poverty Alleviation, and District Agriculture Development offices, Community Infrastructure
Livelihood Recovery Programme rehabilitated and reconstructed 130 community infrastructures
which were destroyed or affected by the 2015 earthquakes. This includes irrigation canals, collection
centres, rural roads, and community buildings, thereby helping thousands of farmers return to their
farm and earn income.
GEF Small Grant Programme (, 2015) UNDP Nepal and Global Environment Fund supported 30
small grants projects. For instance, the project constructed a dam to save over 3,100 hectares of
riverbank and control water flows, helping farmers maintain healthy production of their crops. The
grant was also given to support to Farmers’ Field Schools, which promote organic vegetable farming
and provide weekly lessons to the local farmers on production practices.
Supporting Nepal to Integrate Agriculture Sectors into National Adaptation Plans (2017-2020) The
objective is to integrate climate change concerns into national and sectoral planning and budgeting
processes, as they affect agricultural sector-based livelihoods. The project is at regional level in
collaboration with Food and Agriculture Organization and the Ministry of Agricultural, Land
Management and Cooperatives.
Cooperative Market Development Programme: the project intends to develop the cooperative market
chain in Kathmandu valley and Chitwan. It will be done through increased production, creation of
collection centres, and creation of the enabling policy environment for the cooperative promotion.
There is possibility of collaboration between this project and the value chain development project.
The value chain development project will disseminate newly developed postharvest technologies,
where the cooperative market development programme participants could enjoy optimal postharvest
loss management.
Good relationships with government
In Nepal, one of the most mentioned project risks is frequent transfer of government officials. It is
risky in that it can delay implementation. To minimize the effect, it is important to have a partner
which has long established a good working relationship with government partners and knows the in-
depth socio-political context.
Since 1963, UNDP Nepal office has worked closely with the Nepali government for poverty reduction,
social inclusion, income generation, and resilience building. It has designed and implemented projects
most of whose responsibility falls under the government. The case of UNDP’s Micro-
Entrepreneurship Development Programme being transferred to the government after 18 years of
successful implementation to become the national programme proves the organization’s capacity in
performance and relationship management.
UNDP Nepal also has a large field level presence throughout the country. Collaboration with UNDP
will make ease of using existing facilities and local networks. There are 4 field offices in Butwal,
Janakpur, Surkhet, and Dhangadhi. Project offices are in various regions as in the figure 5.
19
<Figure 6: UNDP Nepal projects in Nepal>
1.2.3. Cooperating organizations in target country
UNDP Nepal has long collaborated with various development partners, donors, and local NGOs. For
instance, UNDP Nepal and Global Environment Facility has implemented the Community Based
Flood and Glacial Lake Outburst Risk Reduction (2013-2017) to manage flood risks and reduce
human and material losses. ‘Supporting Developing Countries to Integrate the Agricultural Sectors
into National Adaptation Plans’ which was launched in 2014, has been implemented in close
collaboration with Food and Agriculture Organization
20
2. Justification
2.1. Problem Statement
2.1.1. In-depth situation analysis
Situation analysis
Low productivity: Nepal is a food importer with an agricultural trade deficit. Low marketed volumes
have not kept pace with demand, leading to increased dependence on imports. In 2010, agricultural
imports represented 250% of agricultural exports, with the agricultural trade deficit at NRs 350
million.
Low marketed volumes are related to farmers’ limited access to suitable on-farm technology11. One
reason is limited availability of inputs. Commercialization is also held back by small farm size, with
the average farm size about 0.7ha. Farms are often fragmented into several parcels 12 , with
fragmentation shown to affect farm performance13. Average farm size is also falling and in 1995/96, it
was 1.1 ha 14 . This is important since, internationally, findings suggest that farm size and
commercialisation are correlated15, although with commercialisation also correlated with many other
variables16. Land size nonetheless appears to be an important pre-condition of commercialisation, with
those on the smallest farms selling a low proportion of output17.
High postharvest loss: Postharvest losses18 of fruit and vegetables are high in Nepal, with some
estimates suggesting losses of up to 40-50% by volume19, with rates slightly higher for fruit than for
vegetables. This leads to lower returns through revenues foregone, as well as higher costs of
11According to the Agriculture Development Strategy, there was a yearly gap of 4mt of vegetables per ha between current production and
potential production. Available at: http://www.dls.gov.np/uploads/files/ADS%20Final.pdf 12 An increasing trend in the number of land parcels and a decreasing trend in the size of land parcels is primarily due to the heredity
tradition of equal division of land among the inheritors.
http://onlinelibrary.wiley.com/doi/10.1002/ldr.771/abstract 13 Research shows that farms experienced higher costs of production, lower crop yields and lower profitability where land fragmentation
was more pronounced. Scale efficiency was lower where the average distance to the nearest neighbouring plot was greater. Laure Latruffe
and Laurent Piet (2013). Does land fragmentation affect farm performance? A case study from Brittany. Comparative Analysis of Factor Markets across Member States. Working Paper no. 40. April. 14 NLSS-III 2011, Government of Nepal, National Planning Commission Secretariat, Central Bureau of Statistics 15 Munguzwe Hichaambwa and T. S. Jayne (2012). Smallholder commercialization trends as affected by land constraints in Zambia: what are the policy implications? Working Paper 61 April 2012. Indaba Agricultural Policy Research Institute (IAPRI) Lusaka, Zambia
http://www.aec.msu.edu/fs2/zambia/index.htm 16 Studies in Nepal suggest that eight variables are correlated with the commercialisation: amount of NPK used, area under tractor-ploughing, area under pump-set irrigation, landholding size, household size, distance from urban centre, farmers’ education and availability
of extension services. Beatrice Knerr and Gopal B. Thapa (2009). Agricultural commercialisation with High Valued Crops in a Peri-urban
centre of Nepal. Tropentag 2009 University of Hamburg, October 6 - 8, 2009 International Conference on Research for Development in Agriculture and Forestry, Food and Natural Resource Management. See also Dil Bahodur Rahut, Ivan Velasquez Castellanoe and Pravakar
Sahoo (2010). Commercialisation of agriculture in the Himalayas. IDE Discussion Paper 265. December. Household food security also
increases the probability of market participation, suggesting that farmers that are not food secure may be constrained in their attempt to
commercialize their farming systems. Ephraim W. Chirwa and Mirriam Matita (2012). From Subsistence to Smallholder Commercial
Farming in Malawi: A Case of NASFAM Commercialisation Initiatives. Futures Agriculture Discussion Paper 37. 17 Studies in Ethiopia find that the size of farmland owned and cultivated is very important to farmers’ participation in output markets. In general, those who did not sell owned small farms (1.1 ha on average, about one-third the size of market participants’ landholdings). Samuel
Gebreselassie and Kay Sharp (2008). Commercialisation of Smallholder Agriculture in Selected Tef-growing Areas of Ethiopia. Futures
Agriculture, Discussion paper no: 6. March. See also Vijay Paul Sharma, India Dinesh Jain, and Sourovi De (2012). Managing Agricultural Commercialisation for Inclusive Growth in South Asia. Global Development Network. 18 Food losses can be quantitative as well as qualitative. Quantitative loss included decreased weight or volume which is mainly happened
due to spillage, consumption by pests and due to physical changes in temperature, moisture content and chemical changes. The qualitative losses referred to loss of calorie and nutrient value, unwanted changes to taste, colour, texture, or cosmetic features of food. 19 Postharvest losses in mandarins in Nepal were found to be at 46%. Rewati Raman Bhattarai, Raj Kumar Rijal, and Pashupati Mishra
(2013). Postharvest losses in mandarin’s orange: A case study of Dhankuta District, Nepal. African Journal of Agricultural Research. Vol. 8(9), pp. 763-767, 18 March, 2013 DOI 10.5897/AJAR12.2167 ISSN 1996-0816.
21
transportation and marketing. Effects are felt both by traders and farmers20, with the loss to farmers
cumulative as traders’ discount payments to farmers to reflect expectations of losses. In addition,
postharvest losses affect food security and nutrition. Some estimates suggest that, even in high income
countries with efficient postharvest management, over 30% of the food produced is not consumed21.
Quality losses lead to inferior nutritional value, foodborne health hazards, and financial losses when
the produce misses market opportunity or loses attributes that make it appealing to consumers22.
The sources of postharvest loss are numerous. They include the time of day of picking and the picking
methods (i.e. on or off the vine or stem), rough handling at harvesting (with fruit often harvested by
shaking trees), exposure to sun and rain, poor packaging, and transportation (including the use of
ordinary trucks and passenger buses)23. Phytosanitary factors are also important, with microbial
infection a major cause of deterioration24.
Though the gender dimension of postharvest losses is an under-researched area, there is nonetheless
recognition that gender plays a role in postharvest management, notably in relation to the gender-
based division of labour in postharvest management25 and, hence, the targeting of extension26. Some
studies find that women generally lead actions in postharvest management, but with the findings
strongly influenced by actions on cereals and tubers, with this conclusion contradicted in respect of
some fruit and vegetables27.
Limited market linkage: careless handling during loading and unloading, corrugated roads leading to
vibration during transportation, lack of storage facilities, compression through squeezing cartons into
the vehicles, and lack of air circulation leading to heat build-up inside vehicles occurring at collection
centres and satellite markets are all contributory to postharvest losses. Displaying fruit and vegetables
on the open ground at wholesale and retail markets is also damaging28.
Observation of collection centres and wholesale markets located nearby two road corridors - Arniko-
Banepa-Sindhuli-Bardibas road corridor and Kathmandu-Pokhara road corridor - suggests that
facilities are inadequate and lack basic amenities including sanitation, washing areas, and dry and cold
storage.
There is a body of literature which suggests that women dominate fruit and vegetable retailing, often
at small scale, with high loss levels at this stage in the value chain29.
This situation is associated with the following:
20 A. R. Devkota, D.D. Dhakal, D.M Gautam and J.P. Dutta (2014). Assessment of fruit and vegetable losses at major wholesale markets in Nepal. Int J Appl Sci Biotechnol, Vol 2(4): 559-562. 21 Jean C. Buzby, Hodan F. Wells, and Jeffrey Hyman (2014). The Estimated Amount, Value, and Calories of Postharvest Food Losses at the
Retail and Consumer Levels in the United States. United States Department of Agriculture. Economic Research Service, Economic Information Bulletin Number 121. February. 22 http://www.sciencedirect.com/science/article/pii/S0305750X14002307 23 A study on losses during the transportation of horticultural produce from Bhairahwa, Nepal to Gorakhpur, India conducted by the Marketing Development Division (MDD, 1999/ 2000), determined a 74% loss in oranges, 26.3% loss in apples, 17.39% loss in cabbages
and 15% loss in potatoes. Losses incurred during the transportation of apples, mangoes, cauliflower and cabbages from Birgunj, Nepal to
Patna, India were also assessed by the MDD. These were 22.22%, 36.36%, 18.75% and 19.23%, respectively. 24 Most fruit and vegetables are composed of 70–90% water and once separated from their source of nutrients higher rates of respiration,
resulting in moisture loss, quality and nutrient degradation, and potential microbial spoilage. In some instances, fruit and vegetables may be
harvested immature to reduce mechanical damage during harvesting and transportation. Because intact fruit and vegetables are still alive and respiring, temperature and relative humidity must be carefully controlled to maintain low rates of respiration, prevent moisture loss, and
maintain eating quality. See Dianne Barrett. Maximising the nutritional value of fruit and vegetables. 25 Deka, N., and T. Paris. (undated). “Gender roles, constraints and opportunities in postharvest operations of paddy: A case study in Assam, India.” Presentation at Assam Agricultural University, India. 26 World Bank, FAO, and IFAD. 2008. Gender in Agriculture Sourcebook. Washington, DC: World Bank, 792. 27 http://www.ijsk.org/uploads/3/1/1/7/3117743/2_postharvest_losses.pdf 28 Postharvest Management of Fruit and Vegetables in the Asia-Pacific Region. Reports of the APO seminar on Reduction of Postharvest
Losses of Fruit and Vegetables held in India, 5–11 October 2004 and Marketing and Food Safety: Challenges in Postharvest Management of
Agricultural/ Horticultural Products in Islamic Republic of Iran, 23–28 July 2005. 29 http://www.resjournals.org/JAFS/PDF/2015/March/Ahmed_et_al.pdf
22
Lack of technology research for farmers: though there is research on postharvest losses in progress in
Nepal by the Nepal Agricultural Research Council, it is not yet comprehensive to all fruit and
vegetables. Furthermore, it is currently mainly oriented to traders and aims to develop technology to
reduce losses in the value chain segments between the trader and the consumer, with the gains
accordingly accruing to traders.
<Table 2: Availability of production and postharvest management technology in Nepal> Commodity Production technology
available
Postharvest technology available (whether
partial or complete)
Vegetables and spice
Tomato Yes Yes
Cauliflower Yes Yes
Cabbage Yes No
Capsicum Yes No
Carrot Yes No
Cucumber Yes No
Radish Yes No
Potato Yes No
Onion Yes No
Garlic Yes No
Fruit
Apple Yes Yes
Banana Yes Limited and based on traditional practices
Citrus Yes Limited and mainly by traders
Papaya Yes (see note 1) No
Pineapple Yes (see note 1) No
Watermelon Yes No
Note 1: farmers use production technology imported from India.
Limited access to finance for technology adoption: the financial feasibility of farmers using the
technology is uncertain. Ensuring adequate incentives for farmers to adopt postharvest technologies is
also essential in that adoption is dependent on improved returns.
Mixed picture on grading and sorting: traders at wholesale markets argue that buyers are unwilling to
pay significant price differentials for graded or high-quality produce and hence there are insufficient
returns to justify grading or sorting. In fact, this is not universal and it is apparent that, for example,
tomatoes grown in plastic tunnels (which have better appearance) command a price premium over
those grown in the open. The emergence of fresh fruit and vegetable grading in India, as well as the
import of graded Chinese produce, will probably also increase pressure for grading in Nepal30.
As a result, the feasibility of grading is likely to vary from product-to-product, with fruit grading for
export commonplace because of the high prices that premium grades obtain. This is in part because of
market management31 and the indeed principal pressure for grading seems to come from market
managers and traders who see the price-depressing effects of ungraded products, with ensuing high
levels of waste. The fact that farmers are not prime movers in grading suggests that the price signals
that should encourage grading by farmers are not yet being transmitted and hence they see no
incentive to grade (preferring instead to seek to maximise returns to heterogeneous produce). As a
result, creating incentives for farmers to grade and to remove spoiled produce before it enters supply
chains will be an important element of achieving impact.
30 http://www.cigrjournal.org/index.php/Ejounral/article/viewFile/2520/1784 31 The Kalimati Fresh Fruit and Vegetables Market in Kathmandu is the major fruit and vegetable wholesale market in Nepal. It was
established under the Development Board Act and operates under a public-private-co-operative partnership model. There are fruit and vegetable wholesale markets in other cities in Nepal.
23
This is part a question of obtaining recognition amongst farmers and traders of the benefits of grading.
These are principally in avoiding the losses in selling price due to presence of substandard products.
In addition, there is increased marketing efficiency by facilitating buying and selling of produce
without item-by-item selection, with price segmentation according to grade. The costs of packing,
marketing and transport can also be reduced since damaged and deficient products are graded out
before these costs are incurred.
Attitudes to grading and product quality (both in terms of appearance and food safety) are likely to
change as urbanization and growing middle-class incomes lead to changes in consumer preference,
with value chains sophisticating to include sorting, grading, processing, packaging, distribution, value
added, and retailing. There is also likely to be a progressive increase in demand for fresher, healthier
food, particularly amongst less price-sensitive consumers and, as incomes increase, better
understanding of, and improved education on, food-related health risks32 as well as the role of fruit
and vegetable in reducing the risk of non-communicable diseases33. As incomes increase, this
probably offers increasing price premiums for quality34.
Evidence suggests that as income increases, the consumption of cereals decreases while that of fruit
and vegetables increases (a change that is noted in studies of consumer preference in Korea35 and
elsewhere). This is often coupled with lower volume and more frequent purchases of fruit and
vegetables (perhaps 2-3 times per week) 36 in order ensure freshness. Clearly, better product
appearance and lack of damage are important elements of this purchasing decision. In response, and
with the rapid changes of agricultural product market condition and consumer preference for
better quality and diversified food materials37, postharvest management systems tend to move
from individual farms to large-scale processing centres to reduce management cost and to pro
mote both higher quality and safer agricultural products.
Limited marketing capacity of collection centres: collection centres provide a place for farmers to take
their crops, enabling traders to source larger orders, have the produce better-stored before it is
delivered, and to reduce transport costs (both in absolute and unit cost terms). Typically, farmers
themselves deliver to collection centres38 which, while often rudimentary, provide an environment
where produce can be delivered, bulked and sold-on to intermediaries. The buyers, who are normally
wholesalers, purchase the vegetables and fruit from the farmers at the collection centres. The
advantages to farmers are that traders do not have to travel long distances to collect their produce,
with remoteness meaning that farmers in some locations sometimes cannot sell their produce. The
sales are direct from farmers to traders and, typically, the managing cooperative is not involved in
sales or marketing. As a result, the potential price advantages of bulk sales are not obtained. It is also
noteworthy that some collection centres have now fallen into disuse, often because improved road
infrastructure means that traders can instead buy direct from farms.
This in turn brings into question cooperatives’ ability in marketing, in securing the best prices for
32 http://www5.agr.gc.ca/resources/prod/Internet-Internet/MISB-DGSIM/ATS-SEA/PDF/5799-eng.pdf 33 http://www.who.int/dietphysicalactivity/publications/f&v_promotion_initiative_report.pdf 34 http://www.ers.usda.gov/media/320488/wrs0406h_1_.pdf 35 Ibid. 36 http://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20Consumption%20Trends%20in%20Korea_Seoul_Korea%20-
%20Republic%20of_6-10-2014.pdf 37 http://www2.gov.bc.ca/assets/gov/farming-natural-resources-and-industry/agriculture-and-seafood/about-agriculture-and-seafood/statistics-agriculture-and-seafood/exports/market_opportunity_report_south_korea.pdf 38 The rationale for collection centres is based on the well-document difficulties that small-holder farmers face in accessing markets and in
acquiring market information. They have high production costs due to the lack of scale economies, while expensive transport prevents delivery to the market at a competitive price. Many are too widely dispersed or are connected through bad road conditions thereby
preventing buyers from sourcing direct. Collection centres are held to provide a number of benefits for farmers, including improved
knowledge of market needs and price trends, training in postharvest handling, improved contacts with buyers and the opportunity for application of grading and standards. For buyers, collection centres have the potential to: improve consistency in supply and quality,
improved storage, and transmitting market demand information to producers. They may also reduce buyers’ transport costs. Evaluation of
their impact is currently incomplete. See Richard Veit (2009). Assessing the Viability of Collection Centres for Fruit and Vegetables in Fiji: A Value Chain Approach. FAO AAACP Paper Series – No. 7. June.
24
members and indeed their financial survival39. Some studies have found that deficiencies in marketing
accounted for cooperatives’ disappointing performance40, with many cooperatives lacking a marketing
strategy. This is in part because cooperatives rarely have professional management, with operations
mainly or entirely managed by members on a part-time basis.
Assistance from other organizations
There is significant ongoing or recently-completed support to agricultural development by the
development partners. Much of this support has the objective of reducing poverty through pro-poor
value chain development for selected agricultural commodities, including fruit (apple and orange),
vegetable seed production and fresh vegetable production, spices (ginger, turmeric, and cardamom),
plantation crops (tea and coffee), and livestock commodities (dairy products, goats, and pigs). None of
the current programmes address the target areas for the proposed assistance and, indeed, are mainly
concentrated in the Mid and Far Western, and Far Eastern development regions. Lessons from other
agriculture projects have adopted in the project design. Determining the base of the project monitoring
was made by reviews of agriculture projects as well as monitoring guidance reports. Synergy will be
sought for wider technology transfer and effective extension delivery.
Support which is currently under implementation or recently completed and which includes value
chain development is as follows:
High-Value Agriculture Project in Hill and Mountain Areas41: implemented in 10 districts of Mid and
Far Western Development Region, with financing from the International Fund for Agricultural
Development and the Dutch Government. This project aims to develop value chains for apple, ginger,
vegetables and goats.
High Mountain Agri-business and Livelihood Improvement42: this is implemented in 10 mountain
districts across the Eastern to Mid-Western Development Region, with loan funding from the Asian
Development Bank. It covers production and value chain development of mountain species of
livestock and agricultural crops, as well as non-timber forest products.
Project for Agricultural Commercialisation and Trade43: this is a national project aimed at increasing
production and value chain development of potential livestock, crops and non-timber forest products
in all 75 districts of Nepal.
UNNATI – Inclusive Growth Programme44: this is implemented in 7 Hills districts of the Eastern
Development Region (in Ilam, Panchthar, Dhankuta, Sankhuwasabha, Terhathum, Taplejung and
Bhojpur Districts). The project is funded under Danish bilateral assistance and consists of components
on rural access, access to finance, and value chain development in tea, large cardamom and dairying.
Raising Incomes of Small and Medium Farmers45: this project is also implemented in selected districts
of the Mid and Far Western Development Regions focusing both on production and on value chain
development of potential agriculture and non-timber forest products, with broader objective of
improving food security and livelihoods.
Nepal Trade Integration Project: this is EU-funded support with focus on value chain development in
tea and coffee. The three components are developing the capacity of the Tea and Coffee Development
39 http://www.nepalnews.com/mobile/view_article.php?id=42732 40 Oxfam (2014). Nepal: Pavitra vegetable seed cooperative project. Oxfam Impact Evaluation Report.
41 http://operations.ifad.org/web/ifad/operations/country/project/tags/nepal/1471/project_overview 42 http://himali.gov.np/
43 http://pact.gov.np/
44 http://nepal.um.dk/en/danida-en/programmes/unnati/ 45 http://www.adb.org/projects/38423-022/main
25
Board, support to farmers’ groups and cooperatives, and value chain development in tea and coffee.
Commercial Agriculture Development46: support (which is through loan funding from the Asian
Development Bank) aims to reduce poverty in 11 districts in the Eastern Development Region through
commercialization of agriculture. The planned outcomes are improved production efficiency,
marketing, and processing of high-value crops, such as vegetables, fruit, tea, and spices. The outputs
include increased public and private investment in commercial agriculture; inclusion of poor and
semi-commercial stakeholders in commercial agriculture; timely availability of market information to
farmers; and enhanced capacity of project partners in supporting farmers.
Nepal Economic, Agriculture, and Trade Programme47: the programme has four components: (i)
fostering a conducive business environment for private sector-led growth and improving trade and
fiscal policies to increase revenues without distorting the economy; (ii) encouraging competitiveness
and exports in selected agricultural sectors by reducing production, processing, and marketing
constraints; (iii) enhancing food security through improvements in sustainable agricultural production
practices, improved input delivery systems, and enhanced market linkages; and (iv) increasing access
to microfinance for underserved and disadvantaged populations by building the capacity of existing
microfinance service providers.
Knowledge–based Integrated Sustainable Agriculture and Nutrition48: this support, which is part of
USAID’s global ‘Feed the Future’ initiative, is a $20 million five-year programme working to advance
food security objectives by increasing agricultural productivity. It builds the capacity of private sector
and community-based organizations to improve the availability of quality farm inputs; increase access
to credit, extension and other services; and improve the competitiveness and efficiency of processors
and other buyers. In parallel, it facilitates market linkages between farmers and input providers,
service providers, and buyers. The project engages with a wide range of public, private, and civil
society stakeholders including farmers, NGOs, academic and research institutions, businesses and
training centres.
Nepal Market Development Programme49: the support targets the fresh ginger value chain through
disease management and low-cost storage. The lead partner is the National Ginger Producers and
Traders Association, which is the national commodity body for ginger in Nepal.
Home Gardens Project50: phase I (2002-2005) focused on villages in four districts of Nepal to
promote technology and methods for the sustainable management of home gardens. The aim was to
improve homestead biodiversity, food security, nutrition, and the incomes of poor rural farmers. Phase
II (2006-2008) subsequently focused e on scaling-up the approaches and expanded from four to
thirteen districts. Phase III (2009-2013) saw the project expand into sixteen districts, covering other
ecological regions of Nepal.
Postharvest Management and Value Addition of Fruit (2013-2017): was funded by South Asian
Association for Regional Cooperation (SAARC) Development Fund and implemented by the
Postharvest Management Directorate, Department of Agriculture. The project focused on postharvest
management of mandarin in Syanja, Lamjung, Tanahu and Gorkha districts, leading to trade
facilitation in agriculture exports (‘cross-border value chain’).
46 http://www.adb.org/projects/34308-022/main 47 http://www.chemonics.com/OurWork/OurProjects/Pages/Nepal%20Economic%20Agriculture%20and%20Trade.aspx 48 https://www.usaid.gov/nepal/fact-sheets/kisan-project
49 http://samarth-nepal.com/
50 http://www.cityfarmer.info/2014/02/19/home-garden-project-nepal/
26
2.2. Needs Assessment
2.2.1. Description of target group (beneficiaries) and stakeholders
Direct beneficiaries:
9,960 smallholder farmers growing fruit and vegetables in target areas.
20 collection centres and satellite markets.
Cooperative managers and operators (150 participants for training on cooperative management and 60
participants to exposure visits).
Extension officers, junior technicians, private extension providers and lead farmers (1,125 participants
for training on extension and production technology).
Government staff working on extension and postharvest loss management (40 participants to exposure
visits from the Department of Agriculture, the Nepal Agriculture Research Council (central level) and
state government (state level).
10 researchers from stations.
40 municipalities and rural municipalities.
Indirect beneficiaries:
Target farmers’ households.
Farmers outside the target group and their households who will be eventually benefit from adoption of
new postharvest technology.
Consumers;
Staff from the Ministry of Agricultural, Land Management and Cooperatives and the Nepal
Agriculture Research Council.
Users of the mobile agriculture application providing day-to-day price information;
2.2.2. Needs of beneficiaries
The in-depth situation analysis suggests following needs.
For farmers:
enhanced access to technology and essential inputs for improved crop productivity; and
improved access to extension services.
For collection centres:
27
efficient market infrastructure;
marketing strategy at collection centres and satellite markets;
improved price information sharing system; and
strategy to develop capacity to respond to consumer preference.
For extension officers:
training on crop-specific technology and postharvest loss management practices; and
grading and sorting mechanism.
For researchers:
equipment and human resources support to the Nepal Agriculture Research Council for new
postharvest technology development; and
research on the financial feasibility for farmers to adopt new technology.
2.2.3. Justification for intervention
Rationale of the project
There are potential returns to farmers in reducing postharvest losses. Their revenues should increase
as more of their production is saleable, while improved appearance and quality should also raise
prices, particularly in the medium and longer term. If financial incentives exist for farmers to adopt
postharvest management techniques, farm incomes will increase and livelihoods will improve. Indeed,
better quality and less damaged produce can be regarded as a form of value added, with ensuing
impacts for productivity, incomes, and rural livelihoods.
Substituting domestically-produced fruit and vegetables for imports means, of course, bringing
produce to market which can compete with imports in terms of both price and quality. Self-evidently
this depends on raising yield and output, as well as reducing postharvest losses such that a greater
proportion of harvested output reaches markets and is marketable. In contrast, yields well below
potential and high levels of postharvest losses reduce capacity for import substitution, as well as
driving down returns to farmers, thereby reducing their incentive to produce and raise quality.
Postharvest losses in fruit and vegetables in Nepal are high. And while there has been research in
technology aimed at reducing losses, neglect of the value chain segment from farmer to trader in
terms of the technology for reducing losses means that farmers are currently unable to benefit from
technology for postharvest loss reduction. As a result, they deliver heterogeneous produce to
collection centres and traders, with the consequence that they receive lower prices, with traders
systematically discounting prices to reflect anticipated quality variations and a likely grading-out
percentage. Farmers’ and traders’ costs of transportation are also higher since they transport produce
which has no or very low financial value.
Development of postharvest management technology along the entire value chain from farm-to-
market is also essential to commercialisation and to raising farmers’ gross margins. This is true even
in situations of low productivity, but of course has added benefits as yields approach potential. As a
result, it is an essential part of an overall approach to accelerated agricultural development and rural
growth, particularly given the very high rates of postharvest losses in Nepal.
28
It is, however, apparent that even with improvement in postharvest management by farmers, the gains
will be limited if, at collection centres, infrastructure is inadequate, crop handling is deficient, or
marketing is poor. Actions at this stage of the supply and value chain are also important in minimising
losses and in achieving the best possible prices, whether through direct sales to consumers or through
sales to wholesalers and/or retailers. Action at the level of the collection centres demands a mix of
activities, including improvements to infrastructure, handling and marketing. This is likely to be
targeted at the cooperatives that own the collection centres and which will be the main agent
responsible for marketing.
Theory of change
The objective of the support is improved productivity and increased income for smallholder farmers.
The pathway to change are crop productivity enhanced, postharvest management technology
developed and adopted, and market linkages improved (see figure 6).
<Figure 7: Theory of Change>
2.3. Feasibility of the Project
2.3.1. Relevance
Nepal’s Agricultural Perspective Plan (1995–2015) and Tenth Five Year Plan (2002–2007)
emphasized postharvest technology for fruit and vegetables, with several mechanisms put in place.
These included market centres equipped with facilities for postharvest operations, installation of
ventilated stores in new rural markets and improvement of packing systems for the transportation of
fruit and vegetables from collection centres to wholesale markets. The Agriculture Perspective Plan
also adopted a ‘pocket package’ approach. Agro-climatically feasible ‘pockets’ for defined products
were identified with the aim of encouraging specialisation and commercialization. Priority was given
29
to products with comparative advantage, with preferential treatment then given to pockets in terms of
agricultural roads, electrification, irrigation, agricultural credit and marketing.
The pocket approach continues under the Agricultural Development Strategy (ADS, 2015-2035),
which succeeded the Agricultural Perspective Plan. The Strategy envisages ‘a self-reliant, sustainable,
competitive, and inclusive agricultural sector that drives economic growth and contributes to
improved livelihoods and food and nutrition security leading to food sovereignty’. It pays special
attention to agricultural research and extension for higher productivity, development of value chain
infrastructure for reduced postharvest losses, and connectivity to market for commercialization and
competitiveness.
The fourteenth Plan (2017-2020) also identifies agricultural transformation as one of five priority
development strategies for economic enhancement targeting 7.2 percent as annual growth rate.
These priorities form a coherent strategy to address the Sustainable Development Goals (SDGs). SDG
2 emphasizes doubling agricultural productivity, increasing investment in agricultural research and
extension service, and ensuring the proper functioning of food commodity markets. SDG 1 targets a
reduced proportion of people living in poverty. Accelerated agricultural growth is the important way
out of poverty for the millions as over 2/3 of population are directly or indirectly engaged in
agriculture. SDG 8 promotes sustainable economic growth and employment, to which agricultural
development would contribute. SDG 12 addresses food loss reduction along production and supply
chains, including postharvest losses.
The approach also responds to two of the Korea International Cooperation Agency’s strategic
objectives: sustainable production and marketability and inclusive rural development. The KOICA-
Nepal Country Partnership Strategy 2017-2019 further addresses the importance of farm income
growth through value chain development for poverty alleviation and graduation out of Least
Development Country status.
2.3.2. Effectiveness and efficiency
Various options will be considered to minimize the operational costs. For instance, the project will
consider using currently available office space inside either Ministry of Agricultural, Land
Management and Cooperatives or the Nepal Agriculture Research Council to save costs as well as be
physically close to stakeholders.
The project will make use of locally-available resources to achieve intended outputs. For instance, the
Nepal Agriculture Research Council and the Korea Rural Development Agency developed manuals on
postharvest management for carrot and tomato in 2017, although with limited use so far. It has been
agreed with the Nepal Agriculture Research Council that these manuals would be used during the 40
training programmes for 625 public and private extension providers in years 2 and 3. The training
materials for extension services to cooperative members will be developed based on these manuals.
The process of disseminating this information to farmers will be developed in coordination with the
Nepal Agriculture Research Council.
The project will identify the best possible way to disseminate the knowledge and technologies through
developing various manuals and knowledge products in consultation with local governments, public
and private extension officers, cooperatives and farmers. The manuals will be available in hard copy,
online, and on wallcharts in local languages. The project will make use of media such as TV or radio
programmes and disseminate details of project-related activities and knowledge. Extension workers
will refer to them when engaging farmers and cooperatives. Those manuals and products will be also
available in agrovets’ shops and at cooperatives and collection centres. Manuals will be available
30
loose-leaf so that they can be updated. Visual products using animation and infographics will be
developed. Visibility items disseminating agriculture knowledge, including business cards, posters, t-
shirts or cups will be also displayed in events and meetings. The project will constantly update
knowledge in social media and responses or feedback will be posted in a timely manner.
The project will utilize established and tested approaches for knowledge sharing. Lessons learnt,
experiences to date and good practices related to production maximization, adoption of postharvest
technology, and well management of collection centres will be captured and synthesized. These
lessons will then be disseminated through knowledge and information systems established through
existing networks, through online training materials, and other knowledge products. Consultation on
knowledge dissemination will be made with relevant stakeholders such as Agricultural Information
and Communication Centre. Detailed knowledge management and visibility plan is available under
3.5.2. and 3.6.3.
2.3.3. Impact
The principal beneficiaries of support will be farmers producing fruit and vegetables in the target
areas for the assistance. In practice, the benefits are eventually expected to accrue to farmers
throughout the country. Thus, it is expected that postharvest management technology would
potentially be rolled out in all fruit and vegetable growing areas in Nepal and, as a result, no specific
geographic concentration is anticipated after completion of technology development.
In addition, reduced quality loss of fruit and vegetable will lead to superior nutritional value and
minimize food-borne health hazards, thereby increasing food security. Providing consumers with fruit
and vegetables that taste good and appeal to consumer preference can also increase their consumption
of the recommended minimum of five servings per day for better health51.
2.3.4. Sustainability
With its strong focus on capacity development of local governments, the project will ensure its
sustainability by factoring the following elements in the project design and implementation:
broad-based consultation with direct beneficiaries, government officials and other stakeholders in
identifying the target pocket areas, farmers, and cooperatives;
for input support to farmers through the revolving fund, the project will seek to mobilize local
resources by supporting cooperatives in managing the fund and encouraging farmers’ own investment;
development of research protocols for the Nepal Agriculture Research Council, collection centre
management manual for cooperatives, and technology user manuals for farmers;
ensuring the NARC’s budget commitment for the maintenance of the laboratory facility after the
project completion;
establishment of a knowledge management system using web-based tools and other means for
experience and knowledge product sharing; and
awareness raising among beneficiaries and stakeholders to maximise spill overs.
Cross-cutting issues
51A.A. Kader. Increasing Food Availability by Reducing Postharvest Losses of Fresh Produce.
31
UNDP is committed to mainstreaming of the social and environmental sustainability and attainment
of socially and environmentally beneficial development outcomes. Annex 3 is the Social and
Environmental Standards to enhance positive social and environmental opportunities and benefits and
ensure avoidance of adverse risks and impacts. Through application of Social and Environmental
Standards, UNDP enhances consistency, transparency, and accountability of its decision-making
processes and actions.
Human rights
UNDP recognizes the centrality of human rights to sustainable development and is committed to
supporting universal respect for, and observance of, human rights and fundamental freedoms for all.
The project will focus on small-scale farmers and their economic, social and cultural rights in three
dimensions: availability, accessibility, and quality. The project ensures that extension services and
input supports for increased production are available for smallholder farmers. They will have better
physical and economic accessibility to well-equipped collection centres and satellite markets. While
facility support is given to collection centres, the project will consult with local users, operators of
collection centres, and consumers to make sure that the project interventions are relevant to the local
context as well as culturally appropriate.
For non-discrimination and equality, the statistical data will be disaggregated into gender and those
from minority social groups. For accountability and rule of law, the project would establish complaint
and redress mechanisms so that beneficiaries and stakeholders can demand accountability at all stages
of the policy and programme cycle. Information sharing will be sought so that beneficiaries and
stakeholders are well informed of it, have access to it, and have capacity to use it.
Gender equality and empowerment
Some studies find that women generally lead actions in postharvest management, but with the
findings strongly influenced by actions on cereals52 and tubers53, with this conclusion contradicted in
respect of some fruit and vegetables54. There is nonetheless a body of literature which suggests that
women dominate fruit and vegetable retailing, often at small scale, with high loss levels at this stage
in the value chain55.
The results of the feasibility study suggest that, while there is a gender-based division of labour in
vegetable production in Nepal, it is not pronounced, with men and women involved at all stages of
vegetable production and most tasks shared. The exception is pesticide application which is mainly by
men, while women have a stronger role in applying organic and inorganic fertilizer. Both men and
women are involved in postharvest management and marketing of vegetables. There is however some
gender division of roles, with washing and cleaning slightly more likely to be done by women, while
selling is by men.
Both men and women are involved in fruit production, with most respondents saying that production
was done jointly by men and women. Men and women are also jointly involved in postharvest
management and marketing, although with pricing, transport and sales mainly done by men.
The promotion of gender equality and empowerment are central to the mandate of UNDP. During the
identification of collaborating farmers, pocket areas, and cooperatives, data collection and
consultation are to be made to identify women, indigenous people, and those from socially
disadvantaged groups and learn their different needs and constraints. This is to make sure that project
52Agra (2014). Establishing the status of postharvest losses and storage for major staple crops in eleven African countries. Final report.
53 http://www.developmentbookshelf.com/doi/abs/10.3362/2046-1887.2015.014
54 http://www.ijsk.org/uploads/3/1/1/7/3117743/2_postharvest_losses.pdf 55 http://www.resjournals.org/JAFS/PDF/2015/March/Ahmed_et_al.pdf
32
interventions benefit women, men, and socially disadvantaged groups meaningfully and equitably,
proving equitable access to project resources. In addition, this is to avoid or minimize any unintended
gender-based discrimination or inequalities.
During project implementation, regular gender-responsive monitoring will be conducted.
Environmental sustainability
UNDP advocates for any projects’ enhancement of climate resilience and avoids unwarranted
increases in greenhouse gas.
A possible negative impact of the project to environment would be increased vegetables and fruit
waste in collection centres and satellite markets, due to increased outputs over the next five years.
When the project conducts the baseline survey, consultation will be arranged to understand the
environment-related status in each pocket areas to make sure that project interventions do not affect
the nature and greenhouse gases. Measures will be designed and regularly monitored during the
project implementation. During the process of postharvest technology development, environment
concerns will be considered by engaging staff from Agricultural Environment Division of the Nepal
Agriculture Research Council.
3. Project Description
3.1. Goal and Objective
The goal is to improve the incomes of smallholder farmers through value chain development in fruit
and vegetable pocket areas. The project is expected to benefit nearly 10,000 smallholder farmers in
province 3 and 4. Target vegetables include tomato, cauliflower, cabbage, capsicum, cucumber, radish,
potato, onion, and garlic, while fruit are banana, citrus, papaya, pineapple, and watermelon.
33
3.2. Expected Results
3.2.1. Logical framework of the project
<Table 2: Logical framework>
Project Name Value chain development of fruit and vegetables in Nepal
Goal Increase incomes of smallholder farmers through value chain development
Objectives Improve agricultural productivity through increased capacity of government agencies and increased access to production technology by farmers
Reduce postharvest losses of selected fruit and vegetables by postharvest technology development
Increased market linkages at local levels
Contribution to UN
Strategic Plan, SDG,
UNDAF, CPD outcomes
and indicators
Sustainable Development Goals:
1.4. By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, control
over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance.
1.4.1. Proportion of population living in households with access to basic service
2.3. By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists and fishers,
including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets and opportunities for value addition and non-farm
employment.
2.3.1. Volume of production per labour unit by classes of farming/pastoral/forestry enterprise size
2.3.2. Average income of small-scale food producers, by sex and indigenous status
2.4. By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that
strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality.
2.4.1. Proportion of agricultural area under productive and sustainable agriculture
2.a. Increase investment, including through enhanced international cooperation, in rural infrastructure, agricultural research and extension services, technology development and plant
and livestock gene banks to enhance agricultural productive capacity in developing countries, least developed countries.
2.a.1. The agriculture orientation index for government expenditures
2.a.2. Total official flows (official development assistance plus other official flows) to the agriculture sector
2.c. Adopt measures to ensure the proper functioning of food commodity markets and their derivatives and facilitate timely access to market information, including on food reserves, to
help limit extreme food price volatility.
2.c.1. Indicator of food price anomalies
By 2030, halve per capita global food waste at the retail and consumer levels and reduce food losses along production and supply chains, including postharvest losses.
12.3.1. Global food loss index
UN Strategic Plan 2018-2021:
Outcome 1: Growth and development are inclusive and sustainable, incorporating productive capacities that create employment and livelihoods for the poor and excluded
Output 1.1.2: Marginalized groups, particularly the poor, women, people with disabilities and displaced are empowered to gain universal access to basic services and financial and
non-financial assets to build productive capacities and benefit from sustainable livelihoods and jobs
34
Number and proportion of people accessing financial and non-financial assets, disaggregated by target groups
UN Development Assistance Framework:
Outcome 1 sustainable and inclusive economic growth.
Proportion of population living below the national poverty line (Baseline: 21.6 in 2017 | target: 13.8%)
1.2. Employed people living below USD 1.25 per day in total employment (Baseline: 22% | target: 12.2%)
1.3. Average hours spent in domestic work by women (Baseline: 14 hours per day | target: 10.27 hours per day)
1.4. Share of bottom 40 percent in total income (Baseline: 11.9% in 2016 | target: 15%)
1.5. Households with inadequate food consumption (Baseline: 15.5% | target: 10.5%)
1.6. Prevalence of undernourishment (Baseline: 36.1% | target: 20.6%)
1.7. Population below minimum level of dietary energy consumption (Baseline: 22.8% | target 14.3%)
1.8. Percent of migrant workers with skilled jobs (Baseline: 30% | target: 40%)
Country Programme Document:
Outcome 1 By 2022, impoverished, especially economically vulnerable, unemployed and under-employed and vulnerable people, have increased access to sustainable livelihoods, safe
and decent employment and income opportunities.
Output 1.1: policy, institutional and capacity development solutions lead to improved disaster and climate resilient livelihoods, productive employment and increased productivity in
rural areas
Output 1.2: municipalities adopt disaster and climate resilient urban policies that promote access to safe and decent employment and income opportunities for vulnerable groups
Output 1.3: improved national capacities in planning, monitoring, financing and reporting on 2030 agenda
The project has limited contribution to gender equality (Gender marker: GEN1).
Project Outcome 1
Indicator 1 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activities
Improve agricultural
productivity through
increased capacity of
government agencies and
increased access to
production technology by
farmers
% of increase of gross
margin of selected
commodities from
collaborating farmers
0
UNDP
progress and
evaluation
reports, gross
margin
analysis
UNDP,
MoALMC,
NARC, local
municipality
Yearly
Project Output 1.1
Indicator 1.1.1 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 1.1.1
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
Identify potential fruit and
vegetables production
pockets and conduct gross
margin analysis
% increase in yield of
selected crops for
collaborating farmers (%
women or those from
socially disadvantaged
groups by 2022)/
0
200P,
20C,
9,960F56
Gross
margin,
UNDP
reports,
cooperatives’
account
books
UNDP,
MoALMC,
NARC, local
municipality
Yearly
Identify pocket areas,
collaborating
municipalities,
cooperatives, farmers,
extension officers and
informal extension
providers
UNDP,
MoALMC,
NARC
200P, 20C,
9,960F*
200P, 20C,
9,960F*
56 P = pocket areas, C = cooperatives, F = farmers
35
Indicator 1.1.2 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 1.1.2
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
# of baseline survey done 0 1 UNDP report UNDP Yearly Conduct a baseline
survey
UNDP,
MoALMC,
NARC
1 1
Indicator 1.1.3 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 1.1.3
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
# of gross margin
analysis produced
0 1 UNDP report UNDP Yearly Conduct gross margin
analysis
UNDP,
MoALMC,
NARC
1 1
Project Output 1.2
Indicator 1.2.1 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 1.2.1
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
Improve access to
production technology
# of participants –
extension officers,
agrovets, lead farmers (%
women or those from
socially disadvantaged
groups) received training
0
500
(15%)
UNDP
report,
monitoring
visit
UNDP,
MoALMC,
NARC, local
municipality
Yearly
Provide training on
production technology
and optimal practice to
extension officers
UNDP,
MoALMC,
DoA,
NARC, local
municipality
500 0
Indicator 1.2.2 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 1.2.2
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
# of farmers received
extension
0 10,000 UNDP
report,
monitoring
visit
UNDP,
MoALMC,
NARC, local
municipality
Yearly Provide extension on
production technology
and practice to
cooperatives and farmers
UNDP,
MoALMC,
DoA,
NARC, local
municipality
10,000 0
Indicator 1.2.3 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 1.2.3
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
# of manuals developed
and printed
0 30 UNDP report UNDP,
MoALMC,
NARC, local
municipality
Yearly Develop and print
manuals
UNDP,
MoALMC,
DoA, NARC
30 0
Indicator 1.2.4 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 1.2.4
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
# of cooperatives
received and managed
the revolving fund
0 20 UNDP
report,
monitoring
visit
UNDP,
MoALMC,
NARC, local
municipality
Yearly Support the operation of
the revolving fund for
input support to
cooperatives
UNDP, local
municipality
20 0
Project Outcome 2
Indicator 2 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection Activities
36
Reduce postharvest losses
of selected fruit and
vegetables by postharvest
technology development
% decrease in postharvest
losses occurred from
farm to collection centre
(measurement by volume
or value: to be decided)
0
UNDP
progress and
evaluation
reports
UNDP,
MoALMC,
NARC, local
municipality
Yearly
Project Output 2.1
Indicator 2.1.1 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 2.1.1
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
Strengthen the capacity of
the Nepal Agriculture
Research Council
# of staff hired and
engaged in postharvest
technology development
0
4H,
10I57
UNDP report,
monitoring
visit
UNDP,
NARC
Yearly
Provide technical inputs
for the postharvest
technology research
(horticulture specialist
and intern)
UNDP,
NARC
4H, 10I 0
Indicator 2.1.2 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 2.1.2
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
# of staff of the Nepal
Agriculture Research
Council and relevant
government agencies
received training and
exposure visits
0 40 UNDP report UNDP,
NARC
Yearly Organize exposure visit
or observation tour for
government officials
working on postharvest
management
UNDP,
MoALMC,
DoA, NARC
20 0
Indicator 2.1.3 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 2.1.3
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
# of research projects
financed on postharvest
management have been
financed
0 10 UNDP report UNDP,
NARC
Yearly Provide financial support
to researches on
postharvest technology
conducted by students
mastering in agriculture
science related matters
UNDP,
MoALMC,
NARC
10 0
Indicator 2.1.4 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 2.1.4
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
# of NARC laboratory
furnished with
postharvest technology
development related
equipment
0 1 UNDP report UNDP,
NARC
Yearly Improve the physical
facility of the postharvest
laboratory at the
Horticulture Research
Division, the Nepal
Agriculture Research
Council
UNDP,
NARC
1 0
57 H = horticulture specialist, I = intern
37
Project Output 2.2
Indicator 2.2.1 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 2.2.1
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
Develop postharvest losses
reduction management
technologies by the Nepal
Agriculture Research
Council (NARC)
# of postharvest
technology developed
and
verified/recommended by
the Nepal Agriculture
Research Council by year
3
0
3
UNDP report,
monitoring
visit
UNDP,
MoALMC,
NARC
Yearly
Develop postharvest
technology
UNDP,
MoALMC,
NARC,
3 0
Indicator 2.2.2 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 2.2.2
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
# of developed
technology tested,
verified and
recommended by NARC
0 3 UNDP report,
monitoring
visit
UNDP,
MoALMC,
NARC, local
municipality
Yearly On-farm testing of
developed technology
UNDP,
MoALMC,
DoA,
NARC, local
municipality
3 0
Indicator 2.2.3 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 2.2.3
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
# of financial analysis
report produced
0 3 UNDP report UNDP,
MoALMC,
NARC, local
municipality
Yearly Analyse financial
incentives of technology
adoption (both existing
and new postharvest
technology)
UNDP,
MoALMC,
DoA, NARC
3 0
Indicator 2.2.4 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 2.2.4
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
# of manuals produced 0 30 UNDP report,
monitoring
visit
UNDP,
MoALMC,
NARC, local
municipality
Yearly Develop and print
manuals on proven
postharvest technology
(including development
of protocol and standard
of grading and
packaging)
UNDP,
NARC, DoA
30 0
Indicator 2.2.5 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 2.2.5
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
# of dissemination
strategy developed
0 1 UNDP report,
monitoring
visit
UNDP,
MoALMC,
NARC, local
municipality
Yearly Prepare detailed roll-out
strategy for technology
dissemination (both
existing and new
postharvest technology)
UNDP,
MoALMC,
DoA, NARC
1 0
Project Output 2.3 Indicator 2.3.1 Baseline Target Means of Source of Frequency of Activity 2.3.1 Responsible Planned Target Planned Target
38
Verification data data collection Party (2018-23) (2018)
Transfer postharvest
technology to farmers with
improved access to input
support
# of participants of public
and informal extension
providers (% women or
those from socially
disadvantaged groups)
received training
programmes
0
625
UNDP report,
monitoring
visit
UNDP,
MoALMC,
NARC, local
municipality
Yearly
Provide training to public
extension officers as well
as non-government
extension providers
UNDP,
MoALMC,
DoA,
NARC,
Municipality
625 0
Indicator 2.3.2 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 2.3.2
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
# of participants
(farmers) received
extension
0
6,250
UNDP report,
monitoring
visit
UNDP,
MoALMC,
DoA,
NARC,
Municipality
Yearly
Provide extension on
postharvest technology to
cooperatives and farmers
UNDP,
MoALMC,
DoA,
NARC,
Municipality
6,250 0
Indicator 2.3.3 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 2.3.3
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
# of cooperatives
received and managed
the revolving fund
0 20 UNDP report,
monitoring
visit
UNDP,
MoALMC,
NARC, local
municipality
Yearly
Support the operation of
the revolving fund for
input support to adopt the
postharvest technology
UNDP,
MoALMC,
DoA,
NARC,
Municipality
20 0
Project Outcome 3
Indicator 3 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activities Increased market
linkages at local level
% increase in the volume
of selected commodities
traded at collaborating
collection centres and
satellite markets
0
UNDP
progress and
evaluation
reports, gross
margin
UNDP,
MoALMC,
NARC, local
municipality
Yearly
Project Output 3.1
Indicator 3.1.1 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 3.1.1
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
Improve functions of
collection centres
# of collection centres
received support on
physical facility
0
20 Gross margin,
UNDP
reports,
cooperatives’
account books
UNDP,
MoALMC,
NARC, local
municipality
Yearly
Provide physical support
to collection centres and
satellite markets as per
agreed terms and
conditions
UNDP,
MoALMC,
NARC, local
municipality
20 0
Indicator 3.1.2 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 3.1.2
Responsible
Party
Planned Target
(2018-23)8
Planned Target
(2018)
39
# of participants -
cooperative operators and
members received
training programmes
0
150 UNDP report UNDP Yearly Provide training on
marketing and
management to operators
of collection centres and
satellite markets
UNDP,
MoALMC,
NARC, local
municipality
150 0
Indicator 3.1.3 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 3.1.3
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
# of persons (x% female
and those from socially
disadvantaged group)
joined exposure visits
0 60
(15%)
UNDP report UNDP Yearly Conduct exposure visit or
observation tours for
managers and operators
of collection centres
UNDP,
MoALMC,
NARC, local
municipality
60 0
Project Output 3.2
Indicator 3.2.1 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 3.2.1
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
Promote market
information system
# of collection
centres/wholesale
markets using the
improved market
information network
0
20
UNDP report,
monitoring
visit
UNDP,
MoALMC,
NARC, local
municipality
Yearly
Strengthen the market
information system at
collection centres and
satellite markets
UNDP,
MoALMC,
DoA,
NARC, local
municipality
20 0
Indicator 3.2.2 Baseline
Target
Means of
Verification
Source of
data
Frequency of
data collection
Activity 3.2.2
Responsible
Party
Planned Target
(2018-23)
Planned Target
(2018)
# of cooperatives
receiving equipment
for the physical
support for market
information system
0
20
UNDP report,
monitoring
visit
UNDP,
MoALMC,
NARC, local
municipality
Yearly Provide support to ICT
service and equipment if
necessary
UNDP,
MoALMC,
DoA,
NARC, local
municipality
20 0
40
3.2.2. Expected outcomes and indicators
Project outcome 1: improve agricultural productivity through increased capacity of government
agencies and increased access to production technology by farmers.
Indicator: % increase in yield of selected crops for collaborating farmers (% women or those from
socially disadvantaged groups by 2022)
Project outcome 2: reduce postharvest losses of selected fruit and vegetables by postharvest
technology development.
Indicator: % decrease in postharvest losses occurred from farm to collection centre (measurement by
volume or value: to be decided)
Project outcome 3: increased market linkages at local level.
Indicator: % increase in the volume of selected commodities traded at collaborating collection centres,
satellite markets, and wholesale markets
3.2.3. Expected outputs and indicators
Project Output 1.1: improve agricultural productivity through increased capacity of government
agencies and increased access to production technology by farmers.
% increase in yield of selected crops for collaborating farmers (% women or those from soci
ally disadvantaged groups by 2022)
# of baseline survey done
# of gross margin analysis produced
Project Output 1.2: improve access to production technology
# of people (% women or those from socially disadvantaged groups) received training programmes
# of farmers received extension
# of manuals developed and printed
# of cooperatives received and managed revolving funds
Project Output 2.1: strengthen the capacity of the Nepal Agriculture Research Council
# of staff hired and engaged in postharvest technology development
# of staff of the Nepal Agriculture Research Council received training and exposure visits
# of research projects financed on postharvest management have been financed
# of the Nepal Agriculture Research Council laboratory furnished with postharvest technology
development related equipment
Project Output 2.2: develop postharvest losses reduction management technologies by the Nepal
Agriculture Research Council (NARC)
# of postharvest technology developed and verified/recommended by the Nepal Agriculture Research
Council by year 3
# of developed technology tested, verified and recommended by the Nepal Agriculture Resear
ch Council
# of financial analysis report produced
41
# of manuals produced
# of dissemination strategies developed
Project Output 2.3: transfer postharvest technology to farmers with improved access to input support
# of people (% women or those from socially disadvantaged groups) received training programmes
# of farmers received extension
# of manuals produced
# of cooperatives receiving and managing revolving funds
# of farmers adopting and using the verified postharvest technology (definition of adoption will be
specified)
Project Output 3.1: improve functions of collection centres
# of collection centres received support on physical facility
# of cooperative operators and members received training programmes
# of persons (x% female and those from socially disadvantaged group) joined exposure visits
Project Output 3.2: promote market information system
# of collection centres and wholesale markets using the improved market information network
# of cooperatives receiving equipment for the physical support for market information system
3.3. Project Activities
Project Output 1.1: improve agricultural productivity through increased capacity of government
agencies and increased access to production technology by farmers.
1.1.1. Identify pocket areas, collaborating municipalities, cooperatives, farmers, extension officers
and informal extension providers
1.1.2. Conduct a baseline survey (including production cost, gross margin, economic analysis,
sensitivity analysis, financial incentive analysis for farmers adopting new postharvest
technology, productivity, marketing system, postharvest technology)
1.1.3. Conduct gross margin analysis
Fruit and vegetable production pockets in the target districts will be mapped using GIS methods. GIS
maps are available from the Central Bureau of Statistics58, but it is expected that these will need to be
supplemented to capture the necessary detail at local level. This mapping will form the basis for the
selection of potential fruit and vegetable production pockets to be addressed under the assistance.
Selection criteria will include production of some or all the long list of products to be addressed in
postharvest management (these comprise, as noted, tomato, cauliflower, cabbage, capsicum, cucumber,
radish, potato, onion and garlic and, in fruit, banana, citrus, papaya, pineapple and watermelon.
Once production pockets have been chosen, farmers and collaborating municipalities and rural
municipalities within the pockets will be selected. Criteria will be developed for selection and are
likely to include, as a minimum, extent of commercialisation, with farmers selling a large proportion
of their production preferred. A range of the farm sizes will also be addressed to capture the viability
of postharvest management technology linked to improved production in a range of contexts. As noted,
the number of participating farmers in each commodity will range from 15 to 30 for fruit and 30 to 50
for vegetables, with some 9,960 farmers in total expected to participate. The project team will also
58 http://cbs.gov.np/index.php?route=information/gis_maps
42
interact with farmers, extension officers, government officials at municipality, province level
government, Department of Agriculture, the Nepal Agriculture Research Council and Ministry of
Agricultural, Land Management and Cooperatives.
Once production pockets and farmers have been selected, a cost of production analysis will be
undertaken to estimate baseline gross margins and net farm income. While gross margins are available
for various crops in different parts of Nepal, there is considerable variance according to agro-climatic
zone. As a result, and to establish a basis for assessing feasibility and impact, estimation of crop gross
margins and net farm incomes in the target area will be required at the outset of the assistance. During
the course, there will be an attempt to conduct the sensitivity analysis to measure the impact of
postharvest technology adoption.
Project Output 1.2: improve access to production technology
1.2.1. Provide training programmes on production technology and optimal practice to extension
officers
1.2.2. Provide extension service on production technology and practice to cooperatives and farmers
1.2.3. Develop and print manuals
1.2.4. Support the operation of the revolving fund for input support to cooperatives
The revolving fund will allow target farmers to buy inputs required as part of extension packages.
Extension will be delivered through several providers including local governments, locally available
extension-related institutions, agrovets, lead farmers, and cooperatives. The intention is that
subsequent roll-out of postharvest management technology should be in areas and to farmers where
production practices had already been improved and were at or close to recommended production
technologies. In contrast, if improved postharvest management was deployed in areas where
production technology was seriously sub-optimal, it would not be possible to assess whether impacts
were constrained by production methods or postharvest approaches.
There will accordingly be training for field extension staff from municipalities, cooperatives and
agrovets. Support to extension service to farmers will be done using a group approach for reasons of
cost, but also because of the proven efficiency of this approach. Overall the aim will be to remove or
greatly lessen limited access to extension. The project will mobilize existing resources from the
Ministry of Agriculture, Land Management and Cooperatives, the Nepal Agriculture Research
Council and may hire trainers. The number of training programmes, participants, unit cost, and yearly
budgets are set out below. Unit cost is calculated taking into consideration of travel cost of
participants and trainer, trainer fees, venue cost, equipment, stationary and food.
Number Of participants
Activity Beneficiaries A B Yr 1 Yr 2 Yr 3 Yr 4
A B A B A B A B
1.2.1. Extension
workers/Lead
farmers/cooper
atives
40 500 0 0 12 186 15 222 13 192
1.2.2. Farmers/groups 400 10,000 0 0 124 3,100 148 3,700 128 3,200
Budget
Activity Beneficiaries A C
($)
D
($)
Yr 1 Yr 2 Yr 3 Yr 4
A D A D A D A D
1.2.1. Extension
workers/Lead
farmers/coopera
tives
40 2,300 92,000 0 0 12 28,520 15 34,040 13 29,440
1.2.2. Farmers/groups 400 471 188,400 0 0 124 58,404 148 69,708 128 60,288
43
(A: number of training, B: number of participants, C: unit cost, D: total budget)
The project will identify the best possible way to disseminate the knowledge and technologies through
developing manuals and knowledge products in consultation with local governments, public and
private extension officers, cooperatives and farmers. The Value Chain Specialist and Horticulture
Specialist will collaborate with the Nepal Agriculture Research Council to develop these products,
building on existing resources. This is important in that the Nepal Agriculture Research Council has
already developed crop manuals.
The manuals will be available in hard copy, online, and on wallcharts in local languages. The project
will make use of media such as TV or radio programmes and disseminate details of project-related
activities and knowledge. Those manuals and products will be also available in agrovets’ shops and at
cooperatives and collection centres. Manuals will be available loose-leaf so that they can be updated.
Visual products using animation and infographics will be developed. Visibility items disseminating
agriculture knowledge, including business cards, posters, t-shirts or cups will be also displayed in
events and meetings. The project will constantly update knowledge in social media and responses or
feedback will be posted in a timely manner.
The revolving fund for cooperatives is a micro-financing device to provide loans to members and then
use the repayments to provide loans to other members. The revolving fund provides easy access of
finance to smallholder farmers in rural areas, given that most financial institutions are in urban and
semi-urban areas in Nepal. Loans from banks have also been disbursed mainly for capital investments
with little attention to inputs, such as fertilizer, pesticides, and improved seed.
The Value Chain Specialist will provide technical assistance to establish and operationalise the
revolving fund. The Specialist will help develop operational guidelines and determine the transfer
mechanisms in consultation with the Ministry of Agriculture, Land Management and Cooperatives,
the Nepal Agriculture Research Council, state governments, local governments and cooperatives. The
operational guideline will define the interest rate and the repayment process.
The specialist will design and implement further technical assistance to cooperatives for their
successful implementation of the fund. This will include orientation of the operational guideline; the
launch of the fund; and the provision of training as needs arise. Good understanding of the revolving
fund by cooperative members, clear roles for cooperative operators, and specifications of conditions
where repayment could be delayed are key to successful implementation.
Project Output 2.1: strengthen the capacity of the Nepal Agriculture Research Council
2.1.1. Provide technical inputs for the postharvest technology research (horticulture specialist and
intern)
2.1.2. Organize exposure visit or observation tour for government officials working on postharvest
management
2.1.3. Provide financial support to research on postharvest technology conducted by students
mastering in agriculture science related matters
2.1.4. Improve the physical facility of the postharvest laboratory at the Horticulture Research
Division, the Nepal Agriculture Research Council
To support the Nepal Agriculture Research Council’s postharvest technology development,
strengthening and improvement of the postharvest laboratory is essential. Human resources will be
also financed (horticulture specialist and 10 interns throughout the project period). They will be
recruited by the Nepal Agriculture Research Council according to its hiring policy with open
competition and will be stationed in the Nepal Agriculture Research Council. The minimum
44
qualification for the position of horticulture specialist is a bachelor’s degree in agriculture
(horticulture) with at least 3 years’ working experience or master’s degree in agriculture (horticulture).
The project will support this cost.
The exposure visit or observation tour will be organized for the Nepal Agriculture Research Council
researchers and relevant government officers. This is to learn replicable postharvest management
technologies, share knowledge and seek cooperation. Visit destinations for government officials could
be research stations (Uttar Pradesh and Himanchal Pradesh) or universities in India, where the
relevant technology is available. For knowledge sharing and cooperation, a visit to South Korea or
Thailand is also planned in year 3. Approximately 40 participants will be selected for the exposure
visits. The project will ensure that participants from different pocket areas are selected. Detailed
number of participants and budget for each year is as follows.
Number Of participants
Activity Beneficiaries A B Yr 3 Yr 4
A B A B
Exposure visit to
neighbouring countries (i.e.
India) for learning
immediately replicable
postharvest management
technologies
Ministry of
Agriculture, Land
Management and
Cooperatives, NARC,
extension officers, or
other relevant
government staff
2 25 1 15 1 10
Exposure visit to other
country (i.e. Korea) for
knowledge sharing and
cooperation
1 15 1 15
Budget
Activity Beneficiaries B C
($)
D
($)
Yr 3 Yr 4
B D B D
Exposure visit to
neighbouring countries (i.e.
India) for learning
immediately replicable
postharvest management
technologies
Ministry of
Agriculture, Land
Management and
cooperatives, NARC,
extension officers, or
other relevant
government staff
25 170 4,250 15 2,550 10 1,700
Exposure visit to other
country (i.e. Korea) for
knowledge sharing and
cooperation
15 3,000 45,000 15 45,000
(A: number of visit, B: number of participants, C: unit budget per person, D: total budget)
Project Output 2.2: develop postharvest losses reduction management technologies by the Nepal
Agriculture Research Council (NARC)
2.2.1. Develop postharvest technology (varietal screening, management practices, harvesting,
picking methods and timing, cleaning, grading, sorting, packaging, and transportation)
2.2.2. On-farm testing of developed technology
2.2.3. Analyse financial incentives of technology adoption (both existing and new postharvest
technology)
2.2.4. Develop and print manuals on proven postharvest technology (including development of
protocol and standard of grading and packaging)
2.2.5. Prepare detailed roll-out strategy for technology dissemination (both existing and new
postharvest technology)
The approach to technology development for postharvest management will be as follows:
45
Situation analysis and baseline mapping The Nepal Agriculture Research Council, the Ministry of
Agricultural, Land Management and Cooperative, Department of Agriculture, municipalities and rural
municipalities in the selected areas will work jointly to identify, select and prioritize the fruit and
vegetables for postharvest technology development. This will be based on documenting production,
productivity, and levels of postharvest losses and will aim to identify gaps between current and
recommended practices in production and handling of fresh fruit and vegetables
Develop research protocols for developing, testing and re-validation of postharvest management
technologies for the selected crops. Commodity-specific research protocols will be developed and
implemented in a phased manner starting with 3 commodities (vegetables and fruit), with the aim to
address up to 5 commodities over a five-year period. The research protocols for postharvest
management will address varietal screening, production practices, harvesting and picking methods,
field cooling, washing and cleaning, carrying and transportation, sorting and grading, and packaging.
The research will also include technical revalidation of existing technologies.
The research protocol will also set targets for loss reduction for each of the target products, with these
losses probably distributed along different points in the supply chain. Given differences in product
characteristics and in vulnerability to postharvest losses, these targets are expected to vary from
product-to-product, with targets reflecting international evidence on the potential levels of loss
reduction.
Selection of collaborating farmers for conducting research for development and testing of postharvest
management technologies. Technology will be partially developed at field level and hence farmers
willing, able and suitable to take part in testing will be identified. These farmers may also be included
in baseline surveys, as part of the ‘treatment’ group.
Costing and review of financial feasibility for farmers. Once technology has been developed, crop-
level gross margin analysis will be used to assess incentives to farmers to adopt since, if adoption
does not offer farmers an attractive return, they will not adopt. This analysis will include those
postharvest technologies which have already been developed, as well as new technology to be
developed under the support. This is obviously a crucial element of the technology development and
testing process since, clearly, unless adoption of the technology raises gross margins and farm income,
farmers will not use it. Accordingly, it is important to assess the financial returns to farmers based on
analysis of changes in costs and revenues.
Project Output 2.3: transfer postharvest technology to farmers with improved access to input support
2.3.1. Provide training programmes to public extension officers as well as non-government
extension providers
2.3.2. Provide extension on postharvest technology to cooperatives and farmers
2.3.3. Operationalize the revolving fund for input support to adopt the postharvest technology
Once technology is developed, tested and found to provide adequate incentives to the farmers,
methods of extension delivery will be identified, developed and tested. This is will involve
identification of the conduit for extension and will principally involve determining the suitability of
municipalities, rural municipalities, and District Agricultural Development Offices to deliver
extension in this area. The role of the Nepal Agriculture Research Council in the roll-out of the
technology to farmers will also need to be determined.
The approach to the roll-out of postharvest management technology will be as follows:
Development of extension packages. These will reflect the technology as developed by the Nepal Agr
iculture Research Council and, as with production packages, will be designed to explain to farmers
how to introduce the technology at farm level
46
Training needs assessment will be conducted for farmers, cooperatives and extension workers of
Department of Agriculture for effective dissemination of recommended packages of practices for
improved production, postharvest management and marketing of vegetables and fruit. This and the
ensuing training will focus on the commodities for which postharvest management technologies are to
be developed.
The Directorate of Training, Department of Agriculture does not currently offer training programmes
on value chain development or marketing. As a result, extension officers at municipalities, junior
technicians at rural municipalities, technicians from the one village one technician program,
agriculture officers at District Agriculture Development Offices do not have skills in the roll out of
postharvest reduction technology. It will thus be necessary first to provide short training-of-trainers
programmes.
Develop training curricula for farmers, members of cooperatives, field extension officers, agriculture
officers.
Provide training to extension officers, technicians, training officers, agrovets on effective
dissemination of ‘packages of practices’ for improved production and postharvest management and
cooperative marketing of vegetables and fruit.
Provide training to members and managers of farmer cooperatives on dissemination of recommended
packages of practices for improved production and postharvest management and cooperative
marketing of vegetables and fruit. Also provide on-farm training to farmers on packages of practices
on production and postharvest management technologies. The number of training programmes,
participants, unit cost, and yearly budgets are set out below. Unit cost is calculated taking into
consideration of travel cost of participants and trainer, venue cost, equipment, stationery, and food.
Number Of participants
Activity Beneficiaries A B Yr 1 Yr 2 Yr 3 Yr 4
A B A B A B A B
2.3.1. Extension
workers/Lead
farmers/cooper
atives
40 625 0 0 12 186 15 222 13 192
2.3.2. Cooperatives,
collection
centres and
local traders,
farmers
250 6,250 0 0 78 1,938 93 2,313 80 2,000
Budget
Activity Beneficiaries A C
($)
D
($)
Yr 1 Yr 2 Yr 3 Yr 4
A D A D A D A D
2.3.1. Extension
workers/Lead
farmers/coopera
tives
40 2,300 92,000 0 0 12 28,520 15 34,040 13 29,440
2.3.2. Cooperatives,
collection
centres and
local traders,
farmers
250 471 117,750 0 0 78 36,503 93 43,568 80 37,680
(A: number of training, B: number of participants, C: unit cost, D: total budget)
Provision of inputs and extension for production and postharvest management. Roll-out will be
through extension packages financed through the revolving fund. The extension packages will be
47
developed jointly by the Directorate of Agricultural Extension, in collaboration with the Nepal Agric
ulture Research Council. Given that the Nepal Agriculture Research Council has limited mandate in
transferring technology at cooperative and farmers level, the Horticulture Specialist and the Value
Chain Specialist will be mainly involved in fund implementation – from the development of
operational guidelines to the fund launch, orientation, and training provision as needs arise. Packages
will be tested on a sample of farmers in the selected pockets as a basis for validation, before being
delivered through cooperatives and farmers groups.
Project Output 3.1: improve functions of collection centres
3.1.1. Provide physical support to collection centres and satellite markets as per agreed terms and
conditions
3.1.2. Provide training on postharvest handling and marketing of fruit and vegetables to operators of
collection centres and satellite markets
3.1.3. Conduct exposure visit or observation tours for managers and operators of collection centres
Activities will be aimed at reducing losses through better handling, storage and general market
conditions and, in addition, improved returns through grading. The support will, as one element,
address infrastructural elements and facilities at the collection centres. For providing this support, a
detail need assessment will be conducted to cooperatives.
The physical support will include the minimum requirement for collection centre such as:
raised washable stalls;
waste disposal facilities;
machine for doing weighing and measurement;
plastic crate for harvest and transport vegetable;
small trolley for carrying vegetable;
packing materials;
minitrucks; and
storage facilities (although limited to dry storage because of the constraints imposed by
electricity availability), ventilation, waste disposal59, water and sanitation, and sales structures
within the collection centre.
Produce is displayed on the ground in many collection centres, with losses accordingly common
because of damp, bacterial infections and accidental impacts and with appearance also affected by
dust and other pollutants. As a result, raised washable stalls would be introduced60. Sales can
alternatively be from trestle tables that can be folded and stored at the end of the trading day, with this
likely to be a cheaper option than construction of stalls61. There would be linked upgrading of the
common infrastructure which, in addition to water, sanitation and waste disposal, would include the
entrance roads, fencing and gates, drainage, parking62, and paving63 in pedestrian areas64.
59 As waste in rural markets is mainly organic it does not usually create major problems; however, arrangements must be made for its
collection and disposal. There are three options: aerobic composting; anaerobic digestion (biogas production); and disposal through burying
or sanitary landfill. There is no point in providing containers or constructing garbage pits if a collection system has not been set up as part of
a routine maintenance programme. The provision of small, easily cleaned containers throughout a market area is preferable to the construction of large pits remote from users.
60The space allocation is based on experience of average rural market conditions. The amount of space allocated to users is usu
ally around 10 m2 for each permanent retail trader, 6 m2 for an assembly trader (who requires less space as most trade is done from vehicles) and 3 m2 for a farmer.
61There may also be a need for very large stalls, for example, for specialized traders in grains or dry foods who require additional space for
storage. Designing stalls in a modular fashion so that a number of stalls can be combined to form a larger unit normally addresses such design problems. It is essential to consult with traders on the suitability of the stalls and their dimensions before finalizing the design.
62Parking provision is needed for service vehicles, delivery vehicles and visitors. This should include space for non-motorized tra
nsport, such as bicycles, motor bikes and ox-carts. In most cases, provision can be minimal an inexpensive. 63Small-scale retailers or farmers sometimes operate in the area surrounding a market, causing congestion and competing with ot
48
Very few collection centres have adequate waste disposal facilities, water or sanitation, with ensuing
threats to hygiene and danger of bacterial accumulation, with obvious effects on produce quality and
loss levels. Storage may also be provided though, as most rural markets deal in fresh produce for
which storage provision is not normally necessary, this may be restricted to small lockable chests for
secure and dry overnight storage, which also offers protection against vermin.
Support, through partial grants, will be provided to the establishment of storage facilities in some
production pockets, possibly attached to collection centres. It is envisaged that these will, in the first
instance, be aimed at storage of potato, mandarin and sweet orange, although this will be subject to
feasibility analysis. This will take account of reliability of electricity supply and will only be in areas
where there are prospects that load-shedding has now been eradicated.
Training and guidance would also be providing to produce handling at the collection centres and
hence mainly to sellers. Training would be provided through the managing cooperative and would be
given mainly through practical support on display, storage, hygiene and cleanliness, waste
management, and best practice in maintaining appearance and quality. Leaflets covering these matters
would also be prepared be provided to traders and farmers. The number of training programmes,
participants, unit cost, and yearly budgets are set out below. Unit cost is calculated taking into
consideration of travel cost of participants and trainer, venue cost, equipment, stationery, and food.
Number Of participants
Activity Beneficiaries A B Yr 1 Yr 2 Yr 3 Yr 4
A B A B A B A B
3.1.2. Cooperatives,
Collection
centres and
satellite Market
6 150 0 0 2 56 2 67 2 58
Budget
Activity Beneficiaries A C
($)
D
($)
Yr 1 Yr 2 Yr 3 Yr 4
A D A D A D A D
3.1.2. Cooperatives,
Collection
centres and
satellite Market
6 3,524 21,144 0 0 2 7,048 2 7,048 2 7,048
(A: number of training, B: number of participants, C: unit cost, D: total budget)
Selection of collection centres for improvement will be based on marketed volumes over at least the
last two years. Preference will be given to those which show increasing marketed volumes, while
those below a minimum turnover by volume will be excluded. Clearly, selecting those where turnover
is increasing is likely to bring the greatest gains from reduced losses, while infrastructure
improvements will not in themselves increase throughput in collection centres experiencing declining
volumes. In other words, the objective will be reducing losses in collection centres which are already
commercially buoyant.
her sellers but without paying a fee. Removing them can be difficult and hence a paved area with limited may serve to restrict volumes sold in this way. Paving is required for roads, parking areas and pedestrian circulation. Ideally, a market should have completely
paved surfaces, using asphalt, in-situ concrete or, where vehicular traffic is minimal, some form of paving units such as pre-cast concrete or
stone blocks. The cost of paving, however, can often take up most of the limited budget that is available for market construction and maintenance. It is important therefore to find an economic solution to paving. Small-scale, rural markets may be effectively paved using
more traditional materials such as brick, stone cobbles or even crushed and rolled gravel, which allow some of the rainwater to be absorbed
into the subsoil. 64 http://www.ruralfinance.org/fileadmin/templates/rflc/documents/1119545305425_ruralmarkets.pdf
49
Before decisions are made about improving existing collection centres, there will be consultation with
users. These will include farmers and traders but, in addition, the needs of consumers will be
considered where, as is common, collection centres also have a retail function. Such consultations
would be designed to identify the marketing problems facing the producers and market traders;
possible ways of overcoming those problems; effectiveness of management arrangements;
opportunities for cooperative marketing; and willingness of users to pay cost-recovery fees.
Up to 20 collection centres in the target Rural/municipalities will be rehabilitated and upgraded.
In addition, support to collection centres’ improved marketing will be provided. Over the past few
years, government, donor-supported agricultural projects and INGOs/NGOs have helped to construct,
or improve physical facilities in, collection centres. But while collection centres have rebalanced the
commercial relationship between farmers and traders, marketing is still rudimentary, with the
managing cooperative playing a limited role in marketing. To improve marketing systems, training
and business planning support will be provided to collection centres with the aim of enabling them to
sell in bulk, with grading as a basis for price segmentation.
Deficiencies in cooperative marketing are often held to be based on scale and accordingly there have
been moves internationally to increase cooperative size (in terms of members and turnover) with a
view to obtaining the benefits of greater scale (such moves are, for example, notable in Korea and
Japan)65. It is not known what scope exists for amalgamation of cooperatives in Nepal and, even if it
were possible, support to this process will not be a principal element of the assistance. Rather, efforts
will be focused on ensuring that cooperatives have marketing skills sufficient to ensure maximum
economic advantages to members.
This will be done through the development and delivery of business development and marketing
‘extension’ packages for cooperatives. These will either be delivered as modules at CTVET’s Trade
Schools and the Ministry of Agriculture, Land Management and Cooperative’s Regional Training
Centres or, in some cases, by the District Agriculture Development Offices or the extension section of
local government bodies. The modules will involve adaptation of entrepreneurship modules
developed under the UNDP-implemented Microenterprise Development Programme (MEDEP)66.The
training modules have to date only been used by private training organisations, but could also be used
by CTVET vocational training schools67. In addition, the modules are useable, or adaptable for use,
for training others in marketing and other elements of entrepreneurship.
There will also be piloting of grading systems, although this is complicated since there are formally
no grades in place in Nepal. Standardisation is important but, internationally, grading systems for fruit
and vegetable are well defined, with three classes of product68 (‘extra’, class 1 and class 2)69. Simple
systems based on visual screening will be employed, with such approaches appropriate to relatively
unsophisticated domestic markets (whereas more complex systems may in due course be required for
export markets70). Initial actions will involve grading-out damaged or otherwise unsaleable produce,
65 http://www.uwcc.wisc.edu/info/intl/daman_cbac.pdf
66 http://www.np.undp.org/content/nepal/en/home/operations/projects/poverty_reduction/medep/home.html
67 There are modules for three programmes in entrepreneurship: (a) 10 months’ training, comprising 5 months’ classroom work and 5
months’ on-the-job training; (b) 15 months’ training (10 months’ classroom, 3 months’ on-the-job); and (c) 3-year Diploma in
entrepreneurship. There are also discussions about a 4-year undergraduate degree course.
68Extra Class: The extra class is of superior quality, possess the shapes and colour of the variety and is without defects likely to affect texture and flavour. It must be carefully presented taking into account the uniformity of the produce in terms of size and colour, and be
presented in uniform packing material. Class I: Almost having the same quality as Extra Class except that a 10% tolerance is allowed.
Individual fruit is allowed a slight defect in shape, colour and minor skin defect which do not affect the general appearance or keeping qualities. In packing the size range may be wider and product need not always be arranged in a package. Class II: This class product may
exhibit some external or internal defects provided they are fit for consumption and fresh. This class is best fitted for local or short distance
market. This category will satisfy the needs of customers who are not too demanding and for whom price is more important than quality. Fruit is also graded on the basis of size, weight, colour, variety, and maturity. Vegetables such as bitter gourd, okra, bell pepper, brinjal, and
green chilli also graded on the basis of size. Tomatoes are graded on the basis of colour.
69 http://agriinfo.in/default.aspx?page=topic&superid=2&topicid=2049 70 http://ijergs.org/files/documents/IMPLEMENTATION-52_1.pdf
50
with the possible subsequent introduction of two grades based, prospectively, on size and appearance.
It is anticipated that grades will be introduced by managing cooperatives. Even with a comparatively
rudimentary system as proposed it will be important to track price effects, particularly given evidence
that, internationally, grading has different price effects according to product71. Support will be
provided to cooperatives in establishing a price monitoring system to discover if grading is leading to
price changes, as markets segment according to grade.
The existence of a functioning cooperative which manages the collection centre will be a criterion in
the choice of the collection centre for rehabilitation and upgrading and for improvement of
cooperative marketing. In most cases, both types of support will be provided i.e. physical
improvement and support to better marketing.
Three exposure visits will be organized for cooperative members and relevant stakeholders in years
2,3, and 4. This is to allow cooperative operators, managers and relevant stakeholders to learn best
practices. Altogether 60 participants (3 from each cooperative) will participate in the exposure visit.
This visit will be organized within country, visiting well-functioning cooperatives and collection
centres (such as Sindhuwa in Dhankuta) to learn best collection centre management practices.
Detailed number of participants and budget for each year is as follows.
Number Of participants
Activity Beneficiaries A B Yr 2 Yr 3 Yr 4
A B A B A B
Exposure visit to
cooperatives with
best practices
Cooperative operators,
managers, and relevant
stakeholders
3 60 1 20 1 20 1 20
Budget
Activity Beneficiaries B C
($)
D
($)
Yr 2 Yr 3 Yr 4
B D B D B D
Exposure visit to
cooperatives with
best practices
Cooperative operators,
managers, and relevant
stakeholders
60 150 9,000 20 3,000 20 3,000 20 3,000
(A: number of visit, B: number of participants, C: unit budget per person, D: total budget)
Project Output 3.2: promote market information system
3.2.1. Strengthen the market information system at collection centres and satellite markets
3.2.2. Provide support to ICT service and equipment if necessary
Market information contributes to agriculture development by increasing competitiveness, reducing
information asymmetries, and improving market efficiency. To gain market information, the project
will work with the Marketing Directorate of the Ministry of Agriculture, Land Management and
Cooperatives. The directorate collects the wholesale market price of fruit and vegetables from the
Kalimati wholesale market every morning. It also broadcasts the information via FM radio channels
and upload it in the mobile application. With improved access to information, smallholder farmers
will enjoy strengthened bargaining power as well as improved awareness of market opportunities and
options. Nepal has developed and administered market information systems for disseminating
information to farmers and consumers. For instance, in 2015 the Ministry of Agriculture, Land
Management and Cooperative launched the mobile agricultural application, ‘Hamro Krishi’ for
sharing information on climate, agricultural and technological information. Another mobile
71 http://pdf.usaid.gov/pdf_docs/Pnadw089.pdf
51
application, ‘Smart Krishi’ provides daily price information, success and failure stories, agricultural
documents and e-books, agricultural farm contact details with GPS tracking, and weather information.
In addition to mobile applications, the Agriculture Information and Communication Centre72 falling
under the Ministry of Agriculture, Land Management and Cooperatives publishes bi-monthly
magazines, pamphlets, and makes TV and radio programmes. The centre also uploads all types of
technical information that include complete management practice of any crops and vegetables, plant
protection measure, harvesting and postharvest handling.
The project will support the government’s efforts in sharing timely and accurate market information to
farmers and stakeholders, in collaboration with Agriculture Information and Communication Centre
and the Nepal Agriculture Research Council. The project will identify support needed to strengthen
the information sharing system. The tentative list of equipment that will be supported is:
computer (a complete set with backup system) and internet;
telephone (mobile or land line); and
mobile sets (at least 3 to 5 in each cooperative).
3.4. Project Implementation
3.4.1. Implementation structure
<Figure 8: Implementation structure>
*Note: The position of the Horticulture Specialist will be stationed at the Nepal Agriculture Research Council and support
technology development.
72 The Agriculture Information Centre is under the Ministry of Agriculture, Land management and cooperatives and it serves to produce and
disseminate the information and technology developed by the Ministry and NARC. Once the Ministry of Agriculture, Land Management
and Cooperatives signs the project, it is a mandatory responsibility of the Agriculture Information Centre to provide all information to any project and other service providers.
Project Board (Chaired by NPD)
*( Senior Beneficiary
NARC and DoA
Executive
MoALMC
Senior Supplier
UNDP and KOICA
Technology Extension Specialist (SB-4/II) – 1
Marketing and Value Chain Specialist (SB-4/II) – 1
Horticulture Specialist - 1
Admin & Finance Officer (SB-4/II) -1
Office Assistant (SB-3/II) -1
Driver (SB-1/II) -2
National Programme Director
(Joint Secretary of MOALMC)
National Programme Manager
(SB-5/II) - 1
Programme Assurance
(UNDP Programme Analyst) - 1
Technical Specialist
(P3) - 1
NARC Horticulture
Research Division/
State and local government
52
Management Arrangements: the Programme will be implemented by the Ministry of Agriculture,
Land Management and Cooperatives according to the National Implementation Guidelines, as agreed
between Government of Nepal and UNDP. The Ministry of Agriculture, Land Management and
Cooperatives will depute a Joint Secretary to work as the National Programme Director. The National
Programme Director will have experience in relevant issues on horticulture value chain. The Ministry of
Agriculture, Land Management and Cooperatives, represented by the National Programme Director,
will be responsible for overseeing overall Programme implementation and ensuring that the
Programme’s objective and outcomes are achieved. The Nepal Agriculture Research Council will be
co-opted as co-implementing agency.
Programme Executive Board: a Programme Executive Board will exert overall programme oversight
and is the decision-making body responsible for ensuring that the Programme implementation follows
the agreed strategies of implementation, Programme outputs are produced as per the programme
objectives, and programme inputs are best utilized for producing maximum outputs in a timely and
cost-effective manner. It reviews the progress of programme performance (substantive and financial)
and approves the annual work plans, budgets and reports. The Board provides strategic guidance, and
will ensure the Programme’s objectives are achieved. As presented in the following figure, the
composition of the Board will remain flexible, to accommodate the inclusion of government and
donor counterparts (if necessary and available).
The Board will have three following described roles:
A Programme Executive Role – National Programme Director, Joint Secretary of the Ministry of
Agriculture, Land Management and Cooperative as the representative of the Ministry of Agriculture,
Land Management and Cooperatives, will chair the Board.
A Senior Supplier Role – representatives from UNDP Nepal and the funding agency will provide
guidance regarding the technical feasibility of the programme.
A Senior Beneficiary Role – focal person from the Ministry of Agriculture, Land Management and
Cooperative, representatives from the Nepal Agriculture Research Council (Director of Crops and
Horticulture Research and the head of the Horticulture Research Division) and Department of
Agriculture can take part in board meetings. As local government has rights to cooperative
management, extension delivery, and technology handover at municipal level, their participation in
the Board could be arranged. The Board will also have the power to decide if additional agencies are
to be co-opted to the Board.
The National Project Manager will act as the Board Secretary. For each Board meeting minutes will
be recorded, signed by the Board chair and distributed to all Board members.
National Project Director: the Ministry of Agriculture, Land Management and Cooperatives will
depute a Joint Secretary to work as the National Project Director. S/he will have experience on
horticulture sector value chains. The National Project Director will chair the Project Board.
National Project Manager: the National Project Manager is a full-time staff member for five years73.
The role of National Programme Manager will include reporting to the Board, as the role of National
Programme Manager is to be responsible for the day-to-day management, administration,
coordination and supervision of Programme implementation. S/he will monitor work progress and
ensure timely delivery of outputs in a cost-effective manner as per the Annual Work Plans and the
Programme Results Framework. The National Programme Manager will ensure compliance, progress
73 The Ministry of Agriculture, Land Management and Cooperatives will designate one Under-Secretary of Postharvest Management
Division to work very closely with the programme-funded National Programme Manager to learn the Programme activities.
53
reporting and monitoring. The National Project Manager will report to the National Project Director.
Programme Analyst, UNDP: programme assurance is the responsibility of the Project Board. While
the Board will maintain the responsibility for programme assurance, a Programme Analyst in UNDP
will be delegated to carry out all functions related to programme assurance. These will include: (i)
maintaining liaison between the members of the Project Board throughout the Programme, (ii)
ensuring that project activities and budgets are in compliance with approved work plans and budgets,
(iii) support to control risks, (iv) maintaining visibility of the project, (v) establishing workable
internal and external communications, (vi) ensuring compliance with applicable UNDP rules and
regulations (vii) adhering to Results Monitoring Guidelines monitoring and reporting requirements
and standards, (viii) following the quality management procedures, (ix) ensuring that Project Board’s
decisions are implemented, (x) managing project revisions according to the required procedures, and
(xi) providing technical support to the Programme team. The UNDP Programme Analyst will attend
Board meetings as an observer.
Technical Specialist: the Technical Specialist will provide assistance to analysing changes in crop
gross margins, assessing the financial feasibility of technology adoption, liaising with the UNDP
country office for reporting and evaluation, maintaining the partnership with donor and other
stakeholders and disseminating knowledge products. The Specialist will work under the supervision
of the National Project Manager and report to UNDP Deputy Country Director.
Technology Extension Specialist: the Technology Extension specialist under the guidance and
supervision of the National Project Manager shall be required to support implementation of the
project and provide technical support on technology transfer to implementing partners and local
government bodies. S/he will be responsible for compiling existing and newly-released technologies
on postharvest management of horticulture crops. S/he will transfer production and postharvest
technologies to extension officers, technicians, cooperatives and farmers. The candidate should have a
Master’s degree in agriculture with more than 5 years of experiences in agricultural extension,
postharvest management and value chain.
Horticulture Specialist: the Horticulture Specialist will support postharvest technology development
and strengthening the capacity of the Nepal Agriculture Research Council under the supervision of the
National Project Manager. S/he could be stationed in the Nepal Agriculture Research Council. The
minimum qualification for the position of the specialist is a Master’s degree in agriculture
(horticulture) with 3 years of experiences.
Marketing and Value Chain Specialist: the Marketing and Value Chain Specialist under the guidance
and supervision of National Project Manager shall be required to support implement the project and
provide technical support on strengthening the cooperative management and market linkage. The
candidate will have a Master’s degree in agriculture economics, value chain, or horticulture.
Government commitment: as this programme needs to work very closely with governments, the
Ministry of Agriculture, Land Management and Cooperatives is committed to make the office space
and utilities available for the programme.
Implication of the federalized structure:
In the new federalized structure, newly-created partners will be provincial level government agencies
(Ministry of Agricultural, Land Management and Cooperatives and Department of Agriculture) and
local government bodies, such as urban municipalities and rural municipalities 74 . Provincial
governments will be established in the first quarter of 2018. Integration of provincial level
74 Rural municipality, or gaunpalika is the newly formed lower administrative division. The chief if the head of a rural municipality. The rural municipalities will have an annual budget of at least Rs. 10 million.
54
government and local government bodies will continue to be discussed as there is no clear guidance as
of December 2017. Whether District Agriculture Development Offices remain functional is being
discussed. For project implementation at the local level, local government bodies will be the main
implementing partner, but interviews with current senior Agriculture Economists stationed in District
Agriculture Development Offices suggest that the role of District Agriculture Development Office as
donor project coordinator is likely to remain in the transition period.
Municipalities have a defined function in agricultural extension and hence there will be close
coordination with staff of the municipal extension offices
3.4.2. Legal status of participating organizations
The Ministry of Agriculture, Land Management and Cooperatives and the Nepal Agriculture Research
Council is the legal body forming part of the government of Nepal.
3.4.3. Project’s legal context
This project document shall be the instrument referred to as such in Article 1 of the Standard Basic
Assistance Agreement between the Government of (country) and UNDP, signed on (date). All
references in the SBAA to “Executing Agency” shall be deemed to refer to “Implementing Partner.”
This project will be implemented by [name of entity] (“Implementing Partner”) in accordance with its
financial regulations, rules, practices and procedures only to the extent that they do not contravene the
principles of the Financial Regulations and Rules of UNDP. Where the financial governance of an
Implementing Partner does not provide the required guidance to ensure best value for money, fairness,
integrity, transparency, and effective international competition, the financial governance of UNDP
shall apply.
3.4.4. Responsibilities of cooperating organizations
Ministry of Agricultural, Land Management and Cooperatives (Central government): is responsible
for addressing postharvest losses in Nepal. This is addressed by the Postharvest Management
Directorate75 within the Ministry. It is also responsible for extension through the extension section of
municipalities and the directorate of extension, the District Agricultural Development Offices.
Ministry of Agricultural, Land Management and Cooperatives (State government): is responsible for
the coordination and technical backstopping for the agricultural activities by local governments. State
governments in province 3 and 4 have recently proposed the establishment of agriculture technology
innovation centres in districts to provide agriculture-related assistance to local governments. The
project would closely coordinate with state governments in developing the agriculture technology
transfer system from the Nepal Agriculture Research Council to farmers.
District Agricultural Development Office and municipality: prior to the federal structure, there used to
be District Agriculture Development Offices with an Agriculture Service Centres for knowledge
sharing and extension provision. For instance, the Kaski district had 6 agriculture service centres.
However, in a new structure, agriculture related activities including extension service will be
75 http://phmd.gov.np/
55
eventually transferred to the agriculture section at urban municipalities and rural municipalities, while
some level of engagement and support from the current District Agriculture Development Offices
would remain in the beginning phase of the federalization. Not only extension service, local
government bodies will take charge of cooperative management and technology handover.
As of January 2018, no clear guidance on separation of powers between provincial government
agencies and local government bodies. Against this backdrop, it is recognized that, the project will
engage municipalities for extension service support and delivery.
Nepal Agricultural Research Council. The Nepal Agriculture Research Council is the autonomous
agency mandated for development of technologies, including production, postharvest management,
and marketing. The Nepal Agriculture Research Council includes in its structure a Horticulture
Research Division and commodity-specific Agricultural Research Stations. Some research is also
conducted in the five Regional Agricultural Research Stations. The Nepal Agriculture Research
Council is responsible for research on postharvest loss and for the release of technology to the
extension service. It provides short-term training of up to two months’ duration primarily as a way of
disseminating new technology. Such training is direct to farmers, but is limited in terms of numbers of
trainees by the scale of the Nepal Agriculture Research Council’s training facilities.
3.4.5. South-south and triangular cooperation
The project will finance partnerships for south-south or triangular cooperation on experiences, good
practices, lessons, and examples of value chain development and postharvest technology development
and adoption. Considering the geography and climatic similarity, collaboration with the Indian
Council of Agriculture Research could be sought. The Council has a technology exchange programme
and has good research results that could be replicated in the Nepal’s case. Collaboration with
agriculture organizations with high reputation like Asian Vegetable Development Research Centre,
Taiwan and Rural Development Administration, Korea could be explored.
3.4.6. Communications plan among all stakeholders
The quarterly Project Board Meeting will be held. UNDP will bring quarterly progress reports.
Representatives from the Ministry of Agriculture, Land Management and Cooperatives, the Nepal
Agriculture Research Council, the Department of Agriculture, UNDP and KOICA will be invited.
Experts from KOICA headquarters would be invited to the Board meetings for monitoring the
progress and managing the project results on an annual basis. The invitees from KOICA headquarters
will attend the meeting as per their time availability. Representatives from state governments and
local governments will be also engaged. When state governments or local governments are not present
in Project Board Meetings, the project team staff are to ensure that their opinions and/or suggestions
are discussed during the Board meetings and update them with meeting results. If the need arises from
government partners, additional meeting arrangement could be explored for effective project
management.
56
3.4.7. Work plan and time frame
<Table 3: Work plan>
Outputs Activities 2018 2019 2020 2021 2022
2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Project output 1.1: Identify potential
fruit and vegetables
production pockets
and conduct gross
margin analysis
1.1.1 Identify pocket areas, collaborating municipalities, cooperatives,
farmers, extension officers and informal extension providers
x x x
1.1.2 Conduct a baseline survey x x x
1.1.3 Conduct gross margin analysis x x x x x x x
Project output 1.2: Improve access to
production
technology
1.2.1 Provide training on production technology and optimal practice to
extension officers
x x x x x x x x x x x x
1.2.2 Provide extension service on production technology and practice
to cooperatives and farmers
x x x x x x x x x x x x
1.2.3 Develop and print manuals x x x x x x x x
1.2.4 Operate the revolving fund for input support to cooperatives x x x x x x x x x x x x x x x x
Project output 2.1: Strengthen the
capacity of the
Nepal Agriculture
Research Council
2.1.1 Provide technical inputs for the postharvest technology research
(horticulture specialist and intern)
x x x x x x x x x x x x x x x x
2.1.2 Organize exposure visit or observation tour for government
officials working on postharvest management
x x x x
2.1.3 Provide financial support to researches on postharvest technology
conducted by students mastering in agriculture science related matters
x x x x x x x x x x x x
2.1.4 Improve the physical facility of the postharvest laboratory at the
Horticulture Research Division, Nepal Agriculture Research Council
x x x x x x x x
Project output 2.2: Develop postharvest
losses reduction
management
technologies by the
Nepal Agriculture
Research Council
(NARC)
2.2.1 Develop postharvest technology (varietal screening, management
practices, harvesting, picking methods and timing, cleaning, grading,
sorting, packaging, and transportation)
x x x x x x x x x x x x
2.2.2 On-farm testing of developed technology x x x x x x x x x x x x x x x x
2.2.3. analyse financial incentives of technology adoption (both existing
and new postharvest technology)
x x x x x x x x x x x x x x
2.2.4 Develop and print manuals on proven postharvest technology
(including development of protocol and standard of grading and
packaging)
x x x x x x x x x x x
2.2.5 Prepare detailed roll-out strategy for technology dissemination
(both existing and new postharvest technology)
x x x x
57
Project output 2.3: Postharvest
technology
transferred to
farmers with
improved access to
input support
2.3.1 Provide training to public extension officers as well as non-
government extension providers
x x x x x x x x x x x x
2.3.2 Provide extension on postharvest technology to cooperatives and
farmers
x x x x x x x x x x x x
2.3.3 Operationalize the revolving fund for input support to adopt the
postharvest technology
x x x x x x x x x x x x x x x x
Project output 3.1: Improve functions of
collection centres
3.1.1 Provide physical support to collection centres and satellite markets
as per agreed terms and conditions
x x x x x x x x x x x x x x x x
3.1.2 Provide training on postharvest handling and marketing of fruit
and vegetables to operators of collection centres and satellite markets
x x x x x x x x x x x x
3.1.3 Conduct exposure visit or observation tours for managers and
operators of collection centres
x x x x x x x x x x x
Project output 3.2: Promote market
information system
3.2.1 Strengthen the market information system at collection centres and
satellite markets
x x x x x x x x x x x x x x x x
3.2.2 Provide support to ICT service and equipment if necessary x x x x x x x x x x x x x x x x
Outputs/Activities Quantity/Type Participants Beneficiaries Remarks
Project output 1.1: Identify potential fruit and vegetables production pockets and conduct gross margin analysis
1.1.1 Identify pocket areas, collaborating municipalities,
cooperatives, farmers, extension officers and informal
extension providers
Project implementation preparation UNDP, NARC, MoALMC, local
government bodies
Extension officers, cooperatives,
farmers
1.1.2 Conduct a baseline survey (including production cost,
gross margin, economic analysis, sensitivity analysis,
financial incentive analysis for farmers adopting new
postharvest technology, productivity, marketing system,
postharvest technology)
Project implementation preparation UNDP, NARC, MoALMC, local
government bodies
Extension officers, cooperatives,
farmers
1.1.3 Conduct gross margin analysis Project implementation preparation UNDP, NARC, MoALMC Extension officers, cooperatives,
farmers
Project output 1.2: Improve access to production technology
1.2.1 Provide training on production technology and optimal
practice to extension officers
Training (40 training for 500
participants)
UNDP, Extension officers, lead
farmers, informal extension providers
like agrovets, local government bodies
Directly: Extension officers, lead
farmers, informal extension
providers like agrovets
Indirectly: farmers, cooperatives
1.2.2 Provide extension service on production technology and
practice to cooperatives and farmers
Extension (400 extension for 10,000
participants)
UNDP, farmers, farmers’ groups,
cooperatives, local government bodies,
NARC
Farmers, farmers’ groups,
cooperatives
58
1.2.3 Develop and print manuals Development of education/
technology transfer materials like
booklet, poster, book, etc.
UNDP, Extension officers, lead
farmers, informal extension providers
like agrovets, local traders, farmers,
cooperatives, farmers groups
Extension officers, lead farmers,
informal extension providers like
agrovets, local traders, farmers,
cooperatives, farmers groups
1.2.4 Support the operation of the revolving fund for input
support to cooperatives
Establishment of the revolving fund
for 20 cooperatives
UNDP, cooperatives Farmers, cooperatives, farmers
groups
Project output 2.1: Strengthen the capacity of the Nepal Agriculture Research Council
2.1.1 Provide technical inputs for the postharvest technology
research (horticulture specialist and intern)
Human resource: 4 horticulture
specialists and 10 interns
UNDP, NARC NARC, 5 horticulture specialists
and 10 interns
2.1.2 Organize exposure visit or observation tour for
government officials working on postharvest management
Exposure visit (3 visits for 40
participants)
UNDP, Government officials, NARC
staff, local government bodies
Government officials, NARC
staff, farmers, cooperatives
2.1.3 Provide financial support to researches on postharvest
technology conducted by students mastering in agriculture
science related matters
Production of researches on
postharvest technology
UNDP, Students, university or
research institutions, NARC
Students, NARC, farmers,
cooperatives
2.1.4 Improve the physical facility of the postharvest
laboratory at the Horticulture Research Division, the Nepal
Agriculture Research Council
Physical facility support of NARC UNDP, NARC, MoALMC NARC, farmers, cooperatives
Project output 2.2: Develop postharvest losses reduction management technologies by the Nepal Agriculture Research Council (NARC)
2.2.1 Develop postharvest technology (varietal screening,
management practices, harvesting, picking methods and
timing, cleaning, grading, sorting, packaging, and
transportation)
Technology development UNDP, NARC, MoALMC NARC, MoALMC, farmers,
cooperatives
2.2.2 On-farm testing of developed technology Technology verification UNDP, NARC NARC, MoALMC, farmers,
cooperatives
2.2.3. analyse financial incentives of technology adoption
(both existing and new postharvest technology)
Financial analysis and report
production
UNDP, NARC NARC, MoALMC, farmers,
cooperatives
2.2.4 Develop and print manuals on proven postharvest
technology
Development of education/
technology transfer materials like
booklet, poster, book, etc.
UNDP, NARC, Extension officers,
lead farmers, informal extension
providers like agrovets, local traders,
farmers, cooperatives, farmers groups
Extension officers, lead farmers,
informal extension providers like
agrovets, local traders, farmers,
cooperatives, farmers groups
2.2.5 Prepare detailed roll-out strategy for technology
dissemination (both existing and new postharvest technology)
Strategy development UNDP, NARC NARC, Extension officers, lead
farmers, informal extension
providers like agrovets, local
traders, farmers, cooperatives,
farmers groups
Project output 2.3: Postharvest technology transferred to farmers with improved access to input support
2.3.1 Provide training to public extension officers as well as
non-government extension providers
Training (40 training for 625
participants)
UNDP, NARC, Extension officers,
lead farmers, informal extension
providers, local government bodies
Extension officers, lead farmers,
informal extension providers,
farmers, cooperatives
59
2.3.2 Provide extension on postharvest technology to
cooperatives and farmers
Extension (250 extension for 6,250
participants)
UNDP, NARC, Cooperatives,
collection centres, local traders,
farmers, local government bodies
Cooperatives, collection centres,
local traders, farmers
2.3.3 Support the operation of the revolving fund for input
support to adopt the postharvest technology
Establishment of the revolving fund
for 20 cooperatives
UNDP, NARC, Cooperatives Farmers, cooperatives, farmers
groups
Project output 3.1: Improve functions of collection centres
3.1.1 Provide physical support to collection centres and
satellite markets as per agreed terms and conditions
Physical support to 20 collection
centres
UNDP, collection centres, local
government bodies
Collection centres, farmers,
farmers groups
3.1.2 Provide training on postharvest handling and marketing
of fruit and vegetables to operators of collection centres and
satellite markets
Training (6 training to 150
participants)
UNDP, collection centres, collection
centre operators and managers, local
traders, cooperatives
collection centres, collection
centre operators and managers,
local traders, cooperatives,
farmers, farmers groups
3.1.3 Conduct exposure visit or observation tours for
managers and operators of collection centres
Exposure visit (3 times for 60
participants)
UNDP, cooperatives, collection centre
operators
collection centres, collection
centre operators and managers,
local traders, cooperatives,
farmers, farmers groups
Project output 3.2: Promote market information system
3.2.1 Strengthen the market information system at collection
centres and satellite markets
Promotion of marketing information
system
UNDP, MoALMC, cooperatives,
collection centres, local government
bodies
Cooperatives, farmers, farmers
groups
3.2.2 Provide support to ICT service and equipment if
necessary
ICT service and equipment support UNDP, MoALMC, cooperatives,
collection centres, local government
bodies
Cooperatives, farmers, farmers
groups
60
3.4.8. Budget plan
The total budget is USD 5.5 million for the period of 2018-2022. KOICA will contribute USD 5 million, while UNDP will provide USD 0.5 million. KOICA’s provision will
be used for the project activities and staff salaries, while UNDP will finance project communications, project office equipment and vehicles. The project office will be
separately established outside UNDP.
<Table 4: Budget plan>
PLANNED ACTIVITIES
Planned Budget by Year RESPONSIBLE
PARTY
PLANNED BUDGET
Y1 Y2 Y3 Y4 Y5 Funding
Source Amount
Outcome 1
Project Output
1.1: Identify
target areas
and
beneficiaries
1.1.1 Identify pocket areas, municipalities,
cooperatives, farmers, extension officers
and informal extension providers
7,000 MOALMC/NAR
C/UNDP KOICA 7,000
1.1.2 Conduct a baseline survey 20,000 MOALMC/NAR
C/UNDP KOICA 20,000
1.2.3 Conduct gross margin analysis 3,000 7,000 7,000 5,000 5,000 MOALMC/NAR
C/UNDP KOICA 27,000
Project Output
1.2: Improve
access to
production
technology
1.2.1. Provide training on production
technology and optimal practice to
extension officers
28,520 34,040 29,440 NARC/UNDP KOICA 92,000
1.2.2. Provide extension service on
production technology and practice to
cooperatives and farmers
58,404 69,708 60,288 NARC/UNDP KOICA 188,400
1.2.3. Develop and print manuals 12,000 10,000 8,500 1,500 NARC/UNDP KOICA 32,000
1.2.4. Support the operation of the revolving
fund for input support to cooperatives 125,000 125,000 125,000 25,000
MOALMC/NAR
C/UNDP KOICA 400,000
1.2.5. Provide technical inputs of
Programme specialist 96,822 UNDP KOICA 96,822
Subtotal outcome 1 126,822 230,924 245,748 228,228 31,500 863,222
61
Outcome 2
Project Output
2.1: Strengthen
the capacity of
the Nepal
Agriculture
Research
Council
2.1.1. Provide technical inputs for the
postharvest technology research
(horticulture specialist and intern)
8,000 8,000 8,000 4,000 NARC/UNDP KOICA 28,000
2.1.2. Organize exposure visit or
observation tour for government officials
working on postharvest management
47,550 1,700 UNDP KOICA 49,250
2.1.3. Provide financial support to
researches on postharvest technology
conducted by students mastering in
agriculture science related matters
10,000 10,000 10,000 NARC/UNDP KOICA 30,000
2.1.4 Improve the physical facility of the
postharvest laboratory at the Horticulture
Research Division, the Nepal Agriculture
Research Council
46,800 29,500 NARC/UNDP KOICA 76,300
Project Output
2.2: Develop
post-harvest
losses
reduction
management
technologies
by NARC
2.2.1 Develop postharvest technology 50,000 60,000 65,000 NARC/UNDP KOICA 175,000
2.2.2 On-farm testing of developed
technology 40,000 75,000 20,000 8,200 NARC/UNDP KOICA 143,200
2.2.3 analyse financial incentives of
technology adoption 7,000 4,000 3,000 5,000 NARC/UNDP KOICA 19,000
2.2.4 Develop and print manuals on proven
post-harvest technology 3,000 5,000 3,500 1,000 NARC/UNDP KOICA 12,500
2.2.5 Prepare detailed roll-out strategy for
technology dissemination 1,500 1,000 NARC/UNDP KOICA 2,500
Project Output
2.3: Transfer
postharvest
technology to
2.3.1 Provide training to public extension
officers as well as non-government
extension providers
0 28,520 34,040 29,440 MOALMC/NAR
C/UNDP KOICA 92,000
62
farmers with
improved
access to input
support
2.3.2 Provide extension on postharvest
technology to cooperatives and farmers 0 36,503 43,568 37,680
MOALMC/NAR
C/UNDP KOICA 117,750
2.3.3 Support the operationalization of the
revolving fund for input support to adopt
the postharvest technology
20,000 30,000 30,000 12,000 MOALMC/NAR
C/UNDP KOICA 92,000
2.3.4 Provide technical input and support of
value chain development specialist 8,906 18,703 20,835 23,181 25,761 UNDP KOICA 97,386
2.3.5 Provide technical inputs of
Programme specialist 203,326 203,326 UNDP KOICA 406,652
Subtotal Outcome 2 8,906 473,352 367,493 435,827 55,961 1,341,538
Outcome 3
Project Output
3.1: Improve
functions of
collection
centres
3.1.1 Provide physical support to collection
centres and satellite markets as per agreed
terms and conditions
150,000 400,000 400,000 60,000 MOALMC/NAR
C/UNDP KOICA 1,010,000
3.1.2 Provide training on marketing and
management to operators of collection
centres and satellite markets
7,048 7,048 7,048 MOALMC/NAR
C/UNDP KOICA 21,144
3.1.3 Conduct exposure visit or observation
tours for managers and operators of
collection centres
3,000 3,000 3,000 MOALMC/NAR
C/UNDP KOICA 9,000
Project Output
3.2: Promote
market
information
system
3.2.1 Strengthen the market information
system at collection centres and satellite
markets
15,000 35,000 25,000 10,000 MOALMC/NAR
C/UNDP KOICA 85,000
3.2.2 Provide support to ICT service and
equipment if necessary 25,000 25,000 25,000 25,000
MOALMC/NAR
C/UNDP KOICA 100,000
3.2.3 Provide technical inputs of
Programme specialist 203,326 203,326 UNDP KOICA 406,652
63
3.2.4. Provide technical inputs of Market
linkage specialist 8,906 18,703 20,835 23,181 25,761 UNDP KOICA 97,386
Subtotal Outcome 3 8,906 218,751 694,209 483,229 324,087 1,729,182
Communicati
on Visibility activities 20,240 41,682 51,682 46,682 36,682 UNDP UNDP 196,968
Monitoring
and
Evaluation
Regular monitoring of project activities,
gross margin, number of farmers using
improved technologies by project staff,
MOALMC, NARC, and relevant
stakeholders
17,500 (UNDP: 10,000)
76,000 (UNDP: 10,000)
92,000 (UNDP:
10,000)
84,000 (UNDP:
10,000)
58,000 (UNDP:
16,434)
MOALMC/NAR
C/UNDP
UNDP
(56,434)/
KOICA
327,500
Quarterly progress reporting, annual report 2,000 4,000 4,000 4,000 4,000 MOALMC/NAR
C/UNDP KOICA 18,000
Mid-term evaluation and final evaluation 20,000 30,000 MOALMC/NAR
C/UNDP KOICA 50,000
Sub-Total for Monitoring and Evaluation 19,500 80,000 116,000 88,000 92,000 395,500
Management
Provide project management and support by
project staff
25,823 65,074 71,450 78,465 86,181 UNDP KOICA 326,992
Office equipment, furniture, vehicle, rent,
equipment maintenance, publication, etc. 95,498 31,800 36,200 40,100 43,000 UNDP UNDP 246,598
General management service 20,000 92,000 124,000 108,000 56,000 UNDP KOICA 400,000
Total 325,695 1,233,582 1,706,782 1,508,531 725,411 5,500,000
64
3.5. Result Management Plan
Consistent with the Article III of the Standard Basic Assistance Agreement (SBAA) [or the
Supplemental Provisions to the Project Document], the responsibility for the safety and security of the
Implementing Partner and its personnel and property, and of UNDP’s property in the Implementing
Partner’s custody, rests with the Implementing Partner. To this end, the Implementing Partner shall:
a) put in place an appropriate security plan and maintain the security plan, considering the
security situation in the country where the project is being carried;
b) assume all risks and liabilities related to the Implementing Partner’s security, and the full
implementation of the security plan.
UNDP reserves the right to verify whether such a plan is in place, and to suggest modifications to the
plan when necessary. Failure to maintain and implement an appropriate security plan as required
hereunder shall be deemed a breach of the Implementing Partner’s obligations under this Project
Document.
The Implementing Partner agrees to undertake all reasonable efforts to ensure that no UNDP funds
received pursuant to the Project Document are used to provide support to individuals or entities
associated with terrorism and that the recipients of any amounts provided by UNDP hereunder do not
appear on the list maintained by the Security Council Committee established pursuant to resolution
1267 (1999). The list can be accessed via
http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml.
Social and environmental sustainability will be enhanced through application of the UNDP Social and
Environmental Standards (http://www.undp.org/ses) and related Accountability Mechanism
(http://www.undp.org/secu-srm).
The Implementing Partner shall: (a) conduct project and programme-related activities in a manner consistent
with the UNDP Social and Environmental Standards, (b) implement any management or mitigation plan
prepared for the project or programme to comply with such standards, and (c) engage in a constructive and
timely manner to address any concerns and complaints raised through the Accountability Mechanism. UNDP
will seek to ensure that communities and other project stakeholders are informed of and have access
to the Accountability Mechanism.
All signatories to the Project Document shall cooperate in good faith with any exercise to evaluate any
programme or project-related commitments or compliance with the UNDP Social and Environmental
Standards. This includes providing access to project sites, relevant personnel, information, and
documentation.
The Implementing Partner will take appropriate steps to prevent misuse of funds, fraud or corruption,
by its officials, consultants, responsible parties, subcontractors and sub-recipients in implementing the
project or using UNDP funds. The Implementing Partner will ensure that its financial management,
anti-corruption and anti-fraud policies are in place and enforced for all funding received from or
through UNDP.
The requirements of the following documents, then in force at the time of signature of the Project
Document, apply to the Implementing Partner: (a) UNDP Policy on Fraud and other Corrupt Practices
and (b) UNDP Office of Audit and Investigations Investigation Guidelines. The Implementing Partner
agrees to the requirements of the above documents, which are an integral part of this Project
Document and are available online at www.undp.org.
65
If an investigation is required, UNDP has the obligation to conduct investigations relating to any
aspect of UNDP projects and programmes. The Implementing Partner shall provide its full
cooperation, including making available personnel, relevant documentation, and granting access to the
Implementing Partner’s (and its consultants’, responsible parties’, subcontractors’ and sub-recipients’)
premises, for such purposes at reasonable times and on reasonable conditions as may be required for
an investigation. Should there be a limitation in meeting this obligation, UNDP shall consult with the
Implementing Partner to find a solution.
The signatories to this Project Document will promptly inform one another in case of any incidence of
inappropriate use of funds, or credible allegation of fraud or corruption with due confidentiality.
Where the Implementing Partner becomes aware that a UNDP project or activity, in whole or in part,
is the focus of investigation for alleged fraud/corruption, the Implementing Partner will inform the
UNDP Resident Representative/Head of Office, who will promptly inform UNDP’s Office of Audit
and Investigations (OAI). The Implementing Partner shall provide regular updates to the head of
UNDP in the country and OAI of the status of, and actions relating to, such investigation.
UNDP shall be entitled to a refund from the Implementing Partner of any funds provided that have
been used inappropriately, including through fraud or corruption, or otherwise paid other than in
accordance with the terms and conditions of the Project Document. Such amount may be deducted
by UNDP from any payment due to the Implementing Partner under this or any other agreement.
Where such funds have not been refunded to UNDP, the Implementing Partner agrees that donors to
UNDP (including the Government) whose funding is the source, in whole or in part, of the funds for
the activities under this Project Document, may seek recourse to the Implementing Partner for the
recovery of any funds determined by UNDP to have been used inappropriately, including through
fraud or corruption, or otherwise paid other than in accordance with the terms and conditions of the
Project Document.
Note: The term “Project Document” as used in this clause shall be deemed to include any relevant
subsidiary agreement further to the Project Document, including those with responsible parties,
subcontractors and sub-recipients.
Each contract issued by the Implementing Partner about this Project Document shall include a
provision representing that no fees, gratuities, rebates, gifts, commissions or other payments, other
than those shown in the proposal, have been given, received, or promised about the selection process
or in contract execution, and that the recipient of funds from the Implementing Partner shall cooperate
with any and all investigations and post-payment audits.
Should UNDP refer to the relevant national authorities for appropriate legal action any alleged
wrongdoing relating to the project, the Government will ensure that the relevant national authorities
shall actively investigate the same and take appropriate legal action against all individuals found to
have participated in the wrongdoing, recover and return any recovered funds to UNDP.
The Implementing Partner shall ensure that all of its obligations set forth under this section entitled
“Risk Management” are passed on to each responsible party, subcontractor and sub-recipient and that
all the clauses under this section entitled “Risk Management Standard Clauses” are included, mutatis
mutandis, in all sub-contracts or sub-agreements entered into further to this Project Document.
66
3.5.1. Risk management plan
<Table 5: Risk management>
3.5.2. Knowledge management plan
Knowledge-products will be prepared, as a way of reaching stakeholders and demonstrating technical
competence and coverage. These will be published on the website, but also in high quality print. They
will also be launched in knowledge-management and networking fora.
Description Probability
(1 Low –
5 High)
Impact Countermeasures /
Management
response/strategies
1 The many line departments
and directorates within the
Ministry of Agriculture, Land
Management and
Cooperatives involved in
research and dissemination of
proven technology resist the
Ministry of Agricultural,
Land Management and
Cooperatives ‘s initiative to
promote production
intensification and marketing
policy and provision.
4
Lack of effective coordination
between NARC and the Department
of Agriculture continues and the
Ministry of Agriculture, Land
Management and Cooperatives is
unable to exert its apex role in
research and extension.
Engage senior
management of
Ministry of Agriculture,
Land Management and
Cooperatives in
effective functional
coordination between
NARC and concerned
directorates under the
Department of
Agriculture.
2 Research on postharvest
management does not receive
due priority in NARC’s
annual research programme
and hence the Horticulture
Research Division lacks the
necessary human resources
and facilities to undertake
robust research in developing
technologies on postharvest
management of vegetables
and fruit.
4 Annual budget allocation to
Horticulture Research Division from
NARC’s regular funding will remain
low and the project support will only
have partial coverage of financing for
developing postharvest management
technologies and hence will not serve
the purpose of institutionalizing the
research protocol of the division to
extent its research for other
horticultural commodities not covered
by this project.
With successful
demonstration and
piloting of suitable
postharvest
management
technologies for
selected vegetables and
fruit, commitment from
government to increase
investment in research
and extension of proven
technologies will
continue.
3 There is no incentive to the
farmers to adopt postharvest
management technologies in
fruit and vegetables in Nepal.
Domestic fruit and vegetable
markets in the country are
largely controlled by traders
and basic sanitary and
phytosanitary measures are
not applied.
3 Free import of low quality vegetables
and fruit will continue due to lack of
effective sanitary and phytosanitary
measures and domestic producers and
traders should compete with the cheap
low-quality produces imported from
India and Tibet.
Government
implements sanitary
and phytosanitary
measures effectively in
domestic markets and
reviews agricultural
trade policy, especially
the provision of duty
free imports of fresh
vegetables and fruit.
Implementation under
federalization: implementing
partners will evolve.
Provincial government and
local municipalities will be
engaged.
5 Impact to agreement arrangement,
working relationship between
MoALMC, DoA, provincial
government, and local municipalities
Will continue
consultation with
MoALMC, DOA,
government,
cooperatives and
municipalities and
communicate with
donor.
67
Summary articles will be published in newspapers and professional magazines. This would be
organised by the UNDP Communications Unit, which has a programme of engagement with
economics journalists, including that through the Society of Economics Journalists Nepal.
Dissemination would prospectively be through the ‘Dialogue Series’, which are half-day events
designed to bring together experts on the topic in question for a candid discussion. The journalists
would be invited to the review the report and the findings in advance to enhance their understanding
and awareness on the issues involved.
For the Dialogue Series event itself, outside experts as well as UNDP specialists would be invited to
join the discussion, therefore bring visibility to the report as well as to the organizations involved. It is
expected that this would lead to publications in newspapers and magazines, in both English and
Nepali.
Results from the project will be disseminated within and beyond the project target areas. Detailed
knowledge dissemination plan is under visibility plan.
3.5.3. Monitoring and evaluation plan
M&E plan and timeframe
The initial project inception period of 4 months is planned from May to August 2018. During the
period, project staff will be recruited, office space will be arranged, and a baseline survey will be
conducted.
Project start: a project inception workshop will take place within the first 3-5 months after the
project is signed off on, allowing all project stakeholders to get together and review the project
document in line with their roles and responsibilities. It is essential to build ownership for the project
results and to plan the first-year annual work plan, and revisit and adopt an M&E framework. During
the workshop, the following should be addressed:
Assist all partners to fully understand the modalities of project implementation and execution, and
take ownership of the project
Introduce project staff with the UNDP expanded team
Detail their roles and responsibilities within the project’s decision-making structures including
reporting and communication lines and conflict resolution mechanisms
Finalize the first annual work plan based on the project results framework
Review indicators, targets, and their means of verification and recheck assumptions and risks
Agree and schedule monitoring and evaluation requirements
Discuss financial reporting procedures and obligations and arrange necessary audits
Plan and schedule Project Board meetings. The first Project Board meeting should be held within the
first 3 months following the inception workshop.
An inception workshop report will be prepared and disseminated for formalize various agreements
and plans decided during the meeting. After the inception workshop, the project team will prepare the
68
first Annual Work Plan, based on the project results framework (or logical framework). This will
include reviewing the indicators, means of verification, assumptions and risks, importing additional
detail as needed.
Quarterly: progress made shall be monitored in the UNDP Enhanced Results Based Management
system. Quarterly Progress Reports using the standard UNDP format will be prepared by the project
team and submitted to the UNDP Nepal. On a quarterly basis, a quality assessment shall record
progress towards the completion of key results based on quality criteria and methods captured in the
Quality Management table as per UNDP Nepal project M&E framework.
Based on the initial risk analysis submitted, log shall be activated in ATLAS (UNDP’s project
management software) and regularly updated to facilitate tracking and resolution of potential
problems or requests for change. Based on the information recorded in Atlas, quarterly progress
reports shall be submitted by the National Project Manager to the Project Board.
A Programme lessons-learned log shall be activated and regularly updated to ensure on-going learning
and adaptation within the organization and to facilitate the preparation of the lessons-learned report at
the end of the Programme;
A Monitoring Schedule Plan shall be activated in Atlas and updated to track key management
actions/events.
Annually: annual programme reports will be prepared by the National Project Manager and submitted
to the Project Board. As minimum requirement, the Annual Programme Report shall consist of
ATLAS standard format for the quarterly progress reports covering the whole year with updated
information for each above element of the quarterly progress reports as well as a summary of results
achieved against pre-defined annual targets at the output level.
Although only required when mandated by partnership protocols, an evaluation of the programme will
be undertaken at the end of its period to learn lessons and apply these to possible follow-on assistance
activities.
Periodic monitoring through site visits: the project team will conduct visits to project sites based on
the agreed schedule in the project’s inception report and Annual Work Plan to assess first hand project
progress. Other members of the Project Board may join these visits. A field visit report will be
prepared and will be circulated no less than a month after the visit to the project team and Project
Board Members.
Mid-term reporting: the project will undergo an independent mid-term evaluation at the mid-point of
project implementation. The mid-term evaluation will determine progress being made toward the
achievement of outcomes and will identify course correction if needed. It will focus on the
effectiveness, efficiency and timeliness of project implementation; will highlight issues requiring
decisions and actions; and will present initial lessons learned about project design, implementation
and management. Findings of this review will be incorporated as recommendations for enhanced
implementation during the final half of the project’s term. The organization, terms of reference and
timing of the mid-term evaluation will be decided after consultation between the parties to the project
document.
End of project reporting: an independent final evaluation will take place six months prior to the final
Project Board meeting and will be undertaken in accordance with UNDP guidance. The final
evaluation will focus on the delivery of the project’s results as initially planned (and as corrected after
the mid-term evaluation, if any such correction took place). The final evaluation will look at impact
and sustainability of results, including the contribution to capacity development and the achievement
69
of project goals. The terms of reference for this evaluation will be prepared. The terminal evaluation
should also provide recommendations for follow-up activities and requires a management response
which should be uploaded to the UNDP Evaluation Office Evaluation Resource Centre.
Audit: in compliance with UNDP auditing rules, an audit firm will be contracted at the end of the
second year of the project and in the final year of the project to undertake financial reviews. This
would include a review of the effectiveness of activities undertaken in relation with the funds
expended in the process of each of the activities undertaken, and represents a commitment to
transparency and accountability to stakeholders in general and to donors.
Learning and knowledge sharing: results from the project will be disseminated within and beyond
the project intervention zone through existing information sharing networks and forums. The project
will identify and participate, as relevant and appropriate, in scientific, policy-based and/or any other
networks, which may be of benefit to project implementation through lessons learnt. The project will
identify, analyse, and disseminate lessons learnt that might be beneficial in the design and
implementation of similar future projects.
70
<Table 6: M&E workplan and budget plan>
Monitoring Activity Purpose timeframe Expected Action Partners Budget
(USD,
2018-23)
Inception workshop
and report
Gather all project stakeholders to review the project
document and to build ownership in line with their
roles and responsibilities. Finalize Annual Work
Plan.
Within the first 4
months of project
start-up
Annual work plan,
indicator to be finalized.
NPD, NPM, Project
Board, UNDP,
KOICA, MoALMC,
NARC, local
government bodies
1,000
Regular project
monitoring (project
activities, gross
margin)
Progress data against the results indicators in the
result framework and gross margin will be collected
and analysed to assess the progress of the project in
achieving the agreed outputs.
Measure means of verification of project result,
outcome indicators, project progresses)
Annually, or in the
frequency required
for each indicator.
Slower than expected
progress will be addressed
by project management.
NPD, NPM, Project
team, UNDP
135,000
Monitor and Manage
Risk
Identify specific risks that may threaten
achievement of intended results. Identify and
monitor risk management actions using a risk log.
This includes monitoring measures and plans that
may have been required as per UNDP’s Social and
Environmental Standards. Audits will be conducted
in accordance with UNDP’s audit policy to manage
financial risk.
Quarterly Risks are identified by
project management and
actions are taken to
manage risk. The risk log
is actively maintained to
keep track of identified
risks and actions taken.
NPD, NPM, Project
team, UNDP
To be
finalized
Annual Project
Quality Assurance
The quality of the project will be assessed against
UNDP’s quality standards to identify project
strengths and weaknesses and to inform
management decision making to improve the
project.
Annually Areas of strength and
weakness will be reviewed
by project management
and used to inform
decisions to improve
project performance.
NPD, NPM, Project
team, UNDP
71
Review and Make
Course Corrections
Internal review of data and evidence from all
monitoring actions to inform decision making.
At least annually Performance data, risks,
lessons and quality will be
discussed by the project
board and used to make
course corrections.
NPD, NPM, Project
team
Project Report
(Quarterly Progress
Report)
A progress report will be presented to the Project
Board and key stakeholders, consisting of progress
data showing the results achieved against pre-
defined annual targets at the output level, the
annual project quality rating summary, an updated
risk long with mitigation measures, and any
evaluation or review reports prepared over the
period.
Annually, and at the
end of the project
(final report)
Report production NPM, Project team 20,000
Project Report
(Annual Progress
Report)
A progress report will be presented to the Project
Board and key stakeholders, consisting of progress
data showing the results achieved against pre-
defined annual targets at the output level, the
annual project quality rating summary, an updated
risk long with mitigation measures, and any
evaluation or review reports prepared over the
period.
Quarterly Report production NPD, NPM, Project
team, UNDP
Project Report (Mid-
term evaluation)
Determine progress being made toward the
achievement of outcomes; identify course
correction if needed; focus on the effectiveness,
efficiency and timeliness of project
implementation; highlight issues requiring
decisions and actions; and will present initial
lessons learned about project design,
implementation and management
At the mid-point of
project
implementation
Report production NPD, NPM, Project
team, UNDP,
external consultants
20,000
Project Report (End
of Project evaluation)
Look at impact and sustainability of results,
including the contribution to capacity development
and the achievement of project goals
At least 6 months
before the end of
project
implementation (Dec
2022)
Report production NPD, NPM, Project
team, UNDP,
external consultant
30,000
72
Project Review
(Project Board)
The Project Board will hold regular project reviews
to assess the performance of the project and review
the Annual Work Plan to ensure realistic budgeting
over the life of the project. In the project’s final
year, the Project Board shall hold an end-of project
review to capture lessons learned and discuss
opportunities for scaling up and to socialize project
results and lessons learned with relevant audiences.
Quarterly Any quality concerns or
slower than expected
progress should be
discussed by the project
board and management
actions agreed to address
the issues identified.
NPD, MoF, NPM,
UNDP, KOICA
To be
finalized
Learn Knowledge, good practices and lessons will be
captured regularly, as well as actively sourced from
other projects and partners and integrated back into
the project.
At least annually Relevant lessons are
captured by the project
team and used to inform
management decisions.
To be
finalized
Audit Conduct audit according to UNDP audit policies
Yearly Report production UNDP, NPD, NPM None
Project terminal Provide recommendations for follow-up activities
and requires a management response
At least 3 months
before the end of the
project
Report production NPD, NPM, Project
team
None
Total indicative cost 204,000
(+/- 10% of
total
budget)
73
M&E indicators
Monitoring and interim evaluation will also be based on tracking crop gross margins to assess whether the support is
improving returns to farmers. The gross margin of a crop is defined as the value of output from one hectare less the
cost of variable inputs required to produce that input. Gross margin analysis is preferred as basis for tracking project
impact to farm income. Changes in gross margins are easier to estimate than farm income, since farm income is
influenced by factors outside the control of the support, including changes in cropping patterns. For instance, a
farmer’s income can be increased due to a change of growing crops which are more profitable than those the farmer
used to grow before: a result which does not arise from project interventions. The gross margin analysis per crop
ensures the monitoring of a change of crop-specific margins before and after the intervention. Measurement of
changes in gross margins will be done in constant prices to eliminate the effects of inflation.
<Table 7: sample table of a crop gross margin>
Crop
Model Before intervention
(beginning year prices)
After intervention
(current prices)
After intervention
(constant prices)
Yield per ha (tons)
Price per ton (farmgate price)
Gross revenue per ha
Costs per ha
Seed
Fertilizer
Pesticides
Irrigation water
Hired labour
Cost of machinery hire/fuel
Other
Total costs per ha
Gross margin per ha
Incremental Gross margin per
ha after extension
Land area (ha)
Gross margin by cropped area
3.5.4. Transition or Exit strategy
The assistance will be implemented by existing legal bodies of the government of Nepal (the Ministry of Agriculture,
Land Management and Cooperatives and the Nepal Agricultural Research Council) with regular annual programmes
of developing and rolling-out proven technologies to farmers. Both organisations are expected to continue the
programmes after the phasing out of the support in their regular research and extension programmes and budgets.
They have mandates for tasks embraced by the assistance and hence will have related responsibilities and funding
once the assistance ends.
74
3.6. Partnership with Donors
3.6.1. Meetings with KOICA country office in Target Country.
KOICA is a senior supplier for the project and is invited to the project board meeting. If need be, ad hoc meetings can
be organized. KOICA will be engaged in the monitoring processes and be invited to field missions. Detailed meeting
plans are addressed under monitoring and evaluation plan.
The project is also an opportunity to strengthen the linkages between UNDP Nepal and the KOICA Nepal office. The
project will research Korea’s agriculture development cases and adopt lessons learnt to the project.
3.6.2. Plan for Reporting, meeting, ceremony
On a quarterly basis, the project Board meeting will take place. The National Project Manager will act as the Board
Secretary. For each Board meeting minutes will be recorded, signed by the Board chair and distributed to all Board
members. The National Project Manager will be a full-time programme-funded staff member reporting to the National
Programme Director and will monitor work progress and ensure timely delivery of outputs in a cost-effective manner
as per the Annual Work Plans and the Programme Results Framework. The National Project Manager will ensure
compliance, progress reporting and monitoring.
Meetings, interactions, and extension for cooperatives, farmers’ groups, and collaborating farmers will be held
according to the work plan. Project related ceremony can be added during the course.
Detailed plan for reporting and meetings are available under monitoring and evaluation section.
3.6.3. Visibility, Knowledge management and public relations plan
The project’s visibility plan aims to promote awareness about the project objective and approach and report progresses
with partners, beneficiaries, potential beneficiaries and media. It also puts emphasis on the creation of an information
management system.
In the inception phase of the project, a communication and visibility plan will be drafted and discussed with KOICA
Nepal. Elements which will be considered are web portal site, communication materials, event organization, press
releases, press conference, press visits, brochure, newsletters and other suitable measures. Use of different
communication channels is to ensure a wider coverage of audience. The plan will also make sure that different levels
of stakeholders will be effectively engaged. For instance, when the project uses local communication channels such as
local FM radio, it will engage state government and local governments.
Web portal site: a web based portal will provide comprehensive information on the project including project document,
project team information, related articles, progress reports, procurement documents (guideline, bids, calls for
proposals, and contracts), guide on grievance redress mechanism, publications (poster, brochure, pamphlet, films, etc.),
and photo documentation. A staff will be assigned for regular page updates and checking quality, relevance, user-
friendliness, and clarify of information. A Facebook page and twitter account will be also established.
Communications materials: user-friendly materials will be developed. Infographic, short videos, giveaways, and any
other useful materials will be discussed and developed. During the course, an innovative way will be continuously
sought. For instance, World Bank’s calendar76 on water is a good example in raising awareness of ongoing
agriculture-related initiatives as well as disseminating knowledge to farmers. The materials will be distributed both
through online and offline.
Event organization: events will be organized to disseminate lessons learnt during project implementation. Journalists
76 http://www.worldbank.org/en/news/feature/2017/12/14/water-cartoon-calendar-2018
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will be invited, and press releases will be prepared with consultation with the UNDP communications team.
TV and radio: TV and/or radio-based panel discussions will be organised, perhaps partly based on material from the
dialogue series would potentially reach a wider audience than the newspaper and magazine-based dissemination.
Publication: knowledge products will be prepared, for publication hard-copy and on the website, with summary
articles in newspapers and professional magazines. Social media will be used to reach out to a wide audience, perhaps
accessing an audience that might not be targeted through more formal publications. Finding ways to convey the
messages on social media may require further research and specialist advice from the UNDP Communications Unit.
A staff member will be assigned for information creation and sharing. Approaches will include: web portal site,
communications materials, event organization, and publication.
During the project implementation, UNDP will report on the implementation of the communication and visibility plan
as well as milestones and outputs achieved as agreed in the plan. The budget to carry out the agreed upon activities is
included under provisions for communication.
The logos of the Ministry of Agriculture, Land Management and Cooperatives, KOICA and UNDP will appear on all
publications. Full compliance is required with UNDP’s branding guidance. These can be accessed at
http://intra.undp.org/coa/branding.shtml, and specific guidelines on UNDP logo use can be accessed at:
http://intra.undp.org/branding/useOfLogo.html. Amongst other things, these guidelines describe when and how the
UNDP logo needs to be used, as well as how the logos of donors to UNDP projects needs to be used.
3.7. Procurement
When national contracting procedures are used, UNDP ensures consistency with UNDP principles and procedures as
described above. When UNDP provides procurement as support service, UNDP ensures an exit strategy and UNDP’s
procedures will be used. The implementing partner will ensure the oversight and monitoring of all contractors’ work.
Procurement of goods, services, and civil works: if the UNDP is a responsible party under national implementation by
government, UNDP in consultation with implementing partner will prepare and review specifications; undertake short
listing of suppliers in accordance with UNDP procedures; open and evaluate bids; approve and sign the contract; and
make payment. UNDP Contract, Asset and Procurement Committee (CAP), Regional Advisory Committee on
Procurement (RACP), or Advisory Committee on Procurement (ACP) committee will be fully responsible in
accordance with internal UNDP procedures. If there is a legal dispute, UNDP will take charge of the resolution
according to UNDP rules and procedures.
Procurement of individual contractors: UNDP prepares terms of reference in consultation with implementing partner
and is responsible for selection process in accordance with UNDP procedures. The evaluation panel shall be
established, while government may participate in ex-officio capacity only. Contract, Asset and Procurement
Committee (CAP), Regional Advisory Committee on Procurement (RACP), or Advisory Committee on Procurement
(ACP) committees must review the evaluation panel recommendations. Once selected, an individual contractor or
individual contractors will make a contract signed by UNDP. UNDP will supervise the work, review and accept
deliverables, conduct performance review prior to any contract extension, and arrange payment as per contract terms
and conditions. In case of legal disputes between national public institutions, UNDP and consultant, UNDP will take
charge of their resolution.
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Annex 1. Brief on the Nepal Agriculture Research Council
The Nepal Agricultural Research Council was established in 1991 as an autonomous organization under Nepal
Agricultural Research Council Act 1991. The objective is to conduct quality studies and research on different aspects
of agriculture and to assist the government in formulation of agricultural policies and strategies. Its functions and
responsibilities include conducting agricultural research required for national agricultural policies, provision of
research and consultancy services to clients, coordination, monitoring and evaluation of research activities and
documentation. Overall, there are 413 scientists having Master’s degree or Ph.D. in different disciplines and 384
technical officers having Bachelor’s degree in agriculture.
The council has an executive council, whose chairperson is the Minister of Agriculture, Land Management and
Cooperatives. Its members include the Secretary of the Ministry of Agriculture, Land Management and Cooperatives
and the Director General of the Department of Agriculture. In such a Way, the council is a subordinate organization of
the Ministry of Agriculture, Land Management and Cooperatives.
For this project, the Horticulture Research Division is the implementing organization (one of the research Division
under NARC). It has 5 scientists, while 4 of them are Ph.D. holders and one masters in horticulture. In addition, there
are 4 technical officers with bachelor’s degree in horticulture. Dr. Ishwari Gautam oversees the division and Dr.
Dhruba Raj Bhattarai is Lead Research Scientist and the focal person for the project.