1. business and industrial
2. agriculture and forestry
3. agriculture

Federation of Nepalese Chambers of Commerce and Industry
Agro Enterprise Centre At a Glance
Agriculture continues to provide the livelihood base for about 70% of Nepalese population and
contributing 35 % in the GDP. The need is to paradigm shift in agriculture of Nepal from subsistence
to commercialise with increasing productivity and output of agro-commodities.
Promotion of commercial scale framing and trade of selected agro commodities which could have
definite comparative and competitive advantages to Nepali farmers, and agribusiness communities
involved in farming activities are in due course. Thrust in this direction with the increased use of
modern technologies and agronomic practices and adoption of supportive market-driven private
sector-led macro and micro agro policies could bring in more income thus helping to combat
poverty of growing segment of the population.
Introduction
Agro Enterprise Center (AEC), the agricultural wing of the Federation of Nepalese Chambers of
Commerce and industry (FNCCI) was established in September 1991 under the Cooperative Agreement
between FNCCI and USAID/Nepal. Within past two decades, FNCCI/AEC made valuable contributions
in Agro Business Development and Promotion.
FNCCI/AEC has more focused Mission and Vision and is taking a renewed role in representing the private
sector agribusiness community in the development of agriculture and agribusiness in Nepal.
The Mission
“To expand and strengthen market oriented private sector driven agro enterprises in order to increase the
value and volume of high-value products sold domestically and internationally”.
The V ision
“The vision of FNCCI/AEC in the national context is to be a strong, vibrant and sustainable private sector
led agro-enterprise sector capable of contributing high and broad based economic growth”.
Currently Prioritised Activities
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§
§
Policy Advocacy and Policy Advices/Studies
Agro Business Information Service including Market Information Services
Trade and Business Development focusing on Trade Fair/Exhibitions and new business
development
1
§
§
§
§
Strengthening Agro-Commodity Associations and supports for their
development/promotional programmes
One Village One Product (OVOP) Program
Implementation Agribusiness Development Projects in partnership with GoN.
Market and Demand Analysis of High Value and exportable Agriculture Products
Achievement s
As one of its major role, FNCCI/AEC has been actively carrying out advocacy to improve
environments required for agro business promotion in Nepal. It is extending its cooperation
to the Government of Nepal in the formulation of new national policies like National Agriculture
Policy, National Tea Policy, NTFP Policy, Coffee Policy and in Agro-business Promotion
Policy and many other Acts, Regulations & guidelines. It has also been assisting the Government
in resolving many bilateral issues with neighbouring countries related to agricultural product
trade particularly.
In addition, FNCCI/AEC has launched a series of programs in many parts of Nepal to create
awareness of WTO and its Agreement on Agriculture and their implication on Nepalese
agriculture and agribusiness. It has also organised a series of product specialised orientation
programs to prepare Nepalese producers , processors and marketers ready to address
requirements of fulfilling Sanitary and Phyto-Sanitary (SPS) and Technical Barriers to Trade
(TBT) Measures.
FNCCI/AEC has also identified some exportable agro-products like vegetable seeds, offseason vegetables, ginger, honey, coffee and undertaken competitiveness studies of these
products focussing the western and mid western development regions of Nepal. It also carried
out a study to prioritise some most important aromatic and medicinal plants for commercial
thrust. In line with the recommendations from the studies, the Centre is focusing its advocacy
and advisory activities.
Since its establishment, FNCCI/AEC has been organising trade fairs and exhibitions periodically.
Most recent events were Agro Expo’2002, Agro Expo’ 2004, Agro Expo' 2006, 2009 and
2012. It has also extended its technical and financial supports to organise floriculture trade
fairs and some regional and district level agricultural fairs organised by District Chamber of
Commerce and Industry every year.
The major activities of FNCCI/AEC in market information service (MIS) is collection of
market prices of major vegetable and agro products of daily consumption and circulating
information bulletins of prices of fruits, vegetables & spices on a daily basis, covering
information of 25 wholesale markets of Nepal and 6 Indian markets.
2
FNCCI/AEC has been involved as the private sector partner in the implementation of
Agriculture Development Projects in Nepal. AEC is involved as an implementing agency
in collaboration of Government of Nepal, Ministry of Agriculture Development. The following
projects are now in implementation in different districts of Nepal which covers in total 27
districts:
Raising Income for Small and Medium Farmers (RISMFP) funded by Asian Development
Bank.
High Mountain Livelihood Improvement Project( HIMALI)- Funded by ADB
High Value Agriculture Project (HVAP)- Funded by IFADSTDF: Standard Trade Development
Facility: Funded by MOCS/WTO
Kisan Ka Lagi Unnat Biu Bijan Project – IFAD Funded project.
Implementation of NTIS projects in promotion of Ginger and Cardamom under the Ministry
of Commerce and Industries and WTO fund support.
FNCCI/AEC is also acting as a central hub for maintaining Agri Market Information System
(AMIS) and its dessimiantion through the web page and notice board, mobile phone
services.These market information are in its website: and notice board on call centres are
1618014262260 for Kathmandu market price and 083525516 for the Surkhet market price.
See map on cover
Program and Projects in brief:
1.
One Village One Products (OVOP)
The concept of "OVOP" or One Village One Product is said to be developed by local
community of Oyama Village (now it's a town) in 1961. Later, Dr Morihiko Hiramatsu,
former Governor of Oita Prefecture, named and promoted OVOP not simply as a program
but as a campaign with a vision of revitalizing the remote villages at a time when there was
a problem of depopulation due to migration of village youngesters to the big cities to seek
employment.
China is the first nation to adopt OVOP Japan model. In 1980, China has launched OVOP
in the name of "One Hamlet One Product" in Sanghai. Similarly, in 2001, former Prime
Minister of Thailand Mr Thaksin Sinwatra, launched OVOP as "One Tambon One Product"
3
1.1.Principles of OVOP Japan
The following are the three major principles of
OVOP Japan as defined by Oita OVOP
International Exchange Promotion Committee
(OOIEPC).
1. Think Globally, Act locally
The most important part of the OVOP campaign
is identification of the local product. The
identified product should reflect the pride within
the community and be globally accepted.
2. Self-reliance and Creativity
The OVOP principally always discourages the
dependency nature but encourages self reliance
and creativity within the local community.
3. Human Resource Development
Local farmer/community leader plays vital role in promoting OVOP in their respective locality.
Hence, the program strictly focuses on developing committed and competitive leader for
overall promotion of the program.
1.2. OVOP in Nepal
The success of OVOP program in Japan and many other Asian countries including Thailand
has inspired FNCCI – an umbrella organization of the Nepalese private sector to launch
OVOP program in Nepal. The FNCCI had discussed and interacted with different Ministries
and its line agencies in order to launch the program in Nepal. Ultimately, the Government
of Nepal convinced to launch the program in partnership with FNCCI and announced launching
of the OVOP program in Nepal
In Nepal, OVOP is a Public Private Partnership (PPP) based program which was officially
launched in July 17, 2006 for 5 years as a pilot project.
1.3. Objectives of OVOP Nepal
The OVOP Nepal has following objectives.
Ø
Ø
Ø
Ø
Commercial and quality production of local product
Value addition
Branding
Domestic and international market promotion
4
Ø
Ø
Employment generation
Socio-economic progress of rural community
In the pilot project, the program was implemented in 7 districts with 4 selected commodities.
The program has gained popularity in the country. Based on achievement made by us to
develope OVOP program in Nepal, the OOIEPC, Japan has awarded "Hiramatsu OVOP
Awarded 2010" to Nepal in 2010.
Now, this program has been extended in other districts also even after completion of the pilot
project. At present, the program has been extended to 21 districts with 17 commodities.
1.4. Working Modality
The OVOP, as a public private partneship based program, the Ministry of Agriculture
Development from the government side and the FNCCI from the private sector provide funds
for the program. The government allocates annual budget for the program through its budget
speech program. The FNCCI implements the program through its technical wing Agro
Enterprise Centre (AEC), which is the Secretariat of the OVOP Program.
Stakeholders directly involved with program
Government Side
Private Sector
1. Federation of Nepalese Chambers of
1. Ministry of Agriculture Development
Commerce and Industry
2. District Agriculture Development Office 2. District Chamber of Commerce and
Industry
3. Agro Enterprise Centre
Operation at field and central level of the whole program is guided by the Government of
Nepal approved guidelines called "OVOP Program Implementation Guidelines".
1.5. Committee and Sub-Committee
As per the OVOP guidelines, there are three central committees and one district committee
as under:
Committee/Sub-Committee
No. of Member
Chairmanship
1. Steering Committee
9
President – FNCCI
2. Central Committee
5
Joint Secretary – MoAD
3. Technical Sub- Committee
5
CEO – Agro Enterprise Centre
4. District Committee
5
Chairman – District Chamber of Commerce and Industry
5
1.6. New Product Selection Procedure
The new product should be selected in such a manner that the selected product should have
local essence and market oriented along with the commitment of local farmers/producers to
develop the product, and recommended by them for entire promotion of the program. For
this, District Chamber of Commerce and Industry will coordinate with the local community
and finally forward the proposed selected commodity to the OVOP secretariat to get final
approval from Steering Committee.
1.7. Future Plan
The OVOP program in Nepal has already been set up as suitable for the entire economic
development of the country through rural community development program. There is no lack
of products having local essence in the nook and corner of the country. Apart from agricultural
commodities, there are plenty of different other products and services such as religious
tourism, rural tourism, handicrafts, traditional and folk dances, pottery, medicinal herbs and
many more which have their own local identity. Considering the fact, FNCCI has already
developed the ODOP or One District One Product concept in order to extend the program
in all 75 districts of Nepal.
The FNCCI has a plan to expand the program in new district in each year. FNCCI is also
doing homework for introducing new products and services other than agricultural products
in the program.
Products, Program launched Year and the Districts under OVOP, Nepal
S.No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Total
Commodity
Hug Plum (Lapsi)
Sweet Orange (Junar)
Rainbow trout
Stone Apple (Bel)
Cymbidium Orchid
Agro Tourism
Daphne Paper (Lokta)
Coffee
Areca nuts
Turmeric (Besar)
Rural Agro Tourism
Timur
Ginger
Jorailo Basmati Rice
Fish
Banana
Mango
17
Program launched year
2006
2006
2006
2006
2007
2007
2009
2009
2012
2012
2012
2012
2012
2012
2012
2012
2012
6
District
Bhaktapur
Ramechhap and Sindhuli
Nuwakot and Rasuwa
Bardiya
Lalitpur
Lekhnath, Kaski
Dolkha
Syangja
Jhapa
Sunsari
Lamjung
Myagdi
Palpa and Sallyan
Doti
Dhanusa
Chitwan and Kanchanpur
Saptari
No. of District
1
2
2
1
1
1
1
1
1
1
1
1
2
1
1
2
1
21
2.
High Mountain Livelihood Improvement Project
AEC/FNCCI is the implementing Agency of
this High Mountain Agriculture and Livelihood
Improvement Project (HIMALI) operated
under the ADB grant 0248-NEP. The objective
of the AEC as an implementing partner is to
facilitate and assist the enterprises to develop
and implement viable and sustainable business
plans. The agreement on granting total amount
of 17,49,100 US dollar to AEC/FNCCI was
made on 20th September 2011. The specific
tasks of AEC for agri-business services
development are listed as follow
1.
2.
3.
4.
5.
6.
7.
8.
Provide business planning and implementation support.
Assist to prepare grant applications with commercially viable business plans.
Gather input and output market information.
Develop agribusiness promotion and networking value chain linkages.
Recommendations to PMU for technical advisory.
Provide services and assistance delivers to TA for supporting business planmplementation.
Monitor grants recipient performance.
Participating in monitoring and evaluation.
2.1. Objective of the Project
The main objective of the HIMALI project is to provide grants to selected eligible entities
or businesses for implementing viable agribusiness plans, which are ensured with facts, figures
and demonstrate income, employment and benefits to the marginalized, women and poor in
the project districts. It specifically focused to improve the livelihoods of poor farmers in ten
target Districts: Sankhuwasabha, Solukhumbu, Dolakha, Rasuwa, Manang, Mustang, Dolpa,
Jumla, Humla and Mugu. The rationale behind this project area is based on value chain
corridors linking mountain areas to downstream agribusiness and markets. The outcome of
the project will be expanded in new mountain agribusinesses which are commercially viable
and environmentally sustainable. The project impact is expected to improve incomes in
selected high mountain areas. It is expected to bring result in
(i)
(ii)
(iii)
Production of an additional $20 million gross value worth agriculture and livestock
products per annum.
7,500 jobs created by participating enterprises, and
Participating business enterprises achieving a rate of return on investment of no less
than 15% per annum by 2017.
7
(i)
The project will also improve mountain communities’ resilience to climate change by
supporting the implementation of elements of community climate change adaptation action
plans, and community forestry and rangeland group action plans for timber, grazing and
medicinal plants collection.
Beneficiaries are also required to contribute from their own resources, in kind and/or in cash
to create the joint ownership in the business plan funded by the project.
2.2. Project Strategy and Approach
The technical approach of the Project is to attract investment in the production of high-value
agricultural products in ten high mountain districts, value-added agribusiness that links
producers to markets, and the packaging and marketing of processed agricultural products
for both the domestic and export markets. As the ten targeted districts are remote and have
limited infrastructure for transportation the potential investments in high-value agricultural
production and agribusiness in these districts need careful business planning. For this reason,
Project has organized technical teams in the ten districts under the supervision and coordination
of Agro- Enterprises Centre .
2.3. AEC’s Implementing Strategy
AEC has set its implementing strategy to
achieve the assigned target and make the
business financially viable and sustainable
till long run. Implementation of the activity
at the field level while performing the task,
AEC is utilizing its wide range of
experience as an implementing body for
more than two decades.
It is utilizing existing networks and FNCCI members the Commodity Associations as added
strength to establish the backward forward market linkage at regional and centre level. It is
further utilizing the network strength of District Chamber of Commerce and Industry (DCCI)
and other community associations and business houses to develop viable business plan.
Field level implementation is ensured by the expertise of ten Agro-enterprises Planning Specialist
at district level and four agri-business planning specialist at regional level. They are already
provided with trainings on updates of the skills required for the development of commercially
viable business plan. Moreover, the consulting group and their consultants hired under component
two are also providing support to develop the capacity of these district and regional staffs along
with the guidance of Agro-enterprise Team Leader and Chief Executive Officer of AEC.
The AEC team of experts, District and Regional agri-business planning specialist are working
in close coordination with District Chamber of Commerce and Industry members along with
the DLS Regional Directorates and a District Project Coordinator, from either the Department
of Livestock Services Office (DLSO) or the Department of Agriculture Development Office
8
(DADO) in each Project district. Figure below shows the AEC specific working modality
in collaboration with other partners in the project.
This HIMALI project is intended to work for nearly six years in the targeted areas, starting
from September 2011 to 2017
3.
Raising Incomes of Small and Medium Farmers
(RISMF) Project
n
It’s a ADB grant project
($20.1 million)
n
Project period- 2011-2017 (6
years)
n
Project has basically two main
themes i.e.
1. Economic growth- widening
market access and
economic opportunities
2. Gender equity- in economic
opportunities
3.1. Project Focus Areas
n
n
n
n
n
n
HVC (Agricultural crops and non- livestock commodities),
Small and medium sized farmers
Diversify staple crops into HVC
Establishment of market linkages
Providing capital for inputs and improved technology
Building post harvest value chain infrastructure including storage, packaging, grading
and processing
3.2.
FNCCI/AEC as a Project Implementer
n
Establishment of FNCCI/AEC regional centers (Dang and Dadeldhura) and field units
in all project districts
Development of effective agricultural marketing information system (AMIS) in 10
major project districts (DCCI)
Awareness building in post harvest and value chain issue
Support PMU for implementing post harvest and market linking programs
n
n
n
9
n
n
n
n
n
n
n
n
n
n
n
n
Assist PMU in prequalifying service providers for beneficiaries to use
Strengthening the capacity of FNCCI/AEC’s regional offices and DCCIs
Facilitate B2B linkages through DCCIs
Develop VC integration business plan through DCCIs
Assist PMU in organizing agriculture fairs and promotions
Arrangements with DCCIs in Project Districts
AEC establishes regional and district level field units in coordination with DCCIs
Staffs are recruited and fielded in Dadeldhura, Dang and Nepalgunj
Project Orientation workshop for DCCI and its members (already done in 10 districts)
Agreements with the DCCIs for effective implementation of project activities (done)
Establishment of field units in DCCIs (done)
Arrangements for AMIS with DCCIs (done)
3.2. Upcoming Activities
n
n
n
n
n
n
n
Agribusiness opportunity workshop in two regions
AMIS scoping study
AMIS data collection and further development in 10 project districts
Facilitation/participation in the Agreements between producers and traders
Facilitation of training on Agri-business Plan to Farmers and groups/cooperative in
program districts.
Capacity assessment of DCCIs for establishment of AMIS
Training for DCCIs staffs on AMIS
4.
Nepal Trade Integration Strategy (NTIS)
The Nepal Trade Integration Strategy (NTIS) 2010 was launched on 24 June 2010 at a time
when the trade and economic situation of the country portrays a bleak picture in export
performance and balance of payment.
The NTIS 2010 stresses the need to develop Nepal’s trade competitiveness and trade
diversification. While the strategy points out on the need for better coordination among
different state and non-state agencies, it also points out the challenge that Nepal has not been
able to reap the possible benefits of the world trade system.
The strategy clearly suggests 19 priority export potentials for Nepal. Among them, the
suggested 7 agro-based products include large cardamom, ginger, honey, lentils, tea, noodles,
medicinal and essential oils. Similarly, the suggested 5 industrial products include handmade
10
paper, silver jewelry, iron and steel, pashmina and wool products.
Likewise, the suggested 7 service areas include tourism, labor, health, and education, IT &
Business Process Outsourcing, engineering and hydro-electricity. In addition, the strategy
identifies top ten market destinations for each of the potential products and service areas.
The implementation of the strategy will demand sizable resources that the Government alone
cannot afford. The strategy recommends a collaborative effort by the Government to bring
in the private sector, development partners and other stakeholders to achieve the intended
common objectives for sustained economic prosperity.
FNCCI/ AEC has been partnering with MoAD (NTIS project) especially for technology
transfer for cardamom drying. AEC have been promoting double drum dryer in four districts
in year 2010 and 2011. AEC has also distributed 12 Ton of rhizome rot free, fiber less ginger
seeds in Dolakha, Udaypur, Saptari, Morang, Jhapa, Sunsari, Dankuta, Bhojpur and Jhapa
district in year 2011.
AEC has successfully installed 80 double drum dryers in three districts. 30 in Panchthar, 25
in Sankhuwasava and 25 in Terhathum districts. This year 50 more will be installed in Bhojpur
and Taplejung districts.
4.1 Important quality factor of cardamom:
Moisture content: Moisture measurement is a critical factor
·
·
·
·
·
·
·
·
affect the physical and chemical properties related to quality
the potential for safe storage
the microbial properties active at high m.c.
Important factor in determining market price.
Volatile Oil: Volatile oil measurement is a critical factor
aroma and flavour characteristics are important quality attributed by volatile oil
even though present in small amount plays important role
important factor in determining market price
Color: Color is the factor which determines the outlook of whole product
acceptability depends on color effected by the drying pattern
Quality achieved by double drum dryer: a comparison
·
·
·
SNo Details
Unit
Traditional Dryer Two Drum Dryer Two Drum Dryer
Desirable Range
12
12
<15
% W/V 0.5
1.5
1.5
>1
ppm
Not detected
Not detected
<200
1
Moisture content %
2
Volatile Oil
3
Added Colour
7
Not detected
11
5. High Value Agriculture Project (HVAP):
5.1 Project Summary:
·
·
·
·
·
·
·
Overall Goal
Reduction of poverty and vulnerability of women and men in hill and mountain areas
of the MWDR
Expected outcomes
Improved commercial relations and partnerships between market operators and producers
Increased participation and access of poor marginal producers
Sustainable increases in volume and value of production
Enhanced environment and strengthened local capacity to support market driven/value
chain initiatives
5.2. Project Beneficiaries:
Direct project beneficiaries –
13500 HHs (750 HH/VC for 18 VCs)
1800 Traders (100 Traders/VC for 18 VCs)
5.3 Indirect beneficiaries –
Multiplier effect benefits 12000 HHs (During Project Period)
Up scaling and replication 25000 HHs (After project Period)
5.4. Impact:
·
·
·
·
·
·
Economic –
Income of direct beneficiaries increased by NRs. 30000/Annum/HH
Inclusiveness60% beneficiaries in the project activities will be women
25% beneficiaries will come from Marginalized communities
Project period: Six Years after the implementation
12
5.5. Financiers:
· IFAD (50% loan and 50% grant) SNV (50% of their staff cost), GoN (100% tax, 10% fund)
5.6. Total Budget:
·
·
·
·
·
·
·
·
·
·
·
·
·
·
·
·
·
·
NPR 1.3 billion (USD 17.2 million)
Selected Commodities:
Off season vegetables and spices, fruits,
NTFPs/MAPs, vegetable seed, Honey
Project Components
Project Approach
Market Oriented production
Unlike conventional approaches
Production planning starts from the traders engagement
Trader and producer both at the center
Inclusive Business
Co-investment by both traders and producers
Risk bearing by both traders and producers
Profit sharing by both traders and producers
Project ‘s involvement
Investment in business from producers’ part
Kickstarts the VC cycle and pushes until it gets momentum
VC cycle self-sustains by the end of the project
AEC/FNCCI involvement:
·
Market information Service
·
Capacity strengthening of DCCIs of Project Districts
·
B2B linkages and Contract Facilitation
·
Documentation and sharing of Value Chain Learning
·
HVAP Agribusiness Working Group and Policy Dialogues
5.7. Present status of Project:
·
·
·
·
DCCIs Orientation done in 7 DCCIs
MIS started in 4 DCCIs-Surkhet, Jumla, Kalikot, Dailekh
AEC satellite units established in these 4 DCCIs
Institutional Strength Assessment done in Salyan CCI
13
5.8. Partner NGOs:
·
·
·
·
·
·
·
·
20 National NGOs expressed their interest, final selection yet to be done
EOI called for local NGOs
Extended Role of DCCIs:
Business related Services
Market Information Services
Technical advisory services for Business Plan preparation and Business Management
Agro Business Promotion
Market linkages and facilitation
5.9. Facilitate access to finance:
Joint effort (with other stakeholders)
for development of market infrastructures e.g: collection centers, market centers, cold storage etc.
Policy Feedback Private-Public dialogue mechanisms
6. Kisan Ka lagi Unnat Biu Biijan Project:
The Project Background and Context
The Improved Seeds for Farmer Program comprises three technical components mainly covering
seed subsector, livestock and entrepreneurial and institutional development. These are: (i) Support
to the extension of the Formal Seed Sector; (ii) Smallholder Livestock Development, and; (iii) Local
Entrepreneurship and Institutional Development.
Project goal: The overall goal of ISFP is to achieve increased competitive, sustainable and inclusive
rural economic growth in the mid-western and western hills of Nepal.
Purpose: The project has the development objective of improving rural household incomes
through sustainable, market-driven agricultural (livestock inclusive) productivity improvements.
Outcomes: The expected outcomes of the ISFP include;
·
Increased production of truthfully labeled improved seeds which are marketed
domestically and internationally
·
Improved productivity of livestock systems which are more closely linked to markets
·
Strengthened capacity of a broad range of rural institutions (Public/Private/
Parastatals) to provide sustainable services to smallholder farmers
The Seeds for Farmer Program comprises three technical components mainly covering seed
subsector, livestock and entrepreneurial and institutional development. These are: (i) Support
to the Extension of the Formal Seed Sector; (ii) Smallholder Livestock Development, and;
(iii) Local Entrepreneurship and Institutional Development. Government of Nepal (GoN),
14
MOAD holds ISFP and is responsible for its overall management. To implement these
components, AEC (from FNCCI), Heifer International, Sana Kisan Bikas Bank Ltd and Nepal
Agriculture Central Cooperative Federation shall be involved directly.
Component 1: Support to the Extension of the Formal Seed Sector (USD 21.6 million).This
component shall have the following three sub-components:
1.1 Ensuring an Effective Enabling Environment (Investment cost of USD 2.0 million)
1.2 Improved Seed Production (Investment cost of USD 18.4 million)
1.3 Promoting Farmer Demand for TL Seed (Investment cost of USD 1.3 million)
Component 2: Smallholder Livestock Development (Investment cost: USD 20.5 million).
This component has the following three sub-components.
2.1 Improving Dairy Productivity (base cost: USD 4.9 million)
2.2 Improving Goat Productivity (USD 12.4 million)
2.3 Strengthening of District Livestock Service Offices (DLSOs)
Component 3: Local Entrepreneurship & Institutional Development (Invest cost: USD 10.7
million). This component has the following three sub-components:
3.1 Institutional Strengthening (Investment cost: USD 2.14 million)
3.2 Access to Non-Financial Services (Investment cost: USD 0.87 million)
3.3 Increasing Outreach of Microfinance Institutions (Investment cost: USD 7.3 million)
The aim of this partnership is to translate AEC competences in BDS in agriculture sector to
district level institutions through expansion and enhancement of activities in business enabling
environment. The institutional strengthening activities shall strengthen local and district level
institutions in establishing backward and forward linkages. The BDS and AMIS shall shape
up national initiatives in local entrepreneurship development and market assurance to contribute
in livelihood promotion of small holder's farmers.
A.
ROLES AND RESPONSIBILITIES OF THE AEC
AEC shall collaborate and coordinate with partners in creating enabling environment in
agriculture production, trade and marketing to remove impediments and hassles to support
PMO effort in creating enabling environment to promote agribusiness. AEC shall closely
work with project partners in realization of business opportunities and scaling entrepreneurship.
AEC shall provide the facilities of the District Chamber of Commerce and Industries (DCCI)
in the six project districts namely Salyan, Pyuthan, Rolpa, Rukkum, Arghakhanchi and Gulmi
as to use as investment windows for the project fund assistance to the indentified beneficiaries.
AEC shall create BDS and market development services at DCCIs to promote local
entrepreneurship and institutional development. AEC shall be responsible for organizing agribusiness promotion in the project districts, regional and national levels.
AEC shall facilitate backward and forward linkage for farmers' agriculture and livestock
15
produces including arranging buy back arrangements.
AEC as an implementing agency agrees and makes following specific commitments to
implement the ISFP project.
i. Component 1: Support to the Extension of the Formal Seed Sector
AEC in close co-ordination with PMO in expansion of formal seed production sector possess
following responsibility.
a.
AEC shall promote private sector investment in quality seed production, processing
and marketing.
b.
AEC shall facilitate policy advocacy, value addition and marketing knowledge
development and transfer both amongst project stakeholders and beneficiaries and
to wider private sector actual and potential agribusiness community in order to
foster multiplier effects.
c.
AEC shall link seed producer groups to formal seed sector in national and
international level arranging market linkage activities. At least 5 national seed
producing companies shall be linked with seed producing groups facilitating buy
back arrangements.
d.
AEC through investment windows shall facilitate private sector firms to develop
business plans to access finance to allow them to invest in project districts.
ii. Component 2: Smallholder Livestock Development
a.
AEC shall promote private sector investment in livestock production, processing
and marketing.
b.
AEC shall contribute to PMO initiatives in fostering public private dialogue
and partnership in market linkage development program at project districts,region
and national level for project identified commodities.
iii.
a.
b.
Component 3: Local Entrepreneurship and Institutional Development
AEC shall contribute to the PMO's effort in developing local entrepreneurship and
institutional development. AEC ensure support of the FNCCI through its DCCI to play
a facilitating role in attracting the participation of agribusiness entrepreneurs in the
projects by setting up investment window. Under component 3, AEC shall contribute
to;
Strengthen and capacitate local DCCIs to realize the roles of investment window.
AEC shall establish, strengthen and expand AMIS in project districts to contribute in
broader market knowledge development.
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c.
AEC shall facilitate in generating enabling business environment of agriculture
and livestock produces. This responsibility will be assisting PMO to identify
existing policy gaps and hurdles in production trade and marketing of project
targeted commodities and to advocate it for removal or amendments.
d.
AEC shall support and facilitate producer groups and traders to participate in
agricultural fairs.
EXPECTED OUTPUTS
Deliverable outputs and Indicators
AEC involvement is anticipated to contribute significantly to achieve the project outcomes
to all the components of the ISFP specified in the project logical framework. AEC shall
prepare 800 Business plan for project beneficiaries.
Component 1: Support to the Extension of the Formal Seed Sector
700 producer groups shall be linked to 10 formal seed sub-sectors with buy back arrangements.
Capacity and bi-lateral trade negotiation skills of 5 seed exporters shall be enhanced that
lead to increase at least 5% seed export.
7 cross country buyer seller meetings leading to MOU signing.
Component 2: Smallholder Livestock Development
Under the PMO coordination AEC shall contribute to develop market infrastructure under
public private partnership. AEC contribution will focus on related operational guidelines,
business plan and sustainability plan of milk chilling centre, local private dairy enterprises,
collection hubs/livestock markets, butcheries and meat chilling centers.
Commodity and district wise buyer seller meetings held over the programme period to
facilitate buy back arrangements.
Component 3: Local Entrepreneurship and Institutional Development
lll
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