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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, renaud.meyer@undp.org

Ms. Sophie Kemkhadze, Deputy Country Director, sophie.kemkhadze@undp.org

+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.