Rising Incomes of Small and Medium Farmers Project (RISMFP)

Start date: 
February, 2013
End date: 
January, 2017
Beneficiaries: 
17800households
Project District : 
Bankey, Dang, Bardiya, Kailali, Surkhet, Dailekh, Doti, Dadeldhura, Baitadi and Darchula
Client: 
Department of Agriculture (DoA) / Asian Development Bank (ADB)
Type of project: 
Introduction: 

The Project - RISMFP intends to reduce the market and business risks faced by medium and medium farmers diversifying into high value commodities in 10 districts of the Midwest (MWDR) and Far-west (FWDR) development regions of Nepal. These regions have the lowest human development indices within Nepal due to limited investment in access to services, physical, social and economic infrastructure. The overall goal of the Project is to “Increased income and employment in the agricultural sector of far and mid-west development regions”. Medium farmer incomes are limited by; (i) low returns from traditional agricultural commodities, (ii) medium and declining farm sizes with low productivity, and (iii) a supply-driven production machine that has not captured potential market benefits for high value commodities (HVC).

Objectives: 

(i) Building HVC value chains in midwest and far west region supplying markets; 

(ii) Formulating business plans for producing and adding value to HVC in the far and mid-west; 

(iii) Ensuring effective and efficient project management.

The Project assist medium and medium sized farmers to diversify into HVC by establishing market linkages; providing capital for inputs and improved technology; and for building post harvest value chain infrastructure including storage, packaging, grading, and processing. The Project contributes through increasing rural income, reducing poverty and increasing food security in Nepal. The implementation modality builds strong partnerships with NGOs and consulting firms. 
Ministry of Agriculture Development (MoAD) is the Executing Agency and Department of Agriculture (DoA) is the implementing agency with Nepal Rastra Bank and Agro Enterprise Centre (AEC) of Federation of Nepal Chambers of Commerce and Industries (FNCCI). This pro-poor, pro-livelihood and Agri-business based development program is designed to have the maximum impact on the reduction of poverty and Gender Empowerment and Social Inclusion (GESI) which is overriding concern of development efforts in Nepal
.The Project impact is increased profitability of medium and medium sized farms. The outcome of the Project will be increased production of HVC by medium and medium sized farmers with supply agreements. 7,500 ha of contracted production of high value commodities will by 2017 produce an estimated annual output of 64,500 tons with a projected retail value of $31 million, farm gate value of $13.5 million, and a gross margin to farmers of $9.5 million per annum. Since the growing of HVC such as vegetables, fruits, spices and other non-cereal crops has always been the domain of women, the Project will especially increase women’s cash income contribution to their households. The Project is expected to benefit an estimated 17,800 farm households that would grow HVC crops on average in 0.4 ha for existing farmer groups and 0.25 ha for the disadvantaged people groups.

Key achievements: 
  1. Establishing agribusiness grant facility for building HVC value chains in mid-west and far-west development region supplying markets;

  2. Formulating business plans for producing and adding value to HVC in the far- west and mid-west regions;

  3. HVC technology problem and issues identification through workshop and provide solution;

  4. Prepare and publish mushroom production technology manual for farmers; 

  5. Identify production problems and conduct a need assessment of production technology to increase market led production of identified high value fruits, vegetable and species in project area;

  6. Conducted project promotional and information dissemination workshops in project districts;

  7. Facilitate to prepare Independent Appraisal Panel (IAP) guidelines;

  8. Facilitate to prepare agribusiness grant facilitate (AGF) manual;