Nepal

THE PROPOSAL

The Government of Nepal has several long-term strategies for transforming its agriculture sector into a competitive, climate-resilient, self-reliant, and export-oriented industry. Climate-smart agriculture investments aimed at increasing key crops' yields by between 20 and 50% could benefit 3 million farmers by generating higher income and rural employment, and increasing surplus and diversifying diets for the most vulnerable populations.

COMMODITIES AND INTERVENTIONS

Large cardamom (also known as black cardamom)

Grown in eastern hills, cardamom is an important non-perishable cash crop, with an annual production of 8,000 metric tons. About 80% of this is exported to India. Given this, there are opportunities for investments to grow the crop on the hill areas in target regions.

Interventions focus on expanding production areas and improving the health and quality of the produce, including high-quality planting material production, mitigation of disease risks and improvement in seed supply and technology. Interventions also aim to upgrade post-harvest technology with drying and tailing, and support the use of certification.

An investment of US$17.19 million will benefit 8,415 farmers.

COMMODITIES AND INTERVENTIONS

Highland potato

Nepal has a national production of 3.3 million metric tons of potato, with 43% of the 3.81 million farmers growing them. National potato consumption is around 88.1kg per capita and demand is fast growing. The country also imports 343,000 metric tons of potato and their by-products every year. Potato is more productive than rice and maize in the cool climate and yield gaps are currently high.  

As such, there are opportunities for import substitution by improving access to input supplies and transportation of potato out of highland production pockets​, loss reduction, and by introducing cost-reducing technology.

Investments will focus on the following: technology development and resources management; variety selection and healthy planting materials production; ​establishment of tissue culture laboratories and production of foundation seed; screen houses to develop better quality potato; capacity building; virus-free potato seed multiplication; storage facilities and industrial processing plants​.

An investment of US$39.6 million is expected to benefit 15,404 households.

COMMODITIES AND INTERVENTIONS

Timur pepper (also known as Szechuan pepper)

Nepal exports most of Timur pepper it produces annually (850 - 1,100 metric tons), as demand from Europe (for Timur oil) and India run high. So expansion of growing areas to mountain areas and slope lands translates into opportunities.

Currently, 20,000 farm holdings, as well as poorer populations, especially women, children and the unemployed, are involved in collecting the Timur fruit, while grazing cattle. Some farmers have already started planting it to rehabilitate degraded forest lands. 

Investments will support technology development and resources management. Specifically, they focus on identifying and developing Timur varieties to maximize the yield of essential oils, and on improving dryers, storage, processing plants and marketing.

Required investments are US$ 4.06 million.