Commercial Agriculture Development Project (CADP) commenced operations in 2007 with the objective of reducing poverty in 11 districts in the Eastern Development Region (EDR) of Nepal. The Project aims to accelerate the process of agricultural commercialization in the EDR by building on earlier project initiatives, and responding to the needs of stakeholders by strengthening linkages and ensuring fair benefits to poor disadvantaged communities and women.

The Project design is consistent with government policies and Asian Development Bank (ADB) strategies for development as expressed in the ADB country strategy and program for Nepal.

PROJECT OUTCOMES

• To Improve efficiency of marketing and processing of High Value Crops (HVCs) such as vegetables, fruits, tea and spices in the EDR.
• To increased rural employment and income.

PROJECT COMPONENTS

Commercial Agriculture Investment and Management

The Project has established a Commercial Agriculture Fund (CAF) to develop community-based market infrastructure, and expand non-infrastructure investments to add value to agricultural products. The CAF will be managed by a Commercial Agriculture Alliance (CAA), a not-for-profit company comprising (a) general members (farmer groups and cooperatives, traders, and processors), and (b) nominated members of Ministry of Agriculture and Cooperatives (MOAC), Ministry of Local Development, District Development Committees (DDCs) of the 11 project districts and the Agro Enterprise Centre (AEC).

General members of the CAA and DDCs within the project areas will be eligible for financing.

Inclusive Development of Stakeholders

This component will (a) assist small and marginal farmers to develop or participate in income-generating agricultural activities and undertake more commercial activities, (b) strengthen stakeholders (farmers, traders, processors) already partly engaged in commercial agriculture to become fully commercial and be eligible for CAA membership, and (c) promote social inclusiveness and environmental responsibility among commercial CAA members.

Market Information Dissemination

The Project will assist farmer groups through partner NGOs and district agriculture development offices to systemize and replicate group or cooperative-based information systems. Activities include development, installation and training on market information sharing systems for farmer marketing groups, networking these systems with other market information systems, collecting and disseminating information on the demand, price and expected delivery time disaggregated by product type and grade in Nepal, Bangladesh and India.

Capacity Enhancement

The Project will build capacities of project partners including DDCs, NGOs, Department of Agriculture (DOA) district staff and CAA district branch staff through:

• Project standardization training to provide complete understanding of the Project, and its components and activities
• Basic market development training on post-harvest, marketing, market-chain improvement, primary process methods, product handling, and agri-business
• Programs on social mobilization, group formation and organisational growth, beneficiary monitoring and public accounting, and office administration

Project Management

The Executing Agency of Commercial Agriculture Development Project is the MOAC. The CAA is the Implementing Agency for the component on commercial agriculture investment and management. The DOA is the implementing agency for other components.

A Project Management Unit (PMU) has been established in Biratnagar, headed by a Project Manager. The PMU is responsible for preparing annual work plans and project progress reports, recruiting consultants and awarding procurement contracts, and supervising and conducting monitoring and evaluation activities relating to the project and its outputs/impacts, and the
performance of partner NGOs and service providers.

A Project Steering Committee (PSC) has been established to (a) oversee project implementation, (b) review project progress, and (c) resolve policy issues relating to the Project. The PSC will be chaired by the MOAC Secretary, with the Project Manager as Member Secretary, and include the Director General of DOA, Joint Secretaries of MOAC and the ministries of finance (foreign aid); industries, commerce and supplies; local development (devolution); women children and social welfare (planning); and National Planning Commission (agriculture and forestry); executive director of Agro Enterprise Centre; and general manager of the CAA.