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Kisankalagi Unnat Biu-Bijan Karyakram (KUBK) Improved Seeds for Farmers Programme (ISFP)

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Kisankalagi Unnat Biu-Bijan Karyakram (KUBK) Improved Seeds for Farmers Programme (ISFP) Annual Progress Report (Fiscal Year 2016/2017) Loan No.: I-881-NP Supplementary Loan No.: 2000000460 Grant No.: I-DSF-8106-NP Government of Nepal Ministry of Agricultural Development Kisankalagi Unnat Biu-Bijan Karyakram (KUBK) Improved Seeds for Farmers Programme (ISFP) ANNUAL PROGRESS REPORT (Fiscal Year 2016/17) Programme Management Office (PMO), Tilottama -3, Janakinagar, Butwal, Rupandehi Phone: 071-420244, Fax: 071-420245 Liaison Office: Manbhawan, Lalitpur Email: [email protected], [email protected] Website: www.kubk.gov.np September 2017 I Kisankalagi Unnat Biu-Bijan Karyakram (KUBK-ISFP) Publication details Publisher Kisankalagi Unnat Biu-bijan Karyakram (KUBK-ISFP) Tilottama -3, Janakinagar, Rupandehi Nepal Publication No: 05-ANNUAL PROGRESS REPORT-2016/17-KUBK-ISFP © KUBK-ISFP All right reserved. No Part of this publication reproduced without prior permission of the publisher II Annual Progress Report (Fiscal Year 2016/2017) ACKNOWLEDGMENT It is my great pleasure to present Annual Progress Report of FY 2016/2017. The report has been a joint effort of the project team and it comprehended major progress that achieved by the implementation of the Annual Work Plan and Budget of the reporting period including outputs and outcomes that realized until the four years of its tenure. The Programme has successfully covered 55 percent of targeted households, achieved nearly 61 percent of physical target, and utilized about 37 percent of its allocated total fund including beneficiary’s contribution. Some 496 grant sub-projects were awarded that includes 303 sub-projects for seed production and marketing; and 193 sub-projects for smallholders’ livestock commercialization. The value of the formally marketed 1,526 mt of improve seed is NRs 93.18 million. A total of 4,100 lit. of milk is collected daily and marketed. Some 121 of Boer cross kids were born in the community managed Boer Breeder herds. Small Famers Agriculture Cooperative Limited (SFACL) that established under the KUBK-ISFP offered Micro-finance services for more than 14,000 of household and nearly 8,000 households were borrowed loan from these SFACLs and invested in the productive small agribusiness. Investment Window actively provided business development and marketing services including buyback provisions for seed, milk, and goat meat. In this regards, I would like to take an opportunity to acknowledge all the people who are supporting the Programme directly or indirectly being part of it. My heartfelt appreciation goes to the honorable Secretary of Ministry of Agricultural Development for leading and directing Programme intervention being a chair of Programme Steering Committee (PSC). My sincere appreciation also goes to all members of the PSC, for providing guidance and critical suggestions for the successful implementation of the Programme activities and monitoring. I would thankful to the Regional Directors of Agriculture and Livestock of both Western and Mid-western Development Regions for their valuable suggestions and guidance for effective implementation of the project at the district level. I highly appreciate NARC, SQCC and RSTLs, Chief of DADOs and DLSOs of the each Programme districts and their team for meaningful participation and cooperation for the implementation of the Programme activities at field level. Likewise, my warm admiration to the project implementing partners – Heifer International, Nepal, Agro Enterprise Center, Nepal Agricultural Cooperatives Central Federation Ltd. and Small Farmer Development Bank and their officials for providing valuable advisory services and technical supports in the concerned fields during the course of project implementation. I am gratified to all the Programme stakeholders at various levels who provided supports during the reporting year. My profound gratitude to the International Fund for Agricultural Development (IFAD), particularly its Country Program Manager, Country Program Officer, Supervision and Implementation Support Mission team for their guidance, support and cooperation. Finally, with a high sense of veneration I would like to thank component coordinators, officers and all the KUBK staff for their collective and positive efforts made for quality achievements during this year. My special thanks go to M&E team of the KUBK-ISFP for preparing this valuable manuscript. Kaushal Kumar Poudel Programme Manager (KUBK-ISFP) III Annual Progress Report (Fiscal Year 2016/2017) The Programme Fact Sheet Country Nepal Executing Ministry Ministry of Agricultural Development (MoAD) Kisanka Lagi Unnat Biu-Bijan Karyakram (KUBK)-Improved Programme Seed for Farmers Programme (ISFP) Loan No.: I-881-NP Programme Number Supplementary Loan No.: 2000000460 Grant No.: I-DSF-8106-NP Development Partner International Fund for Agricultural Development (IFAD) Effective date 2nd December, 2012 Start date 20th March, 2013 Physical Completion date 31st December, 2019 Financial Closing date 30 June, 2020 Total Budget (USD) 59.7 Million (plus supplementary loan USD 5 million) Heifer International, Agro Enterprise Center, Small Farmers Implementing Partners Development Bank (SFDB) & Nepal Agricultural Cooperatives Central Federation Limited. (NACCFL) Total Six districts, Four from Mid-Western Development Region Location (Rolpa, Rukum, Salyan, Pyuthan) and Two from Western Development Region (Gulmi and Arghakhanchi) Programme Goal Increased competitive, sustainable and inclusive rural growth Improved rural household incomes through sustainable, market- Development Objective driven agricultural productivity improvements. 1. To increased production of Truthful Labeled seeds within the target districts and marketed locally and beyond 2. To improve the productivity of livestock system which are Programme Objectives more closely linked to market. 3. To strengthen capacity of broad range of rural institutions to provide sustainable services to smallholder farmers. Current implementation year Fifth Year Total Budget of Reporting Year NRs. 1391.105 million Financial progress of Reporting Year NRs. 696.32 million (50.06%) V Kisankalagi Unnat Biu-Bijan Karyakram (KUBK-ISFP) VI Annual Progress Report (Fiscal Year 2016/2017) TABLE OF CONTENTS Acknowledgement III The Programme Fact Sheet V Executive Summary viii Acronyms X Programme at a Glance XI CHAPTER I: INTRODUCTION 1 1.1 The KUBK-ISFP Programme 1 1.2. Programme Location 1 1.3 Programme Components 2 1.4 Special Features of the Programme 3 1.5 Outcomes and Impact 5 1.6 Beneficiaries and Benefits 5 1.7 Human Resource Management and Staffing 5 1.8 Programme Implementation Arrangements 6 1.9 Key Risk and Assumptions 9 CHAPTER II: SOURCES AND UTILIZATION OF FUND 10 2.1: Sources and utilization of fund by financing agencies 10 2.2 Status of disbursement 10 2.3 Program financing 11 CHAPTER III: PROGRAMME RESULTS 13 Component 1: Support to the Extension of Formal Seed Sector 13 Component 2: Smallholder Livestock Development 29 Component 3: Local Entrepreneurship and Institutional Development 43 Component 4: Programme Coordination and Management including Planning, Monitoring and Evaluation 55 CHAPTER IV: SUMMARY & CONCLUSION, LESSON LEARNED and ISSUES 60 7.1. Summary and Conclusion 60 7.2. Lesson Learned 60 7.3. Issues and Challenges 61 VII Kisankalagi Unnat Biu-Bijan Karyakram (KUBK-ISFP) EXECUTIVE SUMMARY 1. The KUBK-ISFP is a decent initiative implemented by the Government of Nepal, Ministry of Agricultural Development (MoAD) with the financial assistance of International Fund for Agricultural Development (IFAD) since December 2012 and will be physically completed by 31st December 2019. The other implementing partners of Programme are Heifer International Nepal (co-financer), Agro Enterprise Centre (AEC) and Small Farmer Development Bank (SFDB) and Nepal Agriculture Cooperative Central Federation Limited (NACCFL). The Programme aims to support inclusive, competitive and sustainable agricultural growth within the target area to increase income of the rural poor households’ through market-driven productivity improvements intervention to contribute overall agriculture-led economic growth. 2. The Programme is designed to support two key aspects of agriculture sector that limiting crops and livestock productivity, namely, (i) Expansion of formal seed sector (cereals and vegetables), and (ii) Commercialization of smallholders’ livestock (goats and dairy animal). The main thrust of the Programme is to increase income of the poor rural households through the promotion of productivity improvement focusing on market lead agribusiness by developing the partnership between farmer organizations, rural based cooperatives and private sector. 3. The AWPB for the FY 2016-17 was approved for NRs 1391.105 million and the Programme has consumed NRs 696.32 million (approx. 50.06%). The expenditure of allocated budget was less than the last years’ ratio (68%). This is due to local election held in the country hampered timely delivery of the project activities because of the code of conduct issued by the election commission throughout the election period. However, the cumulative financial progress of the Programme has increased considerably from 18% in the FY 2015-16 to mount more than 37% (USD 22.17 million) including beneficiary’s contribution of USD 3.4 million. Precisely, the disbursement of IFAD funds mounted to 38.73% including initial advance of USD 2.5 million. Meanwhile, the contribution of GoN counterpart fund was USD 1.72 million. The co-financier Heifer International has utilized USD 1.86 (74.%) million.
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