1. The document outlines Nepal's existing policies, plans and programs related to the agro-based food industry. It discusses sub-sectors of the industry like cereals, animal products, confectionary and others. 2. It summarizes Nepal's plans and policies that touch on agriculture, industry and trade including the Interim Constitution, periodic plans, industrial policies and more. These policies aim to promote agro-industries through public-private partnerships and developing related infrastructure. 3. The document identifies further potential areas of focus like developing a specific agro-industry policy and ministry, special agro-product zones, ensuring policy harmonization and access to international markets. It also recommends improving quality control systems and

1. 1
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( Agro-based Food Industry
( Review of Plan and Policy for Agro-based
Food Industries
( Existing Programs
( Further Scope
Presentation Outline
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2. 2
Agro-based Food Industry
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Manufacturing Sector
Agro-based Industry
Agro-based
Food Industry
( Sub-sectors:
) Processing of Cereals like Rice and Wheat,
) Animal Products like Milk, Cheese, Ghee, Meat and Meat Products,
) Confectionary Items such as Sugar, Honey, Candies, and Biscuits,
) Others
( Changing Scenario:
) Demand for processed products and ready-prepared
foods is rapidly increasing
( Increases in per capita incomes,
( Higher urbanization,
( Growing numbers of women in the workforce,
( Growing interest in ethnic foods from specific geographical
locations
) Estimated processed foods sales = 3/4 of total food sales
internationally
Agro-based Food Industry
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3. 3
Plan and Policy
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(Before that....
Plan and Policy
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(Before that....

4. 4
( No Specific Agro-based Food Industry Policy,
....but provisions in a number of Plans, Policies,
Acts, Rules and Orders related with Agriculture,
Industry and Trade
Plan and Policy
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( The Interim Constitution of Nepal, 2063
) Food Sovereignty
) Investment for promoting industry, trade and export
) Priority and encouragement to National Private and
Public Enterprises
) Agriculture sector as an industry
Plan and Policy
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5. 5
( Liberalized Economy
) Production function gradually transferred to private
sector,
) Government role confined to quality control,
technical services and monitoring.
( Public Private Partnership (PPP)
) Agriculture research and supporting technologies for
agro-enterprises
) Supports and facilitations to agro-enterprise
development
) Institutional development for agro-enterprises
Plan and Policy
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( Past Periodic Plan
) Development of Agro-based food industries
) Food laboratory
) Food Inspector
) Activate rural economy by developing agro-
enterprise, local skills, industry and business
promotion activities
) Training and other services
) Promotion of food industry business
) Commercial development of cold store
Plan and Policy
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6. 6
( The 13th Plan (Approach Paper)
) Role of the Public Sector => ... to facilitate the
investment of the private sector in economic
activities such as industry and trade...
) Emphasis on commercialization of agriculture, agro-
roads, agro-credit, research, technology transfers
) Expansion of Agro-insurance
) Market Information Centers
Plan and Policy
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( The 13th Plan (Approach Paper) contd...
) Cooperative-run Agro-industries and Business in
participation of farmers
) Encourage youth agro-entrepreneurs
) Development and dissemination of environment-
friendly Agro-technologies
) Program for establishment of agro-processing and
value-addition industries
) Contract-farming and Agro-based industrial
network among production-oriented industries
Plan and Policy
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7. 7
( The 13th Plan (Approach Paper) contd...
) Capital grants and soft loans for running agro-
businesses
) Entrepreneurship development and skill-based
training
) Emphasis on enhancing the capacity of technicians,
farmers and agro-entrepreneurs, and other
stakeholders
) Research into Food-processing Industries
) National and Central-level laboratories
Plan and Policy
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( The Industrial Policy, 2067 (2011)
) Special emphasis to promote the industries that
use local resources, raw materials, skills, labour and
technology
) Programs to assist the industries based on
agriculture, animal, diary industries, bird farming
and industries based on fruits
) Investment Promotion Fund
( Technology Development Fund
( Micro, Cottage and Small Industries Development Fund
( Sick Industries Revival Fund
Plan and Policy
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8. 8
( The Industrial Policy, 2067 (2011) Contd.
) Develop raw material-based agro-industries
) Special programs to operate herbs & fruits
processing industries
) Promotion of agro-based micro enterprises, cottage
and small industries
) Business Incubation Center
Plan and Policy
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( The Industrial Enterprises Act, 2049 (1992)
) Classified under ...
( Agro and Forest-Based Industries
) National Priority Industry
) Shall not be required to obtain permission for
their establishment, extension and diversification
... but registration is necessary
) Industrial Promotion Board
( ... for industrialization of the country
Plan and Policy
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9. 9
( National Agricultural Policy, 2061 (2004)
) Promotion of cooperative-based agricultural industries
and enterprises.
) Agricultural industry and Enterprise Promotion Board
) Emphasis on human resource:
( University education
( Cooperation and exchange of technicians and experts
among universities/colleges, the Agricultural Research
Centre and National Agricultural Resource Centers
( Capacity-improvement training & enterprise-promotion
training
Plan and Policy
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( Trade Policy, 2065 (2009)
) Create a favorable environment for the promotion of trade and
business in order to make it competitive at international level.
) Emphasized on Policy Harmonization
) Product development program for Agro-products including
others
) Aims at promoting exports of agricultural products in an
integrated fashion
( Nepal Trade Integration Strategy (NTIS), 2010
) 7 out of 19 Export Potential Products are Agro-Food
) Focused and Intensive Program
) Review is ongoing
( Trade agreements including membership of WTO
Plan and Policy
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10. 10
( Agro-business Promotion Policy, 2063 (2006)
) Highlights diversification, commercialization and
promotion of agriculture sector with private sector
involvement in commercial farming, for
transforming agriculture from subsistence level to
commercial farming.
) Aims to reduce poverty by encouraging production
of market-oriented and competitive agro-products.
) Emphasizes business service centers establishment
for quality agriculture inputs and services.
Plan and Policy
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( LDC Graduation Approach Paper - Strategic Directions
and Actions
) Diversify merchandise export basket & improve quality of
products
) High growth in manufacturing and service sectors
) Improving the backward and forward linkages of agriculture
and fishery with the service sector
) Enhance trade capacity of the private sector
) Incentivize exports
) Year round irrigation
) R&D focused with due consideration of climate change adaptive
seeds and techniques (climate change adaptive farming)
) Increase access to improved Seeds and Fertilizers
Plan and Policy
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11. 11
( The Agriculture Perspective Plan (1995-2015)
) Primary policy for agriculture modernization and growth
( The Agriculture Development Strategy
) In progress....
( Agriculture Biodiversity Policy, 2063
( National Tea Policy, 2057
( National Coffee Policy, 2060
Plan and Policy
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( Dairy Development Policy, 2064
( National Cooperative Policy, 2069
( Bio-Tech Policy, 2063
( National Land Use Policy, 2069
( National Seed Vision 2013-2025
( NARC’s Strategic Vision for Agricultural Research
(2011-2030)
( Irrigation Policy, 2003
Other agro-industry related Policies
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12. 12
( One Village One Product (OVOP)
( Special Economic Zone (SEZ)
( Micro Enterprise Development
Program (MEDEP) & Micro Enterprise
Development for Poverty Alleviation
(MEDPA)
( Implementation of Nepal Trade
Integration Strategy (NTIS) - 2010
) ... through 4 different ministries in their
respective field
Programs
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( Project for Agriculture Commercialization
and Trade (PACT)
) Profitable Market-oriented Production &
Improved Access to Markets
) Industry-wide Partnerships along the Value
Chain, Linkages Between Producers, Traders,
Processors, and other Stakeholders
Programs
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13. 13
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Programs
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( Agro-based Food Industry Development Policy...?
( Ministry for Agro-based Industry ?
) Ministry of Agriculture and Agro-based Industry in Malaysia
( Special Agro-Product Zone ?
( Specific commercial production areas
( Ensuring Policy Harmonization + Stability
( Capacity in policy formulation, implementation,
regulation and institutional enhancement
Further Scope
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14. 14
( Effective Quality control and safety regulatory
system
) Advance Laboratories, International Accreditation
( Ensuring basic infrastructure and resources
) Access Road, Electricity, Clean Water, Modern
Technology, Finance, adequate raw materials
( International market access for products with
comparative advantage
( Agribusiness Innovation Center (AIC)
Further Scope
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Thank you
Mahesh Bhattarai ( maheshbhattarai@npc.gov.np )
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