The purpose of this project is to help the government to prepare a comprehensive development strategy for agriculture based on an analysis of the policy sector situation and wide stakeholder consultation. The project also aims to ensure the progress of peasants, farmers, and rural society.

1. ADS Action Plan and
Road Map
25 March 2013
Radisson Hotel, Kathmandu, Nepal
Agricultural Development Strategy (ADS)
National Workshop
Supported by: Government of Nepal, ADB, IFAD, EU, FAO, SDC, JICA, DANIDA,
USAID, WFP, DfID, World Bank, AusAID, UN Women

2. CHOICES
• BUSINESS AS USUAL
OR
• SOMETHING ELSE?

3. Business as Usual

4. Growth and Poverty Reduction in Business as Usual
5%
10%
15%
20%
25%
2013 2015 2017 2019 2021 2023 2025 2027 2029 2031
3% Gr
Poverty Reduction with Agricultural Growth at 3%
Will take more than 20 years to halve poverty

5. Something else…
Accelerated Growth

6. Growth and Poverty Reduction with Faster Growth
5%
10%
15%
20%
25%
2013 2015 2017 2019 2021 2023 2025 2027 2029 2031
Poverty Reduction with Growth at 3%
Poverty Reduction with Growth at 5%
Less than 10 years
to halve poverty
More than 20 years
to halve poverty
Poverty
Rate

7. Why we need an Agricultural
Development Strategy
• In BUSINESS AS USUAL, we might grow, but
slowly, and take a long time to reduce poverty.
• If we want to grow faster and reduce poverty
faster, we need to do things
differently.

8. ADS IS A GREAT
OPPORTUNITY
TO MOVE NEPAL OUT OF
POVERTY, FASTER

9. What is the ADS about?
An Agricultural Development
Strategy to ensure the
progress of peasants, farmers,
and rural society.

10. TODAY’S CONVERSATION IS ABOUT
HOW TO
IMPLEMENT
THE ADS

11. ADS VISION
Where do we want to be?

12. A self-reliant, sustainable,
competitive, and inclusive
agricultural sector that drives
economic growth, and contributes to
improved livelihoods, and
food and nutrition security.

13. Component Indicator Current
Situation
Target
Productivity Land productivity $1,600/ha $5,000/ha
Labor productivity $800/agr.
labor
$2,000/agr.
labor
Commerciali
zation
Marketed surplus Less than 50% More than 80%
Agribusiness GDP 10% of GDP 20% of GDP
Competitive
ness
Agrifood exports $250 million $1,600 million
Governance Agricultural Growth 3% average
annual growth
5% average
annual growth
Selected Targets to Achieve Vision
Land productivity $1,600/ha $5,000/ha
Labor productivity $800/agr.
labor
$2,000/agr.
labor
Marketed surplus Less than 50% More than 80%
Agribusiness GDP 30% of AGDP 100% of AGDP
Agrifood exports $250 million $1,600 million
Agricultural Growth 3% average
annual growth
5% average
annual growth

14. Other Targets
Component Indicator Current
Situation
Target
Self-reliance Self-sufficiency in
food grains
0-5% deficit 0-5% surplus
Sustainability Year-round
irrigation
18% 80%
Soil organic matter 4% 4%
Inclusion Land owned by
women/joint
ownership
10% 80%
Food and
nutrition
Security
Food Poverty 16% 1%

15. Main Targets to Achieve Vision
0
100
200
300
400
500
600
700
Land
Productivity
Labor
Productivity
Marketed
Surplus
Agribusiness
GDP
Agricultural
Exports
Agricultural
Growth

16. STRATEGY
How do we get from here
to there?

17. Inclusion
Sustainability
Private Sector,
Cooperative
Sector
Connectivity
ProductivityGovernance
Profitable
Commercialization
Competitiveness
1. Food and Nutrition Security
2. Poverty Reduction
3. Trade Surplus
4. Higher more equitable income
5. Farmers’ rights ensured and strengthened

18. IMPLEMENTATION
The Culture of Execution

19. Implementation Questions
1. What Needs to be Done?
2. How to do it?
3. Who will do it?
4. How many resources are needed to do it?
5. What conditions have to be in place?
6. When will it be done?

20. THE WHAT
and
THE HOW

21. THE WHAT

22. What Needs To Be Done includes …
• 4 outcomes
• 33 outputs
• 187 activities

23. ADS
1. Governance 2. Productivity 3. Commercialization 4. Competitiveness
4Outcomes33Outputs187Activities
1.1 1.8
1.1.1 1.1.41.1.2 1.1.3
4.1 4.4
4.4.1
1.2 …
…
1.3 1.4 1.5 1.6 1.7

24. Governance Outputs
No. Output
1.1 Credibility of policy commitment
1.2 Improved coordination in ADS implementation
1.3 Integrated planning
1.4 Effective implementation support
1.5
Mechanisms established for gender equality and social and
geographic inclusion
1.6 Timely and effective monitoring and evaluation
1.7 Mechanisms established for participation of civil society
1.8
Enhanced capacity of key institutions involved in ADS
coordination and implementation

25. Productivity Outputs
2.1 Decentralized agricultural extension services
2.2 Decentralized agricultural research system
2.3 Strengthened agricultural education system
2.4
Adequately sized farms that use land efficiently and
sustainably
2.5 Expanded and improved irrigation
2.6 Access to agricultural inputs
2.7 Implementation of seed policies
2.8 Fertilizer supply
2.9 Improved animal breeds
2.10 Mechanization options accessible
2.11 Improved resilience of farmers
2.12 Green farming, GAP, and GVAHP adopted
2.13 Forestry development

26. Commercialization Outputs
3.1 Improved investment climate
3.2 Contract arrangements for commercial agriculture
3.3 Tax policy to support commercial agriculture
3.4 Agricultural finance and insurance
3.5 Competitive agricultural value chains
3.6 Rural roads network expanded
3.7 Agricultural market information
3.8 Rural electrification and renewable energies

27. Competitiveness Outputs
4.1 Market infrastructure developed
4.2 Growth of small and medium agro-enterprises
4.3 Growth of food and agricultural products exports
4.4 Enhanced food quality and safety

28. The WHAT TO DO
• Is important
However….
• Even more important
• And more difficult to know is…
• HOW TO DO IT

29. THE HOW

30. Learn from the Past …
Traditional Mechanisms
and Prepare for the Future
New Mechanisms

31. Traditional Mechanisms
• NPC
• MOAD
• Other Agencies
• Key Stakeholders
(farmers, cooperatives,
private sector)
• Overall Policy
Coordination
• Lead Implementation
Agency
• Supporting
Implementation
• Left in the backstage

32. Some of the traditional mechanisms
are appropriate but….
• Are not enough
• If we continue doing more of the same,
• Chances are we will get more of the same
• So we need new mechanisms

33. New Mechanisms
Institutions
Programs
Stakeholders

34. New Mechanisms
Institutions
1. ADS Commission
2. Coordination Committees
3. ADS Implementation Support Unit (AISU)
4. ADS Trust Fund (ATF)
Flagship and Core Programs
1. Value Chain Development Program (VADEP)
2. Decentralized Science, Technology, Education Program (DESTEP)
3. Innovation and Agro-entrepreneurship Program (INAGEP)
4. Core Programs
Key Stakeholders
1. Farmers
2. Cooperatives
3. Private Sector

35. ADS
Commission
MOAD
MOIRR
MLD
MLR
MFSC
Prime Minister
NPC
NSC
CADIC
RADC
DADC
MOAD
ADS
Implementation
Support Unit
DDC
MOTS
MOIND
…
VADEP
Value Chain
Development
Program
DESTEP
Decentralized Science
Technology and
Education Program
INAGEP
Innovation and Agro
Entrepreneurship
Program
CORE
PROGRAMS
FLAGSHIP
PROGRAMS
Coordination
Implementation
Farmers
Coops
Enterprises
ATF
ADS Trust Fund

36. ADS
Commission
MOAD
MOIRR
MLD
MLR
MFSC
Prime Minister
NPC
NSC
CADIC
RADC
DADC
MOAD
ADS
Implementation
Support Unit
DDC
MOTS
MOIND
…
VADEP
Value Chain Development
Program
DESTEP
Decentralized Science
Technology and Education
Program
INAGEP
Innovation and Agro
Entrepreneurship Program
CORE
PROGRAMS
FLAGSHIP
PROGRAMS
Coordination
Implementation
Farmers
Coops
Enterprises
ATF
ADS Trust Fund
FANUSEP
Foood and Nutrition
Security Program

37. Four Institutions
1. ADS Commission
2. Coordination Committees
3. ADS Implementation Support Unit
4. ADS Trust Fund

38. 1. ADS COMMISSION
• A high-level commission to give high
visibility and ensure implementation of
the ADS by promoting policy,
administrative, and legislative changes in
responsible institutions, and facilitating
resources mobilization.

39. ADS Commission Structure
• Five (5) members including:
– Three (3) High level Professional Commissioners at
Minister Level
– Vice Chair of NPC as Commission Member
– Secretary MOAD as Commission Member Secretary
• The ADS Commission reports to the PM
• The ADS Commission complements the NPC
• The ADS Implementation Support Unit (AISU) will
provide Secretariat services.

40. 2. COORDINATION COMMITTEES
• National Support Committee (NSC)
• Central Agriculture Development
Implementation Committee (CADIC)
• Regional Agricultural Development Committee
(RADC)
• District Agricultural Development Committee
(DADC)

41. NPC
NSC
MOAD Member
Secretary ex-officio
CADIC
RADC
DADC
Irrigation-Agriculture
MOAD
DDC
Agribusiness, Private Sector, Coops
Civil Society/NGOs
Research, Extension, Education
Food Security and Nutrition
Development Partners
NSC Subcommittees on:

42. 3. ADS IMPLEMENTATION SUPPORT UNIT
(AISU)
• Support formulation and amendment of policies and
regulations for implementation of the ADS
• Support formulation of integrated periodic plans
• Support Coordination Mechanisms (NSC, CADIC) and
ADS Commission
• Facilitate implementation of the ADS Flagship
programs and Core programs
• Support monitoring of the ADS and related policies
• Provide capacity building in policy analysis , policy
monitoring and integrated planning to
implementation agencies

43. ADS
Commission
MOAD
MOIRR
MLD
MLR
MFSC
Prime Minister
NPC
NSC
CADIC
RADC
DADC
MOAD
ADS
Implementation
Support Unit
DDC
MOTS
MOIND
…
VADEP
Value Chain Development
Program
DESTEP
Decentralized Science
Technology and
Education Program
INAGEP
Innovation and Agro
Entrepreneurship
Program
AGENCIES
FLAGSHIP
PROGRAMS
Coordination Implementation
Farmers
Coops
Enterprises
ATF
ADS Trust Fund

44. 4. ADS Trust Fund (ATF)
• Supports the implementation of ADS
• Board headed by Minister of Finance and co-chair
Minister of Agriculture
• Technical Committee headed by Secretary of MOAD
• Secretariat headed by Secretary of Finance
• Flagship Programs and Core Program submit
proposals to ATF
• Funds disbursed, managed, and monitored by
development results

45. ATFS
ATF Secretariat
Chair: Secretary MOF
FLAGSHIP
PROGRAMS
ATF BOARD
Co- chairs Ministers MOF and MOAD
ADP
ADS Development
Partners Support
Group
CORE
PROGRAMS
ATF Technical Committee
Chair: Secretary MOAD
ADS Trust
Fund (ATF)

46. ATFS
ATF Secretariat
Chair: Secretary MOF
FLAGSHIP
PROGRAMS
ATF BOARD
Chair: VC; Members: Sec MOF, Sec
MOAD, JS Budget MOF, JS FAIDC
ADP
ADS Development
Partners Support
Group
CORE
PROGRAMS
ATF Technical Committee
Chair: Secretary MOAD
ADS Trust
Fund (ATF)

47. Objectives of ATF
• Commitment of Funds for ADS on a multiyear
basis
• Clear monitoring and auditing of funds for ADS
• Flexibility of flow of funds
• Quicker disbursement
• Better results
• More visibility
• Easier to mobilize funds

48. ADS PROGRAMS
FLAGSHIP CORE

49. Three Flagships
1. Value Chain Development Program
(VADEP)
2. Decentralized Science, Technology,
Education Program (DESTEP)
3. Innovation and Agro-entrepreneurship
Program (INAGEP)

51. Value Chain Development Program
(VADEP)
Objective: integrated value chain development to
achieve sector impacts
• VC Program organized as a professional society. Its Board includes
– MOAD, MOF, MOTC, MOIND, Farmer Organizations, Coop Organizations, Private Sector
Organization, Finance Institutions
• Only 5 VC prioritized
• Each VC organized as a society - Value Chain Development Alliance (VCDA).
Its Board will include elected (6) and non-elected members (5). The Board
will select the CEO of the VCDA.
• A business plan of the VCDA will be approved by the Board and form the
basis for investments to be funded by a Value Chain Development Fund
(VCDF).
• The funds audited according to the law of GON and requirements of
development partners contributing to the fund.

52. VADEP
Value Chain Development Program (VADEP)
Manager
VCDA -
Maize
ProgramAlliances
CEO
VCDF
Fund
VCDA -
Dairy
CEO
VCDF
Fund
VCDA -
Lentil
CEO
VCDF
Fund
VCDA -
Vegetables
CEO
VCDF
Fund
VCDA –
Tea
CEO
VCDF
Fund

54. Decentralized Science, Technology,
and Education Program (DESTEP)
• Objective: decentralize extension and research and
integrate with education
• Establishment of Community Agricultural Extension
Service Centers (CAESC) in each VDC
• Strengthen capacity of existing agricultural and
livestock service centers
• Introduce extension vouchers
• Decentralize NARC and establish new NRI and Research
Stations
• Promote agricultural university, colleges, and
vocational schools

55. DESTEP
P
Decentralized Science, Technology, and
Education Program (DESTEP)
Program
General
Manager
Extension
Sub-program
ProgramSub-programs
Manager
Extension
Fund
Research
Sub-program
Manager
Research
Fund
Education
Sub-program
Manager
Education
Fund

56. Community Agricultural Extension
Service Centers (CAESC)
• Establish CAESC in each VDC
• Owned by farmers, cooperatives and
agroenterprises
• Cofinanced by VDC, GON (seed funding), and
community
• Have their own staff to undertake extension
work
• Backstopped and trained by DOA/DLS service
centers

57. VDC 1
VDC 4
VDC 3
VDC 2
ASC 1
•Training
•Backstopping
DESTEP
Seed
Funds
•Strengthen capacity
•Demonstrations
ASC 2
VDC 11
VDC 14
VDC 13
VDC 12

59. Innovation and Agro-Entrepreneurship
Program (INAGEP)
• Objective: foster innovation and agro-
entrepreneurship
• Combination of
– tax incentives
– agribusiness incubators
– matching grants
• Matching Grants for:
– Innovations by agroenterprises and coops
– Agro-entrepreneurship of:
• Youth
• Women
• Disadvantage groups

60. INAGEP
Innovation & Agro-Entrepreneurship Program (INAGEP)
Program General
Manager
Tax Incentive
Sub-program
ProgramSub-programs
Manager
Tax Incentive
Fund
Ag Incubators
Sub-program
Manager
Ag Incubators
Fund
Innovation
Sub-program
Manager
Innovation Funds
1. Enterprises/Coops
2. Youth
3. Women
4. Disadvantaged

61. ADS PROGRAMS
FLAGSHIP CORE

62. • Governance
• Productivity
• Commercialization
• Competitiveness
• Food and Nutrition
Security
– All
– Land
– Irrigation, Input Supply and Distribution
– Forestry, Resilience
– Investment climate
– Road and Energy Infrastructure
– Tax, Finance, Insurance
– Market Infrastructure
– Quality Assurance, Export Promotion
– Under preparation by FAO/GON through
Food and Nutrition Security Plan of Action
CORE PROGRAMS

63. Three Key Stakeholders
1. Farmers Organizations
2. Cooperative Organizations
3. Private Sector Organizations

64. The Key Stakeholders
• Farmers and their Organizations – eg. The Peasants’
Coalition.
– Note: Farmers include marginal and small farmers and
Women who are the majority of the farmers
• Cooperatives and their Organizations – eg. The
National Federation of Cooperatives
• Private Sector and their Organizations – eg. Seed
Entrepreneurs Association, Dairy Industry Association
– Note: Private sector includes micro, small and medium
enterprises.

65. The key stakeholders
have real voice in the
ADS

66. The Key Stakeholders
• Have moved from a back stage position to a
front stage position.
• Working together with government and
other civil society members to contribute
and influence the ADS.

67. The Key ADS Stakeholders have the
Rights to …
• Participate and influence the ADS policy and
investment decisions
• Participate in the monitoring of the ADS
• Access to information related to ADS planning,
implementation, and monitoring

68. With Rights comes Responsibility
The Key Stakeholders have the Duty to:
• Contribute to the solution of the problems
encountered during formulation and
implementation of the ADS
• Contribute to accelerating the process of
decision making regarding the ADS

69. The Key Stakeholders Rights in the
ADS are Institutionalized in the ADS
• Member of NSC and CADIC
• Member of various NSC Subcommittees related to the ADS
• Member of the Steering Committee of the ADS
Implementation Support Unit
• Member of DADC and RADC
• Member of the NARC Board
• Member of the Governing Body of the CAESC
• Invited to the Policy Review Panels organized to review the
formulation of new policies under the proposed new Policy
Analysis Division at MOAD
• Member of the Steering Committee for the periodic 5-year
Review, Evaluation, and Updating Committee of the ADS.

70. NSC
CADIC
RADC
DADC
NARCCAESC
Policy
Review
Panel
SC AISU
SC 5-year
ADS
Review
RIGHTS
TO PLAY KEY
ROLE

71. Peasants’ Coalition Concerns
• Request for a Peasants’ Commission
• Peasants’ Act to be formulated
• Constitutions of Commodity Boards with
Farmers’ Representation
• Establishment of Farmers’ Courts
• Food Sovereignty Act
• Ensure participation of farmers at different policy
formulation levels
• Priority rights of farmers over natural resources
• and more ….

72. How much will
the ADS cost?

73. ADS Cost
US million Rs billion
10-year cost $2,907 Rs 250
Average per
year
$291 Rs 25

74. ADS Cost by Source
US million Rs billion %
Total $2,907 Rs 250 100%
Govt/
Donors
$2,327 Rs. 200 80%
Private/
Community
$580 Rs. 50 20%

75. 2011/12 Budget
MOF Red Book
Planned Expenditure Billion Rs.
Recurrent Capital Total
Total
agriculture
Sector 17.1 12.6 29.7

76. 2011/12 Budget and ADS
(billion Rs)
Planned Expenditure
2011/12 Budget
ADS Total
(Recurrent + Programs)
Recurrent Capital Total Recurrent Programs Total
17.1 12.6 29.7 17.1 20 37.1
ADS is an increase of 25% on Budget 2011/12

77. ADS Cost and the Budget
• In the 2011/12 budget, the
agricultural sector represents 8% of
the budget
• The ADS will require a slight increase
of agricultural sector in the budget
from 8% to 10% of budget

78. What are the ADS component costs?
• Three Flagship Programs
– Decentralized Extension, Technology and
Education
– Value Chain Development
– Innovation and Agro-enterprise
• Core Program
– The main costs are irrigation, fertilizer subsidy, and
infrastructure

79. DESTEP , 380,
13%
VADEP , 765,
26%
INGEP , 122, 4%Irrigation , 675,
23%
Fertilizer
subsidy , 400,
14%
Infrastructure ,
284, 10%
Other , 280, 10%
Composition of ADS Costs (million USD)
FLAGSHIP,
$1267 m, 43.6%
CORE, $1639 m,
56.4%

80. Absorptive capacity - can Nepal spend
more on Agriculture?
Question:
• Agriculture is 8% of annual budget, how to
increase actual expenditure on it?
Answer:
• Improve governance; and more involvement
of private sector, farmers, and cooperatives.

81. Nepal Portfolio Performance
Review Jan 2013 notes progress …
• The MOF highlights that it is continuing reforms in
– Public Financial Management
– Public Procurement
– Human Resource Management
– Managing for Development Results
– Mutual Accountability
• ADS institutional structure, fund flows design and
governance activities are aligned with these
reforms

82. Stakeholder consensus and compromise
essential
World Bank Reports decline in disbursement ratio

83. Roadmap

84. To embark on the ADS road…
We need to make sure of
some road conditions

85. Assumptions
(the road conditions)
1. Government commitment
2. Policy and Regulations for ADS
Implementation in place
3. Consensus of key stakeholders
4. Development partners support

86. How to make sure
the road
conditions are
good?

87. Checking the Road Conditions
1. Government commitment
o Medium term budget commitment
o Tenure of key positions
o Establishment of ADS Commission, AISU, ATF, Coord. Committees
2. Policy and Regulations for ADS Implementation
o Formulation and Approval
3. Consensus of key stakeholders
o Pledge consensus about some agreement points
4. Development partners support
o Medium term resource commitment

88. Policies and Regulations
Governance
Tenure of key positions
Composition of NSC
and Subcommittees
Composition of CADIC,
RADC, DADC
ADS Information desk
ADS Implementation
Support Unit
ADS Commission
ATF
….
Productivity
CAESC
NARC restructuring
Dept Agribusiness
AU and Ag Colleges
Vouchers for
extension and input
Land leasing, Land
Bank, land use
planning, …
Commercialization
Contract
Value Chain
Programs
Insurance
New Financial
Products
….
Competitiveness
Innovation Funds
Quality and Safety
regulations
Food safety law
….

89. Initial Milestones
• Before GON Approval
– Finalize ADS document
– Distribution and awareness campaign
– Pledged consensus of key stakeholders
– Indicative support by development partners
• During First Year
– Commitment by GON
– Acts for Coordination Committees, ADS Commission, ATF and Flagships
– Establish AISU, ADS Commission, ATF, Coordination Committee
– Guidelines for Implementation
– Recruit Program Managers for ADS Flagships
– Budget allocations to ATF

90. Monitoring:
Are we making
progress?

91. 3 Forgotten things about Monitoring
1. You have to monitor not only projects, but
also policy
2. You have to monitor not only inputs and
outputs but also outcomes and impacts
3. You need to link good
performance to reward

92. Evaluation:
Are we moving in
the right
direction?

93. ADS Reviews
• ADS is a living strategy
• It needs to be continuously updated and
improved
• Monitoring, evaluation, review should aim at
enriching the strategy
• 5-year external reviews commissioned and
widely discussed by government and civil
society

94. Key Messages
1. ADS as Opportunity for Faster Poverty
Reduction
2. Implementation of ADS requires new
mechanisms
3. Conditions to embark on the ADS road
i. GON commitment
ii. Policies and Regulations in place
iii. Stakeholders consensus
iv. Development Partners support

95. • Draft Final ReportAPR
• Final Report?
• Awareness Campaign
• Road Shows to All Districts?
• GON Approval?
NEXT STEPS