Brief summary of ADS with its strength and weak points. Interrelationship between ADS and PMAMP.

1. Review of Agriculture
Development Strategy and
link with Prime Minister
Agriculture Modernization
Project
Presented By:
Suresh Simkhada (ABM-06M-2016)
M.Sc. Ag 3rd Semester
Department of Agri-economics and Agribusiness Management
Agriculture and Forestry University, Rampur
Jan 9, 2019

2. Presentation Outline
 Introduction
 Objectives
 Methodology
 Review of ADS
 ADS link with PMAMP
 Conclusion
 References
 Acknowledgement

3. INTRODUCTION
 The Agricultural Development Strategy (2015-2035) is road map with a ten years
action plan that is expected to guide the agriculture sector of Nepal over the
next 20 years and has been developed after the completion of the long-term
Agricultural Perspective Plan.
 The Final Report of the ADS was jointly prepared by former Ministry of
Agriculture Development (MOAD) in discussion with National Farmer’s Coalition
under the technical and financial assistance of Asian Development Bank (ADB)
and 13 other development partners.
 The ADS is formulated taking into account the conceptual framework of
agricultural transformation of Nepal from a society primarily based on agriculture
to one that derives most of its income from services and industry.
 The Government of Nepal (GON) endorsed the long-term strategy on 10 Shrawan,
2072 B.S. spending about Rs. 190 millions.

4. OBJECTIVES
 To gain clear understanding about agriculture development strategy (ADS)
 To analyze the strength and weaknesses of ADS
 To know ADS link with Prime Minister Agriculture Modernization Project and
basis of PMAMP

5. METHODOLOGY
 ADS and PMAMP softcopy, magazine articles, reports and workshop papers
related to ADS and PMAMP were studied.
 Copy of analysis of ADS civil society perspective, publications from ministry of
agriculture development and online database of FAO were studied for
obtaining information and synthesis of facts.

6. REVIEW OF ADS
Introduction
 Strategy consists of two parts: part one includes objectives, methodology and
strategy, technical and financial support providers while part two of appendix
includes consultations and exercises done with various concerned bodies.
 Consultations and suggestions were collected from various concerned
stakeholders including Agriculture and Water Resource Committee, National
Planning Commission, Chief Secretary and secretaries of other concerned
Ministries.
 This strategy has been prepared based on the concept of high investment and
Total Factor Productivity which advocates Open Market Economy.

7. ADS needs and expectations
 This part incorporated lesson learned from the implementation of APP and
needs for better implementation of ADS
1. Assurance of good governance,
2. Efficient participation of stakeholders,
3. Addressing the issues of land,
4. Decentralized research and extension and
5. Coordination between agriculture and other sector
Elements of a Successful Strategy

8. Expectations:
 Agricultural transformation by enabling agrarian community to generate more
income from the service and industrial sector.
 Rural development of non-agricultural sector including agriculture;
 Enhanced growth of land and labor productivity;
 Trade balance;
 Improved employment and youth migration
 Agricultural transformation in the context of climate change

9. Vision of the Strategy
 “Self-reliant, sustainable, competitive and inclusive agricultural sector that
speeds up the economic growth, uplifts livelihood and contributes to food
sovereignty, food and nutrition security”.
 It is expected that Nepal will be a middle income country with a significant
increase in gross domestic production in the coming 20 years and creating a
significant portion of income from industry and service.
 In order to monitor the progress according to the objectives of the strategy in
terms of implementation, various indicators and targets are presented.

10. Indicator and Targets for ADS Vision
Indicators Current situation(2015) Target(20 years)
Self-sufficiency in food grains 16% trade deficit in food
grains
0-5% trade surplus
Year-round irrigation 25.2% coverage 80%
Soil organic matter 1.96% 4%
Degraded land ha 3.72 million ha 1.6 million ha
Forest cover 44.7% 44.7%
Agricultural land productivity
(AGDP/ha)
$3,278 $8,697
Agribusiness as % GDP 8% 16%
Agricultural Exports $255 million $2,598 millions
% of farmers reached by ag programs 18.2% 32%
Average annual growth of AGDP 2.23% 6%
AGDP/ Agricultural labor $835 $1,926
Food poverty 27.6% 6%
Rural poverty 24.3% 9%Source: ADS Draft, 2015

11. Design of the Strategy
 In order to achieve the strategy’s vision, the ADS will accelerate the growth of
agricultural sector through four strategic components; good governance,
productivity, profitable commercialization, and competitiveness while promoting
inclusiveness, sustainability, development of private sector and cooperative
sector, and connectivity to market infrastructure.
 The speeding up of inclusive, sustainable, multi-sector, and connectivity-based
growth is expected to result in
 Increased food and nutrition security,
 Poverty reduction,
 Agricultural trade competitiveness,
 Higher and more equitable income of rural households, and
 Strengthened farmers’ rights.

12. Strategic Framework of the Agricultural Development Strategy
Outcomes
Results

13. Programs of ADS
 ADS consists of 4 outcomes, 35 outputs, and 232 activities. The report has
encompassed detailed description of each activities that will be carried out to
obtain outputs and achieve outcomes.
 The ADS will be implemented through three different types of programs: the
Core Programs, the Flagship Programs, and Other Programs.
 Core and others programs mentioned in the report will be implemented
through offices and agencies already existing at level of Ministry or
Department.
 The Flagship programs, as they are newly formulated and their activities are
of a multi-regional nature, new mechanism is proposed for their
implementation.

14. Proposed flagship programs:
 Food and Nutrition Security Program (FANUSEP): aims at improving food and nutrition
security of the most disadvantaged groups. It will consist of three sub programs:
 AFSP (Agriculture and Food Security Project)
 FNSP (Food and Nutrition Security Plan of Action)
 NFNP (National Food and Nutrition Security Project)
 Decentralized Science, Technology, and Education Program (DESTEP): aims at
decentralizing the extension and research system while fostering coordination of
research, extension, and education.
 Establishment of Community Agricultural Extension Service Centers (CAESC)
 Establishment of new national research institutes (e.g. a National Horticultural
Research Institute, National Animal Health Research Institute, and National Aquaculture
and Fisheries Research Institute), and National Agricultural Research Fund (NARF) under
NARC.
 Creation of a Department of Agribusiness and Department of Technology Dissemination
in the Agriculture and Forestry University, capacity building of vocational schools and
support to the establishment of regional agricultural colleges.

15. Contd…
 Value Chain Development Program (VADEP): aims at developing prioritized
value chains.
 Value chain development of 15 different commodities Maize, Dairy,
Vegetables, Tea, Lentil, Rice, Goat, Poultry, Potato, Wheat, Ginger,
Cardamom, Oilseed, Coffee, and Fish (initially 5; maize, dairy, vegetables,
lentils, and tea).
 Establishment of Value Chain Development Alliances (VCDA).
 Innovation and Agro-entrepreneurship Program (INAGEP): aims to foster
agricultural innovation and agro-entrepreneurship through
 Improved tax incentives,
 Establishment of agribusiness incubators, and
 Matching grants

16. Strategy and Implementation Mechanism
 Implementation of the ADS entail the combination of existing mechanisms and
new mechanisms.
 Traditional way of implementing strategies and plans for the agricultural
sector envisages an institutional framework whereby the National Planning
Commission (NPC) provides overall policy coordination, the Ministry of
Agricultural Development (MOAD) provides leadership in implementing
agricultural programs, and related agencies support the implementation.
 Core and others programs will be implemented through offices and agencies
already existing at level of Ministry or Department.
 Traditional way of implementing agricultural policies and programs in Nepal
has not produced the desired results of accelerated growth so new
mechanism is proposed for implementation of flagship programs.

17. Proposed new mechanism
All current modalities of
financing to the sector will remain
the same. The only additional
modality will be a multi donor
ADS Trust Fund (ATF) to be
established
i. Strategy Coordination
Committee
ii. Strategy Implementation
Support Unit
iii. ADS Implementation Trust
Fund (ATF)

18. ADS Budget/Investment
 The initial evaluation of the ADS programs, estimated cost over a period of 10
years is presented table:
Cost USD Million NRs billion NRs
Billion/Year
Percent
Total $ 5282 501.8 50.2 100%
Govt/ Donors $4682 444.9 44.5 89%
Private/
Community
$ 600 57 5.7 11%
Source: ADS Draft, 2015

19. Detailed estimated cost of ADS
FANUSEP DESTEP VADEP INAGEP TOTAL
FLAGSHIP
CORE
PROGRAMMs
OTHER
PROGRAMMS
TOTAL Percent
Governance 323 - - - 323 111 - 434 8
Productivity - 662 - - 662 1300 - 1962 37
Commercialization - - 766 - 799 226 - 991 19
Competitiveness - - - 205 205 208 - 413 8
Other program 1482 1482 28
TOTAL USD million 323 662 766 205 1955 1845 1482 5282 100
TOTAL RS billion 30.66 62.88 72.73 19.48 185.75 175.27 140.81 501.83
Percent 6.1 12.5 14.5 3.9 37 34.9 28.1 100
Source: ADS Draft, 2015

20. Monitoring and Evaluation of the ADS
 ADS has mentioned regular,
professional, and participative
monitoring mechanism.
 Monitoring Division and
Sections will be strengthened
at the Ministry and department
levels and will be provided
support and capacity building
by the ADS Implementation
Support Unit.
 ADS has proposed indicators to
evaluate the performance and
impact.
Impacts Indicators
Food and Nutrition
Security
 Stunting (height for age) among under 5 children
 Underweight (weight for age) among under 5 children
 Wasting (weight for height) among under 5 children
 Women in reproductive age with chronic energy
deficiency (measured as low BMI)
Poverty Reeducation • Rural poverty share
Competitiveness • Agricultural Trade Balance
Higher and more
Equitable Income
 Income per Capita
 Gini coefficient
Farmers’ rights
Ensured and
Strengthened
 Legislation on Rights to Food and Food Sovereignty
 Farmers’ Representatives in the key ADS Committees
 Legislation on Farmers’ Rights (Farmers’ Commission)

21. Strength of the Strategy
 Making of ADS when compared to previously formulated other national
policies is quite inclusive as it consisted of participation of the stakeholder in
various workshops, seminars, conferences and meetings (Paudel, Bhattarai, &
Subedi, 2016).
 Analyzed various causes of unsatisfactory result of previous agricultural policy
(primarily APP) and has suggested some structural shifts for wellbeing of small
farmers.
 ADS considers the agriculture sector in its complexity and encompasses not
only the production sectors but also the processing sector, trade and other
services.
 ADS has managed regular monitoring and periodic review and evaluation for
improvement so called living strategy.

22. Contd...
 Proposed the regulation of Foreign Direct Investment (does not allow FDI in
primary production however, welcomes in agro processing, value addition,
branding and marketing of agro products) and ban on genetically modified
seeds.
 Additionally, it has also devised some provisions such as classifying the
farmers and formation of high level commission for farmer’s rights;
establishment of community-based agricultural service centers to provide
technical help for the farmers and the formation of Agricultural Development
Fund for the implementation of the strategy.
 ADS has also proposed new mechanism and considered new Federalist
Structure of the nation in some extent for its better implementation.

23. Weakness of the Strategy
 Suggestions specified by the Agriculture and Water Resource Committee of the
Parliament and the National Planning Commission have been included only in Annex
without incorporating it on main body (Paudel, Bhattarai, & Subedi, 2016).
 Strategy was made on old (2010) and some false database (18% land was irrigated
all year in 2051 B.S and the same figure has been mentioned in 2062 B.S.).
 ADS is based on idea of commercialized agricultural development from high
investment, which seems unsustainable in developing country like Nepal. Nepalese
agriculture, given its scale and size, cannot be developed by mimicking agricultural
systems of other countries.
 The strategy emphasize on existing competitive agricultural production like in other
countries, rather than on the crop production of comparative advantages suitable
to geographical diversity of Nepal.

24. Contd…
 Farmers’ rights and their categorization have been presented as important aspects
but there is no objective analysis for that and the impact they might have on
agricultural development.
 Similarly, the impact of the two big neighbors agricultural economy to Nepal has
not been accounted either.
 Important issues of agriculture seem to have been left out by the ADS:
 Migration of the Youth and labor availability
 Agricultural workload on women
 Land use and fallow land management
 Climate change
 Agro-biodiversity
 Food Balance Sheet of import and export
 Utilization of remittance and its contribution to agriculture etc (Paudel, Bhattarai,
& Subedi, 2016).

25. ADS Link with PMAMP
 Prime Minister Agriculture Modernization Project (PMAMP) is 10 years roadmap
project of ADS based on national idea and investment to support ADS that aims to
transform agriculture based Nepalese economy to self-reliant, sustainable,
competitive and inclusive agricultural sector (Project Document of Prime Minister
Agriculture Modernization Project, 2073).
 PMAMP is flagship project of ADS which aims to establish 21 super zone , 300 zone,
1500 block and 15000 pockets by its end with total investment of 130742 million
(Rs. 1,30,74,20,00,000) for the development of Nepalese agriculture sector.
 Primarily, PMAMP aims to support the implementation of four flagship programs of
ADS.
 PMAMP has been implemented based on the conceptual framework of ADS in order
to transform Nepalese agriculture sector and achieve the strategic aims of ADS.

27. CONCLUSION
 The Agricultural Development Strategy is present main strategy to develop
agriculture sector of Nepal. It 20 years road map with a ten years action plan that
is expected to guide the agriculture sector of Nepal and has been developed after
the completion of the long-term Agricultural Perspective Plan.
 It is based on the concept of Total Factor Productivity and high investment which
advocates Open Market Economy and aims to transform agriculture based
economy to one that derives most of its income from services and industry.
 It is supposed to achieve its vision and outcomes compared to previous policies as
it has ensured the participation of related stakeholders and proposed new
mechanism of implementation.
 ADS and PMAMP are strongly interlinked with each other as PMAMP is roadmap
project of ADS based on it’s conceptual framework and aims to support the
implementation of four flagship programs of ADS.

28. REFERENCES

29. ACKOWLEDGEMENT
 Agriculture and Forestry University, Rampur, Chitwan
 Assistant professor Ankit Koirala (Major Advisor)
 Seniors, Juniors and
 My Colleagues