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FAO in Nepal

Programmes

The CPF for Nepal outlines the joint Government of Nepal (GoN) and FAO medium‐term priorities for FAO’s technical assistance over the five‐year period (2013‐2017). It is substantially based on the comprehensive analytical and consultative processes that led to the formulation by the GoN of two latest policy and investment frameworks for the agricultural sector. These are National Agriculture Sector Development Priority (NASDP) 2010 and Nepal Agriculture and Food Security Country Investment Plan 2010 (CIP 2010).

FAO provided substantive technical assistance in formulating these frameworks, a process that began in 2009 under the NMTPF. These policy and investment frameworks in turn follow from a series of agricultural and sub‐sectoral policies formulated in recent years notably National Agriculture Policy 2004 and several sub‐sectoral policies.

Priority Area 1: Food and nutrition security and safety

Food insecurity remains a serious challenge for Nepal. Agricultural growth provides the principle pathway to tackle this problem. For agriculture to make this contribution, land and labour productivity have to grow to start with. This is the only way to break the current vicious circle which prevents farmers from transacting in the food markets due to low productivity and thus in purchasing modern farm inputs to raise the productivity. Public investment has to lead this process, notably in irrigation and infrastructure, technology generation, prevention of animal and crop diseases and pests and natural resource conservation. It is equally important to take steps to improve access to nutrition and safe food for vulnerable communities.

Complementary to the existing Government efforts as well as those of the DPs, FAO will contribute to enhancing national and local capacities for improving productivity and ensuring food security through the achievement of the following expected outcomes and outputs.

Outcome 1.1 (productivity): Crop, livestock and fishery production and productivity increased through strengthened capacity of the delivery institutions and producers.

Outcome 1.2 (access improvement): Strengthened institutional and governance capacity that ensures inclusive access to nutritious and safe food of vulnerable communities.

Outcome 1.3 (disaster risk management): Strengthened capacities for emergency preparedness, response and recovery strengthened to minimize vulnerabilities with regard to access to safe food, including emphasis on transboundary animal/plant diseases.

Priority Area 2: Institutional and policy support

Effective implementation of the Government policy and programmes depends considerably on the completeness of the policy and related institutional environment. One long-standing weakness in this area is incomplete design of supportive policies and acts, and weak monitoring of the compliance to existing policies. Institutional capacity for strategic planning and implementation is also limited. Quality and timely availability of agricultural and livestock statistics has also constrained the formulation and implementation of programmes to boost agricultural production and productivity.

The GoN is in the process of formulating a National Food and Nutrition Security Plan and the long-term Agriculture Development Strategy, as well as to conduct a new agricultural census. All these processes would benefit considerably from FAO technical assistance. Several UN agencies and development partners are also assisting in these activities and therefore this priority area involves possibilities for high level of partnership and collaboration.

Outcome 2.1 (policies and programmes): Effectiveness of food and agriculture strategies, policies and programmes enhanced through strengthened analytical, technical and institutional capacity for their formulation, implementation and monitoring.

Outcome 2.2. (statistics): Strengthened government institutional capacity to collect and disseminate statistics on agricultural production and trade that includes gender and rural employment aspects.

Priority Area 3: Market orientation and competitiveness

Almost all of Nepal’s development strategy and policy documents have emphasized the urgency of market to orient and commercialize the country's largely subsistence-economy, as one of the pathways to breaking the vicious cycle. The other pathway is to enhance productivity. A value chain framework is deemed essential for identifying appropriate interventions from farm to the market. Public investments in key infrastructure and service areas, notably irrigation, rural roads, post-harvest technology and storage and market and price information, should play an important role, but the bulk of the investment has been envisaged to flow from the private sector. The latter will not happen automatically but will have to be encouraged through appropriate pricing and other policies. Many countries around the world are increasingly promoting this approach, i.e. public-private partnerships in a value chain context. FAO has the comparative advantage of tapping this knowledge base and best practice.

Outcome 3.1: (value addition): Strengthened and reoriented technical and institutional capacities at national and decentralized levels to provide support to promote market-oriented production and value addition.

Outcome 3.2: (competitiveness): Policies, regulations and legal issues addressed to promote competitive agro-enterprise development for smallholder farmers and small and medium scale enterprises.

Outcome 3.3: (WTO/SPS compliane): Producers and exporters of selected farm products are enabled to access increased market opportunities by complying with SPS related requirements in the value chain of those products.

Priority Area 4: Natural resource conservation and utilization

Nepal’s natural resources are being over-exploited beyond their retaining and regenerative capacity for a number of reasons which include unsustainable land use practices, unsustainable exploitation of bio-diversities, deteriorating watershed services, increasing conversion of forest land to other uses and more recently adverse effects of climate change. FAO jointly with the Government and other development partners will contribute to enhancing the national capacity to promote improved sustainable management and development of natural resources, including land management, forestry and watershed management, and climate charge mitigation and adaptation.

Outcome 4.1 (land management): Land record and management practices improved for sustainable production in a conflict-free environment.

Outcome 4.2 (forestry and watershed management): Management and use of forestry resources and watershed eco-system services improved for income generation and food security through national and local level capacity enhancement in strategic planning.

Outcome 4.3 (climate change): Institutional and technical capacities for adaptation to climate change in agriculture strengthened and adaptive capacity of vulnerable communities enhanced.