project completion report - agro enterprise centre · agro business and trade multipurpose...

“Improving the Policy Environment for Agricultural Trade, Production and

Marketing in Nepal”

(Cooperative Agreement Award No. 367-A-00-04-00021-00)

25th November 2003 to 31st December 2007

Project Completion Report

Date of submission: 20 March, 2008

Agro Enterprise Centre Federation of Nepalese Chambers of Commerce and Industry

PO Box 7651 FNCCI Building

Kathmandu, Nepal Ph.: 4262245, 4262260, 4267005

Fax: +977-1-4261671 e-mail: [email protected]

ULR: www.aec-fncci.org

TABLE OF CONTENTS

ABBREVIATIONS AND ACRONYMS i

Acknowledgements iii

Summary and Key Achievements iv

1. Background 1

2. Major Activities and Achievements 5 2.1 Administration and Policy Constraints that Small Farmers face in the Target Area 5

2.2 Trade Competitiveness 9

2.3 Bilateral Trade Agreements 10

2.4 WTO Accession and Expansion of Agricultural Export Markets 16

2.5 Non-Timber Forest Product Trade 17

2.6 Water Source Development 19

2.7 Policy Advocacy Capacity Building 20

2.8 AEC Sustainability 22

2.9 Gender and disadvantage group related programs 26

2.10 Liaison office in Butwal 27

2.11 Capacity Enhancement Program in 5 district CCIs 27

3. Actual Accomplishment against Goals 29

4. Success stories in Policy Advocacy 30

5. Lessons learnt, major challenges and constraints faced 36

6. Statement of Budget and Expenditure 38

Annex I : Elaboration of Indicators and Target Achievements 39

Annex II:List of Commodity Associations worked with 45

Annex III: List of Chambers of Commerce and Industry and Cooperatives worked with 46

Annex IV: List of Study Reports /Publications of AEC 47

Annex V: References 49

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ABBREVIATIONS AND ACRONYMS

ABTRACO ADB ADB/N

Agro Business and Trade Multipurpose Cooperative Ltd. Asian Development Bank Agriculture Development Bank/ Nepal

AEC ANSAB

Agro Enterprise Center of FNCCI Asian Network for Sustainable Agriculture and Biodiversity

AOA Agreement on Agriculture APP BDS

Agriculture Perspective Plan Business Development Services

CCI CEAPRED CII CoC DDC DFID DPR EIA EPC FAN FAO

Chamber of Commerce and Industry Center for Environmental And Agricultural Policy Research, Extension And Development. Confederation of Indian Industries Code of Conduct District Development Committee Department for International Development, UK Department of Plant Resources Environmental Impact Assessment Export Promotion Council/MOICS Floriculture Association of Nepal Food And Agriculture Organization of UN

FBCCI FDI FNCCI FPCCI FUG GoI GoN GTZ/PSP HELVETAS HNCC HOTPA ICUC IDE IEE IGC INGO ITC JAPEC JABAN JBC JEC JICA

Federation of Bangladesh Chambers of Commerce and Industry Foreign Direct Investment Federation of Nepalese Chambers of Commerce and Industry Federation of Pakistan Chambers of Commerce and Industry Forest Users’ Group Government of India Government of Nepal GTZ Private Sector Promotion Program Swiss INGO Herbs and Non –Timber Forest Products Coordination Committee Himalayan Orthodox Tea Producers Association International Centre for Under-utilised Crops International Development Enterprises Internal Environmental Evaluation Inter-Governmental Committee International Non-governmental Organizations International Trade Centre/ WTO Geneva Jumla Agro Products Entrepreneurs Cooperative Jadi Buti Association of Nepal Joint Business Council Joint Economic Council Japan International Cooperation Agency

MOAC MOF MOFSC MOICS MOLD NBKF NCPA NDA NDDB

Ministry of Agriculture and Cooperatives Ministry of Finance Ministry of Forestry & Soil Conservation Ministry of Industry, Commerce and Supplies Ministry of Local Development Nepal Bee Keepers Federation Nepal Coffee Producers Association Nepal Dairy Association National Dairy Development Board

Improving the Policy Environment for Agricultural Trade, Production and Marketing in Nepal- Project Completion Report

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NEHHPA NJMA NPC NPQO NTCDB NTFP NTPA

Nepal Herbs and Herbal Products Association Nepal Jute Mills Association National Planning Commission National Plant Quarantine Office National Tea and Coffee Development Board Non-Timber Forest Product Nepal Tea Planters Association

OVOP PQO PRA RUPP SAFTA SAPPROS SEAN SIMI SNV

One Village One Product Program Plant Quarantine Order of India Pest Risk Analysis Rural Urban Partnership Project/UN-MOLD South Asia Free Trade Agreement Support Activities for Poor Producers of Nepal NGO Seed Entrepreneurs Association of Nepal Smallholder Irrigation Market Initiative Project of USAID Netherlands Development Organization

SO Strategic Objective SPS SSSC SSSP

Sanitary and Phyto-sanitary Measure Agreement SEAN Seed Service Center Seed Sector Support Project of DFID

TBT Technical Barriers to Trade Agreement TC-GDA TOR TRIPS UNDP UNIDO

Tree Crop Global Development Alliance Terms of Reference Trade Related Intellectual Property Rights United Nation’s Development Program United Nation’s Industrial Development Organization

USAID VAT WI WTO

United States Agency for International Development Value Added Tax Winrock International World Trade Organization

WUG Water Users’ Group


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Acknowledgements

Agro Enterprise Centre (AEC), a technical unit of the apex organization of the private sector in Nepal, Federation of Nepalese Chambers of commerce and Industry (FNCCI), received a strong support from USAID/Nepal since its very inception in 1991. This phase of project was started under the cooperative agreement signed between FNCCI and USAID/Nepal in 2003.

FNCCI is deeply indebted to the USAID/Nepal for making AEC reach a stage whereby it has been widely recognized as one of the important organization for the cause of commercial agriculture and agro-business development in Nepal, both by Government agencies, the value chain stakeholders of large number of commodity sub-sectors, and major donor agencies and diplomatic missions involved in sectoral development of agriculture and agricultural trade. FNCCI wishes to acknowledge the support and cooperation received from GDO/Directors: Mr. Nareen Chanmugam and Mr. William J. Patterson, in the course of implementing the current Cooperative Agreement. Special thanks go to Mr. Sribindu Bajracharya for his continuous efforts in nurturing of AEC to make it sustainable and strong institutional part of FNCCI.

FNCCI also takes this opportunity to thank AEC Chairperson Mr. Krishna Prasad Tamrakar, the members and permanent invitees of the AEC Board for their continued support in guiding and shaping AEC and especially for their drive in implementation of the project activities.

Strong dedication of all AEC staff members especially of AEC's Executive Director Dr. Deva Bhakta Shakya (as the project team leader) and Mr. Kiran Raj Pandey (as the deputy team leader), in successful implementation of this project is well appreciated .

FNCCI wishes to note with thanks the technical support received from ABTRACO and individual experts in course of the project implementation.

Last but not the least, FNCCI also wishes to express its deep appreciation for the support and cooperation received from the district chambers of commerce and industry and commodity associations and from the Government agencies, particularly Ministry of Agriculture & Cooperatives and Ministry of Industry, Commerce & Supplies.

Megh Nath Neupane Director General FNCCI Date:20 March, 2008


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Summary and Key Achievements

With the continued support from USAID/Nepal through a Cooperative Agreement, AEC/FNCCI executed a project on “Improving the Policy Environment for Agricultural Trade, Production and Marketing” effective from 25th November 2003 up to 31st December 2007, with a total budgetary support equivalent of US $ 320,000. The objective of the project was to support AEC in policy analysis and advocacy to resolve critical policy issues affecting agricultural trade, production and marketing and assist in enhancing the capacity of AEC to identify and address policy constraints in the further integration of Nepalese agriculture into regional markets and the multilateral trading system and to develop a competitive agricultural system.

The program was initially proposed to cover 13 districts of the Western and the Mid-Western Development Regions of Nepal in commodity-specific policy advocacy. The commodities selected were specifically those, which were already identified, studied and with known potentiality in the regions selected. These included seven major commodities (vegetable seeds, coffee, fruits, vegetables, honey, floricultural and NTFP products).

During the project period five studies/ surveys were undertaken to identify the main constraints that farmers faced in marketing certain agricultural and NTFP products from the target area, for both agricultural and NTFP products. A series of small case studies were also made on local taxes, VAT and royalties on NTFPs. AEC got a number of opportunities to work together with the authorities at the operational level to determine the ways and means to resolve the issues and/or to formulate new policy or reform the existing policies. Proactive initiatives of AEC in many cases, led to successful collaborative programs required for formulation/ reform of policies and Acts/regulations and such initiatives were well received and appreciated by the Government.

Strong advocacy backed by case studies and wider advocacy interactions at local and central levels, single handedly or in collaboration with other agencies like USAID’s BDS-Maps project, GTZ and concerned commodity associations (tea, coffee, honey, floriculture, seeds, dairy, NTFPs) led to a number of successes. AEC was successful in getting four policies formulated and adopted by the Government of Nepal. These policies were National Agriculture Policy 2060 and Agribusiness Promotion Policy 2063 and two other sub-sectoral policies like “Herbs and Non-Timber Products Development Policy –2060’ and “National Dairy Development Policy 2064”. Beside them, long pending revision of Plant Protection Act and National Seed Act were undertaken. Three new Acts were promulgated. These were the other major reform measures carried out by the Government.

Issues of levy of local tax in multiple places in the form of district export-tax by large number of districts on products like lentil, rice, ginger, large cardamom, fruits (banana), oilcakes, honey and beehives and vegetables etc in the route of distribution-chains was another major issue that was dealt under this project. AEC prepared five case studies in different time frames and had advocated case-by-case for abolishing such local taxes to Ministry of Local Development, National Planning Commission and Ministry of Agriculture and Cooperatives. MOLD through the revision of the Local Governance Regulation, 2061 introduced provisions that no local taxes will be collected in the national highways. The MOLD had also issued instructions and stern warnings to the 13 DDC offices not to collect such taxes on products originating in other districts where such taxes have already been levied.

At the request of a large number of commodity associations the reduction of the adverse impact of the Value Added Tax (VAT on farmers and industries) levied on some of the essential agricultural products like mustard oil, wheat flour, sugar and dairy products, seeds/ planting materials and animal feeds was one of the major agenda that was taken up by AEC. It


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was successful in getting the VAT in sugar, wheat flour, mustard oils and vegetable seeds waived and reduced in different fiscal years.

AEC also prepared six trade competitiveness study reports (analytical reports), focusing on six commodities viz., vegetable seed, coffee, fruits, vegetables, floriculture, and honey. These studies were helpful to related government agencies, private sector, and donors like the World Bank and ITC/Geneva to understand the barriers which needed to be tackled to make products competitive in the international market.

AEC was also involved in the issues related to bilateral trade between Nepal and its neighboring countries like India, China, Bangladesh and Pakistan. AEC had played a very vital role in resolving many trade-related issues with India, particularly relating to SPS measures (Plant Quarantine regulation) and to the Exim Policy enforcement by India against the letter and spirit of Indo-Nepal Trade Treaty. Many of the problems have been resolved through bilateral dialogues and advocacy with the support from GoN and the Confederation of Indian Industry (CII)., AEC had also put much advocacy efforts to create favorable conditions in terms of infrastructural access & connectivity, procedural simplifications in transaction and inspections, tariff reductions, joint venture establishments etc. for the expansion of export to China, Bangladesh and Pakistan. AEC contributed to the substantial increase in some agricultural product exports particularly of tea and large cardamom to Pakistan and Lentils, vegetable seeds and some processed foods to Bangladesh. Much is still needed to be done to expand trade with Tibet Autonomous Region of China.

Nepal received the formal membership in WTO after the ratification of the accession by Nepal in April 2004, At the beginning of the project, AEC played a important role in consensus building efforts in cooperation with the Ministry of Industry, Commerce and Supplies and at the later stage AEC carried out a series of program activities to create awareness on the implications of WTO Agreement especially those on Agreement on Agriculture ( AoA), SPS and TBT related regulations of major importing countries.

Constrained by its limited staff strength, with some additional resources from the current USAID Project, AEC was able to give due priority to its own capacity building activities linked with policy advocacy by exposing its staff members in varieties of activities like case studies and case presentations; advocacy meetings; trade fairs organization; participation in relevant seminars/conferences/trainings invited by other agencies; involving in drafting and making comments on policies/acts/regulations/guidelines etc

AEC has been able to have confidence of key agencies involved in decision making and program formulations like MoAC, MOICS, MOFSC, NPC etc. The fact that it is part of FNCCI, the recognized private-sector apex body of Nepal has helped AEC in this matter. Realizing AEC’s advocacy strength and knowledge-bases related to agribusiness and agro-product trade the government agencies have involved it in theirs decision making and consultation processes. Depending on the nature of the activities, FNCCI President, AEC Board Chairman and the Executive Director are included in more than fifteen different national level policies and technical level Committees, Board etc., directly related to agribusiness development.

As a part of its own sustainability program, AEC had also taken up several initiatives during the project period to make it self-sustaining after the USAID Cooperative Agreement project period. A few program activities are worth mentioning like launching of a new public-private partnership program of ‘One Village One Product” with the GoN (as three years national priority program) ; organization of two Agro Expos (Agro Expo 2004 and Agro Expo 2006) and one International Tea Event in 2004; joint exercise with MOAC and the World Bank in the planned project titled “Project on Agriculture Commercialization for Trade” with AEC


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as one of the implementing partners having key role of providing enterprise development services.

Towards the last year of the project, an additional program for the capacity enhancement of five district chambers of commerce and industries ( Pokhara, Butwal, Palpa, Nepalgunj and Surkhet) was also conceived and executed for making these CCIs capable of taking initiative in policy advocacy and delivering some components of agri-business development services at the local level. Outcome of the program has been very positive. It has increased interest in pursuing program activities related to agriculture and agribusiness development in all these CCIs and among many other CCIs..

AEC got a number of opportunities to work together with the authorities at the operational level to determine the ways and means to resolve the issues or to formulate new policy or reform the existing policies. Proactive initiatives of AEC, led to many successful collaborative programs required for formulation/ reform of policies and Acts/regulations. Such initiatives are well received and appreciated by the Government. Within the entire project period AEC had the opportunity to work together with 19 commodity associations and 22 district chambers of commerce and industry and was able to create alliances with many organizations including some other bilateral donor agencies like GTZ, SNV and International agencies like UNIDO and WTO-ITC/Geneva, and partnership with Winrock International and IDE etc.

Overall achievements against targeted goals have been very good despite the frequent local and countrywide disturbances and poor security situation resulting from the political conflict in Nepal during the project implementation period.

Growing demand of the AEC's advisory/ advocacy services and support from agribusiness communities, commodity associations and chambers of commerce and industry and also from the GoN institutions is a very good sign of positive impact of the program activities of this project launched under the cooperative agreement between USAID and FNCCI.

Partnership programs with local chambers of commerce and industry, government institutions and commodity associations have been highly effective and successful. For future sustainability, AEC feels that more programs of such nature will have to be initiated. The total USAID budgetary support allocated for the project was US $ 319,626. In course of the program implementation the actual expenditure (as reflected in the auditor’s report) incurred during the project period is US $ 289,490 (around 91 percent of the total budget) only. Cost-sharing contribution in cash from the AEC for the project has been around 30 percent of the USAID’s contribution.

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1. Background Nepal is an agrarian society; with agriculture contributing a major share in GDP (37%) and the majority (88%) of the population living in rural areas and depending mostly on agriculture for their livelihood. Poverty is widespread in the country. Increasing agricultural productivity and diversification are therefore critical to overall growth of the Nepalese economy and to the reduction of poverty in the country.. Agricultural Perspective Plan (APP) adopted by GoN in the mid 1990’s considers agricultural growth as the key to poverty reduction in Nepal.

Since the early-1990s, Government of Nepal (GoN) has embarked on a set of reforms moving the economy towards a more market-oriented set up.

With trade to GDP ratio of about 50%, relatively low average tariff rate and virtually no quantitative restrictions, Nepal is South Asia’s second most open and trade dependent economy. Although there are significant constraints in terms of geography and policy and institutional weaknesses, Nepal has comparative advantage in a number of agricultural and labor-intensive manufactured products. Its proximity to the large markets of India and China also offer opportunities for trade growth.

The development of commercial agriculture is constrained by factors like topography, inadequate infrastructure support system, prevalence of subsistence farming, absence of irrigation facilities and limited access to agricultural Moreover high transportation cost and low purchasing power of the people also raises the cost of expanding agriculture. For relatively rapid expansion of commercial agriculture, Nepal needs to focus on exporting a variety of agricultural products to the large and growing Indian market, where it has true comparative advantages. For this to happen, Nepal needs to ensure economic competitiveness of its agriculture which requires significant investment growth. The poor implementation of developmental program, and inefficient regulations, lower productivity, make the investment climate unfriendly and reduce the competitiveness.

Although agricultural development got high priority in the plan and policy declarations of the government, the performance of the sector has been weak and unstable. Crop farming, which still dominates agriculture, remains largely traditional, rain-fed and subsistence-oriented. As a result, past efforts to improve the performance of agriculture and thereby to reduce rural poverty had limited impact.

Whatever improvement did take place in Nepal’s agriculture during the past decade can be attributed to some extent to the policy changes and the implementation of programs that emphasized the strategic role of agriculture in the economy and the importance of private sector involvement in market. USAID/Nepal had played a very important and supportive role in the process. The Agro Enterprise Centre (AEC) of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has taken the role of change agent in the whole process. Key policy reforms by the Government of Nepal such as fertilizer sector deregulation, reduction of irrigation subsidies, increased freedom to private sector in agricultural input supply and marketing, privatization of some of the state owned enterprises, introduction of National Tea Policy and overall market liberalization contributed to agricultural sector growth, improved trade, increased investment, and raised incomes for both small farmers and agro-enterprises.

In order to maintain the positive momentum in the agricultural further reforms especially targeting improvements in the competitiveness of Nepal’s agriculture expansion of market access and exports are required. There are also opportunities for Nepal to accrue greater economic benefits from bilateral trade agreements with neighboring countries and participation in the multilateral trading system of the World Trade Organization (WTO).. This


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project being reviewed and reported was envisaged in line with the expected reforms as stated above.

Agro Enterprise Center

FNCCI, the apex body of private sector, established AEC in 1991 as its technical wing for the promotion of agro-business, under a Cooperative Agreement between FNCCI and USAID/Nepal and as a part of the Agro Enterprise and Technology Systems Project of GoN and USAID. The AEC was the first ever initiative taken by GoN and a donor towards institutionalizing the public-private partnership in agricultural development in Nepal (AEC, 2002).

Between September 1991 to September 2002, the objective of AEC was to “strengthen the private sector in expanding markets for Nepali farm produce and to accelerate the selection and adoption of productivity increasing technologies and value adding services suited to the needs of Nepal’s farmers, agro-enterprises and market opportunities”. This rather broad mandate allowed AEC to establish programs capable of providing services for many commodities and financial support to its clients. Its program activities were consistent with and contributing to USAID's strategic objective, SO1; i.e. "Increase sustainable production and sales of forest and high value agricultural products".

In the policy front the major achievements of AEC during the early part of the period (1991-97) were:

? Policy lobbying leading to reforms in a number of areas relating to the production, processing and marketing of high-value agricultural products, and an active contribution in the preparation of the 20 years Agricultural Perspective Plan (APP) and 9th Five Year Plan.

? Promotion (or supporting) of several agriculture related commodity associations (like Silk, Floriculture, Rabbit, Dairy, Honey, Vegetable Seed and Cold Storage).

In the later part of the decade, AEC reviewed and subsequently made operational the criteria supporting high-value products (like tea, vegetable seeds, off season vegetables coffee, honey, silk and floricultural products). Some traditional commodities, such as sugarcane, lentils, sunflower, maize, dairy etc were also considered for its enterprise development supports because AEC realised the prospects of economic gain by a larger number of farmers through improved productivity in these sub-sectors. Supports were extended for sub-sectoral growth of 11 commodities, altogether..

AEC was able to demonstrate the potential for income generation and agricultural growth through the production and marketing of high-value forest and agricultural products. Its programs in the recent past have emphasized more on market development and linking agro-enterprises with rural-based production and marketing associations. The sub sectors: orthodox tea, floriculture, honey, tomato and vegetable seeds were among those with notable successes.

AEC made the policy advocacy as one of the topmost agenda and it has made huge efforts for bringing out new national policies on tea, dairy, vegetable seeds and cold storage and for improvement in the existing policies related to industry, trade, value- added tax and custom tariff structure. It also advocated strongly for spelling out the incentive structure for air-transporting agro-products from remote parts of Nepal, not accessible by road. It also lobbied strongly for provision of legal measures for contract farming, improvement of quarantine and other sanitary and phyto-sanitary measures/regulations. AEC also played some role in:

? Supporting government and private-sector apex body in trade related negotiations with neighboring countries, particularly India, Bangladesh, China and Pakistan. It had


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prepared action/case studies, made recommendations on reforms and procedural changes for increasing the trade on a win-win basis.

? Organizing business delegations abroad and held meetings/presentations to foreign investors for drawing more FDIs in agriculture sector

Although AEC agenda of agro enterprise development in Nepal is not particularly gender focused, none-the-less, it has made every effort to support women-run agro enterprises/groups in the priority commodities, particularly in floriculture and agro-processing/ marketing.

In course of the program implementation, AEC has maintained its partnership/collaboration with many local Chambers of Commerce and Industries, government institutions, donor agencies, academic institutions and NGO/INGOs. Its network with 91 CCIs (74 District Level and 17 Municipality level), supportive roles of more than 18 Commodity Associations, a number of farmers' cooperatives/groups, collaborative links with NGOs/INGOs and academic institutions makes the AEC well accepted among agencies of GoN, local authorities and donor circles.

After the termination of USAID Grant support in 2002, AEC continued to function as independent agricultural arm of FNCCI. It has been acting as a:

? Central hub for business community in agriculture that is guiding and continuing supports to CAs in their business development efforts.

? Critical link in a chain between market/business and public/GoN through representation of the private sector (agro business) in boards, committees, steering committees, consultative meetings called by government, other donors agencies etc.

? Significant translator of need/problem into action research and policy advocacy.

? Link for product marketing and promoting successful business. ? Central agency for agro-product market information services.

In addition, AEC has become an alliance partner for the USAID’s Global Development Alliance Project (GDA), working together with Winrock International (WI), Himalayan Orthodox Tea Producers Association (HOTPA), GTZ/PSP Project and Nepal Tea and Coffee Development Board (NTCDB) for tea development in one hand and with WI, Nepal Coffee Producers Association (NCPA), HELVITAS and NTCDB on the other d for Coffee. Similarly, AEC is associated with SIMI Project of USAID have been engaged in market information services; lobbying for required policies; hosting marketing events and workshops.

As a continued support from USAID/Nepal through a Cooperative Agreement, AEC did launch this project on “Improving the Policy Environment for Agricultural Trade, Production and Marketing” effective from 25th November 2003 up to 30th September 2006, with a total budgetary support equivalent of US $ 250,000.


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Project Objectives and Description

The purpose of this USAID ‘s Cooperative Agreement Project “ Improving the Policy Environment for Agricultural Trade, Production and Marketing” was to support both the public and private agricultural sector institutions in policy analysis and advocacy to resolve critical policy issues affecting agricultural trade, production and marketing. A secondary purpose of the program was to strengthen local skills in economic policy analysis and advocacy, focused particularly on expanding markets for small producers in Western and Mid-Western Development Regions for high-value agricultural products and non-traditional forest products. This was supposed to strengthen and support developing local capacity in economic policy analysis in both public and private sectors, and to promote public debate, dialogue, collaborative studies and reviews on key issues.

The overall objective of this program, therefore, was three fold:

? To stimulate quality analysis and debate with respect to key agricultural policy issues;

? To impact on policy reform, specially to address policy and administrative constraints that are important to small farmers/user groups, entrepreneurs and to support Nepal’s accession to the World Trade Organization (WTO) and the benefits that flow from accession, in terms of expanded trade with India and throughout the region; and

? To build AEC’s capacity for policy analysis and advocacy in support of small farmers/entrepreneurs, women empowerment and disadvantageous groups.

This program was also designed to assist in enhancing the capacity of AEC to identify and address policy constraints for further integration into regional markets and the multilateral trading system and to maintain a competitive agricultural system. The program further proposed to cover mainly 13 districts in the Western and the Mid-Western Regions for different commodity specific policy advocacy. The commodities selected were specifically those, which had already been identified and pursued and had known potentiality in the regions selected. These included seven major commodities (vegetable seed, coffee, fruits, vegetables, floriculture, honey and NTFP products).

The programs included as specific/target areas the following:

? Administration and Policy Constraints that Small Farmers face in the Target Area ? Trade Competitiveness ? Bilateral Trade Agreements ? WTO Accession to expand agricultural export markets ? Non-Timber Forest Product Trade ? Water Source Development ? Policy Advocacy Capacity Building ? Policy Advocacy sustainability

In August 2006, USAID/Nepal and FNCCI entered into an agreement for the extension of the program to 30th June 2007 with additional fund (US $ 70,000) to the initial award. This program supported both the public and private agricultural sector institutions in policy analysis and advocacy to resolve critical policy issues affecting agricultural trade, production and marketing. In addition to trade related policy aspects, the program also supported creation of agribusiness units in five district chambers namely, Surkhet and Nepalgunj in the Mid-Western Region, Pokhara, Butwal and Palpa in the Western Region for proactive involvement in promotion and facilitation of agribusiness at local level. Further extension of the project till Dec 31, 2007 with no cost extension was agreed by USAID in June 7, 2007.


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2. Major Activities and Achievements The major program activities carried out during the project period of four years (25th November, 2003 to 31st December, 2007) and the impact those programs have made are discussed below:

2.1 Administration and Policy Constraints that Small Farmers face in the Target Area

With the service of ABTRACO and individual experts, AEC carried out a series of surveys and studies to identify main constraints that farmers faced in marketing identified products from the target area, for both agricultural and NTFP products. The study analyzed the constraints and issues, particularly those related to

? difficulties and high cost of movement of agricultural and NTFP products due to cartelling by transporters,

? local taxes, ? access to rural financing, ? quality input supply, ? irrigation management system, ? land and water uses, ? women empowerment, ? participation/ involvement of ethnic and disadvantageous groups, ? cross-border trade .

In addition, some issues pertinent to SIMI project area were also addressed. During surveys, priority was given to the collection of information from local sources and people in the targeted areas. In course of study/survey, series of interaction programs were organized in partnership with local Chambers of Commerce and Industry and gathered information were verified and substantiated. In such interactions representatives of concerned local government authorities, cooperatives, commodity associations, NGO/INGOs, local stakeholders, financial institutions were included. Studies/ surveys carried out during the project period are listed in Table 1.

Table1: Studies/ surveys on Administrative and Policy Constraints carried out during the project period

S.N. Studies/Surveys on Administrative and Policy Constraints 1 Identification of Administrative and Policy Constraints that Small Farmers Face

in Palpa (Coffee) 2 Identification of Administrative and Policy Constraints Faced by Honey

Producing Small Farmers in Dang District 3 Identification of Administrative and Policy Constraints Faced by Small Farmers

Producing Vegetables Seeds in Dang and Vegetables in Banke Districts 4 Identification of Administrative and Policy Constraints that the Small Farmers

Face in Jumla (apple, carrot seed); and Surkhet and Rupendehi (fresh vegetables) and Analysis of the Functioning of Existing Agricultural Co-operatives and Identification of Policies for their Effectiveness

5 Identification of Policy and Institutional Constraints and Administrative Issues related to Operation of Small Scale Enterprises with women, s, Dalit, Janajatis and Minorities as heads and Suggestions of Remedial Measures in Dang, Kapilbastu and Bardiya Districts

Based on the findings of surveys and depending on the nature of the problems, AEC initiated advocacy either through further arrangement of interaction programs involving


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concerned authorities and policy makers or through official communication and pursuits both at local and central levels. The studies highlighted the key issues to be addressed by commodity associations and different government institutions for the promotion of specific commodities.

Photo 1 and 2: An Interaction Meeting at Jumla on policy and administrative issues

? Levying of local tax in multiple places in the form of district export-tax by large number

of districts in the transport route on products like lentils, rice, ginger, large cardamom, fruits (banana), oilcakes, honey and beehives and vegetables etc has been one of the major issues that has to be dealt. AEC prepared five case-studies in different time frames and advocated case-by-case for abolition of such local taxes levied during the movement of agricultural products forwarding the requests with case-studies to the MOLD, NPC and MOAC. The MOLD through the revision of the Local Governance Regulation, 2061 included a provision that no local tax will be collected in the national highways. The MOLD also issued instructions and stern warnings to 13 DDC offices not to collect such taxes on products coming from other districts where such taxes have already been levied. Some districts decided to abide by the instructions but some have been resenting. Now AEC feels, the problem could be resolved only after resolution of current political turmoil and some sort of a formula on revenue sharing with the local authorities is agreed upon.

? During the project period, on the frequent requests from a large number of entrepreneurs and commodity associations, AEC did get involved in advocacy for reducing impact on farmers and industries of the Value Added Tax (VAT) levied on some essential agricultural products like mustard oil, wheat flour, sugar and dairy products, seeds/ planting materials and animal feeds. This became essential and important for ensuring the competitiveness of those products and their corresponding raw materials produced by farmers of Nepal. Erosion of the competitiveness of the above primary and processed products and their raw materials were reported. The unauthorized import of such products from across the long open-border between Nepal and India the farmers in Nepal were loosing their competitive edge. In India, those products attracted very low or no VAT. Such a situation emerged for each of the above commodity when the GoN decided to levy VAT at flat rate of 13% (at the initial period of the project the rate was 15%). Subsequently, wide-scale negative impacts were reported, making the processors and farmers suffered. AEC organized regular interaction meetings of concerned commodity associations, cooperatives with officials from MOAC, MOICS and MOF to discuss the impact of VAT on above mentioned agricultural products. As advocacy materials, AEC prepared case-studies on above-mentioned commodities. Then, case-wise, AEC made advocacy/recommendations up to highest bureaucratic levels for reducing the negative impacts to the farmers and industries. Achievements of such advocacy works are given in Table 2. There is a good indication that GON is considering to introduce a multiple rates of VAT for different products from the fiscal year 2008/09.


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Table 2: VAT reductions resulting from policy advocacy during the project period

S.N. F.Y Amendments Made 1 2005/06 Exemption of VAT on tea-chest (For tea packaging) 2 2005/06 Refunding of 25% of VAT levied on mustard oil, wheat flour and

incense stick produced within the country 3 2005/06 VAT exemption for selected Export Trading Houses (tea included) 4 2006/07 VAT exemption for Bees and Bee-hives 5 2007/08 VAT exemption in bone meal and fish meal for feed supplements. 6 2007/08 50% VAT refunded to flour and sugar mills from the total payable

VAT

? AEC coordinated a policy level dialogue of 5 district chambers of commerce and industries (CCIs) of Karnali Zone (districts of Jumla, Humla, Mugu, Dolpa, and Kalikot) with Member of the NPC responsible for agriculture, Secretaries and Joint Secretaries from the MOFSC, MOAC, MOICS, Ministries of Environment, Science & Technology, Civil Aviation and Director Generals from DOA, Department of Forestry, Department of Plant Resources, etc. Key issues pertaining to permit & license, IEE and EIA; royalties and local; taxes; air freight charges; flight availability ,prospect of launching public-private partnership programs in road construction; establishment and management of collection centre/ market centre, storage /go-downs etc were presented and discussed. Efforts from the private sector were fully appreciated by NPC and other government agencies and understanding was reached to develop detailed partnership program proposals by each district chamber for support from the Government. Subsequently, four chambers, with the technical support from AEC, prepared some joint-program proposals and submitted to the NPC for inclusion in future government programs. However, no proposal has yet been included in the government programs.

Photo 3: FNCCI President and AEC Chairman with Hon’ble NPC Member During the Karnali

Meeting

Photo 4: Participants from Karnali zone during their

policy dialogue with Planners, Policy makers and Bureaucrats

? As a member representing the country’s private-sector in High Level Agro-Business

Promotion committee under the chairmanship of Minister of Agriculture, the FNCCI President, along with the AEC-Executive Director, actively participated in all meetings of the committee. The role of the committee, which had multiple line-agencies represented at the Secretary level, has been to review the issues and problems faced by the agro-businesses and make recommendations to the concerned ministries for required administrative and policy reforms. This committee has been one of the major platforms from where recommendations are made for improving policy environment for agro business development and promotion. AEC has also been playing an important role in gathering facts and figures on policy and operational issues from among private-sector actors involved in different sub-sectors and then submitting those to the committee. AEC


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assisted GoN/MOAC in the preparation of a draft of “Agribusiness Promotion Policy, 2061” with inputs from private sector. The draft was finalized later by the MOAC and was adopted by the GoN on Nov 27, 2006 as “Agro Business Promotion Policy 2063”.

? AEC also provided necessary inputs to line agencies and arranged several consultative meetings in course of the preparation of the draft of Dairy Development Policy. The policy has been approved recently as “Dairy Development Policy, 2064’. There are a few other draft policies where the AEC has given its views/ inputs reflecting the needs of the private sectors. These policies are listed in Table 3.

Photo 5: Consultative Meeting at AEC during the

preparation of draft Agribusiness Promotion Policy by MOAC

Photo 6: National Agriculture Policy 2061 and Agribusiness Promotion Policy 2063 Introduced

by Government of Nepal

Table 3: Involvement of AEC in Formulating Various Policies

(Drafting or giving inputs to the draft through arranging stakeholders interactions)

S.N. Policy Status 1 National Poultry Policy-2060 Draft 2 Agriculture Research Policy-2062 Draft 3 Agro Biodiversity Policy-2063 Draft 4 National Floriculture Policy-2063 Draft 5 Micro Enterprise Development Policy-2063 Draft 6 Industrial Policy-2063 Draft

Similarly, AEC extended its support and provided its inputs, comments and suggestions to the various line Ministries during the drafting stage of Plant Protection Act-2060 ( with revisions), National Seed Act-2061, Bio-Diversity Act-2063, Plant Breeders and Farmers Right Act-2063, Micro Enterprise Development Act-2063, Competition Act. 2060 (2004). Similarly, AEC provided its inputs and suggestions in preparing the sectoral chapter of the Three year Interim Development plan.

? As a normal practice, FNCCI makes recommendations to the Ministry of Finance for reforms in the fiscal and financial policies, directly or through the revenue consultative committee (FNCCI is also a member of the committee) every year. AEC had prepared several agribusiness related recommendations to be included in the final FNCCI recommendations to the Ministry of Finance (MOF). Several commodity-specific recommendations have been accepted by the MOF in different fiscal years and announced either through the Finance Minister’s budget speeches or during the actual implementation. In addition to the decisions on VAT, some of the other policy or procedural changes made by the Ministry of Finance are given in Table 4.


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Table 4: Agricultural Development fee and custom duties reductions resulted from policy advocacy during the project period

S.N. F.Y Amendments Made 2 2005/06 Reduction in Agriculture Development Fee and custom duty of

Agro Commodities from 10% to 8% 3 2005/06 Reduction in custom duty on Agricultural Tools (HS Code 9027)

to 2.5% 4 2005/06 Reduction in custom duty on animal feed ingredients to 1% 5 2005/06 Reduction in custom duty on Refrigerated Van to 10%

Along with GTZ/PSP and TC-GDA partners, AEC also assisted HOTPA in preparation of a Code of Conduct (CoC) document with its regulation and implementation procedures of orthodox tea producers and marketers. The CoC is in force from 2007 and product with the CoC logo was introduced first time in Germany the same year. AEC agreed to be one of the members of CoC Implementation Committee. AEC has also extended its technical assistance to NDA and NDDB in their efforts of preparing CoC for dairy farm/industries. This CoC has already been approved by MOAC.

2.2 Trade Competitiveness

? Nepal Trade and Competitiveness Study prepared by the World Bank (WB, 2003) revealed that Nepal has comparative advantage in a number of labor-intensive manufacturing and agricultural products. Even though Nepal may have comparative advantage in a range of agricultural products, the study revealed that competitiveness of Nepal’s economy is low due to low farm yield and labor productivity, high cost of transportation and transaction delays, weak infrastructure supports, unclear regulatory framework and poor investment climate. Report prepared by ADB Experts (ADB, 2003) and AEC’s own past experiences in promoting many commodity-specific agribusinesses showed that in most of the commodities, the competitiveness is eroding because of the very weak value-chain system in place. Attempts were made to undertake some commodity-specific brief competitiveness analysis to

? Determine the level of efficiency, ? Establish Costs & margins in production and other stages of the value-chains

(input supply- processing and marketing etc.,) and ? Determine gaps and constraints that directly and indirectly affect

competitiveness.

AEC took technical support from ABTRACO and individual experts to prepare analytical reports, focusing on six commodities viz., vegetable seeds, coffee, fruits, vegetables, floriculture, and honey. Studies/surveys carried out during the project period are listed in Table 5. Such studies however, are not the country-specific comprehensive competitiveness studies normally understood , but are representative and for limited purpose.


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Table 5: Studies/surveys related to Trade Competitiveness carried out during the project period

S.N. Study/Survey Titles 1 A Study Report on Trade Competitiveness of Vegetable Seeds [Radish (Mino

Early), Carrot (New Kuroda) & Hybrid Tomato] 2 Trade competitiveness of off-season vegetables in Palpa, Kaski, &

Baglung/Parbat and of ginger in Palpa, Syangja and Tanahu. 3 Trade Competitiveness of Nepalese Coffee 4 Trade Competitiveness of Nepalese Honey 5 Trade of Agricultural Products through Mechi-Panitanki Border 6 Trade Competitiveness of floriculture Sub-sector in Nepal

? AEC organized a series of fact finding

consultative meetings during the period of each field survey. Similarly, a series of advocacy meetings were held after the completion of each of the studies and bureaucrats, policy makers, local authorities, donors and other stakeholders were apprised of the situation. Recommendations on short and long term measures to be taken to increase market competitiveness of the priority commodities were made. The AEC had also prepared and circulated study reports to the concerned agencies. It has also been doing regular monitoring of the implementation of some of the recommendations, both at the local as well as national levels.. Advocacy was also done at local level in the districts, where the studies were carried out. The outcomes and recommendations of many studies were advocated additionally through various interaction/meetings/seminars at national level, such as, Fourth National Agricultural Marketing Conference –2006 in Kathmandu, Agro?Mechanization and Technology Development Expo-2006 in Biratnagar, Honey Fair-2006 in Ratnanagar, Agro Expo 2004 and 2006, 1st and 2nd National Herbs and Herbal Trade Shows and Workshops-2005 and 2007 in Nepalgunj and other similar events. These studies have helped related government agencies, private sector, INGOs in understanding existing barriers in making related sub-sectors competitive.

? AEC is regularly adding its voice for suitable measures in making some of the Nepalese agricultural products competitive in different high-level meetings/interactions/forums. to take suitable measures in making some of the Nepalese products competitive. These reports and AEC‘s advocacy have facilitated announcement of several policies like National Agriculture Policy and Agribusiness Promotion Policy and also in revising the Plant Quarantine Act and Seed Act stated earlier. Some new initiatives like the establishment of regional agricultural produce market in Butwal have been taken by the MOAC, this year.

2.3 Bilateral Trade Agreements

? Nepal has bilateral trade treaty with India and trade agreements with other neighboring countries, particularly China, Bangladesh and Pakistan. These four countries are the major export markets for Nepalese agricultural products. Nepal has been feeling the

Photo 7: NTFP Policy Advocacy Meeting held during Agro Expo 2006 inviting the Hon’ble Minister for Forest and Soil Conservation and Hon’ble National Planning Commission Vice Chairman


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burden of the non-tariff barriers in these countries even before it officially joined the WTO.

? India: As India is the key-trading partner of Nepal, sudden imposition of regulations on plant quarantine and food import inspection/testing on import of Nepalese agricultural products by the Government of India (GoI) put farmers, traders and food manufacturers of Nepal into a difficult position. Indian traders were discouraged from buying Nepalese products because of a number of hindrances and constraints. Major ones were: limited number of exit point allowed for trade of agricultural products along the long and open border; time consuming processes of getting import permit and testing/ certificates; high inspection cost and subsequent hassles because of the absence of a large number of Nepalese products in the permitted commodity list (schedule) of the Plant Quarantine Order (PQO) of India. As a result, many Nepalese products did loose the cost-competitive edge. Most of the products immediately affected were traditionally traded products like tea, lentils, cereal products, edible oils, ginger, cardamom, honey, dairy products, and perishable items like fruits and vegetable & their products, jute and jute goods etc.

AEC played important role in resolving many of the above technical and administrative problems/hassles through a series of direct and/or indirect bilateral consultations with the Indian side (Ministry of Commerce; Ministry of Agriculture and Cooperation and its relevant agencies; Ministry of Health; Ministry of Finance of the Government of India) with cooperation from Confederation of Indian Industry (CII), diplomatic missions in Kathmandu and New Delhi. AEC also extended backup support to the GoN (MOICS and MOAC) during the Inter-Governmental Committee (IGC) meetings, held periodically in Kathmandu and New Delhi. Some of the major activities carried out by AEC in this connection are described below:

? As per the Trade Treaty, Indo-Nepal trade takes place through 22 points along the entire border between Nepal and India, GoI notified in 2003 to allow Nepalese Agricultural and food products to enter India only through 3 exit points for phyto-sanitary examination purpose. This had a big negative impact on trade of agricultural products across many parts of Nepal causing extreme hardship to farmers and traders in terms of accessibility to the market and cost competitiveness. Even before the project was initiated, the AEC was involved in pursuing MOICS and Ministry of Foreign Affairs to start immediate dialogue with GoI and identify the optimum number of exit points for agricultural trade with India. AEC’s parent organization, FNCCI also took up the matter with CII, its counterpart organization in India, and strongly lobbied with the Minister of Agriculture of India who happened to visit Nepal, twice within that particular year. Based on his advice, a series of discussions between quarantine authorities of India and Nepalese delegations took place in New Delhi. The issue was discussed in the IGC meetings held at government level. Finally, six exit points were agreed upon and listed in the PQO of India in 2004 and the agricultural trade takes place through these exit points, till today.

? Simultaneously, on behalf of exporters of agricultural products from Nepal, AEC also made strong advocacy with the GoN and the GoI authorities for reducing quarantine

Photo 8: FNCCI-CII Joint Economic Council Meeting in New Delhi attended by Delegations led by FNCCI President Mr. Binod B. Shrestha and CII Past President Mr. Subodh Bhargav.


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inspection fees levied on the seeds and other agricultural and NTFP products. Previously, the plant quarantine inspection fee levied on Nepalese agro-produces was to the tune of Rs. 4840.00 per consignment of 8 MT (one truck) of ginger (Rs. 0.60 per kg) to Rs. 10,400.00 for the consignment of 500 kg of vegetable seeds (Rs. 20.8 per kg), while being exported to India. Since the normal size of export from Nepal was and is usually small, levying of fees on the basis of truck load (of 8 MT) becomes impractical and resulted in drastic reduction of the formal trade. AEC further advised the GoN to recommend GoI for 50% rebate on inspection fee. After a series of intense negotiations between the authorities of the two governments the proposal was finally agreed and now a 50% exemption on fees is given. This has, in fact, given a good opportunity for traders, cooperatives and farmers’ groups’ to reduce transaction cost and increase the volume of export to India, particularly that of grains, lentils, NTFP products. But, this provision is not advantageous for vegetables and fruits as most of these products are yet to be listed in schedules of Plant Quarantine Order of GoI. This is believed to be because of the need for PRA reports which are yet to be prepared and filed for individual produces, except for ginger, lentil and some other commodities.

AEC was proactively involved in finding a solution when the Plant Quarantine Authority of India stopped the import of Nepalese Ginger in May 2004. India used to import about 25,000MT of fresh ginger from Nepal, annually. The advocacy was carried out both in Nepal and India to allow the import. Finally, in October 2004 the GoI released a circular allowing ginger rhizome of Nepal to be imported into India without additional declaration, under Schedule VI of the Plant Quarantine Order, 2003. Export of ginger continued for sometime and again in December 2004 the Department of Commerce of GoI again stopped the import of Nepalese ginger for almost a year in 2004/2005, citing provisions of the Foreign Trade Policy-2004-2005. AEC took the initiative and assisted the MoAC to raise the issue with the GoI on the ground that it amounted to open violation of the bilateral trade treaty between the two countries. Finally, the GoI decided to allow import of fresh ginger from Nepal as per the letter and spirit of the bilateral treaty provisions. This was another major achievement in AEC’s policy advocacy effort during the project period. Likewise, when India stopped import of Nepalese jute products, abruptly through a circular, the jute mills of the country had to halt their operation as India was the sole country buying Nepalese jute products. AEC advocated with concerned authorities of GoN and GoI to resolve the issue and succeeded in resolving the problem within a short period.

The AEC arranged a number of programs with visiting Indian authorities oriented to facilitating a dialogue between authorities involved on quarantine and quality testing of Nepal and India. The Representatives of the Nepalese agro business were also involved in these events. .

An interaction program was organized in Kathmandu on 'Assessment of Laboratories of Nepal for Testing for Export Certification ‘ A two member Indian expert’s team (Assistant Commissioner from Department of Animal Husbandry and Dairy (DAHD), Ministry of Agriculture, Delhi), High Officials of the Government of Nepal participated in the program. Private sector representatives from HOTPA, APINET, NTA, NCPA, NEHHPA and FNCCI also attended the program.

Photo 9: Interaction Program with Indian Technical Experts, chaired by FNCCI First VP, Mr. Diwakar Golchha


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Some cases of Nepalese tea and beetle nut were presented to the Indian expert’s team. Some of key-issues presented during the discussion with the Indian experts' team related to hurdles associated with the laboratory testing in Indian Central Food Laboratory in Calcutta. Participants asked for the certificates issued by Nepalese Laboratories to be recognized by Indian authorities. Indian expert’s team indicated the need for up gradation of the Nepalese laboratories for international accreditation and suggested the private sector to take initiatives in this matter. Indian expert’s team made commitments to help strengthen the export certification mechanism in Nepal.

MoAC and AEC jointly hosted a delegation from GoI led by Joint Secretary of Agriculture Ministry responsible for quarantine regulation for stock taking of quarantine inspection activities along the border with India. The team included the Adviser, National Plant Quarantine who is the chief implementer of quarantine regulation in India. The AEC arranged visit to the two border exit points of eastern Nepal, viz., Kakarvita/Panitanki and Rani/Jogbani for their first hand inspection of the facilities and knowledge of the problems and constraints faced both by the quarantine officials and traders. The team also had meetings with Ministers and Secretaries of MOAC and MOICS and also with the private sector. They assured the Nepalese Government authorities and private sector of Nepal that they would make every effort to improve the plant quarantine inspection facilities at the border and they also indicated some possibilities of joint programs for enhancing Nepal’s capacity as well. This visit gave the Indian delegation a clear picture of the situation and was very useful in addressing many pending operational issues and problems.

A FNCCI and CII Joint Economic Council meeting was held in New Delhi in October 2004. In the meeting Nepalese delegation asked for effective assistance in getting Nepal Government accredited Food Testing Certificate accepted in India. A special meeting was also arranged earlier in January 2004 with the executive director of Export Inspection Council (EIC) of India, Ms. Sashi Sareen, while she was in Kathmandu, for seeking her support in simplifying the process of testing/ certification and prospective involvement of EIC in certification..

AEC and the National Plant Quarantine Directorate worked together in preparing documents on “Pest Free Area” and “Pest Risk Analysis" of ginger and apple. AEC supported the program so that Nepal Government could advocate with the importing countries on PRA related issues. A workshop was held to present the documents. Export Promotion Board, National Plant Quarantine Program and AEC are working together for institutionalizing the fumigation by Methyl Bromide during export of agro-product. Government of India from time to time checks the fumigation process during export of lentil, coffee from Nepal to India.

Some of AEC’s activities have also facilitated MoICS, MoAC in ensuring favorable policies in enhancing smooth trade with Bangladesh, Pakistan and China. AEC facilitated the awareness building during high level government officials’ visit from these countries to Nepal.

? Bangladesh: For the last eight years AEC is involved in facilitating trade of Nepalese agricultural products with Bangladesh via Kakarvitta-Banglabandh-Dhaka route. Past experience of AEC, gained through export product export facilitation, visits, studies and interactions with traders has indicated a very good prospect of expansion of agricultural trade with Bangladesh. During

Photo 10: Joint Business Council meeting between FNCCI and FBCCI held in Kathmandu


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the project period, AEC continuously focused in gathering information, conducting series of meetings and bilateral dialogues, with exporters, members of the diplomatic corps, government officials and private sector apex Chambers. As a part of its advocacy, AEC participated in a meeting of the Joint Business Council (JBC) of FNCCI and FBCCI in Dhaka in January 2004. The issues pertaining to the problems, constraints of trade expansion and product diversification prospects were the main agenda for discussion. Several recommendations to both the governments were made, The recommendations included immediate establishment of land port with minimum basic facilities at Banglabandh border point for increasing trade of products like lentils, vegetable seeds, jute; availing of Chittagong port facilities to Nepal, connecting dry port at Banglabandh with ICD in Dhaka etc. During the visit of the Nepalese delegation, AEC had an opportunity to directly convey the issues and problems to the Ministers of Foreign Affairs and Commerce of Bangladesh, while having courtesy meetings with them.

? During the project period, AEC/FNCCI was active in raising concerns on behalf of traders about poor facilities of handling the cargo, custom office; goods transfer mechanism, warehouse and security of goods etc. at the Banglabandh border (about 44 km from eastern international border area of Nepal) in the bilateral forums and government level IGC meetings. Government of Bangladesh gave due consideration to the issues raised by the AEC and constructed a new land port with required facilities and on 22 May 2004 it was inaugurated, amidst a special ceremony. The FNCCI President and AEC Executive Director attended the ceremony at the special invitation of Government of Bangladesh. This was one of the results of the efforts of AEC in the bilateral trade front. This facility is yet to be properly utilized because of technical and procedural hitches, restricting the movement of Nepalese vehicles within the territory of Bangladesh.

? Towards the end of the project period, the AEC -commissioned a fact finding field study on “Nepal Bangladesh Trade: Trend and Situation Analysis”. The study has revealed a number of hassles still faced during export and import of goods through Karkarvitta-Fulbari-Bangalbandh route and has recommended remedies for smooth flow of trade between Nepal and Bangladesh. The findings of the study were conveyed to the visiting team from Bangladesh led by its Commerce Secretary who was in Kathmandu for the Nepal- Bangladesh Commerce Secretary level meeting held on December 12, 2007. Discussion with Bangladesh Commerce Secretary focused on proposed FTA with Bangladesh and addressing the current issues of trade with Bangladesh. AEC is hopeful of early solutions ensuring effective use of the route for expansion of Nepal's agricultural goods trade.

? China: During the project period, FNCCI-All China Federation of Industry and Commerce (ACFIC) Non- Governmental Forum officially, formed by two Governments, had annual meeting in China (Sanya/Hainan) and two times in Kathmandu. The Executive Director of AEC participated in all these meetings and made presentations on trade issues and Chinese investment opportunities in agribusiness in Nepal.

Photo 11: ED/ AEC making a presentation in Nepal –China Non-Governmental Forum (FNCCI-ACFIC) held in Sanya, Hainan, China


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Two high-level trade delegations from Nepal visited Tibet (one to Lhasa and other to the border point of Khasa) at the invitation of the Government of Tibet Autonomous Region of China, During these visits the executive Director of AEC was also included in the delegation and had opportunities to apprise the Chinese authorities particularly those from department of customs, plant quarantine and commerce on the trade issues concerning transparency in duties levied; SPS rules, trademarks uses and permits requirements.

? Seizing the opportunities of periodic visits of the quarantine officers of Tibet Autonomous Region of China to Kathmandu, AEC also arranged two similar interaction programs of Nepalese authorities and importers/exporters with them within a year 2007/08. These Programs had particular focus on the matters pertaining to the problems faced by Nepalese exporters and finding the ways and means to simplify the quarantine procedures and making them transparent. The major products of concern discussed were related to export of fruits and vegetables, dairy products and live poultry and import of apple, garlic and meat products.

? Pakistan: At the invitation of Government of Pakistan, Executive Director of AEC visited Pakistan as a member of the delegation of Nepal Tea Producers Association. He also attended Expo Pakistan'2006 in Karachi and had a series of interactions with the Pakistan Tea Association Executives and the main tea importers of Pakistan for finding the ways and means to increase tea export from Nepal to Pakistan. The team also had factory visits to two main tea blending and packing industries of Pakistan. Subsequently, there has been a significant increase in tea export to Pakistan in the recent years, varying between 250MT to 1000 MT, annually.

As a part of the periodic meetings, the FNCCI arranged the 5th Joint Business Council (JBC) of FNCCI-FPCCI, in Kathmandu in November 2005. The council was formed officially in 1996, based on the agreement between two governments. The discussion between the two delegations led by respective Presidents centered around addressing the impediments in the expansion and diversification of trade between two countries particularly that of tariff quota on Tea, duty free access for Nepali cardamom, lentils and ginger to Pakistan, lowering air freight rates, export of herbal products, simplification of import procedures, alternate surface route for trade (transit)

Photo 14: FNCCI-FPCCI Joint Business Council

Meeting held at FNCCI

Photo 12: Joint Government- Private Sector Delegation to Lhasa, discussing with concerned authorities of the Govt. of Tibet Autonomous Region of China

Photo 13: A meeting with Quarantine Officers of

China


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and promotion of joint ventures in Nepal, organization of trade fairs etc AEC has been the secretariat for the JBC from Nepal-side and had the opportunity to make strong representation on the bilateral trade issues and opportunities. Based on recommendations emerging as outcomes of this meeting made to the respective governments, two noticeable achievements are clear. The volume of total trade between the two countries has expanded significantly with the large cardamom and CTC tea from Nepal entering Pakistani markets in increased volume in the past two years. The Pakistan national flag carrier PIA has also reduced the freight rates to some extent.

2.4 WTO Accession and Expansion of Agricultural Export Markets

? Till the early part of 2004, the process of negotiations for Nepal's accession to WTO was still going. During this period AEC, as the private sector stakeholder in agriculture sector, extended its backstopping assistance to the WTO division of MOICS, particularly in the negotiations relating to finalization of the bound tariff rate on agricultural products, commitments on SPS and TRIPS etc. AEC also organized meetings and interactions with different stakeholders: private sector, politicians, farmer communities and bureaucrats in support of Nepal's membership Nepal's membership was approved at the 5th WTO Ministerial Conference in September 2003 in Cancun and became the first Least Development Country to get accession to the WTO (147th member), through the full working party negotiation process.

? In the early part of the project initiation, along with FNCCI, AEC actively extended its support to MOICS to facilitate the speeding up process of membership ratification by the GoN organizing different interaction programs and advocacy meetings. The final ratification of the WTO accession by the Government of Nepal took place in 23rd March and the membership came into effect from 23rd April 2004

? During the second and third year of the project AEC did focus its WTO related programs in creating awareness amongst local traders, representatives of local institutions , government offices, NGOs, cooperatives, academicians etc. Interaction programs and workshops were organized to impart awareness on provisions of Agreement on Agriculture (AoA), SPS/TBT Agreements, TRIPS and Geographical Indicators (GI) and their implications on Nepalese Agriculture. The focus of these programs were on the further preparedness required at different stakeholders levels. Major target groups for these programs were farmers and other value chain stakeholders and representatives from different government institutions, NGOs and INGOs. Such events were organized in Nepalgunj, Pokhara, Palpa, Surkhet, Narayangarh Birgunj, Butwal, Biratnagar, Jhapa and Kathmandu.

? In collaboration with Geneva-based WTO/International Trade Centre, AEC organized two seminars related to WTO/ SPS and TBT Agreement. It also extended its coordination support to a joint training program on GMP/GHP for technical personnel of food processing industries (dairy, biscuits, noodles, meat) organized by UNIDO and MOICS in Kathmandu.

? During the forth year of project, in collaboration with the MOICS/ Export Promotion Council, AEC focused mostly on compilation of SPS and TBT related regulations /provisions of major importing countries of Nepalese agro products (India, Pakistan, Bangladesh, China, Japan, EU, US and Gulf countries)

Photo 15: Workshop on SPS/TBT related aspects of Tea, Dairy and Spices held in Mechi CCI, Jhapa ,with the chief guest as the Secretary of MOICS


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particularly focusing on quarantine and food regulations covering tea, dairy, spices (ginger, large cardamom), coffee, honey and cereal grain-based products and awareness programs were held in the form of workshops in different places of Nepal; .Mechi/Dhulabari, Biratnagar, Birgunj, Butwal, Nepalgunj and Kathmandu.

? During the entire project period, AEC acted as the resource centre for information related to market access (tariff, quota/ restrictions), SPS and TBT measures at the private sector end. Mutual consultations are taking place on a regular basis with the WTO cells of MOICS and MOAC. By virtue of the important role and contribution made by AEC, the Executive Director of AEC has been included in the National Codex Committee, SPS National Coordination Committee; Mandatory Food Standard Committees formed under the MOAC.

AEC had worked with the MOAC Agribusiness Promotion Division in drafting and finalizing guidelines for export and import certification of agricultural products. In this process, AEC organized a series of consultative meetings involving representatives of commodity associations, business houses, cooperative federation, consumer forums/associations, chambers of commerce and industry and also provided expert service to MOAC in drafting of the guidelines on:

a) Export Import Inspection and Quality Certification System b) Phyto-sanitary Certification System c) Veterinary Certification System

The Government of Nepal has given final approval to the above-mentioned guidelines for the export-import certification. The Export-Import Inspection and Quality Certification System component for food has already been formally posted as WTO Notification in January 2008, for making it effective from April 2008.

2.5 Non-Timber Forest Product Trade

? As, NTFP trade is taking place in a much traditional and -disorganized way, many problems and constraints have been reported in a sporadic and scattered manner, both at local and national levels. Hence, AEC made an attempt to identify and segregate the administrative and policy related issues, constraints at different level of NTFP value chain. A study particularly focusing on the NTFP products of Karnali Zone and that too along the corridor of Jumla-Surkhet-Nepalgunj, the main corridor in the NTFP trade, was conducted along this line. The findings of the study in relation to the problems and issues associated with permits and license for the collection, IEE/EIA requirements, royalty, air-freight, local taxes; SPS regulatory measures of India, market infrastructure, market/price etc, were presented in a series of meetings/ interactive

Photo 16: Guideline Draft prepared and discussed at AEC

Photo 17: Discussion on draft report on assessment of Nepalgunj for wholesale market establishments in Nepalgunj


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seminars held both at local and central levels. It has been realized that supports and coordinated efforts from local municipalities, DDCs, District forest offices, security authorities, airlines, plant quarantine officers at the exit points from both Nepal and India etc. and the respective authorities at the centre is a must for smooth NTFP trade.

? As one of the recommendations from the above study, an assessment study was done to determine the best place for establishing a wholesale market along the main trading route, particularly examining the prospects of establishing such market in Nepalgunj, Surkhet or Jumla. Based on the study report prepared after a series of consultations at respective places, AEC put forward the final assessment report to the concerned government agencies: MOLD, MOFSC and the NPC. The report recommends that a wholesale market be established in Banke District at Ranjha, very near Nepalgunj. The place has been selected on the basis of strong indications that the support from Nepalgunj Municipality for land and JABAN and Nepalgunj CCI for technical and management part would be forthcoming. However, due to the conflict situation and absence of local elected bodies the process of implementation is yet to begin.

? Likewise, AEC also carried out a study to prioritize 10 most potential NTFPs, for commercialization purposes. Based on the evaluation of a large number of criteria and after three interactions at different levels (one at Nepalgunj and two in Kathmandu), the study team finally recommended Amala, Chamomile, Mentha, Timur, Tejpat, Chiraito, Himal: Sugandhawal, Padamchal, Jatamansi as most potential NTFPs for commercialization. The findings were disseminated to the NPC, MoFSC, HNCC, GTZ-PSP, BDS-Maps, FNCCI, NEHHPA and JABAN for their considerations for future promotional programs.

? AEC and BDS-Maps continuously made proactive efforts in advocacy, along with the

NEHHPA and JABAN, for policy reforms through various forums and also extended support in drafting “Herbs and Non-Timber Products Development Policy –2060’ and in speeding up the process of approval of the policy by the GoN. The Policy was approved in December 2004. However, much more needs to be done for successful implementation of the policy.

? Nepal Herbs and Herbal Products Association, BDS-Maps, and AEC jointly organized an interaction program on "Techno-legal Barriers in Export of Essential Oil from Nepal". Issues of HS code, certification system, and administrative constraints during export were presented in the interaction program. AEC has been making follow-up to resolve the issues; but most of the issues are yet to be resolved by the concerned departments. For resolving the issues and for coordinated efforts in developing and implementing NTFP programs an Alliance called Herbs and NTFP Development Alliance, involving BDS-Maps project of USAID, GTZ-PSP, ICIMOD, HNCC, AEC and NEHHPA has been formed. Earlier, AEC had identified 10 items of NTFP, as commercially important products. Based on the GTZ/PSP’s further exercises, the Alliance recently endorsed five NTFP products as the most prioritized products. The alliance carried out a workshop to formulate strategies for the value chain development for these prioritized products. Based on the strategies agreed, NEHHPA and HNCC are expected to promote these value chains in an organized way.

Photo 18: Workshop on Strengthening of Value Chain in NTFPs organized by NTFP Alliance


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? Jadibuti Association of Nepal (JABAN) and Ministry of Forestry and Soil Conservation jointly organized first National Herbs and Herbal Product and Spices Trade Fair in Nepalgunj, in early part of 2006. During this Fair, AEC did extend its support in organizing a policy related workshop where issues on prioritization of NTFP for promotion, organized marketing channel needs, royalties, irrational local tax system, cartel in air transportation, permit & certification requirements were discussed extensively and recommendations were made to the concerned authorities. Similarly, 'Second National Herbs, Herbal Product and Spices Trade Show and Seminar-2064' was also held in December 2007.

At the invitation of NEHHPA, a ten-member delegation of traditional Tibetan medicine manufacturers and traders from Tibet Autonomous Region, the Peoples’ Republic of China visited Nepal from 15th to 21st September 2007. Representatives from China Medical Association of Minorities, Shen Sui Medicine Factory, Gan Nan Tibetan Medicine Institute, Cheezheng Tibetan Medicine Group, etc was among the delegates. The purpose of the visit was to explore the prospects of joint-venture activities in Nepal for production and promotion of traditional medicine and also in expanding herbal product trade between Nepal and Tibet. For the effective interactions, field visits were organized for them by NEHHPA and with AEC’s and BDS-Maps support they also organized a seminar on 'Nepal-China Ethnic Medicine Development and Application' while the delegation was in Kathmandu. Representatives from HNCC, DPR, major herbal companies like Dabur Nepal, Kunfen, (Himalayan Herbal, Cosmos Herbal, Sambala Herbals etc), executives of NEHHPA and JABAN, Singhadurbar Vaidyakhana, ICIMOD, ANSAB etc attended the program. Chinese Delegates showed interest for working in with Nepalese entrepreneurs for promotion of Nepalese NTFPs.

2.6 Water Source Development

? Expert studies have identified smallholders in hill districts not having access to formal irrigation resources as constraint in agricultural development. A study was carried out in light of the existing Irrigation Support Policy, Water Resources Act and Regulations to assess the possibility of assisting smallholders/WUG and disadvantage groups in hill districts for easy accesses to formal irrigation resources and increased access to point sources of water to use for micro-irrigation. The study also focused on accessibility of government fund for smallholder irrigation and for promotion of dual-use of water systems (drinking water/irrigation). SIMI project area was the area covered in the study. Findings of the study have been discussed at a local level seminar. The outcomes from the study and the seminar have been disseminated to Nepal-SIMI and related bodies of the government for consideration in their future program designs and policy adjustments.

AEC in partnership with Nepal-SIMI carried out policy advocacy works for water source development. It assisted IDE and Nepal-SIMI to complete a study on the 'Process and Impact Study of Multiple use (Hybrid) Gravity Water Supply Scheme' in Palpa and Syangja Districts of West Nepal. The findings of the study helped Nepal-SIMI in demonstrating the importance/benefits of Multiple Use (Hybrid) Schemes (MUS) in hilly regions of Nepal and also advocate for effective MUS effectiveness with the government.

Photo 19: A seminar on Nepal-China Ethnic Medicine Development and Application and Tibetan Delegation


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Based on the report a workshop was organized in Kathmandu jointly by Nepal-SIMI, International Water Management Institute (IWMI) and AEC.

? AEC carried out a study titled 'Study on Access to Water Sources Development by small, marginalized and socially disadvantaged targeted groups of farmers in Banke/Bardiya and Surkhet Districts' with technical support of ABTRACO. Some of the recommendations of the study were: expansion of micro irrigation technology; development of the institutional base for micro irrigation and credit; innovation and research for micro level technology; facilitating of multiple use of water sources; support for harnessing of additional water requirement from suggested sources; strengthening of rules and regulations of DWRC; strengthening of institutional base of users committees at local level; documentation of local level custom, traditions, rules and regulations; and norms for systematization of water sources harnessing.

2.7 Policy Advocacy Capacity Building

With its limited staff, with some additional resources from the current USAID Project, AEC has given due priority to the its own capacity building activities for policy advocacy by exposing its staff members, to a variety of advocacy instruments like case studies and case presentations; advocacy meetings; trade fairs organization; participation in relevant seminars/conferences/trainings invited by other agencies; involving them in drafting and making comments on policies/acts/regulations/guidelines etc.

? On behalf of USAID/ Nepal, AEC coordinated a two-day workshop cum training program in December 2004 on “Strategic Market Analysis for International Business Development” at National College of Computer Studies, Kathmandu. The resource person from ITC/Geneva provided the training on market positioning tools, such as ITC’s Trade Map and product-specific strategic tools, Product Map. Participants of the program were officials responsible for trade policy, planning and promotion, from MOAC, MOICS, National Planning Commission, FNCCI, Confederation of Nepalese Industries (CNI), Nepal Chamber of Commerce, BDS-MAP, USAID/Nepal, Department of Customs, Department of Industry, Trade Promotion Centre and Export promotion Council.

? AEC’s advocacy strength and knowledge-base related to agribusiness and agro-product trade is well accepted by key agencies involved in decision making and program formulations like MOAC, MOICS, MOFSC, NPC etc. Being a part of FNCCI, the private sector apex body of Nepal, it has helped AEC in gaining their confidence and get opportunities to be involved in the decision making and consultation processes. Depending on the nature of the activities, FNCCI President, AEC Board Chairman and the Executive Director are being regularly involved in the processes. Involvement of FNCCI and AEC , specific to agriculture and agribusiness, are reflected in Table 6 given below:

Photo 20: Strategic Market Analysis and International Business Development Training Program jointly organized by USAID and AEC


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Table 6: List of National Level Committees and Boards with Representation of AEC

Name of Committee/Committee/Board/Task

Force/Fund

Represented by

Central Agriculture Development Committee ( MOAC) President, FNCCI Agribusiness Promotion Committee ( MOAC) President, FNCCI Nepal China Non-Governmental Forum ( FNCCI-ACFIC) President, FNCCI FNCCI-Federation of Bangladesh Chambers of Commerce and Industry Joint Business Council

President , FNCCI and AEC is the Secretariat

FNCCI-Federation of Pakistan Chamber of Commerce and Industry Joint Business Council

FNCCI President, and AEC is the Secretariat

OVOP Central Implementation Committee ( GON-Private sector Partnership program)

FNCCI President as the Coordinator, AEC Board Chairman as co-coordinator and AEC is the Secretariat

FNCCI-Confederation of Indian Industry Joint Economic Council

President and First VP, FNCCI

National Agricultural Research and Development Fund (NARDF)

Chairman, AEC Board

Central Agriculture Development Implementation Committee ( MOAC)

ED-AEC

National Dairy Development Board (NDDB) ED,AEC Food Standard Committee, (MOAC) ED,AEC Nepal Standard Technical Committee (MOICS) ED,AEC “District and National Implementation of Nepal’s APP” Project (MOAC/DFID)

ED,AEC

FNCCI-SAARC and BIMSTEC Trade Committee ED/AEC as Member National SPS Coordination Committee (MOAC) ED-AEC as Member Organic Farming Coordination Committee ( MOAC) ED-AEC as Member National Codex Committee ( MOAC) ED-AEC as Member Tea and Coffee Development Alliances AEC is the Secretariat

? AEC also carries out various activities in collaboration with many donor agencies like ADB, The World Bank, FAO, JICA, DFID, GTZ, SNV, UNIDO, UNDP/RUPP and international agencies like the Micronutrient Initiatives, WTO/ITC, ICUC etc., This indicates recognition of AEC's and strength in BDS activities including policy advocacy.

? AEC has created a web site www.aec-fncci.org.np where pertinent information about agriculture trade and policy related advocacy material of this project is also hosted.

? AEC publishes and distributes of the news letter “Krishi Udhyam Bulletin” a tri-monthly bulletin covering major activities conducted and policy related matters collected by the center. Policy related issues of different commodities are being disseminated through this publication.

? For an effective policy advocacy it has also prepared special materials for different media (TV, radio, local papers, and press conference) and with the assistance of experts of media related fields. Policy advocacy on tea, SPS & TBT issues, floriculture, three annual pre-budget sessions, Agro Expos 2004 & 2006, etc was done using a popular program of Nepal TV “ Artha ko Artha”. AEC has facilitated telecast of similar programs about commercialization of Nepalese agricultural products through Image channel, Nepal one, Channel Nepal, Avenues TV. Local FM stations like Sagarmatha and HBC FMs have also been used in advocacy of the agribusiness issues.


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Photo 21: (Photo of the OVOP brochure with six products)

? A very good rapport has been developed with foreign diplomatic missions in Nepal particularly that of India, China, Bangladesh, Japan and Pakistan and with Nepalese embassies in India, China and Bangladesh. Such rapport has helped in resolving bilateral trade related issues and exchange of information related to production and trade status, investment and exchanges delegations.

? In order to develop its policy advocacy strength, AEC had focused on maintaining required database and documentation. It has been closely monitoring the policies and regulatory measures of India, China, Bangladesh, Pakistan and other neighboring countries particularly related to agricultural development, agri-product trade. It is also monitoring the regulatory and market situation of some products like tea, coffee, honey, fruits and vegetables, sugar, cereals and NTFPs on one hand and making situation analysis of national production, price/trade of these products on the other. It has also maintained the updated collection of reports and technical documents useful for policy makers, planners, academicians, experts and the agro-entrepreneurs. Its documentation unit is considered by many agencies and agribusiness community as one of the reliable sources of information in Nepal.

2.8 AEC Sustainability

? AEC had taken several initiatives during the project period to make it-self autonomous and self-sustainable after the expiry of the USAID Cooperative Agreement project period. A few program activities mentioned below are worth mentioning, where staff of AEC and a small fund from the cooperative grant has been utilized, in course of their program design stages.

? FNCCI took the initiative to start One Village One Product (OVOP) program in Nepal. The Government of Nepal (especially the Ministry of Agriculture and Cooperatives) had shown noticeable interest to implement the program under the public-private partnership. In line with the philosophy and the initial concept of the OVOP programs, which originated in OITA prefecture of Japan, AEC was in the forefront in the conceptual development of the program, as per the need of the country, starting with the identification of unique/ special agricultural produces and related commodities in different districts and later submitted the program proposal to the Government of Nepal. The proposal was accepted by the MOAC and Ministry of Finance and announced as a priority program of the Government through the 2006/07 Budget Speech of the Finance Minister. MOAC formulated operating guidelines for this private public-partnership program in consultation with FNCCI and as a private sector partner. FNCCI was given the responsibility to lead the program implementation by designating the FNCCI President as chairperson of the Central Implementation Committee and the office of AEC as the secretariat of the OVOP Program. The committee thus made has several line ministries represented at the Joint Secretary/ under secretary levels. The budget for OVOP Program is made available through a special "Basket Fund" jointly operated by AEC and MOAC. The OVOP pilot programs as listed in Table 7 were started from the year 2006/07. At the initial stage, a small project support was utilized for hiring an in-house consultant for administering the


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programs. The programs have been further intensified to meet the set targets. This is a big achievement for FNCCI in making the AEC sustainable.

Table 7: OVOP Pilot Programs

S.N. Commodity Program District 1. Lapsi fruit Bhaktapur 2. Junar ( sweet orange) Ramechap and Sindhuli 3. Rainbow Trout fish Rasuwa and Nuwakot 4. Bael fruit Siraha and Bardiya 5. Nepalese Orchids Lalitpur 6. Agro- Tourism Kaski Lekhanath

? In the context of commercialization of the agriculture sector, with the technical and

financial support from The World Bank, GoN/MOAC has prepared a project document entitled “ Agricultural Commercialization and Trade Project” (ACTP). Based on participatory and demand-driven principles, the proposed project will finance sub-projects aimed at promoting high-value agriculture. AEC has also been entrusted with a vital role of providing “Enterprise Development Services” (EDS) in this upcoming project. The project’s main objective is to promote commercialization of the agriculture sector, and to increase aggregate value addition in key agricultural value-chains in 25 districts by assisting farm producers in market-oriented production, forging linkages between producers; processors, traders and other stakeholders, strengthening institutions, developing agricultural infrastructure, and systems of quality control and certification for export. Final project design is expected to be agreed by a World Bank appraisal mission in March 2008 and the project negotiations are expected to take place later. In course of finalizing the model of the program activities and for preparation of standard operating procedures and Code-of- Conduct documents as required for project agreement, short-term consultants were hired. These consultants compiled selected information on agricultural production and economic infrastructure in 75 districts of Nepal and carried out a study on 'Value Chain Perspectives on Present Status, Issues and Support Needed for Selected Agro and Forest Products (Lentil, NTFPs, Coffee, Floriculture, Honey, Dairy and Vegetable Seeds)'. The final report is used in making proposal for World Bank’s program.

? USAID/Nepal organized one-day 'Share Fair' event on 5 June 2007 to mark its 50 plus years in Nepal. The objective of the event was to profile USAID history, its past projects and achievements and current programs. USAID invited all its partner organizations to participate and exhibit their completed and ongoing programs. AEC, which had been working in partnership with USAID for last 16 years, actively participated in the event. AEC shared information on completed and ongoing programs especially highlighting their scope.

Photo 22: H.E. Mr. James F. Moriarty, US Ambassador to Nepal visiting AEC Stall in the 'Share Fair'

Photo 23: Mr. Donald Clarke , USAID/Nepal Mission Director, visiting AEC Stall in the 'Share Fair'


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AEC also exhibited the agro commodities promoted by it. Diplomatic and donor communities, I/NGOs, GoN Officials and other VIPs and media were among the guests of the event.

? AEC together with other tea alliance partners took a lead in organizing an International Tea Event “Nepal Tea and The World –2004” in November 2004. This helped to enhance its capacity to manage international events. The purpose of the event was to promote Nepalese orthodox tea in the international market and facilitate creation of suitable business environment for tea sector development. Altogether, there were 112 participants (21international participants: buyers, paper presenters and journalists from USA, Germany, India and Japan) representing buyers and sellers; tea factories, donor agencies, and FNCCI. Code of conduct was signed by the members of the Himalayan Orthodox Tea Producers Association (HOTPA) making commitments to maintain quality, environmental and social responsibility standards in production, processing and marketing. The event was highly appreciated by the international buyers and the stakeholders of the tea sector. The opportunity to manage the event has been a very important confidence building exercise for the staff of AEC.

? After the successful organization of Agro-Expo 2002, AEC had decided to hold such agricultural expositions at the national level, biannually. AEC organized two agricultural expositions/ fairs within the project period viz, Agro-Expo 2004 in September, 2004 and Agro Expo 2006 in October 2006 The main purposes of the expositions were to promote Nepalese agricultural products in the domestic market and to create awareness on the stage of development of agriculture and agri-business amongst policy makers;

Photo 26 and 27 : Agro Expo 2004 and Agro Expo 2006 Organized by AEC

Photo 24: "Nepal Tea and the World 2004" International Tea Event: HOTPA President making commitment to Quality.

Photo 25: Agro Expo 2006 Inauguration by Hon'ble Deputy Prime Minister K.P.Oli


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planners; bureaucrats; business and farming communities; consumers; potential buyers and investors. These expositions were organized in public-private partnership model seeking collaboration from Governments agencies particularly MOAC, MOICS and commodity associations and focused on different agro-products (floriculture, vegetable seeds, dairy products, bee-keeping, tea, coffee, lentil, fruits and vegetables, meat and meat products, livestock, sericulture, NTFP etc,) and agro-business promotion and extension services; and locally manufactured agricultural equipments and machineries. Both the expositions can be considered to have been successful and were reported to have been instrumental in creating awareness and promoting Nepalese agro-based products and businesses among the consumers, entrepreneurs, suppliers, policy makers, donors, NGOs and INGOs, civil society etc.

Table 8: Agro Expo 2004 and 2006, at a glance

S.N. Parameter 2004 2006 1 Theme of the Expo Commercial

Agriculture- Nation's Future

Competitive Agriculture for Economic Prosperity

2 Expo Partners DOA, DOLS and 9 Commodity Associations

Different Government Agencies and Commodity Associations

3 No of stalls 152 159 4 No of pavilions 4 9 5 No of

seminar/workshops 0 4

6 No of visitors 25000 55000

? AEC also decided to work together with Winrock International, IDE, CEAPRED and SAPPROS, and has been implementing the programs of the MOAC-USAID SIMI-Nepal project in nearly 10 districts. AEC's major role has been to provide market information services and assist in advocacy required specifically for addressing problems and issues emerging in the field.. The partnership work is thriving and AEC has been given additional responsibility to act as the secretariat for the Tea and Coffee Development Alliances. The project is expected to continue till the end of June 2009.

? A project completion program of USAID supported “Improving Policy Environment for Agriculture Trade, Production and Marketing in Nepal” was organized by AEC on December 20, 2008 in Kathmandu. The chief guest of the program was NPC Vice Chairman Dr. Jagadish Chandra Pokhrel. In the program AEC's achievements, knowledge learnt and future activities were revealed. Key speakers including USAID Director /GDO and participants of the program stressed on the need for the proactive role of AEC in future in support of commercialization of agriculture and agribusiness development efforts in Nepal. The president of FNCCI, Mr. Chandi Raj Dhakal and AEC Board chairman, Mr. Krishna Prasad Tamrakar, both thanked USAID/Nepal for the support extended to FNCCI for the establishment of AEC and nurturing it for past 16 years. Both

Photo 28: Agro Expo 2006 Closing Ceremony graced by Hon'ble Minister for Agriculture and

Cooperative, Mahanta Thakur


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of them made commitments to continue AEC's activities and expand it to the possible extent.

2.9 Gender and disadvantage group related programs

? AEC and FNCCI’s Women Entrepreneurship Development Committee (WEDC) jointly organized an interaction program to discuss issues related to gender and disadvantaged groups involved in selected agriculture products and non-timber forest products. Presentation during the interaction program was based on the studies compiled during year in the five districts of Palpa, Nepalgunj, Surkhet, Jumla, and Dang. During the presentation issues raised for the empowerment of women were: enhancing their access of agricultural extension program, involving them in NTFP trade, easy access to micro irrigation system, introduction of simple mechanical tools, training in marketing and business, eliminating discrimination in wage rates, access to loan, etc.

? A study on “Identification of Policy and Institutional Constraints and Administrative Issues related to Operation of Small Scale enterprises Managed by women, dalits, janajatis and minorities and suggestion of remedial measures in Kapilbastu, Bardia and Dang District” was carried out. The final report has been received and findings and recommendations were presented in a workshop. The chief guest of the program was Honorable Agriculture and Cooperative minister Mr. Chabilal Bishowkarma. He urged for New Model for Social Inclusion and development of concerned sector.

Photo 30: Interaction Program with Chief Guest as the Hon’ble Minister of MOAC Mr. Chhabi Lal Biswokarma

Photo 29: Mr. William Patterson, Director/GDO of USAID Addressing the Project Completion Workshop


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2.10 Liaison office in Butwal

AEC’s Regional Liaison Office (RLO) in Butwal established in January 2005 for back-up support required by AEC for program implementation at local level in the Western Region of Nepal was operational till September 2006. During this period, in addition to helping Butwal CCI in developing an agricultural wing within the CCI the RLO performed the tasks as listed in Table 9.

Table 9: Tasks Performed by Regional Liaison Office, Butwal

S.N. Tasks 1 Study on obstacles in the Export of Fresh Ginger to India 2 Off-season Vegetable Production and Market Management 3 Administrative and Policy Constraints that Small Farmers Face during

Production and Marketing of Fresh Vegetables 4 Facilitation for Participation in the Floriculture Exhibition in Kathmandu

from the local Nursery Entrepreneurs side 5 Present Status of Fruit and Vegetable Wholesale Market in the Butwal

Haat Bazaar 6 Evaluation and Refresher Training for the Trainees of the "Off Season

Vegetable Production and Market Management" held at Palpa 7 Monitoring of the daily collection of the wholesale price of Agricultural

commodities in the Butwal Area 8 Reporting on occasional issues related to the trade of Agricultural

Commodities (dairy and floriculture) to AEC, Kathmandu

In January, 2006 Chamber of Commerce and Industries, Butwal organized a 3 days Agro Trade Fair 2062 supported by AEC as co-organizer, with the objective to promote commercialization of agriculture in Rupandehi and surrounding districts. Local farmers of Rupandehi and surrounding districts got an opportunity to observe different aspects of agricultural development in their areas. Total of 29 stalls including Floriculture, Dairy, and Honey, fruits, Vegetable, Herbal, Poultry and local organization participated in the trade fair. During this event a half-day interaction program on "Agriculture Commercialization in Butwal" was also organised. AEC's RLO Butwal coordinated the event.

2.11 Capacity Enhancement Program in 5 district CCIs

AEC had proposed for an additional funding for an additional program on top of the agreed ones to USAID/ Nepal. The additional program was for the capacity enhancement of five district chambers of commerce and industries ( Pokhara, Butwal, Palpa, Nepalgunj and Surkhet) for making these CCIs capable of taking initiative in policy advocacy and some components of agri-business development services at the local level. The proposal was agreed by USAID/Nepal and the program started from October1, 2006 till the end of this project. The program activities pursued in above five CCIs are listed in Table 10.


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Table 10: Capacity Enhancement Program in Five Selected Chambers of Commerce and Industry ( CCIs)

S.N. Activity CCIs Key Achievements 1 Creation of 'Agro

Business Service Units' within the CCIs

Pokhara, Palpa, Butwal, Nepalgunj and Surkhet

? Provided market information on wholesale markets of respective districts

? Established documentation unit within CCI

? Involved in creating awareness about WTO’s SPS and TBT related issues

? Advocated locally for the commercialization of agriculture through interaction programs

2 Study on 'Identification of Agro and Herbal Products Potential for Commercialization in the District'


Identified agro and herbal products with potential for commercialization in the respective districts

3 Preparation of 'District Profile: A Compilation of Agro Business Related Information'.

Nepalgunj, Butwal and Pokhara

Prepared documents with information relevant to district agriculture and agribusiness such as infrastructure, loan accessibility, electricity, cold storage facility, transportation facilities etc. of respective districts.

4 Preparation of 'Profile of Agro and Herbal Products Traders in the District'.

Surkhet, Nepalgunj, Butwal and Palpa

The profiles included information of the major wholesalers of agro and herbal traders (Both wholesalers and retailers) of respective districts.

5 Wholesale Price Information Service Networking


Transmission/dissemination of information through bulletin boards, circulars and through FM radio stations in some cases. Access to the price information enhancing farmers' bargaining power

6 Interaction Program on 'WTO and its Implication on Nepalese Agriculture and Importance of Value-Chain Approach in Agribusiness'


Farmers, traders, CCI executives and representatives from local NGOs were given orientations on importance of WTO and Value-Chain Approach for Nepalese Agriculture.


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Photo 31: Value Chains in Agrobusiness Promotion Awareness Workshops in Palpa

Photo 32: Value Chains in Agrobusiness Promotion Awareness Workshops in Butwal

3. Actual Accomplishment against Goals

Despite frequent local and countrywide disturbances and poor security situation resulting from the political conflict in Nepal during the project implementation period the overall target achievement has been very good. . Different case studies, reviews, assessments, interaction programs were carried out to facilitate appropriate policy initiative at local, regional and national levels. Table 11 gives summary of the actual accomplishment against goals and targets set as per the project document.. Some further details of the target and accomplished tasks are given in Annex 1.

Table 11: Actual Accomplishment against Goals

Indicators Target Achievement No. of Case studies/prepared for Policy Advocacy

30 32

No. of Sectoral policy and trade-related issues analyzed

7 11

No. of Reviews/Assessments of Bilateral Trade Agreements in relation to Agricultural Trade and support to Government of Nepal on improving its negotiating strength

7 7

No. of administrative or policy reforms proposed and debated

42 43

No. of Policy Reforms adopted by HMG/Local Authorities

42 33

No. of administrative reforms addressing the problems related to female headed household, women empowerment

12 12

No. of administrative reforms addressing the problems related to ethnic and disadvantage groups

12 9

Capacity Enhancement of district chambers of commerce and industry

5 5


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4. Success stories in Policy Advocacy

Box 2: Agri Business Promotion Policy-2063

Box 1: Stopping of Illegal Collection of Local Development Tax AEC/FNCCI has been regularly bringing up issues related to local development tax to the fore. AEC have been raising such issues during meetings with policymakers from MOAC, MOICS, MOLD and NPC and when sending official requests and memoranda. They are primarily for stopping illegal tax collections by local authorities. The pleas are backed by case studies as evidences. Within the project period, AEC prepared four studies starting with the case study on “local tax collection while transportating Fresh Ginger from Nepalgunj to Kakarviita/Jhapa “followed by case studies related to lentils, oilcakes, rice, NTFPs, vegetables etc. The study was carried out after complaints from Nepalgunj CCI in December 2003. The study revealed that operators while carrying a truck load of ginger collected at Dang (Mid western Nepal) to Jhapa (Eastern Nepal) had to pay district export tax at 13 different checkpoints (Dang, Arghakhanchi, Kapilvastu,Rupandehi, Nawalparasi, Bara, Rauthat, Sarlahi, Dhanusa, Mahotari, Siraha, Sunsari and Morang) amounting to a total sum of Rs. 7740 as district export tax (with official receipts ranging from Rs. 100 to 2500 per truck at different places) using the provisions of Local Governance Regulation 2061. Under this legal provision a district had the right to levy the District Export Tax on products produced within that district only. However, from the case study it became apparent that on the pretext of problems in authentication of origin and the trust on the documents issued by other districts, the contractors assigned by the DDCs to collect the tax were erecting barriers on the road and were not allowing the movement of the consignment unless such tax as levied by that district was paid irrespective of the source of origin of the product. All the DDCs were found to be mis-interpreting and misusing the authority given by the rules. Hence, AEC made a strong representation to the concerned line agency, MOLD and sought interventions through MOAC and National Planning Commission as well, to stop this illegal tax collection. Because of the delay in any corrective action, the problem became much more severe and AEC’s help was sought by many CCIs and CAs for stopping such excess e tax collection by contractors. This situation became a major irritant to the mass of farmers, transporters and traders involved in the agricultural production and trade. AEC then prepared three different case-studies (on lentil, oilcakes, rice and NTFP) and based on the substantive evidence made strong plea with the MOLD at different points of time for stopping such practices. Based on repeated requests and public voices, MOLD revised the provisions the Local Governance Regulation, 2061 and tried to solve the problem by including a new provision that no local tax will be collected on agricultural goods in the national highways. The MOLD had also issued instructions and stern warnings to the 13 DDC offices not to collect such taxes for products originating from other districts and in those consignments where such taxes have already been levied. Some districts have decided to abide by the instructions but some are still resenting. Now AEC feels, the problem could be resolved only after resolution of current political conflict and a proper revenue sharing formula is worked out.


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Box 2: Adoption of Agribusiness Promotion Policy, 2063 Although government of Nepal has propounded the strategy of commercial agriculture development in Nepal from the beginning of 10th Plan period, the private sector investment for agro-business could not be attracted sufficiently for commercialization. This was particularly because of the lack of investment friendly and agribusiness supportive policies, and administrative and regulatory mechanisms. AEC had identified several problems and constraints ever since 1995, when it had organized a series of sub-sector wise consultative meetings and conducted continuous advocacy thereafter. The first in series of reform proposed by GON after 1995 was the introduction of National Tea Policy. Later on, National Agricultural Policy was announced by Government, because of the broader perspectives this policy failed to address the explicit requirements of agribusinesses and AEC strongly pursued MOAC and NPC for the need of a separate policy in order to promote agribusiness in Nepal, benefiting all the stakeholders of the value chains involved. As a result, Agribusiness Promotion and Statistics Division of MOAC, with the support of other line ministries and AEC developed the draft policy on agribusiness. MOAC also sought support from AEC in organizing a series of round-table and consultative meetings, inviting stakeholders' (commodity associations, chambers, entrepreneurs, cooperatives and farmers) of various sub-sectors of high-value products (HVP) like tea, coffee, honey, dairy, floriculture, fruits and vegetables, seeds, livestock/poultry etc. AEC agreed and organized such meetings and extended its full support to MOAC in finalizing the draft, which was later approved by the cabinet in December, 2006 as "Agrobusiness Promotion Policy 2063". This was one of the major achievement and success story of AEC as the projects main objective was to do advocacy work to create a favorable policy environment for carrying out agribusinesses in Nepal. The formulation of this policy was based on one of the main objectives of National Agriculture Policy 2061introduced two years before, which is "to develop the bases of the system on commercial and competitive agriculture in against the sustainable, traditional and scattered agriculture system of Nepal". The main operational objectives of the Agribusiness Promotion Policy are: 1. To support in market oriented and competitive agriculture production program, 2. To promote domestic and international market through the development of agro industries and 3. To help reduce poverty through commercialization of agriculture. The major highlights of the policy are underlined as: ? to promote agribusiness program, ? to provide technical support, ? to develop of domestic agribusiness, ? to promotion export of agro products and ? to foster partnership between public and private for agribusiness. Some of the facility supports committed in the policy are identification and development of growth center, special economic zone for production and export area for agro products. Rural roads, rural electrification, irrigation agro business credit, crop/ enterprise insurance, information system development, processing facilities and technical support will be made available in the integrated approach jointly with public, private and cooperatives. Similarly contractual system between agro traders and the entrepreneurs will be made scientific and systematic. Credit will be made available with the collateral of project of enterprise itself. Seventy five percent customs would be subsidized to the equipments for up to 10 years from the establishment of the processing plants. Disadvantaged groups, women, dalits are also being considered to be supported for agribusiness. Twenty five percent rebate on electricity used for cold storage, Wholesale market, collection center and slaughterhouses is being considered for 10 years of establishment. Establishment of Accredited Independent Analytical Laboratories in the private sector will be encouraged. In order to implement the policy a working guidelines is still under preparation and it is hoped that this policy will be operationalised as soon as possible.


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Box 3: Success Story in Addressing Plant Quarantine related issues with India

One of the successful policy advocacies of AEC has been in the field of addressing the issues related to the Sanitary & Phyto-sanitary (SPS) measures enforced by India on Nepalese agro-product imports. As a part of SPS measures, the GoI, Plant Quarantine Authorities did enforce its regulatory provisions of the Plant Quarantine Order, 2003 ( PQO) along the Nepal-India border, effective from 1st January 2004, bringing the Nepalese agricultural product's exports under scrutiny. Chapter II (General conditions for import), number 3 clause 7 of the PQO stated that “No import permits shall be issued for consignments other than those listed in Schedule –V, VI and VII, unless the pest risk analysis (PRA) is carried out in accordance with the guidelines issued by the Plant Protection Advisor (PPA) based on international standards and ---- ”. At that time of first enforcement of PQO, many of the traditionally traded products from Nepal like ginger, fruits, vegetables, lentil, herbs and aromatic plant products ( NTFPs) were not included in any of the schedules attached . So, obviously, the formal import of these products by India was virtually halted on technical ground. This situation caused a great big panic amongst traders, industries and farmers, who were solely depending on the products they export to India. AEC took a proactive role, even in some cases by-passing the formal channels, to resolve the problems and constraints faced in the export trade quickly so as to minimize the damage to the stakeholders and the trade. AEC/FNCCI at that time had acted as the key institution representing private sector and had regularly taken up the issues to the concerned ministries/ authorities, proactively or at the request of commodity associations and local chambers of commerce and industry. As successful stories, some example of approaches and outcomes has been elaborated below: Ginger Since fresh ginger was not included in Schedules-V, VI and VII, of the PQO of India, AEC/FNCCI foresaw that the export of ginger from Nepal would be stopped any time unless MOAC expedited the matter by providing data of existing pest/diseases situation of ginger growing areas of Nepal to the Directorate of Plant Protection, Quarantine & Storage of the GOI. AEC proactively, raised this concern with MoAC and asked them to seriously consider necessary steps so that export of ginger to India would not be hampered during the ginger production season. MoAC then gathered information of existing pest and disease situation of ginger growing areas of Nepal and made that information available to the GOI. No action was initiated for some time by GOI because ginger was considered as one of the most sensitive product, in terms of pest risk and disease. The issue was raised in the IGC meetings between two governments' officials and in the JEC meeting between FNCCI and Confederation of Indian Industry (CII). After a technical evaluation, through circular of 10th October 2004, the GOI included Nepalese fresh ginger in the Schedule VI of the PQO, allowing Nepalese fresh ginger import with a valid import permit and phyto-sanitary certificate from Nepal but not requiring any additional declaration. This gave relief for fresh ginger producers and traders as Nepal has been exporting in an average 25,000 MT annually (around 15% of the total production) to India, worth between Rs. 270 to 320 million annually. Non-Timber Forest Products (NTFPs) NTFPs particularly, herbs and aromatic plants from Himalayas, high hills and terai have been one of the major source of livelihood in many parts of Nepal particularly those who live in remote places. More than 30 products (mostly naturally grown) had been popularly exported to India and greater demand existed in India for these products. From 1st July 2004, exporters of these products had to face the Plant Qarantine Order (PQO) imposed by India . As most of the Nepalese herbs and aromatic plants were not listed in the schedules of PQO, the import of these products were halted by the Indian quarantine checkposts along the major exit points. Immediately, AEC received a series of request from different district chambers ( Nepalgunj, Kanchanpur, Siddharthanagar ) also from major traders of NTFPs. Based on their request, AEC/FNCCI had approached the Ministry of Agriculture and Cooperatives and also did strong advocacy with the IGC meeting delegates from India representing Ministry of Agriculture including plant quarantine, while they were here in Kathmandu. During the brief informal meetings, the delegates advised AEC to help GON to forward the list of mostly-traded NTFPs, as their


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Continuation from previous page plant quarantine offices had no such lists available. Based on the request a list was prepared by National Plant Quarantine Office in consultation with AEC and JABAN and forwarded to the GOI through official channel.

As agreed in the IGC meetings held earlier, GOI did release a circular in August 2004, stating that import of medicinal herbs may be allowed in dry & coarse grounded/powered/kibbled form, subject to valid phytosanitary certificate and no permit requirements as stipulated in the Plant Quarantine Order, 2003

The above decision by the GoI has facilitated the export of raw herbs and aromatic plant-products to India. In the mean time, GOI authorities also advised Nepalese traders to improve the trading practice of NTFP products by proper value additions ( sorting, cleaning, drying and excluding unwanted parts) in order to avoid quarantine related risks and chances of rejection during the quarantine inspections. Both, AEC and National Plant Quarantine Office had to do a lot to educate the exporters through different forum so as to avoid letting the inspection authorities of India to use their discretions. Now, much improvement has taken place and the trade of NTFPs is reported to incur few problems in relation to PQO regulations of India.

Jute Products

Nepal Jute Mills Association wrote a letter to the Federation of Nepalese Chambers of Commerce & Industry in October 16, 2004 notifying about the memorandum issued by Directorate of Plant Protection of the Department of Agriculture, India, dated 22-09-2004 regarding compliance of plant quarantine order 2003 (regulation of import into India) on import of products made of jute fibers. As a result of this memorandum export of Nepalese jute to India was halted completely. The Association asked for AEC’s assistance in resolving the problem. Export of jute products (Hessian cloth/bags, twines etc) have been one of the major agricultural product exports of Nepal averaging about 30000 MT/year worth Rs18 Million (2004) and India has been the major importer.

AEC sent an official letter on 18th October 2004 to Plant Protection Advisor and Director, Locust Control of Directorate of Plant Protection, Quarantine & Storage, Faridabad India raising the issue of export of Jute to India, advocating that processed jute exported from Nepal technically do not need plant quarantine certificate, as the Plant Quarantine Order 2003 (revised) of GoI sub-clause (3) of chapter II clause 9 has such provisions mentioned for consignment of processed wood material such as plywood, particleboard, oriental strand board or veneer that have been manufactured using glue, heat and pressure or combination thereof ”.Copies of the letter were provided to MOAC, MOICS, and Nepalese Embassy, New Delhi.

Later, along with two members of the NJMA, the Executive Director of AEC went to New Delhi and Faridabad/UP to meet the Plant Protection Advisor and other authorities and appraised them with technical details and discussed the issues in length and convinced them that as per the international norm and GoI's own regulations the processed jute do not fall under the category of products requiring quarantine

In addition, the issues were also discussed during the Inter Governmental Committee meeting that was held in New Delhi at the end of October 2004 at Joint Secretary Level. Such a quick and proactive advocacy with limited bureaucratic process gave a positive result immediately. The Advisor in November 2, 2004 sent a letter to the Executive Director of Agro Enterprise Center mentioning that “The issue has been thoroughly examined and after considering the details of heat treatment/chemical processing involved in the manufacture of final jute products as well as proper packing of the same in storage as submitted by you vide your above cited letter, it is observed that no phyto-sanitary risk is involved with such processed jute products. Hence, the processed jute products are exempted from the purview of Plant Quarantine (Regulation to Import in to India) Order, 2003.” Based on this decision, the export of jute goods to India resumed after a short period of about a month. The ban had disturbed the production of jute mills and put uncertainty of job amongst the employees and laborers.


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Box 4: Lifting of Ban by Government of India on the Import of Fresh ginger from Nepal

On the basis of information provided by various chambers of commerce and industry (Jhapa, Butwal, Siddharthanagar, Nepalgunj and Palpa ) that the farmers and traders were in great difficulty because of the sudden ban on import of fresh ginger imposed by GoI in November 2004, AEC made a serious attempt to find out actual reason for the ban and potential impacts on Nepalese trade of ginger to India.. AEC found that the Indian measure was applied abruptly based on the Indian Foreign Trade Policy, which was not applicable in case of trade with Nepal. The trade between Nepal and India was traditionally occurring for long time and free movement of primary agricultural products were allowed as per the Nepal-India Treaty. Just six months earlier, with efforts from Nepal ginger was included of in the product schedule of Plant Quarantine Order, 2003 of India which allowed its import with phyto-sanitary certificate issued from Nepal.

The ginger production of Nepal has been around 150,000 MT annually, mostly concentrated in a few districts like Illam, Jhapa, Palpa, Syangja, Tanahu, Dang, Sallyan. The official record showed that the volume of its export to India averaged around 25,000 MT annually, almost over 15% of the total production. Hence, sudden and unexpected restriction of ginger import from Nepal by GOI made an adverse effect in production of ginger and market prices. As a result, AEC decided to take up the matter strongly with GoI through GoN and sent a formal request to the authorities of both governments to lift the ban immediately as the measure taken by the GoI contrary to the letter and spirit of the Nepal-India Trade Treaty. Because of the bureaucratic processes, it took quite a long time for the GoI to make its decision. Finally, an inter-ministerial meeting, held in New Delhi on 15th June 2005, made a decision to honor the bilateral trade treaty and clarified that the import of fresh ginger from Nepal under the trade treaty may be allowed freely as earlier. Subsequently, this decision was notified by the Director General of Foreign Trade (DGFT) of India to the Commissioner of Customs (Preventive), Lucknow, and customs of Kolkota and Patna. This facilitated the legal export of fresh ginger to India, giving a huge relief to the farmers and traders even though it took long time and the trading season was almost over.


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Box 5: Establishment of Agribusiness Service Units s within Local Chambers of Commerce and Industry

As a part of the project, Capacity Enhancement Program was carried out in Pokhara, Palpa, Butwal,

Nepalgunj and Surkhet Chambers of Commerce and Industry from October 2006 to November 2007. The objectives were to enhance the Chambers' capacity in policy advocacy at local level and support their proactive role in local development. Under the program, major activities carried out were, formation of Agribusiness Service Unit (cells) within the Chambers of Commerce and Industry with representation from local cooperatives and local government, carrying out various studies, conducting various interaction programs and policy advocacy at local level on burning issues related to Agro-business and conducting awareness programs at local level to provide orientation on WTO' SPS and TBT measures and Value Chain Approach.

Agro-Business Service Units have been established in each of the five CCIs with representation from local cooperatives and local government. Major activities of the Unit aree to carry out Market Information Service, maintain Agro Business Information Database and advocate policy issues at local level. A study on 'Identification of Agro and Herbal Products Potential for Commercialization in the District' was carried out by each of the 5 CCIs. Similarly Palpa, Butwal, Nepalgunj and Surkhet CCIs prepared 'Profile of Agro and Herbal Products Traders in the District' and 'District Profile: Compilation of Agro Business related Information in the District' was prepared by Pokhara, Butwal, and Nepalgunj CCIs. Awareness Program on WTO' SPS and TBT measures and Value Chain were carried out in each of the 5 CCIs.

AEC/FNCCI/USAID assisted the Chambers technically and financially to carry out the programs including a package training (Three days) for operating the Agribusiness Service Unit to the CCI staff. Local consultants were mobilized to carry out all the above-mentioned programs, while AEC assisted the Chambers whenever need was felt. As per our objective, the capacity of the Chambers is enhanced and they are deeply involved in Agro-Business Promotion Activities. Market Information Service is running well, both in collection and dissemination of Daly Wholesale Price of some selected Agro and Herbal Commodities. The Units established are equipped with a computer, Internet connection and various documents/reports/books/booklets. They are being regularly updated.

Agro Business Service Units in all five Chambers are now functional and carrying out various activities on their own initiation and other CCIs are also moving along the line to create such units within their offices.


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5. Lessons learnt, major challenges and constraints faced Amidst a very unstable political situation of the country, AEC faced following major

challenges and constraints while implementing the project:

? Due to the armed-conflict and frequent unrests at the time of implementation, the movement of staff and experts had to be postponed many times in many parts of the project area. Such a situation delayed the implementation of scheduled programs of survey, field visits, and interaction programs at different districts. However, no physical threat to AEC's team were reported while making field visits as their movements were well coordinated by local chambers of commerce and industry and by liaison office at Butwal.

? Exercises to reach a larger mass and to run awareness programs or social mobilization/ information exchange programs or to identify deep-rooted issues and constraints at the local level by going into the interior parts of the target districts became very risky in most of the cases. Although it was realized that for identification of deep-rooted issues and constraints at the grass-root level the involvement of stakeholders in the wider areas would have been desirable, but AEC had no choice other than to limit itself to some specified areas which were less prone to armed conflict and where quick RRAs could be done. Mass interactions had to be limited only in the district head quarters or in the Chambers located in the municipalities.

? Frequent changes and delays in appointments of Members in the National Planning Commission, and of the Secretary/ Joint secretaries of all the ministries directly concerned with policy reforms (particularly, MOAC, MOICS, MOFSC and MOLD and Director Generals at department level), and long leadership vacuum in the offices of DDCs responsible for the local governance, forced AEC to be involved in frequent re-convincing exercises and repeated advocacy/follow-ups.

? Poor realization of the need for development and strengthening of agribusiness value-chains at the levels of both bureaucracy and political leadership is found to be one of the major hurdles. Their perceptions and actions in many instances have confused farmers and business community. They seem to lack the understanding of the need for strong backward-forward linkages between for commercialization of agriculture and increasing its competitive strength. Such a situation has created the state of blame games between the two groups of stakeholders. Problems and issues raised by each side in most of the cases is too much self-oriented, making it difficult to move ahead for further advocacy and improvements.

? Politicalisation of cooperatives and differences in the way of viewing cooperatives and the private sector by various politicians and bureaucrats have widened the gap between these two sides. The differences in policy announcements by various agencies involved have discouraged in many cases the private sector in making investment in many commodity sectors citing the unequal level-playing fields among various actors of subsectors..

? In many cases like tea, coffee, honey conflicting interests of main stakeholders and bureaucrats and even the donors have made the policy advocacy less effective.

? Gradual erosion of competitiveness of Nepalese agricultural produces, both in terms of quality and price, in the export front and even within Nepal, have been


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observed resulting from cheaper production of similar products in neighboring countries particularly India and China, where every year additional incentive packages and subsidies are introduced, mission programs are launched and infrastructural facilities are created in support of large scale farmers and value chain actors. This is becoming one of the biggest challenges negating the effectiveness of any mild policy reforms addressing the issues and problems faced by farmers and agribusiness communities being introduced by GoN .

? Besides the price competitiveness fulfilling the requirements of SPS/TBT regulations in the bilateral and multilateral trade of agricultural products is becoming one of the major challenges, as seen in the current project activities. Creation of infrastructure for monitoring and cost associated with required testing and certification are further eroding the cost-competitiveness of Nepalese produces. This may totally erode the trade competitiveness of Nepalese agricultural products unless drastic rescue measures are agreed and acted upon.

? On the name of revenue generation for DDCs, rampant collection of local taxes has become a very big irritant to the farmers and traders. Lack of a proper decision making body at the district level and the political will to withdraw such unscientific and unmanageable taxes is becoming counter productive to the efforts of development and policy reforms.

? Limited staff and resources of AEC and growing aspiration/confidence of the clients on it made it difficult for AEC to cope with the demand for its services

The Lessons learnt by AEC from the implementation of the project are described below:

? AEC's approach of holding an interaction program at local level with the proactive participation of representatives from local CCIs, commodity associations, local government bodies, farmers’ groups and cooperatives, traders, etc for major case studies , assessment studies , have been very much appreciated. Inputs received at such interaction programs have helped tremendously in identifying local issues and finding out solutions locally.

? Advocating by presenting the final report at a regional or a local level has been very much appreciated and additional feedbacks have become an additional feature.

? The issues and findings from different studies have helped AEC/FNCCI to convey the message to appropriate policy makers while attending different high-level meetings called by different government bodies. The AEC aims to publish booklets with its view incorporating some of the findings and recommendations for an effective advocacy.

? A member staff of AEC/FNCCI accompanied study teams of ABTRACO (during the initiation of the program at a district) so that they could be directly involved in assessing the implementation part. Feedback received from such involvement has assisted the AEC to lead program proactively.

? Some in-house staff provisions are also required to compile/scrutinize and to gather primary and secondary data and to provide them to the study team in order to make the study more useful and complete.


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? Some additional in-house staff provisions are also required to compile/scrutinize primary and secondary data and to provide them to the study team in order to make the study more useful and complete.

? Opportunity to take proactive initiatives given by the AEC board and the project agreement in the program formulation and implementation became highly beneficial for identification of issues and problems and quick resolution of the problems and issues and in earning confidence of commodity associations and agro entrepreneurs on its capability to do effective policy advocacy and deliver business development services.

? The strong network of FNCCI within the country particularly link with the local chambers of commerce and industries were instrumental in successful materialization of the program activities in a cost effective way and helped in effective local level advocacy. In the mean time, sister relationships of FNCCI with similar organizations in India, Bangladesh, China and Pakistan helped expedite the resolution of many issues and problems that emerged in respective bilateral trades.

? Partnership programs involving local chambers of commerce and industry, government institutions and commodity associations have been highly effective and successful. For future sustainability, AEC feels that more programs of such nature will have to be initiated.

6. Statement of Budget and Expenditure

Total Budget agreed and finally allocated for the project was US $ 319,626. And the actual expenditure (as per the final audit report) that has been incurred during the project period is US $ 289,490 (around 91 percent of the total budget). Cost-sharing contribution from the AEC for the project was around US $ 87,300, which amounted to about 30 percent of the USAID contribution as against the initial commitment of around 16 percent. Details are given in Table 9

Table 11 : Preliminary Status of Finance Fund Accountability

No. Activities Budget Rs. Actual NRs. 1. Salary and benefit of program staffs 9,546,665 8,627,858 2. Travel and per diem 2,466,200 3. Consultants 4,252,500 4. Program Costs 4,908,455 5. Equipments 750,000 6. Other direct costs 450,000

916,096 4,349,834 5,307,644 727,930 334,992

Total Rs. 22,373,820 20,264,356 US $ 319,626 289,490

AEC’s Contribution in cash and kinds Rs. 3,682,210 6,113,204 US $ 52,603 87,331

I US $- Rs. 70


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Annex I : Elaboration of Indicators and Target Achievements

Indicators Target Achievements (Itemized) Case studies/prepared for Policy Advocacy

? Case study reports prepared for identification of administrative and policy

constraints faced by: - Small coffee producing farmers of Palpa District

- Small honey producing farmers ofDang district - Small vegetable seed producing farmers of Dang and Jumla districts - Small vegetable producing farmers and market access in Rupandehi,

Banke, Surkhet, Jumla Districts - Carrot seed production and marketing in Jumla - Apple Production and Marketing by in Jumla ? Case studies prepared for reviewing royalties on certain NTFPs and for

extending validity of permits and licenses for collection of NTFPs in Karnali Zone, non-scientific Royalty Fixing Mechanism of some of the NTFPs

? Case study prepared for simplifying Initial Environment Evaluation (IEE)

required for collection of NTFPs in Karnali Zone ? Four Case studies on local tax collection during transportation from one

point to another by DDCs ( lentils, ginger and oilcakes, vegetables and rice) prepared

? Case study regarding lack of an adequate storage and collection centers for

apples in Jumla, and for NTFPs found in Karnali Zone prepared. ? Case study on Shreejansheel Mahila Multipurpose Cooperative of Rupandehi

and Madikhola Multipurpose Cooperative of Palpa prepared . ? Case study on Wholesale Vegetable Traders of Birendranagar prepared

? Case study on removal of VAT from wheat flour, mustard oil, tea export

house, some dairy products, vegetable seed, sugar prepared ? Identification of potential agricultural products for commercialization in

Palpa, Pokhara, Butwal, Nepalgunj,and Surkhet ? Needs assessment for a wholesale market for NTFPs in Jumla-surkhet-

Nepalgunj Corridor ? Identification of non-tariff barriers ( SPS and TBT related ) in the export of

:tea, coffee, cereals, honey, spices, dairy products

Sectoral policy and trade-related issues analyzed

? Separate detailed study reports prepared analyzing trade competitiveness of: - Vegetable seeds: {radish (mino-early), carrot (new kuroda) & hybrid

tomato. - Ginger of Palpa, Syangja and Tanahu - Off-season vegetables of Kaski, Palpa, Baglung and Parbat - Nepalese Coffee - Nepalese Honey - Nepalese floricultural products ? Study report on vegetables and market access in Banke providing sectoral

policy and trade-related issues ? Identification of top ten NTFPs for commercial production and private

sector investment promotion


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Indicators Target Achievements (Itemized) ? Preparation of Pest Risk Data Report on Ginger and apple from Nepal

? Preparation of Pesticide Residue Monitoring Plan for Honey

? Preparation of Guidelines for export-import certification system

Reviews/Assessment of Bilateral Trade Agreements in relation to Agricultural Trade and support to Government of Nepal on improving its negotiating strength

? Case studies prepared for advocacy with Government of India for: - rReduction by at least 50% of the plant quarantine fee charged by the plant

quarantine office of the Government of India. - Allowing import of Nepalese ginger and beetle-nuts based on the bilateral

agreement between India and Nepal. - Allowing import of Nepalese Jute products into India - Allowing import of NTFPs into India ?Assessment of International trade of agricultural products through Mechi-

Panitanki Border route made. ?Study report on 'Nepal-Bangladesh Trade: Trend and Situation Analysis'

2002-2007 prepared ?A series of bilateral visits to India, Bangladesh, Pakistan and China for

advocacy with govt. authorities and participation in apex business council’s meetings undertaken.

?Major achievements of the efforts in Bilateral/multilateral trade

?Opening of three more exit points for export of agro-products to India

?Inclusion of Lentils, ginger, NTFPs, jute products, in the schedules of Plant

Quarantine Order of GOI for allowing import of these products to India ?Reduction of quarantine inspection fee by 50% by the plant quarantine authority

of India ? Simplification of food sampling/testing procedures on the import Nepalese

Tea, lentil, honey etc. ? Lifting of restriction on import of Nepalese Ginger imposed on the basis of

Exim Policy of India. ?Construction of land port by Bangladesh Government at the Banglabandh /

Fulbari Border to facilitate trade with Nepal ?Duty free access for tea in Pakistan ? WTO Membership of Nepal

Administrative or policy reforms proposed and debated

? Administrative or policy reforms proposed and debated were during submission of AEC/FNCCI’s (private sector’s) opinion in different draft version of policies, & presentation of findings and recommendations of different study reports at various levels,:

? National Dairy Development Policy, 2060 ? National Agriculture Policy, 2060 ? Agribusiness Promotion Policy 2063 ? Herbs and Non-Timber Products Development Policy, 2060


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Indicators Target Achievements (Itemized) ? National Agri-biodiversity Policy 2063 ? Agriculture Research Policy 2060 ? Local Self Governance Regulation, 2060 ? National Poultry Policy, 2060 ? Industrial Policy 2063 ? Micro enterprise Development Policy 2063 ? National Floriculture Policy 2063 ? Biotechnology Policy 2063 ? Plant Protection Act-2060 (revised version), ? National Seed Act-2061, ? Bio-Diversity Act-2063, ? Plant Breeders and Farmers Right Act-2063, ? Micro Enterprise Development Act-2063, ? Competition Bill 2060 (2004). ? Organic farming standards and practices ? Code of Practice for Dairy Industry ? Code of Conduct for Orthodox tea Production, processing and

marketing ? Request to MOFSC and HNCC for reviewing royalties of certain NTFPs

collected in Karnali Zone ? Request to MOFSC and HNCC for extending validity of permits and license

for collection of NTFPs in Karnali Zone ? Request to MOFSC and NPC for simplifying IEE required for collection of

NTFPs in Karnali Zone ? Request to NPC for program support for construction of collection centre and

warehouse for apple and NTFPs at Jumla airport ? Request for breaking up of cartel of airlines raising air-freight cost during

transportation of NTFPs and Apples from Jumla ? Request to MOICS and MOAC for taking appropriate steps for reduction of

the plant quarantine fee charged by the plant quarantine office of the GOI by at least 50%.

? Request to MOICS and MOAC for taking appropriate steps for allowing

import of Nepalese ginger, lentils, jute, NTFPs and vegetables/fruits by GOI and requesting the GOI for revising the schedules.

? Request to MOAC and MOICS for taking appropriate steps for allowing

import of Nepalese ginger by GOI, based on the bilateral agreement between India and Nepal.

? Request to MOLD and MOAC to stop collection of unauthorized local tax

being levied during movement of ginger, rice, banana, NTFP, vegetables, honey, lentil etc.

? Request to MOF, MOICS and MOAC for removal of VAT on wheat flour,

mustard oil, vegetable seeds, honey, micro irrigation devices and VAT refund on tea for exporters


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Indicators Target Achievements (Itemized) ? Request to MOAC and MOICS for upgrading government food testing

laboratories and facilitating private sector laboratories for testing of pesticide and antibiotic residues and other food safety/quality parameters

? Request to MOAC for speeding up the process of membership in

International Plant Protection Convention (IPPC) to be able to use logo for wood packaging material treatment required under ISPM 15.

? Request to MOAC for generation of information required on plant pest and

diseases associated with different fruits and vegetables, that are needed for PRA and PFAs.

? Request to MOF for reduction of tariff in the import of refrigeration vans

? Request to MOAC and NPC for promotion of micro-irrigation for small

holders of land ? Request MOAC for introduction of export –import certification required for

export of Nepalese agricultural products ? Request MOAC/ Department. of Food Technology and Quality Control for

preparation of pesticide residue monitoring plan ? Request to MOAC and MOICS for formulation of "One Village One

Product" campaign program in public-private partnership basis Policy Reforms adopted by the government of Nepal/Local Authorities

? New Policies /Policy Reforms adopted by the GoN and the Acts passed by the Parliament:

o National Dairy Development Policy, 2060 o National Agriculture Policy, 2060 o Agribusiness Promotion Policy 2063 o Herbs and Non-Timber Products Development Policy, 2060 o National Agri-biodiversity Policy 2063 o Local Self Governance Regulation, 2060 o Plant Protection Act-2060 (revised version) , o National Seed Act-2061 o Bio-Diversity Act-2063 o Competition Act 2060 o Organic farming standards and practices o Code of Practice for Dairy Industry o Code of Conduct for Orthodox tea Production, processing and

marketing ? Among the requests sent to the GoN and GoI for resolving the issues of

Quarantine and bilateral trade related problems, only three requests are still pending:

- Recognition of Nepalese testing certificate during export of food products

- Inclusion of fresh vegetables and fruits from Nepal in the schedule of GoI Plant Quarantine Order, allowing their import to India from Nepal

- Indirect restriction of Nepalese beetle-nut export to India ( asking for entry only through Mangalore port)

? MOFSC has introduced revised Royalty rates, is working on for making

permits and license practical in discussion with Ministry of Environment,


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Indicators Target Achievements (Itemized) Science and Technology to deal with IEE required for collection of NTFPs .

? NPC has already formulated a separate package of programs for Karnali zone

to address their requirements and now the road up to Jumla district HQ has been completed. This is changing the dimension of the local and administrative problems.

. ? Budget speech of 2005 has reduced VAT on wheat flour, and mustard oil by

25%. VAT on vegetable seeds has been waived as requested. GoN is considering introduction of multi-tier VAT system to address the issues of VAT in agricultural products.

? Through the Budget speech of 2006/07 GoN endorsed the OVOP program

and allocated fund for its implementation, as a public-private partnership program with FNCCI.

? The Plant Quarantine Program has prepared PRA documents for apple and

ginger with AEC's support and Tomato, citrus and garlic by NPQO itself. ? Facilities of Plant Quarantine Offices of Nepal at different boarder points and

at the HQ have been upgraded. ? MOLD had banned collection of local taxes along the national highways and

13 DDCs have been directed not to collect the local tax at multiple sources. .

? Guidelines for Export-Import Certification Systems have been approved by GoN and MOAC had already put this up under WTO notification for its formal implementation.

Administrative reforms proposed for addressing the problems related to female headed household, women empowerment

Five different cases of Palpa (coffee), Dang (honey), Nepalgunj (vegetable), Surkhet (NTFP collection), Jumla (NTFP collection & trade) were raised and presented during an interaction held in Kathmandu. ? Main issues that were raised for the empowerment of marginalized and

disadvantaged groups of farmers are as follows: 1. Enhancing access to agricultural extension program 2. Involving them in NTFP trade 3. Easy access of theirs to micro irrigation system 4. Introduction of simple mechanical tools 5. Enhancing their knowledge in business aspects 6. Elimination of wage discrimination 7. Easy access to loan 8. Migration of honey bees 9. Access to information

? Following Cases were prepared for advocacy based on the study carried out in the second program year

1. Rupandehi (Vegetables, Cooperative) 2. Surkhet (Vegetables, Cooperative) 3. Banke (Vegetables, Cooperative) 4. Jumla (Carrot seed & Apple)

? A study was carried out on policy and administrative constraints in operation

of Small Scale Enterprises headed and managed by Women, Dalit, Janajatis and Minority . The main remedial measures suggested are: 1. Making provisions for contractual agreements for land and farming


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Indicators Target Achievements (Itemized) 2. Micro credit accessibility and orientation to them on proper use of it 3. Training/Exposure visits to be organized for such enterprises 4. Coordination among GOs, NGOs and INGOs at the field level

Administrative reforms proposed for addressing the problems related to ethnic and disadvantaged groups

? Five different cases of Palpa (coffee), Dang (honey), Nepalgunj (vegetables), Surkhet (NTFP collection), Jumla (NTFP collection and trade) presented during an interaction held in Kathmandu.

Issues were raised for the empowerment of women and enhancing their access to agricultural extension program, involving them in NTFP trade, easy access for them to micro-irrigation system, introduction of simple mechanical tools, training in marketing, business aspects, eliminating discrimination in wage rates, easy access to loan, migration of honey bees, etc. More cases have been prepared for advocacy based on the study carried out in the second program year in Rupandehi (Vegetables, Cooperative), Surkhet (Vegetables, Cooperative), Banke (Vegetables, Cooperative), Jumla (Carrot seed and Apple) and recommendations were made to the concerned authorities.

Capacity Enhancement of district chambers of commerce and industry (CCIs)

? CCIs in Pokhara, Palpa, Butwal, Nepalgunj and Surkhet have established Agri -business Service Unit for the promotion and facilitation of agri business in the respective districts and each CCI has prepared a series of district and traders profiles, provided market information services and conducted advocacy meetings to address the important issues specific to the districts.


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Annex II: List of Commodity Associations worked with

1. Floriculture Association Nepal (FAN)

2. Seed Entrepreneurs Association of Nepal (SEAN)

3. Nepal Herbs and Herbal Products Association of Nepal (NEHHPA)

4. Jadibuti Association of Nepal (JABAN)

5. Federation of Nepal Bee Keepers

6. API-NET

7. Nepal Tea Association (NTA)

8. Nepal Tea Planters Association (NTPA)

9. Himalayan Orthodox Tea Producers Association (HOTPA)

10. Nepal Coffee Producers Association (NCPA)

11. Nepal Rice and Oil Mills Association

12. Nepal Sugar Mills Association

13. Nepal Flour Mills Association

14. Nepal Dairy Association

15. Nepal Hatchery Industry Association

16. Nepal Feed Industries Association

17. Cold Storage Association of Nepal

18. Nepal Jute Mills Association


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Annex III: List of Chambers of Commerce and Industry and Cooperatives worked with

JAPEC, Cooperatives in all districts that studies were carried out

1. List Of Chambers of Commerce and Industry (CCI)worked with

? Bardiya

? Surkhet

? Jumla

? Mugu

? Humla

? Kalikot

? Dolpa

? Nepalgunj

? Dang

? Kapilbastu

? Butwal

? Siddharthanagar

? Palpa

? Nawalparasi

? Syangja

? Kaski

? Narayangarh

? Ratnanagar

? Tanahun

? Morang ( Morang Chamber of Industry)

? Jhapa ( Mechi CCI)


47

Annex IV: List of Study Reports /Publications of AEC

S.N. Title of Study Report/Publication 1 Identification of Administrative and Policy Constraints that Small Farmers Face in Palpa

(Coffee)-(July 2004)

2 Identification of Administrative and Policy Constraints Faced by Honey Producing Small Farmers in Dang District -(July 2004)

3 Trade Pattern of Non Timber Forest Products (NTFPs) in Jumla, Surkhet and Nepalgunj: Appropriate Policy Measures for Business Support and Trade Enhancement- (August 2004)

4 Identification of Administrative and Policy Constraints Faced by Small Farmers Producing Vegetables Seeds in Dang and Vegetables in Banke Districts-(September 2004)

5 A Study Report on Trade Competitiveness of Vegetable Seeds [Radish (Mino Early), Carrot (New Kuroda) & Hybrid Tomato-(September 2004)

6 Issues Related to Gender and Disadvantaged Groups of Selected Agricultural Products and NTFPs-(March 2005)

7 Presentation on 'SPS and TBT Measures in Cereals and Cereals Products in Nepal'- (May 2005)

8 Presentation on 'SPS and TBT Measures in Cereals and Cereals Products in Eastern Region of Nepal' - (May 2005)

9 Presentation on 'SPS and TBT Measures in Tea Sub Sector of Eastern Region of Nepal' - (May 2005)

10 Presentation on 'SPS and TBT measures in Dairy Sub-sector of of Nepal' - (June 2005) 11 Trade competitiveness of off-season vegetables in Palpa, Kaski, & Baglung/Parbat and ginger

in Palpa, Syangja and Tanahu - (September 2005)

12 Identification of Administrative and Policy Constraints that the Small Farmers Face in Jumla (apple, carrot seed) and Surkhet and Rupendehi (fresh vegetables) and Analyze the Functioning of Existing Agricultural Co-operatives and Identify Policies for their Effectiveness- (October 2005)

13 Trade of Agricultural Products through Mechi-Panitanki Border - (2005) 14 Process and Impact Study of the Multiple Use of (Hybrid Gravity Water Supply Scheme) in

Palpa and Syangja Districts of Western Nepal- (2005)

15 Removing Barriers in Export of Nepalese Agro Products to India through Mechi/ Panitanki Custom Point -(2005)

29 Interim Report of Preliminary Survey for Identification of Pest Free Area for Fruit Flies (FF-PFA) of Citrus of Nepal ( August 2005)

16 Wholesale Market Assessment of NTFPs: Nepalgunj and Surkhet Region-(December 2005) 17 Access to Water Source Development by Small, Marginalized and Socially

Disadvantaged Targeted Groups of Farmers in Banke/Bardiya and Surkhet Districts- (February 2006)

18 Presentation on 'SPS and TBT measures in Spice (Cardamom and Ginger) Sub-Sector of Eastern Region of Nepal' -(February 2006)

19 Presentation on 'SPS and TBT measures in Tea Sub Sector of Eastern Region of Nepal'- (February 2006)

20 Presentation on 'SPS and TBT measures in Dairy Sub-sector of Eastern Region of Nepal'- (February 2006)


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21 Monitoring and Evaluation of the Project Period Nov 2003-Sep 2005- ((February 2006) 22 Compilation and Prioritization of ten Important NTFPs of Nepal for Commercial Promotion

through Private Sector Investment - (April 2006)

23 Trade Competitiveness of Nepalese Coffee (Palpa)- (May 2006) 24 Trade Competitiveness of Nepalese Honey (Dang)- (May 2006) 25 SPS and TBT measures in Export of Nepalese Honey- (September 2006) 26 PRA of Apple and Ginger, (2006) 27 Generic Pest Risk Analysis for importation of Ginger into Nepal (2006) 28 Nepal Apple Pest Database Generation and Generic PRA for importation of Apple into Nepal

(2006) 30 Trade Competitiveness of floriculture Sub-sector in Nepal - (June 2007) 31 Monitoring and Evaluation of the Project Period Nov Oct 2005-Sep 2007- (October 2007) 32 Nepal-Bangladesh Trade: Trend and Situation Analysis- (October 2007) 33 Value Chain Perspectives on Present Status, Issues and Support Needed for Selected Agro and

Forest Commodities- (October 2007)

34 Compilation of Selected Information of 75 Districts of Nepal on Agricultural Production and Economic Infrastructures-(October 2007)

34 Identification of Potential Agro Commodities for Commercialization in the District in Kaski, Palpa, Rupandehi, Banke and Surkhet Districts-(November 2007)

35 Profiles of Agro and Herbal Products Traders of Palpa, Rupandehi, Banke and Surkhet Districts-(November 2007)

36 District Profiles of Kaski, Rupandehi and Banke-(November 2007) 37 Identification of Policy and Institutional Constraints and Administrative Issues related to

Operation of Small Scale Enterprises Managed by Woman Heads, Dalit, Janajatis and Minorities and Suggestions of Remedial Measures in Dang, Kapilbastu and Bardiya Districts- (December 2007)

38 Residue Monitoring Plan for Honey- (December 2007)


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Annex V: References

AEC, 2002: Terminal report of the USAID Grant Agreement Project undertaken by Federation of Nepalese Chambers of Commerce and Industry, Agro Enterprise centre (1997-2002), submitted to USAID/Nepal in December 2002, Kathmandu, Nepal Grant Award No: 367-G-00-97-00117-00 WB, 2003: “Nepal- Trade and Competitiveness Study “A Study conducted as part of the Integrated Framework for Trade- Related Technical Assistance, The World Bank/ His Majesty’s Government of Nepal (Ministry of Industry, Commerce and Supplies), Oct 22, 2003, Kathmandu, Nepal ADB, 2003: NEPAL-COMMERCIAL AGRICULTURE DEVELOPMENT PROJECTADB TA 3949-NEP Final Report Volume 1: Main Report, November 2003, Prepared for His Majesty’s Government of Nepal (Ministry of Agriculture and Cooperatives), Kathmandu , Nepal

project completion report - agro enterprise centre · agro business and trade multipurpose...

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