CONCEPT NOTE

SUPPORT FOR THE MECHANISATION OF RICE PRODUCTION

INTRODUCTION • MoFA policies, (FASDEP II & METASIP)

Strategies to modernise agricultural sector through –mechanisation – income diversification

• Targets - poor and risk prone and risk-averse producers.

INTRODUCTION CON’TD

Rice - one of the selected commodities.

Targets◦ 80 % small scale rice farmers and ◦20% emergent commercial rice

farmers (METASIP & NRDS).

INTRODUCTION CON’TD

• Rice sector specific objectives:– Improving the capacity of local rice industry

to compete with imported rice in terms of price and quality. – Increasing the market share of local rice as

against imported rice– Establish strategic stocks in rice.

INTRODUCTION CON’TDInterventions Proposed (METASIP)• Assist Private Sector to set-up commercially

viable Agricultural Mechanization Services Enterprise Centres (AMSECs) at strategic locations.

• Purpose: enhancing farmers and agro-processors accessibility to mechanise services at affordable cost

JUSTIFICATION

• Raise the self-sufficiency – 35% to about 75% by 2015– agricultural mechanisation seen as one of the

vehicles.

• average age of tractors in use - 15 years. • Most farming districts and communities do

not have access to agricultural machinery for all stages of crop production.

JUSTIFICATION CON’TDThe current high level of farm losses of

produce(30%) - partly attributable to limited and untimely availability of agricultural machines

farm power relies overwhelmingly on human muscle power (hoe and other hand tools).

Hence◦ Serious limitations on amount of land cultivated per

family◦ Reduces and limits the effectiveness of essential farm

operations thereby reducing crop yields.

JUSTIFICATION CON’TD

• large scale investment in agricultural mechanisation services• medium to large commercial farmers.• Few tractor hire schemes meant for small scale

farmers not effectively utilised

• The way forward – ensure availability of appropriate equipment through

private distributors and service providers•

JUSTIFICATION CON’TD

– Ministry’s Accelerated Agricultural Mechanisation policy - 5,000 tractors ( 30-50kW) made available to farmers and other private sector operators.

– Use of KR2 (Japanese grant) to support underprivileged rice farmers’

– This Concept Note seeks to offer options for a large scale replication of the Scheme.

POTENTIAL INTERVENTION ZONES AND TARGET GROUPS

ZonesBy growing systems◦ irrigated, rainfed-lowland and upland,

Potentially high rice producing districts

Targeted groups farmers, machine fabricators and repairers, processors

and millers, traders, transporters (haulers), local researches

Beneficiaries with high willingness and commitment

OBJECTIVES - Main Objective

To accelerate modernisation and commercialisation of rice production through expanded use of mechanisation services

Specific Objectives

1.To enhance the use of agricultural machinery to improve the timeliness and efficiency of farm operations to commercialise rice production.

2.To provide support for private sector led entrepreneurship and investment in agricultural machinery management, maintenance, and service provision.

3.Build capacity of experts and technicians for improved operations and maintenance of agricultural machinery.

COMPONENTS & OUTPUTS

COMPONENTS OUTPUTS

1. Enhancing Agricultural Machinery Usage

1.1Private sector to own agricultural machinery plant pools collaborated with.1.2 Mechanism for the 20% large scale actors along the value chain to acquire or lease agricultural machinery subsidies and credit facilitated.

COMPONENTS & OUTPUTS

COMPONENTS OUTPUTS

2. Equipment Maintenance and Management

2.1 Maintenance cycles for sets of equipment drawn and operated2.2 Capacity of specialised garages to maintain the machinery identified and built.

COMPONENTS & OUTPUTS

COMPONENTS OUTPUTS

3. Capacity Building and Farm Power R & D

3.1. Academic and research institutions to run short courses in agricultural machinery (assembling, fabrication and maintenance) supported.3.2. Capacity of RTIU of AESD to develop extension dissemination modules of R & D findings strengthened.

COMPONENTS & OUTPUTS

COMPONENTS OUTPUTS

4. Artisanal Development and Fabrication of Machinery and Parts

4.1. Capacity of 50 -100 local artisans and entrepreneurs to manage the assembling/fabrication plants built

4.2 Experts to collaborate with relevant manufacturers to develop machinery prototypes in joint efforts trained.

4.3 Design modifications in machinery prototypes to reduce the local manufacturing and production costs incorporated

ACTIVITIES • Facilitate fabricators' access to credit to

establish/expand machinery pools• Ensuring that assembling/fabrication centres

are appropriated sited • Generate commercial demand for the locally

produced prototypes through promotional activities and demonstrations through Fairs and exhibitions.

ACTIVITIES CON’TD

• Build capacity of fabricators in the manufacture of appropriate machinery and equipment for the rice sector

• Identify rice machinery operators and mechanics for training

• Conduct training-needs assessment and develop training modules

ACTIVITIES CON’TD

• Train selected mechanics on maintenance of machinery like tractor, power tillers, pumps, mills, threshers, par-boilers, cleaners etc.

• Set up a collaborative mechanism with the engineering faculties of relevant institutions for research and training.

• Organise scheduled in-service training for MoFA staff on the use of agricultural machinery.

COSTING AND FINANCING

• Estimated Amount needed - $100m

IMPLEMENTATION STRATEGY OF THE PROJECT

Typical PPP arrangement Government initiates & facilitates importation of the

machines Private sector entrepreneurs acquire and operate as

business enterprise. Oversight committee set up to ensure commitment of

repayment Committee composition - representatives of MoFA,

Financial Institution, Mechanised Services Centres, Farmer Representatives and District Assembly.

PROJECT ORGANISATION AND MANAGEMENT

• Execution led by MoFA through – steering committee • national level. • District level.

• Committees co-chaired by–Ministry Rep and –Private sector Rep.

MONITORING AND EVALUATION

M & E system designed for the project. ◦data required to be collected defined◦Indicators outlined

logical framework

RISKSInflation and lending rateEffects of Climate change & disastersLack of factors such as ◦improved seeds, rainfall, GAP

Inability to fabricate or stock back up parts

Government inability to source enough funds

THANK YOU

AMEN & AMEN