country baseline study for the implementation … · country baseline study for the implementation...

COUNTRY BASELINE STUDY FOR THE IMPLEMENTATION OFFOREST AND FARM FACILITY

Prepared byPrahlad K. Thapa, Ph.D.

Sony BaralKiran Timalsina

Under the Supervision ofRajendra Khanal, IUCN Nepal

Submitted to:

Submitted by:

IUCN (International Union for Conservation of Nature) NepalKupondole, Lalitpur, Kathmandu, Nepal

May 2013

ContentsExecutive Summary ................................................................................................................................... i1. Introduction......................................................................................................................................... 12. Objectives of the Baseline Survey .................................................................................................. 13. Methodology....................................................................................................................................... 14. Survey findings .................................................................................................................................. 54.1 Government organisations linked with forest/farm producer groups..................................... 54.1.1 Central level organisations....................................................................................................... 54.1.2 Local level organisations.......................................................................................................... 64.1.3 Cross-sectoral organisations linked with forest/farm producer groups ............................. 84.2 Business firms and their higher level organisations linked with forest/farm producers ...... 94.2.1 Private business firms linked with forest/farm producers.................................................... 94.2.2 Cooperatives linked with forest/farm producers ................................................................. 114.3 Producer organisations .............................................................................................................. 134.3.1 Producer organisation for business development .............................................................. 134.3.2 Producer organisation for policy advocacy ......................................................................... 164.4 Forest/farm related businesses registered as small and cottage industries ...................... 174.5 Organisation of farmers vis-à-vis policy dialogue and business development .................. 174.6 Farmers in the country................................................................................................................ 184.6.1 Basic population structure...................................................................................................... 184.6.2 Farming population ................................................................................................................. 184.7 Mobilisation in farmers' organisations ...................................................................................... 194.8 Potential role of the organisations related with forest/farm producers................................ 205. Findings of the review of legal framework governing forest/farm producers ......................... 206. Issues, challenges and recommendations .................................................................................. 216.1 Forestry sector ............................................................................................................................. 216.2 Agriculture sector ........................................................................................................................ 256.3 Overall recommendations for FFF ............................................................................................ 297. Enhancing delivery of public goods and services in the forest and farm sector.................... 307.1 Challenges faced by the demand side..................................................................................... 307.2 Challenges faced by the supply side........................................................................................ 307.3 Interventions to match the demand for and supply of public goods and services............. 318. Major projects in operation supporting forest/farm producers.................................................. 319. Proposed RBMIS framework ......................................................................................................... 3610. Conclusions.................................................................................................................................. 42References ............................................................................................................................................... 48Annexes .................................................................................................................................................... 50Annex 1: Listing of government organisations that support forest/farm organisations................. 50Annex 2: Listing of private sector business firms ............................................................................... 74Annex 3: Listing of community level organisations ............................................................................ 81Annex 4: Listing of national level farmers organisations................................................................... 94Annex 5: Listing of cross-sectoral organisations ................................................................................ 99Annex 6: Listing of legal frameworks governing forest and farm sectors in Nepal ..................... 103Annex 7 Forest/farm enterprises registered under DOCSI (as of 2012) ...................................... 106

ACRONYMS

ACOFUN Association of Collaborative Forest Users' NetworkACS Agricultural Cooperative SocietiesACSN Association of Cold Storage of NepalADB Asian Development BankAEC Agro-Enterprise CentreAICC Agriculture Information and Communication CentreAROPI Association of Nepalese Rice, Oil & Pulses IndustryAusAID Australian Aid for International DevelopmentBARDAN Bamboo and Rattan Development Association NepalBDS Business Development ServiceCBO Community based OrganisationCCC Climate Change CouncilCCCU Central Citrus (Junar) Cooperative UnionCCoCU Central Coffee Cooperative UnionCDCAN Central Dairy Cooperative AssociationCF Community ForestCFE Community Forest EnterpriseCFG Collaborative Forest User GroupCFUG Community Forest Users GroupCIDA Canadian International Development AgencyCSIDB Cottage and Small Industry Development BoardCSIO Cottage and Small Industry OfficeCSPCU Central Sugarcane Producer Cooperative UnionCTCU Central Tea Cooperative UnionCTEVT Centre for technical Education and Vocational TrainingCVFPCU Central Vegetable and Fruits Producers Cooperative UnionDADC District Agriculture Development CommitteeDADO District Agriculture Development OfficeDC District CouncilDCCI District Chamber of Commerce and IndustriesDCO Division Cooperative OfficeDCSI District Cottage and Small IndustriesDDC District Development CommitteeDDCn Dairy Development CorporationDFSCC District Forest Coordination CommitteeDFID Department for International DevelopmentDFO District Forest OfficeDFRS Department of Forest Resources and SurveyDFSCC District Forest Sector Coordination CommitteeDIO Division Irrigation OfficeDLSO Department of Livestock ServicesDMPCU District Milk Producers Cooperative UnionDNPL Dabur Nepal Private LimitedDNPWC Department of National Parks and Wildlife ConservationDOCSI Department of Cottage and Small IndustriesDOF Department of ForestDOLIDAR Department of Local Infrastructure Development and Agriculture RoadDPR Department of Plant ResourcesDSCWM Department of Soil Conservation and Watershed ManagementDU District UnionDWUA District Water User Association

ECON Export Council of NepalEDR Eastern Development RegionEPC Environment Protection CouncilFAN Floriculture Association of NepalFFF Forest and farm FacilityMOFSC Ministry of Forest and Soil ConservationFSME Federation of Small and Medium Enterprises (FSME)FUG Forest User GroupGDP Gross Domestic ProductGMO Genetically Modified OrganismGOF Government of FinlandHANDPASS Nepal Handmade Paper AssociationHBTL Himalayan Bio Trade LtdHICAST Himalayan College of Agriculture, Science and TechnologyHPPCL Herbs Production and Processing Co. LtdHVC High Value CommodityIAAS Institute of Agriculture and Animal SciencesIFAD International Fund for Agriculture DevelopmentIOF Institute of ForestryIUCN International Union for Conservation of NatureJICA Japan International Cooperation AgencyKFVDC Kalimati Fruits and Vegetable Development CommitteeLCEAN Large Cardamom Entrepreneurs Association of NepalLDO Local Development OfficerLFDC Livestock Feed Development CommitteeLFG Leasehold Forest user groupLUC Land Use CouncilMAP Medicinal and Aromatic PlantMC Municipal CouncilMCCICC Multi-Stakeholder Climate Change Initiatives Coordination CommitteeMEDEP Micro-Enterprise Development ProgrammeMoFLD Ministry of Federal Affair and Local DevelopmentMOAD Ministry of Agriculture DevelopmentMOCPA Ministry of Cooperatives and Poverty AlleviationMOSTE Ministry of Science, Technology and EnvironmentMOI Ministry of IndustryMOWCSW Ministry of Women, Children and Social WelfareMPCS Milk Producers' Cooperative SocietiesMPCS Milk Producers' Cooperative SocietyNACCF Nepal Agriculture Cooperative Central FederationNADC National Agriculture Development CommitteeNARC Nepal Agriculture Research CouncilNARDEF National Agriculture Research and Development FundNBCCU Nepal Bee Keeping Central Cooperative UnionNBF Nepal Business ForumNBPA Nepal Biogas Promotion AssociationNCC Nepal Chamber of CommerceNCCCF Nepal Central Consumer Cooperative FederationNCDB National Cooperative Development BoardNCF National Cooperative FederationNDA Nepal Dairy AssociationNDC National Development CouncilNDDB National Dairy development BoardNEFSCUN Nepal Federation of Savings and Credit Cooperative Unions

NEHHPA Nepal Herbs and Herbal Products AssociationNFIA Nepal Feed Industries AssociationNFIWUAN National Federation of Irrigation Water User Association NepalNFoIA Nepal Forest Industries AssociationNGO Non Governmental OrganisationNGPTA Nepal Ginger Producer & Traders AssociationNHIA Nepal Hatchery Industries AssociationNMEFEN National Micro-Entrepreneurs Federation NepalNNN National NTFP NetworkNPC National Planning CommissionNPrC National Productivity CouncilNSC National seed Company LimitedNTCDB National Tea and Coffee Development BoardNTFP No-timber Forest ProductNTNC National Trust for Nature ConservationNTPA Nepal Tea Planters AssociationNVC Nepal Veterinary CouncilOPEC Oil Producing and Exporting CountriesOPOV One product one villagePG Producers GroupsSACCOS Savings and Credit Cooperative Societies LtdSCO Savings and Credit OrganisationsSDC Swiss Technical CooperationSEAN Seed Entrepreneurs Association of NepalSFDP Small Farmer Development ProgrammeSNV Netherlands Development CooperationSQCC Seed Quality Control CentreTCN Timber Corporation of NepalTEPC Trade and Export Promotion CentreTOC Table of ContentsTOR Terms of ReferenceUNEP United Nations Environment ProgrammeUSAID United States Aid for International DevelopmentVC Village CouncilVDC Village Development CommitteeWB World BankWCDO Women and Children Development OfficeWUA Water User AssociationWUA Water Users AssociationWUG Water User GroupWUG Water Users GroupWWF World Wildlife Fund

Baseline Study for the Implementation of Forest and Farm Facility in Nepal - Final Report

International Union for Conservation of Nature (IUCN) i

IN-COUNTRY BASELINE STUDY FOR THE IMPLEMENTATION OFFOREST FARM FACILITY (FFF)

Executive Summary

1. IntroductionThe Forest and Farm Facility (FFF) has emerged out of the former National Forest ProgrammeFacility (nfp-Facility) and Growing Forest Partnerships (GFP) initiative. Its mission is “supportfor smallholder producer organization to provide business incentives and policy voice forsustainable forest landscapes”. Its work will focus on two interrelated pillars: a) organizeproducer groups for business development and policy engagement; (b) facilitate cross-sectordialogue on how to improve the enabling environment for producer group business atgovernment level. The purpose of this survey is to prepare baseline information on the status offorest and farm producer organisations and government structures for developing aperformance monitoring mechanism for FFF.

2. MethodologyThere are all kinds of forest/farm producer groups in Nepal. They are formal or informal basedon type of registration; they are profit making or not for profit; or they are of general purpose orcommodity specific. In this study, they are basically studied in six groups: Central governmentorganisations for policy support, Local government organisations for implementation support,Private sector business firms for input and output marketing, Community level farmers'organisations for working together to solve their common problems, National level farmers'organisations for policy lobbying in favour of farmers, and Cross-sectoral platforms for jointplanning.

Since there were several organisations on both demand and supply sides of the public goodsand services, it was not possible to include all of them. Hence, this study has included onlysample organisations of each category of organisations related with forest/farm producers.

Required information was collected from secondary sources by using the standard formatsgiven in the TOR. Some of the secondary information was substantiated by primary informationcollected by the team.

3. Survey findings3.1 Government organisations linked with forest/farm producer groupsMinistries, boards, departments and corporations were the main central level governmentorganisations. Keeping in view the livelihoods part of the farmers, 39 organisations (ministries,departments, boards, etc) were found directly related with forest/farm producers. Their principlefunctions were mainly policy formulation, programme planning, monitoring and creatingconducive environment for technology transfer, production and marketing of forest/farmproduces. District Development Committees (DDC), Village development Committees (VDC)and Municipality were the main local government bodies. Their principal functions arepreparation and implementation of local development plans which include forest and farmactivities. The local development fund flows through these local government bodies to theforest/farm producers' organisations. Local development services flow through the lineministries and their district level line agencies. Line agencies such as District Forest Office(DFO), District Agriculture Development Office (DADO), District Livestock Services Office(DLSO), etc. were the service providing agencies of the sectoral ministries and departments.Climate Change Council (CCC), Environment Protection Council (EPC), National DevelopmentCouncil (NDC), etc were cross-sectoral organisations at the national level. Likewise, DistrictCouncils were the cross-sectoral organisation at the district level, while District AgricultureCoordination Committees (DADC) and District Forest Sector Coordination Committees(DFSCC) were cross-sectoral platforms at the district level.


International Union for Conservation of Nature (IUCN) ii

3.2 Business firms linked with forest/farm producersVarious private sector business firms (more than 200) were also found being directly linked withthe forest/farm producers groups. There were national level federations such as Federation ofNepalese Chambers of commerce and Industries (FNCCI), Federation of Nepalese Cottageand Small Industries (FNCSI), Nepalese Chamber of Commerce (NCC), etc; nationalassociations such as national Dairy Association (NDA), Floriculture Association of Nepal (FAN),Seed Entrepreneurs' Association Nepal (SEAN), etc.; district/municipality level federations suchas District Chamber of Commerce and Industries (DCCI), District cottage and Small Industries(DCSI), District Association of Micro-Entrepreneurs' Group (DMEGA), etc; individual firm suchas Herb Himalayan Bio-Trade (HBTL), Dabur Nepal Private Limited (DNPL), etc that areconcerned with the benefits of their members.

Cooperatives were another sector of private business group linked with forest/farm producers.In this review, it was found that there were 23,770 cooperative societies registered. Likewise,there were 151 district unions and 11 national federations. Though commodity specificcooperatives are formed with the main objectives of output marketing, it was found that they arelimiting more on input arrangement for production and only some were successful in outputmarketing.

3.3 Producers' organisationsIn this study, producers' organisation is viewed in two categories: producers' organisations forbusiness development, and producers' organisation for policy advocacy.

There were three types of producers' organisations for business development in the forestrysub-sector. There were more than 24,907 FUGs [18,088 - Community forest User Groups(CFUG), 6,800 - Leasehold Forestry Group (LFG), and 19 - Collaborative Forest ManagementGroup (CFG)) managing 1,841,629 ha forest area mobilizing 2,798,272 households.

In addition to users' groups, there is a Federation of community forest users Nepal(FECOFUN). In fact, FECOFUN is registered under NGO act and thus is a not for profitorganisation. Representative from the CFUG in the district becomes a member of theFECOFUN District Chapter. Likewise, the representative from the district FECOFUN becomesthe member of the FECOFUN National Chapter. There are 1100 village level organizations, 75district chapters and one national chapter of FECOFUN. Similarly, there is a higher levelorganisation of Collaborative Forest Users, known as Association of Collaborative Forest UsersNetwork (ACOFUN).

In the farm sector, there are three types of farmers' organisations (agriculture, livestock andwater user groups) called as farmers groups for technology transfer. It was found that therewere 24,904 Agriculture Producers' Group (APG) registered in District Agriculture DevelopmentOffice (DADO), 16,714 Livestock Production Group (LPG) registered in District Livestockservices Office (DLSO). Both APGs and LPGs are informal groups and thus have no minimummembership requirements for the formation. Farmers are encouraged to include at least tenmembers in such groups. Experience has shown that a group of 20-25 is more effective.

Water User Group (WUG) is informal groups of 4-25 members. It was found that there weremore than 16,000 WUGs spread over the country. Water User Association (WUA) is formed bythe representatives from WUGs, and District Water User Association (DWUA) is formed by atleast five WUAs. National Federation of Irrigation Water User Nepal (NFIWUAN) is a nationalfederation of WUAs. Its main functions include protection of members' rights and lobbying forfavourable policy formulation.


International Union for Conservation of Nature (IUCN) iii

In the agriculture sub-sector, there are a few more associations that are working on policyadvocacy for farmers. In the review process, the team found three such organisations namelyNational Forum for Advocacy Nepal (NAFAN); National Farmers' Group Federation, All NepalPeasants' Federation, National Peasants' Coalition.

3.4 Farmers in the countryPopulation Census 2011 has shown that Nepal's population has reached to 26.6 million with 83percent living in rural area. There are 76 percent agricultural households involving 65.7 percentmen and 72.8 percent women in agriculture. Size of holding is very small (0.8 ha) fragmentedinto 3.3 parcels per holding with 0.24 ha per parcel. The smaller and fragmented holding hasaffected negatively commercialization as well as mechanization of agriculture.

3.5 Mobilisation in farmers' organisationsIt was found by this survey that there are several grassroots level farmers' organisations thathave mobilized farmers. Among them, the FUG is such an institution that has mobilized morenumber of people. As was found in this study, so far, management of 1,841,629 ha forest areahas been handed-over to 24,907 FUGs mobilizing 2,798,272 households.

The recent population census has shown that there are 5,659,984 households. Taking 76percent of agricultural households in Nepal, it estimates that there are 4,301,588 agriculturalhouseholds. It gives an estimation of 65 percent of agricultural households being involved inFUGs. Likewise there were more than eight hundred thousand families being mobilized inagriculture and livestock production groups. There were 22,383 active cooperative societiesmobilizing 3,288,825 members. Out of it, 6,897 cooperative societies were commodity specificcooperative societies mobilizing about five hundred thousand members. Since the samehousehold can be a member in the agricultural and livestock producers groups and cooperativesocieties, these numbers cannot be simply added up to get the total percentage of farmers'being mobilized in the group. By using some technique to adjust for the repeating households, itwas estimated in this study that 72.94 percent of the agriculture households were mobilized byForest User Group (FUG), Agriculture Producer Group (APG), Livestock Producer Group (LPG)and commodity specific cooperatives.

Women's participation was not applicable when the involvement of households was analysed inforest user groups. Regarding women's participation in producers' groups and commodityspecific cooperatives, it was about 50 percent. As compared to women's contribution of 55 to82 percent labour in agricultural production, their only 50 percent involvement in producers'group is too low. The producers group should have more than 55 percent women as per theirlabour contribution in production.

4. Findings of the review of legal framework governing forest/farm producersThere were several acts found aiming to promote agriculture and forestry as a source oflivelihoods. However, there is no agricultural act in Nepal despite being an agrarian country. Itis most urgent to regulate the conversion of prime agricultural land into non-agricultural use orconversion of fragile marginal land into agricultural use. Likewise, there is no act that wouldregulate the unlimited use of pesticides and agrochemicals on the plant, animals and land orpollute the water bodies.

5. Issues, challenges and recommendations

5.1 Forestry sub-sectorIssues: Contradicting taxation under Forest Act 1993 and Local Self Governance Act 1999;same royalty process for trees in the forest and the trees planted in the private lands; anddelaying of the handing over of the government forest to the user groups for management dueto the requirement of Initial Environmental Examination (IEE) and Environmental Impact


International Union for Conservation of Nature (IUCN) iv

Assessment (EIA) are the major issues in management. Ban for export in crude form (addingcost and reducing the international market as the buyers prefer crude form to avoid thepossibility of adulteration); and non availability of price information in the rural areas are themajor issues in marketing. Likewise, inadequate processing facilities, low quality of processedproducts, unattractive packaging and labelling are major issues in processing.

Challenges: Maximization and equitable distribution of forest benefits, effective compliancemonitoring, updating community forest inventory, renewing forest operational plans, achievinginter-ministerial coordination, reducing deforestation and forest degradation, enhancingprocessing and value addition, penetrating international markets by Nepali products, andenhancing participation of women and other disadvantaged social groups are the majorchallenges to be addressed.

Recommendations: Revision of operational plans, amendment of contradicting clauses ofvarious acts, accreditation of EIA experts, controlling conversion of forest to other land uses,overgrazing, domestication, education and monitoring on sustainable harvest, value-chainanalyses to facilitate the design of locally appropriate interventions, strengthening marketintelligence systems and price information, improving laboratory services to improve the qualityto internationally competitive level, establishing accredited certifying agency in the country,product-market diversification are some of the major areas for programme intervention.Likewise, conduction of business literacy programme to potential forest-based micro-entrepreneurs and promotion of forest-based micro-enterprises to add value addition on theprimary produce for income generation are important to create employment and income.

5.2 Agriculture sub-sector

Issues: High cost of production due to low level of mechanisation, scattered resourceallocation, absence of insurance scheme for high value commodity, absence of commodityfocused economic zoning, absence of export-led production and processing zoning, etc. aremajor issues in commercialisation and scaling-up production. Non-availability of productioninputs such as fertiliser and seeds on time and of good quality; inadequate irrigation facilities,difficulty in accessing credit and non recognition of agri-business and its stocks as collateral bycredit providing institutions, etc are the major issues in production system. Similarly, insufficientfocus on the registration of agrobiodiversity, absence of regulation of genetically modifiedorganisms and their impact on bio-diversity, genetic resources, and in human health are majorissues in varietal/breed improvement programme.

Challenges: Transforming a farmer to entrepreneur, crop diversification and commercialisationof subsistence agriculture, increasing cropping intensity and scaling-up of production to meetthe marketing volume, enhancing farm productivity, reduction of post-harvest losses, promotionof processing, integration of Nepali agricultural products into export markets, adaptation toclimate change are some development challenges faced by the agriculture sub-sector.

Recommendations: Improving soil fertility through integrated farming, enhancing rain waterharvest to enhance the water availability, enhancing access to production credit, agro-processing to enhance the shelf life and availability of produce, massive programme on post-harvest technology generation and extension, etc. are major intervention areas for enhancingproduction and yield. Likewise, business literacy to a large pool of illiterate farmers fortransforming them to entrepreneur, enhancing participatory action research to reduce time oftechnology generation, developing agro-entrepreneurship amongst farmers, retain the malemigrant labour to revert the process of feminisation of agriculture, are the major areas forprogramme intervention for technology generation and transfer. Packaging of production inputsto harness potential yield of a variety/breed, and packaging the marketing services with


International Union for Conservation of Nature (IUCN) v

infrastructure to enhance the participation of women and disadvantaged groups are alsoimportant to promote agri-business.

6. Major projects in operation supporting forest/farm producersThere are about 24 projects in operation in both forestry and agricultural sectors. Somehow,these projects cover almost all the districts of Nepal. However, the objectives and the amount offund differ from project to project. Nevertheless, this should be also considered while designingany project in the future.

7. Proposed RBMIS frameworkIn line with the expectation of the TOR of this assignment, a simple project results andmonitoring framework was developed. It has suggested to include three outcomes and eightoutputs measured over is 15 indicators.


International Union for Conservation of Nature (IUCN) 1

IN-COUNTRY BASELINE STUDY FOR THE IMPLEMENTATION OFFOREST FARM FACILITY (FFF)

1. IntroductionThe Forest and Farm Facility (FFF) has emerged out of the former National Forest ProgrammeFacility (nfp-Facility) and Growing Forest Partnerships (GFP) initiative. Its mission is “supportfor smallholder producer organization to provide business incentives and policy voice forsustainable forest landscapes”. Its work will focus on two interrelated pillars: a) organizeproducer groups for business development and policy engagement; and (b) facilitate cross-sector dialogue on how to improve the enabling environment for producer group business atgovernment level. The Facility will adopt participatory approach to ensure that forest and farmrelated policies are improved by duly recognizing local people's ideas and knowledge in forestand farm management. The Facility will develop and fund partnerships at all levels, and willoffer grants that enable local stakeholders to form organizations and alliances. It will also offergrants to governments to establish and develop cross-sectoral platforms to better coordinatemulti -stakeholder, multi -sector cooperation and dialogue. At the national level, there are twolayers of organizations for the mobilization of resources from the Facility. They are farmers'organizations on the demand side of the public services and government institutions on thesupply side of the public services. There are several such organizations with varying capacity interms of their institutional set-up and organizational strength. This baseline study was thereforeimportant to generate information on farmers' organizations and government structures linkedwith the delivery of FFF mission outputs.

2. Objectives of the Baseline SurveyThis baseline survey is to provide a snapshot of what is the current status of farmers'1 (forestand farm producer) organisations and government structures with respect to FFF mission andmain outputs. The results of this study will constitute the base and departure point for the FFFmonitoring and evaluation system.

3. Methodology

3.1 Conceptual frameworkThe basic concept for this survey was developed from the purpose of the FFF baseline study.At the grassroots level community members are organized into various groups. For example; inany community, there are forest user group, agriculture producers' groups, livestock producers'groups, water users' groups, etc. (see Section 3.2 for the nature of these groups). Likewise,there are various cooperative societies (primary level) such as milk producers' cooperatives,agricultural cooperatives, savings and credit cooperatives, etc. On the whole, these groups andcooperatives are termed as farmers' organisation in this report. These farmers' organisationsare the demand side of the public goods and services Though these organisations are differentin terms of their objective of formation and legal status, they can be in the same community andthe same household can be a member of any or all the groups. For this reason, there is anoverlap of the organisations.

On the other hand, there are various government institutions established to support farmproducers. These institutions are the supply side of the public goods and services. In line withthe objectives of FFF, this conceptual framework of organizational impact on farmers'livelihoods is presented in Figure 1.

1 Farmers in this report refers to both forest and farm producers.



3.2 Typology of forest and farm producer groupsThere are several types of forest and farm producers' groups as follows.

Classification on the basis of registration- Formal such as Agricultural Cooperative Societies (ACS), Milk Producers' Cooperative

Societies (MPCS), Forest User Groups (FUG), Water User Groups (WUG), HerbProduction and Processing Company Limited (HPPCL), etc. They can do business andmake profit and have a legal status.

- Informal such as Producer Groups (PG), Water User Groups (WUG), Savings andCredit Organisation (SCO), etc. which are not formally registered under the provision ofany act, but are registered informally under a certain programme (for exampleagriculture extension) for the purpose of technology transfer. These informal groups cando business and make profit but do not have any legal status.

Classification based on legal provisions- Registered as not for profit organization under Institution Registration Act 1977 (also

popularly known as NGO Act) (e.g., Federation of Community Forest User Nepal(FECOFUN))

- Registered as profit making organization under Company Act (e.g.; Himalayan Bio-Trade Limited (HBTL), Forest Act (e.g. FUG), Cooperative Act (e.g. coops), etc.

Classification based on purpose of the organization- Commodity specific such as milk producers' cooperative, NTFP marketing cooperative,

goat production group, etc- Multipurpose such as multipurpose cooperatives

Any of these organisations can do business and make profit. Regarding distribution of profitamongst the members as dividend to their equity invested in the business, they can do soexcept organisations such as FECOFUN that are registered as not for profit. Suchorganisations can do social and other development works from the profit earned by doing abusiness.

3.3 Analytical framework

Figure 1: Organisational impacton farmers' livelihoods

Government institutionsSupply side

De

Farmers' organizationsDemand sideSupply side

NPCLine Ministries

andDepartments

LegislationsPolicies

StrategiesGuidelines

FederationsUnionsCBOsNGOs

Informal groups

PolicyAdvocacy

TechnologyProductionMarketing

Forest and farmlandscape

Farm producersand their

livelihoods



There are several organisations (government and farmers) that are linked with farm producersand their livelihoods. These organisations are of various natures. Some of them are involved inprotecting farm people's rights and entitlements; some are involved in technology transfer, whilesome are involved in capacity enhancement. Hence, it became difficult to study themseparately. For this reason, they were grouped into the following six groups for the analysis oftheir organizational structure and the support they provide to farmers.

Central government organisations Local government organisations Private sector business firms Community level farmers' organisations National level farmers' organisations Cross-sectoral platforms

3.4 Sample organisations covered by the studyThere are many grassroots to national level organisations linked with the farmers. For example;there are 18,088 Community Forest User Groups; 6,800 Leasehold Forest Groups; 6,866 activeagricultural cooperative societies (MOF, 2012); 24,904 agricultural producers' groups; and16,714 livestock producers' groups (AED, 2012); more than 16,000 water user's groups (ADS,2012); and so forth. Covering all of them was beyond the scope of this survey. Hence, foranalysis of the organizations affecting the livelihoods of the farm producers, the followingsample organizations were covered by this survey.

Table 1: Sample of government organizations that were covered by this surveySN Name of organisation No. covered1 National Planning Commission (NPC) 1

2 Ministries [Ministry of Forest and Soil Conservation (MOFSC), Ministry ofAgriculture Development (MOAD), Ministry of Irrigation (MOIrrig), Ministry ofWomen, Children and Social Welfare (MOWCSW), Ministry of Industry (MOI),Ministry of Land reform (MOLR), Ministry of Environment (MOE), Ministry ofCooperatives and Poverty Alleviation (MOCPA), Ministry of Local Development(MLD) and Ministry of Youth and Sports (MOYS)]

11

3 Departments [Department of Forest (DOF), Department of Plant Resources(DOPR), Department of Soil Conservation and Watershed Management(DOSCWM), Department of Forest Resources and Survey (DFRS), Departmentof National Parks and Wildlife Conservation (DONPWC), Department ofAgriculture (DOA), Department of Livestock Services (DOLS), Department ofLocal Infrastructure Development and Agriculture Roads (DOLIDAR),Department of Women and Children (DOWC), Department of Industry (DOI),Department of Cottage and Small Industries (DOCSI), Department of FoodTechnology and Quality Control (DFTQC), Department of Cooperatives (DOC),Department of Irrigation (DOIrrig)

14

4 Boards and trusts [National Dairy Development Board (NDDB), NationalCooperative Development Board (NCDB), National Tea and CoffeeDevelopment Board (NTCDB), Cottage and Small Industry Development Board(CSIDB), National Trust for Nature Conservation (NTNC), Kalimati Fruits andVegetables Development Committee (KFVDC), Livestock Feed DevelopmentCommittee (LFDC)]

7

5 Department level Centres [Seed Quality Control Centre ((SQCC), AgriculturalInformation and Communication Centre (AICC), Trade and Export PromotionCentre (TEPC)

3



6 Department level autonomous organisations [Nepal Agriculture ResearchCouncil (NARC), National Agriculture Research and Development Fund(NARDEF)]

2

7 Corporations [Dairy Development Corporation ((DDCn), Timber Corporation ofNepal (TCN)]

2

8 Company [Agricultural Input Company (AIC), National Seed Company Limited(NSC), Herbal Production and Processing Company Limited (HPPCL)]

3

9 Academic institutions [Institute of Forestry ((IOF), Institute of Agriculture andAnimal Sciences (IAAS), Himalayan College of Agricultural Sciences andTechnology (HICAST), Council for Technical Education and Vocational Training(CTEVT)

3

Total 45

Table 2: Sample of local government organizations that were covered by this surveySN Name of organisation No. covered1 District Development Committee (DDC) 22 Village Development Committees (VDC) 23 Municipality 1

Total 5

Table 3: Sample of business organizations and their higher level organisations that werecovered by this surveySN Type of organisations covered No. covered1 Federations [Federation of Nepalese Chamber of Commerce and Industries

((FNCCI), Federation of Nepalese Cottage and Small Industries (FNCSI),National Micro-Entrepreneurs Federations Nepal (NMEFEN) etc)

6

2 Business promoters [Agro-Enterprise centre ((AEC), Himalayan bio-TradeLimited (HBTL), NTFP trader, NTFP processor, traders, dealers, etc)

5

3 Others 5Total 16

Table 4: Sample of farmers' organizations that were covered by this surveySN Type of organisations covered No. covered1 Community forest User Groups (CFUG) 32 Producers groups [Agriculture Producer Group (APG), Livestock Producer

Group (LPG)2

3 FECOFUN (national and district chapters) 24 Cooperative federations (Agriculture, Fruits and Vegetables, Dairy, etc) 45 Others 4

Total 15

3.5 Information collectionInformation collection processInformation was collected from various sources such as government organisations, businessfirms, farmers' organisations, etc. This information was collected from various reports andwebsites of these organisations. Information collected from secondary sources weresubstantiated by collecting additional information by personal contact visiting the relatedministries, departments and farmers organisations in Kathmandu, Lalitput and Nuwakotdistricts. This information from the field was collected directly by the research team from districtlevel government organisations such as District Forest Office (DFO), District AgricultureDevelopment Office (DADO), District Livestock Services Office (DLSO), and farmersorganisations such as APG, LPG and FUG in Lalitpur and Nuwakot.



Information collected from the government organizations: As shown in Figure 1, governmentorganisations were surveyed with respect to legislations, policies strategies and guidelines.NPC, ministries, councils and boards were surveyed with respect to cross-sector coordination.Overall analysis was focused on the types of stakeholders involved with farm producers andtheir roles in the promotion of livelihoods of the farm producers.

Information collected from the farmers organizations: As shown in Figure 1, farmerorganisations were surveyed with respect to policy, advocacy, technology, production andmarketing. The focus of the analysis was on their vertical linkage for policy support andhorizontal linkage for business support.

Gap analysis: The gap was analysed by comparing the ideal conditions of matching demand forforest and farm services of the farm producers with the supply of public goods and servicesfrom the government organisations. The findings were used to indicate the baseline status.

Secondary information on mobilization of farmers into forest/farm producers' groups: Based onpublished secondary information from various sources, information on number of farmers'groups was collected and number of farmers organized in such groups were analysed.

3.6 Limitations of the studyThis study was heavily dependent on the review of secondary information published in variousforms from various organisation and materials posted in their websites. The review wascompleted by a small team in a limited time of three weeks (and only a few days of some of theconsultants). Due to limited time, no systemic survey could be conducted. Some informationfrom the field level organisations in Nuwakot and Lalitpur were collected to substantiate thefindings from the review of secondary information.

4. Survey findings

4.1 Government organisations linked with forest/farm producer groups4.1.1 Central level organisationsMinistries, boards, departments and corporations were the main central level governmentorganisations. Principle functions of the ministries and ministry level organisations were mainlypolicy formulation, programme planning, monitoring and creating conducive environment fortechnology transfer, production and marketing of forest/farm produces. In fact all the ministriesand departments under them were found somehow or the other linked with farmers. However,keeping in view the livelihoods part of the farmers, 11 ministries, 14 departments and/ordepartment level organisations, 6 boards, 3 department level centres, 2 department levelautonomous organisations, 2 corporations, 3 companies and 3 academic training institutionswere found directly related with forest/farm producers. Their principle functions related withforest/farm producers and their contact names and addresses are presented in Annex 1. Groupof organisations and the summary of their principal functions by the type of organisation arepresented in Table 5.

Table 5: Summary of central level government organisations and their principle functionsOrganisation No. Names Principle functionsMinistries 11 Ministry of Forest and Soil Conservation (MOFSC),

Ministry of Agriculture Development (MOAD),Ministry of Irrigation (MOIrrig), Ministry of Women,Children and Social Welfare (MOWCSW), Ministryof Industry (MOI), Ministry of Land Reform (MOLR),Ministry of Environment (MOE), Ministry ofCooperatives and Poverty Alleviation (MOCPA),Ministry of Local Development (MLD) and Ministry

Policy formulation,programme planning,monitoring andcreating conduciveenvironment fortechnology transfer,production andmarketing of



of Youth and Sports (MOYS) forest/farm produces.Departmentsand/ordepartmentlevelorganisations

14 Department of Forest (DOF), Department of PlantResources (DOPR), Department of SoilConservation and Watershed Management(DOSCWM), Department of Forest Resources andSurvey (DFRS), Department of National Parks andWildlife Conservation (DONPWC), Department ofAgriculture (DOA), Department of LivestockServices (DOLS), Department of LocalInfrastructure Development and Agriculture Roads(DOLIDAR), Department of Women and Children(DOWC), Department of Industry (DOI), Departmentof Cottage and Small Industries (DOCSI),Department of Food Technology and QualityControl (DFTQC), Department of Cooperatives(DOC), Department of Irrigation (DOIrrig),

Identification offarmers' problems,preparation andimplementation ofannual activities,building organisationalcapacity of front lineresearch andextensionorganisations.

Boards/trust 6 National Dairy Development Board (NDDB),National Cooperative Development Board (NCDB),National Tea and Coffee Development Board(NTCDB), Cottage and Small Industry DevelopmentBoard (CSIDB), National Trust for NatureConservation (NTNC), Kalimati Fruits andVegetable Development Committee (KFVDC),Livestock Feed Development Committee (LFDC)

Coordination andpolicy advice to thegovernment

Departmentlevel Centres

3 Seed Quality Control Centre (SQCC) Promotion of seedindustry

Agriculture Information and Communication Centre(AICC)

Dissemination ofagriculture technology

Trade and Export Promotion Centre (TEPC) Trade and exportpromotion

Dept. levelautonomousorganisations

2 Nepal Agriculture Research Council (NARC).National Agriculture Research and DevelopmentFund (NARDEF)

Design and coordinaterequired researcheson agriculture

Corporations 2 Dairy Development Corporation (DDCn) Milk collection,processing anddistribution

Timber Corporation Nepal (TCN) Supply of woodCompany 3 Agriculture Inputs Corporation (AIC), Supply of agriculture

inputsNational Seeds Corporation (NSC) Supply of seedsHerb Production and Processing Company Limited(HPPCL)

Production andprocessing of herbs

Academicinstitutions

3 Institute of Forestry (IOF), Institute of Agricultureand Animal Sciences (IAAS), Council for TechnicalEducation and Vocational Training (CTEVT)

Academic and skilldevelopment trainings

4.1.2 Local level organisationsLocal level organisations here refer to the government organisations working at the district andVillage Development Committee (VDC) levels. There are three types of governmentorganisations at this level.

1. Local government: VDC and municipality were the lower units of local government andDistrict Development Committee (DDC) is their umbrella organisation at the district level.Their principal function includes preparation and implementation of local development planswhich includes forest and farm activities.

2. Line agencies: Line agencies such as DFO, DADO, DLSO, etc. were the service providingagencies of the sectoral ministries and departments. Line agencies support the localgovernment with technical inputs.



3. Government farms and stations: There are three types of government farms at the locallevel.- Agriculture/Livestock research stations: Carrying out technology generation activities- Agriculture/livestock development farms: Carrying out technology demonstration and

transfer activities- Forest farms: carrying both forest research and development activities

Detail on the principal functions and their contact is presented in Annex 1 and a brief summaryis presented in Table 6.

Table 6: Summary of local level government organisations and their principle functionsOrganisation No. Names Principle functionsLocalgovernment

75 District Development Committee Formulate and carry out programmeson agricultural, livestock, irrigation, soilconservation, afforestation,environment protection; formulate locallevel policies on forest, land and waterresources; arrange for agricultural(weekly temporary bazaar), marketsand fairs or assist in organizing suchfairs within the village/municipality ordistricts development area, operateagriculture, forestry and veterinaryservices in the district, Ilakas andvillages,

3,915 Village Development Committee

58 Municipalities

Line agencies 75 District Agriculture DevelopmentOffice

Social mobilisation, organisationaldevelopment (formation, registrationand strengthening), capacity building,sectoral input management, sectoraltechnology transfer, sectoral technicalbackstopping in production andmarketing, monitoring

75 District Livestock Service Office74 District Forest Office56 District Soil Conservation Office33 District Cooperative Office53 Division Irrigation Office27 Cottage and Small Industry Office75 Women and Children Development

OfficeAgriculture farms and stationsMountain 8 Various farms and stations Technology demonstration, technology

transfer training, input support, plantingmaterial support, plant protectionsupport, soil management support

Hill 33Terai 38

Total 79Livestock farms and stationsMountain 3 Various farms and stations Technology demonstration, technology

transfer training, input support, breedimprovement support, feedmanagement support. forage andfodder development support

Hill 8Terai 21

Total 32

Agriculture and livestock research farms and stationsMountain 5 Various

researchcentres andstations

Technology testing and generation, technologydemonstration and transferHill 15

Terai 10Total 35

Forest programmes and projectsMountain 12 Forest

programmesand projects

Technology generation, demonstration and transferHill 10Terai 26

Total 48



Box 1: Group approach is successful in technology transfer

District Livestock Services Office (DLSO) wanted to demonstrate Amrisho as an agroforestry activity in Lamatar 6,Lalitpur. Farmers did not participate in the programme. The DLSO then jointly worked with District Forest Office(DFO) in identifying the feasible area for the promotion of Amrisho as a fodder crop in the marginal land. It wasdiscussed with the Community Forest User Group (CFUG) in Lamatar 6. The group accepted to try in the barrenland of their community forest. It became successful and now there is more demand for planting material fromother areas and forest user groups.

District Livestock Office, Lalitpur

Farmers groups are used for transfer of technology. Technology demonstration in groupbecomes more successful and effective. In many cases, government organisations collaboratealso to demonstrate technology (Box 1).

4.1.3 Cross-sectoral organisations linked with forest/farm producer groupsCross sectoral organisations in this report refer to those organisations that are linked withforest/farm producers through various coordinating roles. These organisations are not directly

related with the forest/farm producers but they coordinate various organisations to achievespecific objective that is related with the forest/farm producers. For example, for the promotionof export of the produce from "One Village One Product" (OVOP) programme, there are severalorganisations such as sectoral ministry/department, trade, FNCCI, etc involved. In that case ahigher level organisation such as NPC's role becomes crucial. Likewise, at the grassroots levelalso, promotion of OPOV requires several services from various organisations. There areseveral villages recognised as good for the promotion of one product. For example, ginger ispromoted in Palpa under OVOP by Agro-Enterprise Centre of FNCCI. Promotion of gingerrequires technical support from DADO, export quality requirements from DCCI, laboratorytesting services from DFTQC, credit from Savings and Credit Cooperative Society (SACCOS),etc. In this case, planning for required services are carried out jointly in Village Council (VC)and/or District Council (DC) meetings. Detail on these cross-sectoral organisations linked withforest/farm producers is presented in Annex 5 and a brief summary is presented in Table 7.

Table 7: Summary of cross-sectoral organisations and their principle functionsOrganisation No. Names Principle functionsOverallplanning

2 NPC, National Development Council (NDC) Plan and approve nationaldevelopment activities

Nationalcouncils/committees

8 Climate change Council (CCC), EnvironmentProtection Council (EPC), Land Use Council(LUC), National Productivity Centre (NPrC),Export Council of Nepal (ECON), Multi-Stakeholder Climate Change InitiativesCoordination Committee (MCCICC), NationalAgriculture Development Committee (NADC)

Coordinate national policydevelopment issues inenvironment, climatechange, agriculture andforestry

Local levelcouncils/mechanisms

3915 Village Council (VC) Plan and approve villagelevel activities

58 Municipal Council (MC) Plan and approvemunicipality level activities

75 District Council (DC) Plan and approve districtlevel activities

Cross-sectoralplatforms

73 District Forest Sector CoordinationCommittee (DFSCC)

Coordinate district levelforest related activities

75 DADC (District Agriculture developmentCommittee )

Coordinate districtagriculture developmentactivities

The flow of public goods and services from the government to the beneficiaries follows a certainhierarchy (Figure 2). Local development fund flows through the local development



administrative control line. Local development service for commodity development flowsthrough the line ministries and agencies as shown in Figure 2.

4.2 Business firms and their higher level organisations linked with forest/farm producers4.2.1 Private business firms linked with forest/farm producersThis section deals with the private sector business firms and their higher level organisationsthat are directly linked with the forest/farm producers groups either in the backward or in theforward link. The private sector business firms have their district and/or national levelfederations such as District Federation of Chamber of Commerce and Industries (DCCI),District Federation of Small and Cottage Industries (DCSI), Federation of Nepalese Chambersof Commerce and Industries (FNCCI), Federation of Nepalese Cottage and Small Industries(FNCSI), etc., which are formed by the representatives from their respective lower levelorganisations (or lower level tier) (Figure 3). They are concerned more with the benefits of theirmembers and thus they advocate for the rights of their members. They provide advisoryservices to the government and lobby for the promotion of their members business.

FunctionsLocal development serviceflow (forestry and agriculture)

Local development fundflow/control

Figure 2: Flow of public goods and service to the forest/farm producers

Farmers' groups (FUG, APG, LPG)

Beneficiaries

Policy support

Translation of policy intoimplementation

Implementation arrangement

Actual implementation

Ministries (MOFSC, MOAD)

Departments (DOF,DSCWSM, DOA, DOLS)

Line agencies (DFO,DSCWSMO, DADO, DLSO)

Range posts, Service centres,farms and stations

Ministry (MLD)

Divisions within the ministry

District DevelopmentCommittee (DDC)

Village/Municipal DevelopmentCommittee (VDC/MC)

NationalFederation

DistrictFederation - 1

DistrictFederation - n

… … …

Firm1

Firm2

……

Firmn

DistrictFederation - 2

… … …

Figure 3: Business firm federation model



One ofthe

wings of FNCCI is the commodity association known as "All Nepal Commodity Association"(ANCA). The commodity specific national associations are formed by the representatives ofindividual firms doing a business in the same (or related) commodity (Figure 4). These areprofessional associations within FNCCI and thus are concerned with the members' commodityspecific problems. They lobby for the promotion of commodity specific businesses.

Besides, there are some individual firms also which have a linkage with the farmers. Theseindividual business firms have sometimes a formal contract with the forest/farm producers andsometimes only a verbal MOU as an actor in the commodity value chain.

There are also district level federations of many business organisations. These district levelfederations play catalytic role to create business environment at the district level. They work asa bridge in the flow of information between the traders and the producers at the district level.Detail on their functions and contacts is presented in Annex 2 and a brief summary is presentedin Table 8.

Table 8: Summary of private business firms' higher level organisations with their principlefunctionsOrganisation No. Names Principle functionsNationalfederations

6 Federation of Nepalese Chamber of Commerceand Industries (FNCCI), Federation of NepaleseCottage and Small Industries (FNCSI), NationalMicro-Entrepreneur Federation Nepal (NMEFEN),Nepalese Chamber of Commerce (NCC),Federation of Small and Medium Enterprises(FSME), Nepal Business Forum (NBF)

Provide advisoryservices to government,lobby as and whenrequired in formulationand execution ofbusiness and industryrelated policies, actsand programmes

National 15 Nepal Feed Industries Association (NFIA), Nepal Lobbying for the

Figure 4: Commodity association model

CommodityFirm 1

CommodityFirm 2

… … Commodity Firmnn

Commodity Association



associations Forest Industries Association (NFoIA), FloricultureAssociation of Nepal (FAN), Nepal GingerProducer & Traders Association (NGPTA), LargeCardamom Entrepreneurs Association of Nepal(LCEAN), Nepal Dairy Association(NDA), Nepal Handmade Paper Association(HANDPASS) Nepal Biogas PromotionAssociation (NBPA), Nepal Hatchery IndustriesAssociation(NHIA), Nepal Herbs and Herbal ProductsAssociation (NEHHPA), Nepal Tea PlantersAssociation (NTPA), Seed EntrepreneursAssociation of Nepal(SEAN), Association of Cold Storage of Nepal(ACSN), Jadibuti Business Association Nepal(JABAN), Bamboo and Rattan DevelopmentAssociation Nepal(BARDAN)

promotion of commodityspecific businesses fortheir members

District andMunicipalityfederations

96 District Chamber of Commerce and Industries(DCCI)

Provide advisoryservices to localgovernment, lobby toestablish conduciveenvironmental conditionin the district

74 District Cottage and Small Industries (DCSI) Lobby for protecting andsafeguarding the rightsand interests of MCSIsector at the districtlevel, market promotionof MCSI products

36 District Micro-Entrepreneurs Group Association (DMEGA)

Support its members forcapacity enhancementand advocacy

Individual firm 51,154 Production, collection, processing and storageenterprises

Support the producerfarmers in bothbackward and forwardlinkages

4.2.2 Cooperatives linked with forest/farm producersThough cooperative movement has a short history (that took place in late 1990s) in Nepal, ithas grown very significantly in the last two decades. Cooperatives are registered underCooperative Act 1992. Cooperative societies can be formed by 25 natural persons having acommon interest and willing to join together by following the seven principles of cooperatives2.District Cooperative Union can be formed by at least five cooperative societies (Figure 6).

2 The International Cooperative Alliance has approved the following seven fundamental principles (DOC, 2011):open and voluntary membership, democratically controlled by the members, members economic participation,autonomy and independence, cooperative education training and information, cooperation among cooperatives, andconcern for community



Likewise, the national cooperative federation can be formed by at least five district unions or atleast 25 societies. In this review, it was found that there were 23,770 cooperative societiesregistered that are linked with forest/farm producers (Table 9). Likewise, there were 151 districtunions and 11 national federations. In case of commodity specific cooperatives, it was foundthat they are more concerned with input arrangement for production and only some weresuccessful in output marketing. Milk Cooperatives in Chitwan, Vegetable Cooperative inCharaundi, Vegetable Cooperative in Sinduwa, are successful in output marketing.

Table 9: Summary of cooperatives and their principle functionsOrganisation No. Names Principle functionsCooperativesocieties

4,136 Multipurpose Cooperatives are member-basedorganisations and thus their functionsalso for the benefit of the members.Usually, forest/farm producers'cooperatives are to help the members'problems in arranging production input,access production technology and creditand market their produce.

5,373 Agriculture1,749 Milk196 Veg. & fruits97 Tea80 Coffee

144 NTFP65 Honeybee48 Sugarcane31 Sweet orange

11,851 Savings and creditDistrict Unionsof cooperatives

61 DCU District unions support their members inlobbying for their rights and entitlements.They also provide capacity buildingservices to their members. In somecases, for example in Milk Productionand Marketing Cooperatives, there aredistinct roles between the society anddistrict union. Both society and union donot do the same business, For example,if District union processes and sells milk,then societies do not process and sellmilk in the same area. Milk Producers'cooperative Societies in that case collect

Figure 5: Cooperative federation model

Note:Compulsory membershipOptional membershipFive Coop societies required to form a District UnionFive District Unions of 25 coop Societies required to form a National Cooperative Federation

NationalCooperativeFederation

District CoopUnion - 1

District CoopUnion - n

… … …… … … District CoopUnion - 5

CoopSociety

1

… … … CoopSociety

5

… … CoopSociety

n

CoopSociety

25



20 Agriculture13 Milk2 Vegetables and fruits2 Tea1 Coffee1 NTFP51 Savings and credit

Central unionsof cooperatives

11 Nepal Central ConsumerCooperative Federation(NCCCF), Nepal Federation ofSavings and CreditCooperative Unions(NEFSCUN), Central DairyCooperative Association(CDCAN), Nepal AgricultureCooperative Central Federation(NACCF), Nepal Bee KeepingCentral Cooperative Union(NBCCU), Central Vegetableand Fruits ProducersCooperative Union (CVFPCU),Central Citrus (Junar)Cooperative Union (CCCU),Central Tea Cooperative Union(CTCU), Central SugarcaneProducer Cooperative Union(CSPCU), Central CoffeeCooperative Union (CCoCU)

Central unions are known with severalnames such as national federation,central union, national union, federationof unions, central cooperativeassociation, etc. They are apex bodiesof the sectoral cooperatives. Theycontribute in protecting members' rightsand advice government on policy relatedmatters.

DOC, 2012; NCF, 2012.Cooperatives support farmers in various ways. They support farmers to organise in groups andaccess credit. Even an enterprising farmer cannot do anything when s/he has no access tocredit to take-up an enterprise. But by joining a cooperative, such farmers can get credit fromtheir cooperative on group collateral basis. With the support from the cooperative, the latententrepreneurial trait gets activated. In addition to credit, higher level federations such as districtunions and national federations support farmers in policy advocacy.4.3 Producer organisationsIn this study, producers' organisation is viewed in two categories: producers' organisations forbusiness development, and producers' organisation for policy advocacy. Nevertheless,producers' groups such as FUG, APG, LPG, WUG, etc. also lobby for policy in addition to theirproduction business. A brief note on these two categories is presented as follows.

4.3.1 Producer organisation for business developmentIn Nepal, there is hardly any farmer having forest only. Only some farmers grow some treesand herbs in their private land. In most of the cases, they are the members of the forest usergroups. There is negligible number of farmers rearing livestockonly. Likewise, there is negligible number of farmers growingcrops only. In Nepalese farming system, agriculture, livestock andforest are integrated (Figure 6). For the development of theirprofession, farmers are organised in various groups. Amongthem, forest user group, agriculture producer group and livestockproducer group are the three major professional groups.Surprisingly, local level planning takes place in isolation. Thoughthere are two cross-sectoral platforms namely District Agriculture Development Committee(DADC) and District Forest Sector Coordination Committee (DFSCC), the forest and farm

Community

Livestock

Agriculture

Forest

Figure 6: Integral components ofNepalese farming system



development issues and challenges are not discussed in a common cross-sectoral platform andactivities designed jointly.

In the forestry sector, there are three types of forest producers' organisations called forestuser groups as follows.

Community Forest Users' Groups (CFUG): There are more than 18,088 community forestuser groups registered under Forest Act 1993. As per the Act, the District Forest Office canhandover a part of the government forest to the forest users' groups for the conservation andutilisation of the forest and forest products. Forest Act allows CFUGs to do business on forestproducts. Hence, in addition to forest conservation and management; CFUGs focus also onutilisation, pricing and disposal of forest products.

Leasehold Forestry Group (LFG): As per the Forest Act 1993, DFO can lease-out some partof the degraded government forest to poor people in small groups for 40 years for generatingincome from the conservation and management of the leased-out forest land. There are 6,800LFGs jointly supported by DFO and DLSO.

Collaborative Forest Management Group (CFG): Despite the success of community forestry(CF) in the hills, Nepal still lacks an effective forest governance mechanism in the Terai.Collaborative forestry is recently promoted model for Terai. So far, there have been 19Collaborative Forest Management Groups promoted in Terai. CFGs are to create coordinationmechanism for multiple stakeholders in decision making from planning through implementationand monitoring to evaluation of active management of forests.

In the farm sector, there are three types of farmers' organisations (agriculture, livestock andwater user groups) called as farmers groups as follows.

Agricultural Producers' Group (APG): APGs are registered in District AgricultureDevelopment Office for the purpose of agriculture extension in group. There are 24,904 APGsformed (AED, 2012). Most of the APGs are specialised and commodity specific. For example,vegetable producers' group, maize producers' group, ginger producers' group, etc. On thewhole, they are called as APG. Each member of the group takes-up her/his enterpriseseparately.

Livestock Producers' Group (LPG): LPGs similar to APGs. They are formed for the deliveryof livestock extension services. There are 16,714 LPGs formed under the Department ofLivestock Services (AED, 2012).

Both APGs and LPGs are informal groups and thus have no minimum membership requirementfor the formation. Farmers are encouraged to include at least ten members in such groups.Experience has shown that a group of 20-25 is more effective (ADS, 2011).

Water Users' Group (WUG): WUGs are informal groups formed by the farmers for the purposeof getting small irrigation construction support from the small irrigation development programmeor for the management of irrigation system after the construction. WUGs are found to have 4-5members in the smaller groups and 20-25 members in the larger groups. It was found that thereare more than 16000 WUGs spread over the country.

Detail on the nature of farmers' organisations is presented in Annexes 3 and 4, and a briefsummary is presented in Table 11.



Table 11: Summary of producers' organisations for business developmentType No. Names Principle functionsForest users 18,088 Community Forest

User Group (CFUG)Programme focuses on forest conservation,development, utilization, management,pricing anddisposal of forest products; deliver good governancethrough the CFUGs including transparency,accountability, benefits-sharing, decision-making,fairness, and inclusiveness in terms of bringing voicesof poor and disadvantaged section of society.

6,800 Leasehold ForestGroup (LFG)

Provide access of poor people in small groups todegraded forest under 40 year leases (renewable),with exclusive rights to the produce of the land; Theprogramme focuses on developing pasture andlivestock raising. It is, therefore, an opportunity to thepoor farm households to generate income

19 Collaborative ForestManagement Group(CFG)

CFG model is to increase participation of multi-stakeholders in decision-making from planning throughimplementation and monitoring to evaluation of activemanagement of forests, develop mechanisms forsharing rights, responsibilities and benefits with dueconsideration of gender and social inclusion; developmechanisms for distribution and marketing of forestproducts. This is a new forest management model thathas started from Terai area.

AgriculturalProducers

24,904 Agriculturalproducers' Groups(APG)

Mobilisation of farmers into a group for accessingtechnology, production input, and marketing ofagricultural outputs

Livestockproducers

16,714 LivestockProducers' Groups(LPG)

Mobilisation of farmers into a group for accessingtechnology, livestock production inputs, breedimprovement and marketing of livestock products,agricultural outputs

Irrigationwater users

160003 Water user Group(WUG)

Formed by 4-5 members up to 20-25. Main function isirrigation management and water utilisation.

About3000

Water userAssociation (WUA)

Formed by at least 5 WUGs in each VDC. Mainfunction is to mobilise the WUGs and protect theirrights.

About20

District Water UserAssociation (DWUA)

Formed by at least 5 WUA per district. Main function isto lobby for the benefit of the WUA.

1 National Federationof Irrigation waterUser AssociationNepal (NFIWUAN)

2139 members4. Main functions include protection ofmembers' rights and lobbying for favourable policyformulation.

Source: AED, 2012; MOF, 2012

3 Bhattarai, 20124 Batra, 2010



Box 2: Poverty alleviated after joining a cooperative

To solve my hand-to-mouth problem, I wanted to takeup goat farming. I could not get any credit to purchase agoat. I joined Lasho Phyafulla Social WomenEntrepreneurship Cooperatives, got loan from thecooperative, and started goat farming with two goats in2010. In two years time, I have paid back all the loans tomy cooperative and now am going to start cattle farmingas well and sell milk. My husband has also startedstaying back home (who previously used to go abroadfor seasonal employment) sharing my work in raisinggoat and cattle. Now, I can afford sending my children toboarding school and feed the family with nutritious food.

Ms. Bhim Kumari Lama, Kakani Okhle1, Nuwakot

The lower level organisations such asFUGs, APGs, LPGs and WUGs are directlyinvolved in production and incomegeneration. Nevertheless, CFUGs andFECOFUN are instrumental in lobbying forfarmers rights and solve their problems. Forexample, after the enactment ofEnvironment Protection Act (EPA) 1997,the CFUGs were required to conduct IEEand EIA for the approval of their ForestOperation Plan (FOP). By the stronglobbying of the CFUG and FECOFUN,government has increased the thresholdfrom 200 to 500 ha regarding therequirement of IEE and 500 to 750 haregarding the requirement of EIA for thehandover or renewal of the FOP.

4.3.2 Producer organisation for policyadvocacy

In the forestry sub-sector, in addition toforest users' groups, there is a federation ofCFUGs also called as Federation ofCommunity Forest Users' Nepal (FECOFUN). In fact, FECOFUN is registered under NGO actand thus is a not for profit organisation. Representative from the CFUG in the district becomesa member of the FECOFUN District Chapter. Likewise, the representative from the districtFECOFUN becomes the member of the FECOFUN National Chapter. There are 74 districtchapters and one national chapter of FECOFUN. Similarly, there is a higher level organisationof Collaborative Forest users, known as Association of Collaborative Forest Users Network(ACOFUN).

In agriculture sector, APGs and LPGs do not have their association yet. Water users' groupshave their associations as follows.Water User Association (WUA): WUA is formed by the representatives from WUGs for themobilisation of WUGs and protection of their rights. WUA is formed by at least five WUGs andare registered under Water Resources Act 1992. About 3000 WUAs are reported to haveformed in the country (ADS, 2011).

District Water User Association (DWUA): DWUA is formed by at least five WUAs and arealso registered under the Water Resources Act 1992. DWUAs roles include lobbying for thebenefit of WUAs. There are about 20 DWUAs formed.

National Federation of Water User Association Nepal (NFIWUAN): NFIWUAN is a nationalfederation of WUAs. It has been reported that there are 2,139 members in NFIWUAN (Batra,2010). Its goal is to increase the income of irrigated farmers by increasing irrigated agriculturalarea and agricultural productivity. Its main functions include protection of members' rights andlobbying for favourable policy formulation.

In the agriculture sub-sector, there are a few more associations that are working on policyadvocacy for farmers. In the review process, the team found three such organisations. A briefsummary of producer organisations for policy advocacy is presented in Table 12.



Table 12: Summary of producers' organisations for policy advocacyType No. Names Principle functionsAssociation About

3000Water user Association(WUA)

Formed by at least 5 WUGs in each VDC. Mainfunction is to mobilise the WUGs and protecttheir rights.

About20

District Water UserAssociation (DWUA)

Formed by at least 5 WUA per district. Mainfunction is to lobby for the benefit of the WUA.

Federation 1 National Federation ofIrrigation water UserAssociation Nepal(NFIWUAN)

2139 members 5 . Main functions includeprotection of members' rights and lobbying forfavourable policy formulation.

Federation 1 Federation of CommunityForest User Nepal(FECOFUN NationalChapter)

Policy advocacy; organizational development;NTFPs promotion & livelihood; climate change;biodiversity conservation;

75 Federation of CommunityForest User Nepal(FECOFUN district)

Strengthening district level institutions andadvocating for the maintenance of local rightsregarding access, use, management andsharing the benefits of forest resources,according to the standing legislation

1100 Federation of CommunityForest User Nepal (VillageChapter)

Strengthening village level institutions andadvocating for the maintenance of local rightsregarding access, use, management andsharing the benefits of forest resources,

Associations/forums

5 Association of CollaborativeForest user Nepal(ACOFUN), National Forumfor Advocacy Nepal(NAFAN); National Farmers'Group Federation, All NepalPeasants' Federation,National Peasants' Coalition

Policy advocacy in favour of producers groupsfor enhancing their production business andtheir organisational development

4.4 Forest/farm related businesses registered as small and cottage industriesThere are several forest/farm businesses registered under various organisational arrangementin Nepal. Most forest/farm businesses are registered in the Department of Cottage and SmallIndustries (DOCSI). This study report has reviewed the businesses registered under DOCSI.The DOCSI has shown that there are 6,014 agriculture and forest related cottage and smallindustries registered under the department (DOCSI, 2012). They were mainly in the areas ofpoultry farming (1359), agriculture and animal husbandry (1962), nursery (584), beekeeping(448), tea farming (224), dairy (148), fisheries (108), NTFP processing (10), and others (1171).However, this is a record of only those industries that were registered in the DOCSI.

In addition to it, there are several other businesses registered under other departments andorganisations. This review found that there are 789 businesses in farming sector, 1260 in foodproduct, 1875 in food retailing, 1174 in home and gardening, and 224 in NTFP processing andexport (NYP, 2013).

4.5 Organisation of farmers vis-à-vis policy dialogue and business developmentAll the grassroots level organisations such as Agricultural Producer Groups (APG), LivestockProducer Groups (LGP), Forest User Groups, cooperative societies, individual business firms,

5 Batra, 2010



etc are the organisations directly involved in business development. Their higher levelorganisations such as FECOFUN district and national chapters, commodity associations anddistrict and national chambers are the organisations for policy dialogue. However, the higherlevels of cooperative societies such as district cooperative unions and nationalunions/federations are for both the purposes. Nevertheless, they were found involved mainly inpolicy dialogue.

Regarding policy dialogue on business development issues, there is more verticalcommunication within the organisation than horizontally between the organisations. For thisreason, business planning is around the problems faced by one sector only. There is lack ofcross-sector interaction.

4.6 Farmers in the country

4.6.1 Basic population structurePopulation Census 2011 has shown that Nepal's population has reached to 26.6 million withpopulation growth rate of 1.4 percent and population density of 181 persons per squarekilometre (CBS, 2011). The average family size was 4.7 persons. Census has shown that 17percent are living in urban area and 83 percent are living in rural area.

4.6.2 Farming populationNepal is basically an agrarian country. There are 80 percent people living in rural area (NPC,2010). There are 76 percent agricultural households (NLSS, 2010). Out of this, 74 percent arewith land (with at least 0.013 ha) and 2 percent are without land (having less than 0.013 ha). Ofthe total population, 65.7 percent are engaged in agriculture. Women are involved more(72.8%) in agriculture (MOAD, 2012). It shows that Nepalese agriculture is feminised (Figure8b).

Size of holding is very small (0.8 ha). This small holding is also fragmented into number ofsmaller parcels. There are 3.3 parcels per holding with 0.24 ha per parcel (Table 13). Thesmaller and fragmented holding has affected negatively in commercialization as well asmechanization of agriculture.

Table 13: Holding characteristicsHoldings with land ('000) 3337Holding without land ('000) 27Total holdings ('000) 3364Total area of holding ('000ha) 2654Average holding size (ha) 0.8Number of parcels 10,987Average parcel per holding 3.3

Figure 8b: Women engagedin agriculture

Agriculture: 73%

Others: 27%

Figure 8a: Population engagedin agriculture

Agriculture: 66%

Others: 34%



Average parcel size (ha) 0.24Source: MOAD, 2012

There are many studies conducted on the distribution of agricultural households and the size oftheir operation. NESAC (1998) has shown that the bottom 40 percent of the agriculturalhouseholds operate only 9 percent of the total agricultural land in Nepal, while the top 6 percentoccupy more than 33 percent land. Nepal Living Standard Survey (NLSS, 2004) furtherreported more than 50% agriculture households operate in less than 0.5 ha land which isinsufficient to sustain a family. There exists a state of conflict between the land owners andtillers in the absence of an effective program of land use to improve production system (ADS,2012).

4.7 Mobilisation in farmers' organisationsSummary of farmers' involvement in various grassroots level farmers' organisations ispresented in Table 14. This table presents only the existing organisations that have mobilizedcommunity people. Since there are various types of organisations at the community level andany household can become member of the community organization, there can be manyhouseholds taking membership in more than one organisation.

Table 14: Forest/farm producers mobilization in farmers' organisationsType of primary and/orgrassroots levelfarmers' organization

Focusedcommodity

Number oforganisations

Totalmembersinvolved

Percentageof women

Reference

Agricultural producergroups

All crops 24,904 500,908 48 AED, 2012

Livestock producergroups

All livestock 16,714 334,000 54 ADS, 2011

Water user's group 16,000 NA

Community forest usergroups

Forest products 18,088(1,747,700 ha)

2,257,444 NA CFD, 2013

Leasehold forest groups Fodder andforage

6,800(39,857)

64,096 NA LFLP, 2013

Number of CollaborativeForest User Groups

Forest products 19(54,072)

476,732 NA

Total active coops All types 22,363 3,288,825 47.02 MOF, 2012SACCOS 11,392 1,702,465 47.50Multipurpose 4,105 1,091,449 48.00Agriculture 4,561 368,191 48.08Dairy 1,778 99,573 25.30Veg & Fruits 184 12,731 49.99Tea 100 4,938 28.11Coffee 77 3,807 35.33Herbs 92 3,236 39.15Beekeeping 54 1,928 44.61Sugarcane 20 507 77.71Junar 31 1,004 30.28



It was found by this survey that there are several grassroots level farmers' organisations thathave mobilized farmers. Among them, the Forest User Group is such an institution that hasmobilized more number of people. As shown in Table 13, so far, management of 1,841,629 haforest area has been handed-over to 24,907 forest user groups mobilizing 2,798,272households.

The recent population census has shown that there are 5,659,984 households (CBS, 2011).Taking 76 percent of agricultural households in Nepal (Table 11), it estimates that there are4,301,588 agricultural households. It gives an estimation of 65 percent of agriculturalhouseholds being involved in forest user's groups.

Likewise there were more than eight hundred thousand families being mobilized in agricultureand livestock production groups. As shown in Table 13, there were 22,383 active cooperativesocieties mobilizing 3,288,825 members. Out of it, 6,897 cooperative societies were commodityspecific cooperative societies mobilizing about five hundred thousand members. Since thesame household can be a member in the agricultural and livestock producers groups andcooperative societies, these numbers cannot be simply added up to get the total percentage offarmers' being mobilized in the group. There are such groups in areas outside of the forest usergroups. Hence, it became difficult to come-up with a representative figure of the percentage offarmers being mobilized in the farmers' organization. In its CIDA funded Sahakarya Projectimplemented in Jumla, Dailekh, Surkhet, Dadeldhura and Baitadi, CECI has reported that therewere 25.192 percent non-repeating households when the project reach was separated by thename of the head of household being involved in various groups supported by the project. Byusing this non-repeating coefficient, it was estimated in this study that 72.94 percent of theagriculture households were mobilized by Forest User Group, Agriculture Producer Group,Livestock Producer Group and commodity specific cooperatives.

Women's participation was not applicable when the involvement of households was analysed.Regarding their participation in producers' groups and commodity specific cooperatives, it wasabout 50 percent. As compared to their 55 to 82 percent to agricultural labour in production(WFDD, 2000), this 50 percent involvement is too low. The reviewed secondary information didnot have further breakdown of the membership with respect to caste and ethnicity. Since thestudy was based on secondary information, this report also could not present the breakdown ofthe membership by caste and ethnicity.

4.8 Potential role of the organisations related with forest/farm producersThis review has found that there are no restrictions on support to any type of groups listedabove. These are professional groups and thus they are not affiliated to any political parties,though they may favour a particular party.

Regarding willingness and potential role that the group could play in meeting the outputs of theFFF, it was concluded that there should be no problem. Since many important organisationssuch as National Planning Commission, Ministry of Forest and Soil Conservation, Ministry ofAgriculture Development, Department of Forest, Department of Agriculture, FECOFUN, FAO,and other related NGOs participated in the introductory meeting that was held on 16 February2013 in Kathmandu and the meeting came-up with a conclusion to invite the Government toassign a high-level focal point for the FFF (FFF, 2013), it was a kind of willingness to providethe required supports.

5. Findings of the review of legal framework governing forest/farm producersWater Resources Act (1992), Land Act (1967), Forest Act (1993), Environment Protection Act(1997), Food Act (1996), Pesticide Act (1991), Mines and Mineral Act (1993) are the major actsthat regulate the agriculture and forest sectors. In addition, there are several policies such asLand Use Policy (2012), Agriculture Policy (2004), Irrigation Policy (2003), Fertiliser policy



(2002), Forestry Sector Policy (2000), Leasehold Forest Policy (2002), Herbs and NTFP policy(2004), Biodiversity Strategy (2002), Agro-biodiversity policy (2007), Agriculture DevelopmentStrategy (draft 2011) (a detail list is presented in Annex 6), that aim to promote agriculture andforestry as a source of livelihoods.

However, there is no agricultural act in Nepal despite being an agrarian country. It is mosturgent to regulate the conversion of prime agricultural land into non-agricultural use orconversion of fragile marginal land into agricultural use. Likewise, there is no act that wouldregulate the unlimited use of pesticides and agrochemicals on the plant, animals and land orpollute the water bodies.

There are several policies such as Land Use Policy, Agriculture Policy, Irrigation Policy andAgricultural Roads Policy dealing with the proper utilisation of land and increasing itsproductivity. But, they are developed by different four ministries and implemented almost inisolation. There is a lack of coordination among the organisations due to which there is no jointplanning and monitoring.

The adhoc promotion of modern varieties and breeds in agriculture without required plan forbiodiversity conservation has displaced much valuable local diversity of crops and animalspecies resulting in genetic erosions in agriculture (Gauchan et al., 2002; 2003).

The current irrigation policy mainly focus on increase irrigated area coverage rather thanimprovement of livelihood of small farmers from the use of irrigation water. The policy does nothave any provision for the role and linkage with agricultural extension and research institutions.As a result there is a poor linkage of irrigation sector with agricultural sector particularly linkagewith research and extension services (ADS, 2012) affecting proper harnessing of potentialagricultural productivity.

The innovations of different forest management approaches and expansion of forestryadministration have not been fully successful in halting or reversing the deforestation trends inthe country. The country’s forest area decreased from 45.5 percent in 1964 to 38.1 percent in1978/79 and 29 percent in 1994; and more recently at an annual rate of 2.7 percent (Gautam etal, 2013).

6. Issues, challenges and recommendationsDuring the study, the review team collected a lot of issues and challenges in both forestry andagriculture sub-sectors. Many of them were from the national status papers such as periodicplans, sectoral long-term plans, strategy papers and country papers. Some of them were fromresearch papers published by various organisations.

6.1 Forestry sector

Issues Some of the pertinent issues that need to be clarified in forestry sub-sector arereviewed here.

Royalty process- Contradictory Taxation - Forest Act 1993 and Local Self Governance Act (LSGA) 1999. For

example; Forest Act says CFUGs should pay royalty to District Forest Office (DFO) (of which90% finally goes to central treasury) while LSGA says that forests are local resources andthus the royalty from forest are local government's revenues (that goes to the localgovernment treasury).



- Inappropriately stated royalty process - For example, many farmers are encouraged byDFOs to plant NTFPs such as Lapsi (Spondias oxillaris), Rittha (Sapindus mukurosi),Chiraita (Swertia chiraita), etc in community forests (CF) and private land. But the DFOquestions its origin when farmers start harvesting the product from the private land and sellit. Then farmers will have to either pay the royalty as it were a product harvested from theforest or get a certificate from the DFO that it was produced by a farmer in his/her privateland. Getting such certificate is a cumbersome process.

- The custom office levies five percent duty on the market price of the forest products at theexport point but there is no clarity about which market price it takes as base (Kunwar, 2009).

IEE and EIA processes- Initial Environmental Examination (IEE) and Environmental Impact Assessment (EIA)

required for handing over of community forest to user groups (IEE for more than 500 ha andEIA for more than 750 ha, respectively). It has delayed the process of handing over forest tocommunities.

- Forest-based industries using raw materials more than 5 and 50 tons require IEE and EIAcertificates making it not only cumbersome but also adding to cost of processing.

Processing- High cost of processing as the processing plants are running at under capacity- Lack of electricity for processing and non-availability of fuel wood- International buyers prefer crude form to avoid the possibility of adulteration.- Trade is largely in raw form due to lack (inadequate) of quality processing facilities.- Low quality (purity, consistency, ingredient/chemical composition, phyto-sanitary

certification), packaging and labelling (attractiveness, image/identity, Forest StewardshipCertificate logo) for trade promotion

- Lack of internationally accredited quality testing laboratory..

Governance- There is elite control over forest resources at the cost of poor. There is no gender and pro-

poor focus on forest products (Wagle, 2012).- Distant users are not involved in current forest management practice- The value of ecosystem services provided by the forest is not accounted in the national

income- There is no any effective forest product distribution and supply mechanism. This

encourages illegal felling of forest trees (Wagle, 2012).- There is no transparency and decision making process is not inclusive in community forest

management.

Pricing transparency and information- Non availability of price information in the rural areas due to which the traders monopolise

the market.- There is vast difference in production price and market price. There is no any price

regulating mechanism (Wagle, 2012).- Price of forest products is fixed by the wealthier group (Acharya and Gentle, 2008)- There is no buy back guarantee for the forest products.

Trade and market integration- Ban for export of some of the forest products (Nardostychis gradniflora, Valeriana jatamansi,

Cinnmomum glaucesecens,Taxus baccata, Abies spectabilis, Rawolfia serpentine, Permiliaspp, and Silajit (a mineral) in crude form (Kunwar et al, 2009) while quality processing facilityis not available in the country.

- Nepali products are not integrated in international markets



- Setting national standards consistent with those applicable in NTFP importing countries(IRG, 2006)

Challenges (excerpted from NPC, 2007, NPC 2010)

Policy- Bringing sustainable reforms in the overall development of forests by catering to the growing

demand of forest products.- Providing maximum benefits from the forestry sector to the nation by controlling the revenue

leakage from the forestry sector.- Reducing human pressure in national forests of the Terai, Chure and Bhawar areas through

the optimal use of forest products.- Effective compliance monitoring and inter-ministerial coordination- Enhancing participation of women and other disadvantaged social groups and address their

problems- CFUGs are not allowed to harvest any products if sustainable use plans are not incorporated

in their Operational Plan of their forest management (FA, 1993 and FR, 1995). Due to thismandatory rule, it is more challenging to handover the forest to the community and thecommunity to include all the potential forest products in their operational plan and get itapproved by DFO.

- There is low level of private investment as the privates are not encouraged to invest due tolevy on forest commodities grown in the private land as well

Governance- Mobilizing the achievements of the forestry sector in favour of the poor.- Providing maximum benefits from the forestry sector to the nation by controlling the revenue

leakage from the forestry sector.- Reducing human pressure in national forests of the Terai, Chure and Bhawar areas through

the optimal use of forest products.- Effective compliance monitoring and inter-ministerial coordination- Enhancing participation of women and other disadvantaged social groups and address their

problems

Environment- Realizing carbon sequestration contributed by the forestry sector, environmental services

and benefits such as bio-diversity conservation and water resources conservation from theinternational sector.

- Integrating the concept of sustainable development in all the development sectors andprocesses for balancing development with conservation

- Reducing deforestation and forest degradation

Forest based enterprise development- Using potential resources for the conservation of forest and wildlife for the promotion of

forest-based enterpises.- Forestry entrepreneurship is weak. Hence, community should be supported externally for the

promotion of community forest enterprise (CFE). There are seven most critical servicesnamely - a) input supply/raw material sourcing, b) enterprise development planning, c)enterprise operation and management, d) technology and product development, e) legal andpolicy reformulation, f) marketing, and g) finance, required to promote CFEs (NNN, 2010).

- Forest product collection and processing methods are still traditional and primitive. Hence,modernisation of collection and processing method based on scientific knowledge is a



challenge to achieve efficiency in production and processing enterprises (Acharya et al,2009).

- There is low level of private investment as the privates are not encouraged to invest due tolevy on forest commodities grown in the private land as well

- Acceptance of essential oils by the world market takes a longer period (at least 2-3 years)than other conventional items due to which entrepreneurs are reluctant to invest onprocessing.

Forest product trade- Supporting the local and national economy by selling valuable forest products in international

markets.- Assuring product quality, market information, brand recognition, government policy and

legislation and inadequate national priority are challenges in value addition (FAO, 2009).- Acceptance of essential oils by the world market takes a longer period (at least 2-3 years)

than other conventional items due to which processors are reluctant to invest on processing- Majority of NTFPs goes to Indian market which is creating dependency on Indian traders.

Indian buyers, therefore, have monopoly and many times do not offer the real price of theproduct (Pokharel et al, 2009).

- Competing with Chinese and Indian supply to international markets

RecommendationsThis study has identified the following areas for intervention in forestry sub-sector.

Policy- Revision of operational plan of the community forests that have not yet been revised since

several years due to unfavourable circumstances.- Developing a strategic plan for the coordinated development and management of

community, leasehold, religious and government forests- Amendment of Forest Act and National Parks and Wildlife Conservation Act and pertaining

rules and regulations (Gautam, et al).- There is a need to develop legal framework for managing corridors (UNDP, 2010).- Cross-border policy harmonization between India and Nepal.- Establishing accredited certifying agency in the country to help solve the phyto-sanitary

certification issues

Governance- Revision of operational plan of the community forests that have not yet been revised since

several years due to unfavourable circumstances.- Reduce degradation of habitats by controlling the over-harvesting of forest products and

conversion of forest to other land uses.- Controlling forest fire and overgrazing by people's awareness raising and enforcement of

forest rules and regulations.- Education and monitoring on sustainable harvest and certification to control depletion of the

resources

Environment- Domestication and cultivation species in the surrounding eco-systems to reduce the potential

loss of species due to uncontrolled and unsustainable harvesting practices (INBAR, 2011).- Research on establishment of technical coefficients on optimal harvesting- Development education and monitoring on sustainable harvest and certification to control

depletion of the resources-



IEE and EIA issues- Accrediting EIA experts has yet to begin in Nepal. Influence of non professionals in

developing and enforcing the legal regime on EIAs and in preparing the environmentalassessment (EA) report prevail in many sectors. Because of this, the benefits of EA toolhave largely been boiled down to legal complication (Bhatta et al, 2009).

- Organise intensive capacity building programme on the importance of EA and the use of EAtools

Processing- Value-chain analyses to facilitate the design of locally appropriate processing interventions.- Training in post-harvest practices such as cleaning, sorting, and packaging to increase the

share of primary producers/collectors in the value chain- Improve laboratory services to support to improve the quality to internationally competitive

level (ITC, 2007).

Forest-based enterprise promotion and trade- Empowering the communities with more bargaining power for equitable share of the benefits

from forest- Creating infrastructural facilities to reduce the dependence of communities on limited

markets- Strengthening market intelligence systems to enhance bargaining power of the primary

producers/ collectors- Establishing accredited certifying agency in the country to help solve the phyto-sanitary

certification issues- Scaling-up cultivation and collection of forest products by promoting high capital investment

and venture capital- Entering established markets as buyers tend to have specific product requirements and are

reluctant to change suppliers

6.2 Agriculture sector

IssuesLiteratures show that there are several issues that need to be clarified. Some of the pertinentones are reviewed here.Policy- Lack of crop insurance or increasing frequency of crop failure- Lack of policy for commercialisation (e.g., contract farming policy)- Lack of comprehensive policies for agrarian reform. There is no agricultural act despite

agriculture being the mainstay of the economy- Skewed access to agricultural land. Landlordism has been considered as the major feudal

characteristic of society where majority of the people remain without access to resourcesparticularly lack of the land ownership (Teijun and Kinchi 2008)

- No clarity in the vision and targeting. There are too many areas identified as priority and thushave missed to focus the most potential for consolidated resource allocation

- No policy on legislation, institutions, and implementation modality is developed for crop andlivestock insurance

- Weak capacity for planning and policy analysis

Institutional- Low competitiveness due to poor infrastructure, weak governance, limited capacity and

human resources, an overvalued exchange rate, difficulty to access credit and doingbusiness, etc



- Subsistence farming systems mainly because of risks associated with rainfed production;increasing uncertainty due to climate change

- A research focus on farmers’ problems is lacking due to lack of sufficient interaction betweenresearch, extension and farmers

- Inadequacy of agricultural credit facilities has increased farmers' dependency on the localmoneylenders who charge high interest rates

- Agri-business and its stocks are not yet accepted as collateral by credit providing institutions- Agricultural education not matched with farmers’ needs, priorities and/or market demand- Inadequate development of quality control and regulatory mechanisms for seeds, fertilizer

and food- Weak linkages among agencies responsible for agricultural production, agro-industry, and

trade- Inadequate/weak participatory monitoring & evaluation systems

Productivity- Low productivity of agriculture due to lack of effective mechanism for linking research

extension and farmers, the low availability of year-round irrigation, the limited availability andaffordability of key inputs (fertilizer, seed, breeds, etc.), declining soil fertility, poor integrationof research and extension with the agricultural education system, and high incidence ofpests and diseases (ADS, 2012)

- Soil fertility decline is becoming serious problem- Nepali framers often face a crisis of agriculture inputs and other services in the period of

crops planting- Fertilizer availability in term of quantity, quality and in time is not ensured through the policy

says it will be- Even being an agricultural country, of the total cultivated area, only 54 percent is irrigated

(MOI, 2011)- Use of improved seed is still very low. Though overall seed replacement rate is 8 percent

(ADS, 2012), seed replacement rate in major cereal crops is less than 2 percent (SQCC,2011)

Post harvest losses- High postharvest losses - 15 to 50 percent (Gautam and Bhattarai, 2006) due to improper

method and time of harvesting; improper packaging techniques applied and packagingmaterials used; inappropriate storage structures and storage conditions

- Inadequate investment in infrastructure and post-production value addition

Climate change and vulnerability- Agriculture is mostly rainfed due to which the impact of climate change, particularly drought,

is very high- Slow growth rate in the agricultural sector has compelled the landless labourers in the rural

areas to continuously expand cultivation in the economically less productive andenvironmentally fragile lands which otherwise would remain under some kind of permanentvegetation

Agricultural trade- Inadequate marketing services/information for agricultural produce- Nepalese products face non-tariff barriers in the form of sanitary and phyto-sanitary (SPS)

and technical standards in the export markets due to lack of good farming and manufacturingpractices

- Concept of economic zones and linking them with production not yet initiated- Export led production zone, processing zone with market link development is not initiated.- Competitive disadvantage due to subsidies in neighbouring countries



Agricultural labour- Feminization of agriculture due to out- migration, women’s work load has increased- Agriculture has been perceived as lowest grade occupation as the youth mostly want to be

dissociated from agriculture activities- Because of the small size of holding and increasing labour wage, the trend of leaving the

agricultural lands fallow is increasing- There is high underemployment in agriculture sector (30%)- Foreign job has been considered as alternative employment strategy, especially for the

economically and socially disadvantaged groups impacting negatively on the supply ofagricultural labour

Infrastructure- Inadequate storage facility and lack of market in the harvest period has lowered the price of

produce significantly- A high fiduciary risk in the construction of agricultural roads- Though the plan documents have emphasized the construction of rain harvest infrastructure,

it has not been implemented significantly

Challenges

Policy- Strengthening and standardizing agricultural insurance product design and rating so that

these conform to the technical and legal requirements of the insurance industry- Development of strategy to reduce the widening gap between research and extension

services- Establishing an adequate legal and institutional system for the certification of products

Scaling-up production- Scaling-up of production by increasing area under production to meet the marketing volume- Enhancing farm productivity by adoption of high yielding varieties/breeds- Enhancing irrigation facility

Human resource capacity development and increasing agricultural employment- Transforming a farmer to entrepreneur (from subsistence to commercial)- Retaining human labour in rural area with agriculture- Enhancing technical and managerial capacities of farmers- Reducing underemployment in the farming sector (which is 30% currently) by increasing

cropping intensity and adoption of labour intensive technology such as plastic house culture,off-season production, processing, etc.

Postharvest management- Reduction of post-harvest losses by adoption of appropriate harvesting, cleaning, packaging

and transportation technologies.- Enhancing edible period of food crops through the development and adoption of appropriate

methods of storage and processing

Promoting agricultural trade- Promotion of export by crop diversification. For example; growing vegetables in the hills of

Nepal instead of maize during rainy season can fetch better price in Terai and Indianmarkets as Terai and bordering Indian towns along Terai are inundated during monsoon.

- Integration of Nepali agricultural products into export markets by linking the producers and/orspecific Nepali commodity trader to Indian market

- Achieving competitiveness through farm mechanization and reduction of production cost



- High transaction costs in accessing inputs, credit and marketing facilities affecting negativelyon the competitiveness

- Diversification of export market for high value commodities such as tea, cardamom andginger.

- Production zoning to meet the SPS requirements of export market

Adaptation to climate change- Adaptation to climate induced natural disasters such as erosion, landslide, flood, drought,

cold waves and heat waves; shifting of agro-ecological zones, glacial lake outburst flood(GLOF), and high incidence of pests and diseases

- Climate and disaster risk management

RecommendationsThis study has identified the following areas for intervention in agriculture sub-sector.

Policy and institution- Advocacy for the formulation of agricultural act- Policy to promote organic agriculture- Promote agricultural insurance for high value commodities to minimize the risk of agriculture

commercialization- Massive agricultural education programme to shift the paradigm of food security from

producing everything for the family to producing the most competitive one and supporting thefamily from what is earned from that

Productivity- Improving soil fertility through integrated farming (integration crop, livestock and forestry) and

integrated plant nutrient management- Enhancing policy feedback to research for appropriate technology generation- Enhancing participatory action research to reduce time of technology generation- Massive education to farmers on integrated pest management and organic production- Ensuring quality of planting materials and accelerating the seed replacement rate- Enhancing rain water harvest to enhance the water availability- Packaging of production inputs to harness potential yield of a variety/breed- Integrated pest management schemes- Supplying required fertilizer—currently 180 tons are supplied despite a demand for 580,000

tons, as well as meeting fertilizer needs for crop intensification and commercialization of agri-culture.

Postharvest and processing- Add value to fresh agricultural products to enhance the shelf life and availability of produce- Massive programme on post-harvest technology generation and extension- Linking producers with the local industries- Strengthening postharvest services and equipments to reduce postharvest losses- Strengthening infrastructure for marketing, post-harvest handling and quality control

Promoting agriculture as a business- Business literacy to a large pool of illiterate farmers to transform them from farmer to

entrepreneur by activating latent entrepreneurial skill- Developing agro-entrepreneurship amongst farmers to take agriculture as a business- BDS support to small agro-industry and agribusiness to scale-up their business- Enhancing access to finance both for farmers and small and medium enterprises- Improve the quality BDS at the grassroots level



Agricultural trade- Promoting cooperatives to solve the problem of small and scattered production- Integration of Nepali traders and products with international markets- Orientating farmers on the provisions and requirements of WTO

Increasing agricultural employment- Promoting high value commodities such as off-season vegetables, dairy on-farm micro-

enterprises etc., to retain the male migrant labour to revert the process of feminisation ofagriculture

- Packaging the marketing services with infrastructure to enhance the participation of womenand DAGs

Adaptation to climate change- Effective climate change adaptation to counter the negative effects of climate change on

development- Generation of climate resilient technologies- Harnessing positive impacts of climate change in hills and mountains of Nepal

6.3 Overall recommendations for FFFOn the basis of the suggestions of the participants of the baseline information sharing workshop(2-3 July 2013), the study team has prepared overall recommendations for FFF. It has alsoconsidered the current situation in Nepal and the objectives that FFF aims to achieve.Currently, there is a extreme polarisation of political parties thereby failing to reach to politicalconsensus for various issues such as model of federalism, governance structure, resourcedivision, etc. Law and order is weakening over time thereby leading to a situation likelawlessness. There is a high level of fiduciary risks and corruption placing Nepal at 139th placeout of 176 countries ranked for corruption (TI, 2012). Against these facts in the backgroundand the business development and advocacy activities that FFF aims to support to forest andfarm producers, this study has prepared the following recommendations for project intervention.

Interventions that need to be addressed by business development activities:- Preparation of business literacy package and conduction of business literacy session in the

rural communities to activate latent entrepreneurial attribute- Value-chain analyses to facilitate the design of locally appropriate interventions.- Training in post-harvest practices such as cleaning, sorting, and packaging to increase the

share of primary producers/collectors in the value chain- Add value to fresh agricultural and forest products to enhance the shelf life and availability of

produce- Creating infrastructural facilities to reduce the dependence of communities on limited

markets- Strengthening market intelligence systems to enhance bargaining power of the primary

producers/ collectors- Improve laboratory services to improve the quality to internationally competitive level.- Scaling-up cultivation and collection of forest products by promoting high capital investment

and venture capital- Entering established markets as buyers tend to have specific product requirements and are

reluctant to change suppliers- BDS support to small agro-forestry industry and agribusiness to scale-up their business- Improve the quality of BDS at the grassroots level- Enhancing participatory action research to reduce time of technology generation- Massive education to farmers on integrated pest management and organic production- Enhancing rain water harvest to enhance the water availability

Interventions that need to be addressed by advocacy activities:



- Education and monitoring on sustainable harvest and certification to control depletion of theresources

- Develop strategic plan for the integrated development of forest, agriculture and livestock forimproving soil fertility through integrated farming

- Promoting high value commodities such as off-season vegetables, dairy on-farm and forestbased micro-enterprises, etc., to retain the male migrant labour to revert the process offeminisation of agriculture

- Promoting cooperatives to solve the problem of smallholders such as small and scatteredproduction/collection

- Enhancing access to finance both for farmers and small and medium enterprises- Packaging the marketing services with infrastructure to enhance the participation of women

and DAGs- Enhancing policy feedback to research for appropriate technology generation- Linking producers with the local industries- Integration of Nepali traders and products with international markets- Cross-border policy harmonization between India and Nepal.- Establishing accredited certifying agency in the country to help solve the phyto-sanitary

certification issues

7. Enhancing delivery of public goods and services in the forest and farm sectorDelivery of public goods and services to the right needy group is a major problem in Nepal.There are several factors such as elite capture in planning and budgeting, political influence inthe formation of users' groups, low capacity of citizen to hold the government accountable, lowcapacity of the local government on programme planning and implementation etc. affecting theperformance of the local government in the delivery of public goods and services. Some of thechallenges are as follows.

7.1 Challenges faced by the demand sideAs shown in Figure 1, farmers' organisations/communities are the demand side of the publicgoods and services. The followings are the major challenges faced by the demand side ofpublic goods and services.- Information on the types of goods and services available with the local government and the

line agencies- Information on the roles that the public sector should be playing for the citizens- Information on the amount of resources available by theme with the local government and

line agencies- Information on the procedure to be followed to access the public goods and services- Information on the local government planning process and citizens' participation required for

the inclusion of their felt need programmes- Information on the market dynamics and traders- Information on technology and business service providers

7.2 Challenges faced by the supply sideAs presented in Figure 1, government organisations are the supply side of the public goods andservices. The following are the major challenges faced by the supply side of the public goodsand services.- Information on communities to be reached with public goods and services- Information on the needs and priorities of the communities- Information on the process to reaching the communities- Allocating resources equitably on the community needs and priorities



7.3 Interventions to match the demand for and supply of public goods and servicesCapacity building of the farmers (demand side) to raise their awareness on the challenges theyhave faced in getting information on the provisions of public resources and capacity building ofthe government organisation (supply side) to reach the needy communities with public goodsand services is must to promote forest/farm businesses (Figure 9). This capacity buildingcontributes to improving the governance structure too at the community level. For example, outof the total block grant, local government should allocate up to 15 percent for the developmentof agriculture sector. However, only a very few and that also only an elite group have some ideaabout this provision.

8. Major projects in operation supporting forest/farm producersThere are several projects in operation in both forestry and agricultural sectors. Theme-wisegeographical coverage of some important projects is presented in Table 15.

For easy reference of the project districts and better planning in future to avoid duplication andachieving synergy in the project results, these current projects are mapped in Figure 10.

Public goods and services Farmers(Farmers' organisations)

Local Government(+ line agencies)

(Supply side)

Communities to be reached with public goods andservices, whereabouts of the communities, how to

reach them, how to identify their needs and prioritisethem, how to supply public goods and services to

these prioritised needs of the communities, etc

Public goods and services(Demand side)

What is available with the local government and theline agencies, what for is that available, how much isavailable, what is the procedure to be followed to get

that, when is that demand is to be placed, etc.

Figure 9: Accessing public goods and services for business development



Table 15: Current projects and their coverage

SN Name of theongoing project Main objective Project

periodSource offunding

Districts coveredNo (name)

1 Hariyobanto reduce adverse impacts of climatechange and threats to biodiversity inNepal

2011-16 USAID

29 (Rautahat, Bara, Parsa, Chitwan, Makawanpur, Nawalparasi,Rupandehi, Kapilbastu, Dang, Banke, Bardia, Kailali, Kanchanpur,Palpa, Mustang, Manang, Gorkha, Rasuwa, Nuwakot, Dhading,Lamjung, Tanahu, Syanja, Kaski, Parbat, Baglung, Myagdi, Gulmi,Arghkhachi)

2 MultistakeholderForest Project

to improve livelihoods and resilience ofpoor and disadvantaged people inNepal through sustainable andequitable management of forestresources

2012-14 DFID, SDC,GOF

23 (Terathum, Dhankuta, Sankhuwasabha, Bhojpur, Okhaldhunga,Khotang, Ramechhap, Nawalparasi, Rupandehi, Kapilvastu,Parbat, Baglung, Myagdi, Dang, Pyuthan, Rukum, Rolpa, Salyan,Bajhang, Achham, Kalikot, Dailekh, Jajarkot

3 Feed the Future

to improve inclusive growth in theagricultural sector and improvenutritional status, especially of womenand children

2011-15 USAID20 (Baitadi, Dadeldhura, Kanchanpur, Doti, Achham, Kailali,Dailekh, Jajarkot, Surkhet, Bardiya, Rukum, Rolpa, Salyan, Banke,Dang, Pyuthan, Arghakhanchi, Gulmi, Palpa, Kapilvastu)

4Nepal Economic,Agriculture and TradeActivity (NEAT)

to contribute to economic developmentthrough the enhancement of agriculturalproduction and trade

2011-13 USAID Nation-wide

5Community ManagedAgriculture IrrigationSector project

to promote inclusive economic growthwhile reducing poverty in the rural areasof Central and Eastern Developmentregions

2006-13 ADB andOPEC

35 (Taplejung, Panchthar, Ilam, Jhapa, Samkhuwasabha,Tehrathum, Bhojpur, Dhanakuta, Sunsari, Morang, Solukhumbu,Okhaldhunga, Khotang, Udapur, Siraha, Saptari, Dolakha,Ramechhap, Sindhuli, Sarlahi, Mahottari, Dhanusha, Kathmandu,Bhaktapur, Lalitpur, Kavre, Sindhupalchowk, Nuwakot, Rasuwa,Dhading, Makawanpur, Chitwan, Bara, Parsa, Rautahat)

6CommercialAgricultureDevelopment Project

To Improve efficiency of marketing andprocessing of High Value Crops (HVCs)such as vegetables, fruits, tea andspices in the EDR, and to increasedrural employment and income.

2007-13 ADB11 (Taplegunj, Dhankuta, Ilam, Panchthar, Tehrathum andUdaypur, Jhapa, Morang, Saptari, Siraha and Sunsari)

7Irrigation & WaterResourcesManagement Project

to retune and handover themanagement of the system to userscommittees of some already completedand being operated agency managedirrigation systems which comprise some61,000ha of irrigated areas

2008-13 WB

39 (Mustang, Gorkha, Lamjung, Tanahu, Kaski, Parbat, Syngja,Palpa, Myagdi, Baglung, Gulmi, Arghakhanchi, Nawalparasi,Rupandehi, Kapilvastu, Dolpa, Mugu, Humla, Jumla, Kalikot,Rukum, Rolpa, Pyuthan, Salyan, Jajarkot, Dailekh, Surkhet, Dang,Banke, Bardiya, Bajura, Bajhang, Darchula, Achham, Baitadi, Doti,Dadeldhura, Kailali, Kanchanpur)

8Raising Incomes ofSmall and MediumFarmers Project

to reduce the market and business risksfaced by small and medium farmersdiversifying into high value commodities

2011-17 ADB 10 (Banke, Bardiya, Dang, Dhailekh, Surkhet, Baitadi, DadeldhuraDarchula, Doti, Kailali)



(HVC) in 10 districts of the Mid-westand Far-west development regions ofNepal

9

High ValueAgriculture Project inHill and MountainAreas

to integrate the rural poor, especiallywomen and marginal groups in highvalue agriculture and NTFP/MAP valuechains and markets, and improveincome, employment opportunities andability to respond to market demandand opportunities based on marketingagreements with private agribusiness.

2010-15 ADB 10 (Humla, Jumla, Mugu, Dolpa, Kalikot, Surkhet, Dailekh, Salyan,Jajarkot, Accham)

10Project for AgricultureCommercializationand Trade

to improve the competitiveness ofsmallholder farmers and theagribusiness sector in selectedcommodity value chains in 25 districtssupported by the project

2009-15 WB

25 (Dhanusha, Mahottari, Sarlahi, Rautahat, Bara, Parsa, Chitwan,Dhading, Kathmandu, Lalitpur, Kavre, Nawalparasi, Tanahu,Lamjung, Kaski, Syangja, Palpa, Rupandehi, Kapilvastu, Dang,Banke, Bardiya, Surkhet, Kailali and Kanchanpur)

11

Biodiversity SectorProgramme ForSiwalik and Terai(CollaborativeApproach)

to conserve biodiversity 2001-13 SNV 8 (Chitwan, Makwanpur, Bara, Parsa, Rautahut, Sarlahi, Mahottari,Dhanusha)

12

Leasehold Forest andLivestockDevelopmentProgram

to reduce poverty sustainably throughincreased production of forest andlivestock products 2005 –13 IFAD

27 (Panchthar, Terathum, Bhojpur, Khotang, Okhaladhunga,Sindhuli, Makawanpur, Chitawan, Dhading, Sindhupalchok, Kabrepalanchok, Dolakha, Ramechap, Lamagung, Tanahu, Gorkha,Pyuthan, Salyan, Baitadi, Dadeldhura, Doti, Achham,Nawalparasi, Palpa, Gulmi, Arghakhanchi, Syanja)

13 Sacred HimalayanLandscape (SHL)

to conserve the rich biodiversity andenhance local livelihood needs andsustain diverse culture and traditions inthe globally important EasternHimalayan Region.

2007-13 WWF18 (Rasuwa, Nuwakot, Sindhu, Kavre, Dolakha, Ramechap,Sindhuli, Okhaldhunga, Solu, Sankhuwasabha, Bhojpur, Khotang,Udayapur, Terhathum, Dhankuta, Panchthar, Ilam, Taplejung)

14 Terai Arc Landscape(TAL)

to restore the corridors and habitat thatfacilitates wildlife movement 2007-13 WWF

14 (Rautahat, Bara, Parsa, Chitwan, Makawanpur, Nawalparasi,Rupandehi, Kapilbastu, Dang, Banke, Bardia, Kailali, Kanchanpur,Palpa)

15 Chitwan AnnapurnaLandscape (CHAL)

to reduce threats to biodiversity intarget landscapes 2011-16 WWF

19 (Parbat, Syangja, Kaski, Lamjung, Gorkha, Tanahu, Manang,Mustang, Chitwan, Nawalparasi, Dhading, Myagdi, Baglung,Gulmi, Arghakhachi, Palpa, Makawanpur, Nuwakot, Rasuwa)

16FRA (ForestResourceAssessment Project)

to strengthen institutional capacity forthe management of forest informationsystem (data collection, forest resourceassessment, forest cover mapping,

2009- 14 GOF Nation level



open source forest information system)and project management

17

Ecosystem basedAdaptation inmountain ecosystemin Nepal (EbA)

to build national capacity to strengthenecosystem resilience for promotingecosystem based adaptation (EBA)options and to reduce the vulnerabilityof communities, with particularemphasis on mountain ecosystems.

2012-15 UNDP, UNEP,IUCN 3 (Kaski, Parbat and Syngja)

18

EnhancingLivelihoods and FoodSecurity fromAgroforestry andCommunity Forest inNepal

to improve the capacity of household-based agroforestry systems, thefunctioning of community-based forestrysystems, and the productivity of andequitable access to under-utilisedagricultural land.

2013-18 AusAID 4 (Kaski, Kavre, Lamjung and Parbat)

19Western UplandPoverty AlleviationProject

to improve and strengthen thelivelihoods of the most vulnerablehouseholds in Nepal's Western Uplandsregion, where poverty is widespread

2002-16 IFAD

8 ( Kalikot, Humla, Bajura, Bajhang, Jajarkot, Rukum Rolpa andDailekh)

20

High Mountain Agri-business & LivelihoodImprovement Project(HIMALI)

to increase the income and employmentof high mountain people through thevalue chain development of theiragricultural, livestock and NTF productsand improve the rural householdlivelihoods in high mountain districts

2011-16 ADB10 (Humla, Mugu, Jumla, Dolpa, Mustang, Manang, Rasuwa,Dolakha, Solukhumbu, Sankhuwasaba)

21

ParticipatoryWatershedManagement andLocal GovernanceProject

to improve participatory watershedmanagement by strengthening the localgovernance system 2009-14 JICA 8 (Kaski, Tanahu, Parbat, Myagdi, Syangjha, Baglung, Kavre,

Sindhupalchok)

22President Chureconservationprogramme

to conserve Chhure area sustainablyand improve livelihood of poor people

From 2010ongoingproject

GON

27 (Jhapa, Ilam, Morang, Sunsari, Saptari, Siraha , Udayapur,Dhanusha, Sindhuli, Mahottari, Sarlahi, Rautahat, Bara, Parsa,Makawanpur, Chitwan, Nawalparasi, Rupandehi, Kapilbastu,Palpa, Arghakhanchi, Banke, Dang, Surkhet, Kailali, Kanchanpur,Dadeldhura)



Figure 10: Map of Nepal showing the districts under various current projects


36

9. Proposed RBMIS frameworkIn line with the expectation of the TOR of this assignment, a simple project results andmonitoring framework is presented in Table 15. For further monitoring and evaluation of theproject results, a RBMIS framework is suggested for the proposed project in Table 16. Theproposed framework may be modified by the project formulation team at the start of the project.The modification should be based on the results to be delivered, availability of the resource andimplementation model it would adopt. These three criteria will determine the types of activitiesto be implemented. At the time of designing activities for implementation, the formulation teamshould state the assumptions made and analyse the potential risks that are likely to affect theresult delivery. The team should further rank the risks as low, medium and high and include amitigation plan for the risks perceived as high.

This study was a kind of existing institutional framework survey. It has presented theorganizational typology, their principal functions and the major constraints being faced by theforest/farm sectors. Hence, baseline figures for the proposed monitoring indicators, and the endof the project target, could not be proposed. These should be further worked-out incollaboration with the communities at the start-up of the project.

On the basis of the goal and purpose that were derived from the FFF documents, this studyteam has found three areas to contribute to achieve the purpose of the proposed project asfollows.

1. Resource accessing capacity of farmers' organisations enhancedThere are resources available from various sources at the community level. However, there iselite capture and the real needy people do not get those resources. In order to ensure that theresources reach the needy group, their capacity to access public goods and services should beenhanced. The study team further identified three outputs that need to be achieved tocontribute to achieving this outcome.

1.1 Advocacy capacity of farmers organisations' strengthenedBecause there are several issues that need to be solved and for that purpose farmers voiceswill have to reach the government and be heard there, some level of advocacy will be required.For this purpose, farmers need to join together and form an organisation. The capacity of suchorganisations should be enhanced for them to be able to articulate their issues to thegovernment.

Since it is a matter of advocating solving the issue, the number of issues being incorporated inthe government policy would be an appropriate indicator for monitoring.

1.2 Governance of farmers' organisations improvedIn order to lead the organisation successfully, the organisations need to follow the goodgovernance practices. It enhances members faith on the organisation. The good andmonitorable indicators of good governance practices would be the composition of boardmembers by sex, caste and ethnicity, regular board meeting and annual general meetings.

1.3 Access to public resources enhancedAfter all, the farmers should be able to access resources from the public sources. There shouldbe capacity development activities too. In order to access resources from the public sources,they should be able to get various projects from different sources. In many instances farmerswould implement projects on their own finance by taking loans from the financial institutions.Hence, the number of projects and amount of resources being accessed by the farmers'organisations, and amount of loans accessed by the farmers' organisations are the goodindicators to monitor the access to public resources.

1.4 Access to technology


37

Access to technology is must for enhancing productivity. The increased yield of majorcommodities is the good indicator to measure and monitor the progress achieved in enhancingaccess to technology.

2. Multi-stakeholder platform establishedOne of the objectives of forestry development programme of the government and the newlyimplemented Multi-stakeholder Forestry Project is the establishment of multi-stakeholderplatform for forestry development. As the FFF is also aiming to promote a multi-stakeholder(cross-sectoral) mechanism, establishment of multi-stakeholder platform would be one of theappropriate outcomes. After reviewing some literatures, the study team has identified twooutputs that need to be achieved to contribute to achieve this outcome.

2.1 Multi-stakeholder FFF establishedSince the FFF aims to operate an FFF, establishment of FFF itself should be one of the outputsof establishing multi-stakeholder platform.

The number of organisations joining the platform, the amount of fund established andestablishment of fund utilization criteria were found as the better indicators to monitor thesuccess of the proposed multi-stakeholder platform.

2.2 Joint planning and monitoring mechanism establishedJoint planning is a successful tool in avoiding duplication of resources and achieving synergy inthe development results. Likewise, joint monitoring is also a successful tool in monitoring theimpact of the project and controlling the multiple flow of the resources to the same communityand/beneficiary. Since there are several stakeholders in the multi-stakeholder platform, jointplanning and monitoring need to be practiced.

The number of local projects (activities) jointly prepared, number of local projects (activities)jointly monitored and number of issues raised and solved were identified as the good indicatorsfor monitoring the success of the proposed joint planning and monitoring mechanism,

3. Service delivery capacity of public organisations strengthenedGovernment organisations are the supply side of the public goods and services. It is equallynecessary that they have the capacity to deliver the public goods and services. In the presentpolitical context of Nepal where there are no elected local government bodies, the governmentis run by civil servants. There is only one VDC secretary an assistant to implement the VDCprogramme. VDC is the end point of the flow of resources to the community from all thedevelopment ministries, departments and other programmes. Hence, it is a heavy responsibilityto the VDCS these-days. On this ground, it was concluded that the capacity of VDCS (localgovernment) should be enhanced for the delivery of public goods and services in the presentcontext. The study team has identified two outputs that would contribute to achieve thisoutcome.

3.1 Mechanism for project identification and prioritization establishedThe major problems that the local government bodies are facing are the identification andprioritisation of development projects. In the absence of proper mechanism, elite groups arecapturing the public as well as project resources. Hence, establishment of project identificationand prioritisation mechanism will help the local governments to ensure that the resources areallocated judiciously.

The number of projects approved on the basis of established mechanism and percentage offund allocated in consultation with the beneficiaries are thus the good indicators for thispurpose.


38

3.2 Platform for citizen monitoring establishedIn the absence of elected local government representatives, local governments are finding itvery difficult to monitor the project results. In this regard, a platform for monitoring the localgovernment activities by citizens is proposed by the study team.

The achievement of this output can be monitored by the number of local projects (activities)jointly monitored with the involvement of beneficiary citizens.

The logical framework of the project objectives and the results is presented in Table 16.

Table 16: Suggested results monitoring system and indicatorsObjectives Results Monitoring indicatorsGoal: To contribute toimprove food securityand livelihoods of thelocal people

Livelihoods and food securityof the people improved

Percentage of households (disaggregatedby poverty, sex, caste and ethnicity) withincreased number of food secured months

Purpose: To increasehousehold income ofthe local people bysustainablemanagement of forestand farm resources

Income of smallholder,women, community andindigenous peoples groupsincreased through theincreased production offorest/farm products

Percentage of households (disaggregatedby poverty, sex, caste and ethnicity) withincreased income

Outcomes:1. Resource accessing

capacity of farmers'organisationsenhanced

Outputs:1.1 Advocacy capacity of

farmers organisations'strengthened

Number of priority issues advocated by thefarmers being incorporated in thegovernment policy

1.2 Governance of farmers'organisations improved

Composition of board members by sex,caste and ethnicity

Percentage increase in the number ofboard and annual general meetings

Preparation, audit and approval offinancial reports

1.3 Access to publicresources enhanced

Number of projects and amount ofresources being accessed by the farmers'organisations

Amount of loans accessed by the farmers'organisations

1.4 Access to technologyimproved

Increased yield of major commodity beingemphasised by the project

2. Multi-stakeholderplatform established

2.1 Multi-stakeholder FFFfund established

Number of organisations joining theplatform

Amount of fund Fund utilization criteria established

2.2 Joint planning andmonitoring mechanismestablished

Number of projects jointly prepared Number of projects jointly monitored Number of issues raised and solved

regarding duplication of resources3. Service delivery

capacity of publicorganisationsstrengthened

3.1 Mechanism for projectidentification andprioritization established

Number of projects approved on the basisof established mechanism

Percentage of fund allocated inconsultation with the beneficiaries

3.2 Platform for citizenmonitoring established

Number of projects jointly monitored with theinvolvement of beneficiary citizens


39

The identified indicators for the monitoring of project results were further analysed with respectto the sources of data for verification, the method of collection of data for verifying, frequency ofcollection and reporting and the responsible organisation to do the whole monitoring. TheRBMIS framework is presented in Table 17.

This study has not yet proposed the activities to be undertaken to achieve the proposedoutputs. This is mainly because the activities should be designed only after the project is clearabout the outcomes and outputs. The project outcomes and outputs should be clarified by thedonors or should be rigorously discussed by the project implementation plan formulation team.Depending on the decisions on how to implement the project, the proposed M&E might bechanged.


40

Table 17: RBMIS frameworkObjectives Results Indicators Data Sources Collection

MethodsFrequency Responsibility

Goal: To contribute toimprove food security andlivelihoods of the local people

Livelihoods and food security ofthe people improved

Percentage of households(disaggregated by poverty, sex,caste and ethnicity) with increasednumber of food secured months

Beneficiaries Survey At the endof theproject

FFF

Purpose: To increasehousehold income of the localpeople by sustainablemanagement of forest andfarm resources

Income of smallholder, women,community and indigenouspeoples groups increased throughthe increased production offorest/farm products

Percentage of households(disaggregated by poverty, sex,caste and ethnicity) with increasedincome

Project estimatesthrough annualand semi-annualreview andplanning process(S/ARP)6

Compilation Twice(Midtermand end)

FFF

Outcomes:1. Resource accessing

capacity of farmers'organisations enhanced

Outputs:1.1 Advocacy capacity of farmers

organisations' strengthenedNumber of issues beingincorporated in the governmentorganisations

Beneficiaries andproject estimatesthrough S/ARP

Participatoryassessment

Annual Projectcoordinationunit (PCU)

1.2 Governance of farmers'organisations improved

Percentage increase in thenumber of board and annualgeneral meetings

Presentation, audit andapproval of financial reports




1.3 Access to public resourcesenhanced

Number of projects and amountof resources being accessed bythe farmers' organisations

Amount of loans accessed bythe farmers' organisations




1.4 Access to technologyimproved

Increased productivity of majorcommodity being emphasised bythe project




2. Multistakeholder platformestablished

2.1 Multistakeholder FFF fundestablished

Number of organisations joiningthe platform

Beneficiaries andproject estimates


Annual Projectcoordination

6 See Section 10 (Implementing a simple (participatory) monitoring system) for detail on S/ARP methodology


41

Amount of fund Fund utilization criteria

established

through S/ARP unit (PCU)

2.2 Joint planning and monitoringmechanism established

Number of projects jointlyprepared

Number of projects jointlymonitored

Number of issues raised andsolved regarding duplication ofresources




3. Service delivery capacity ofpublic organisationsstrengthened

3.1 Mechanism for projectidentification and prioritizationestablished

Number of projects approvedon the basis of establishedmechanism

Percentage of fund allocated inconsultation with thebeneficiaries




3.2 Platform for citizen monitoringestablished

Number of projects jointlymonitored with the involvement ofbeneficiary citizens





42

10. Conclusions

Overall potential for strengthening forest and farm producer groupsDuring the survey and the review of secondary information, it was found that the farmers aresomehow organized in some formal groups such as FUGs and Coops and informal groupssuch as APGs and LPGs, but are not aware of their rights and entitlements. For example, theyhave no information on the provisions of 15 percent VDC grant for agriculture development,they cannot catch when the VDC topping-up grant is misinterpreted and reallocated in othersectors. FUGs have found difficulties in taking up group enterprises due to a large number ofheterogeneous members in the group.

APGs and LPGs are small and their production is not enough for long distance marketing. Theyneed to be upgraded into a cooperative for cooperative farming as well as scaling-up theirproduction to reach a marketable volume. In addition, as most of the agricultural productioncooperatives are involved more in input arrangement and accessing technology only, they needto be reoriented to doing an output business. These organisations need to be inclusive and wellcapacitated to hold the local government accountable to them. These development needs offarmers groups indicate that there is a scope for strengthening the forest and farm producergroups in Nepal.

Potential forest/farm producer groups targeting for project supportAs presented in Section 4.6, farmers' grassroots level organisations such as FUG, APG, LPG,WUG, and commodity cooperative societies have mobilized about 73 percent of the agriculturalhouseholds. It clearly indicates, therefore, that the FFF support should go to theseorganisations to maximize the reach of FFF support. Time has come for the APGs and LPGs togrow into a larger group to tackle their marketing problems. One way to do so is to organise intocooperative society. Organising into a cooperative society helps to commercialise agricultureproduction and reach the marketable volume of production for efficient long distance marketing.District and national level unions/federations of these organisations can be the best partners toreach to the farmers' grassroots level organisations.

Cross-sectoral organisations to be involved to achieve the desired changesThe review could not find any appropriate cross-sectoral organisation that could be involved inFFF programme. Nevertheless, there are two cross-sectoral platforms namely DistrictAgriculture Development Committee (DADC) and District Forest Sector CoordinationCommittee (DFSCC) at the district level in agriculture and forestry sectors. These two platformsmay be used to discuss the FFF project activities. The project implementation plan formulationteam can further workout on this matter by carrying out a shot SWOT analysis of the existingcross-sectoral organisations and platforms and then come-up with a best one to work with. Inboth the organisations, DDC Chairperson is the Chairperson and the DADO and DFO are themember secretaries of DADC and DFSCC, respectively. Members of the committees are thechiefs of the related line agencies in the districts and representatives from the farmers’associations, private entrepreneurs’ associations and NGOs.

The main objective of DADC is to promote agriculture production in the district through thecollaboration, and participation of agriculture producers, consumers and other stakeholders inrespective district. The DADC members conduct monitoring of agriculture related interventions,providing immediate feedback to the stakeholders for the effective implementation of projects.

Likewise, the DFSCC aims to ensure that government bodies do actually promote and attemptto balance societies' multiple interest with other stakeholders rather than on their own topromote only their own narrow interest.

Since both the DADC and DFSCC are under DDC, involvement of DDC, DADC and DFSCCwould give better result in reaching the farmers with the FFF supports. Likewise, NPC is an


43

apex cross-sectoral organisation that should be involved through a project advisory/steeringcommittee, probably as a chairperson.

In addition, for better policy lobbying and advocacy, FECOFUN and ACOFUN would be betternetworks to involve.

Implementing a simple (participatory) monitoring systemOne most important aspect of this FFF project will be joint monitoring. Joint monitoring shouldhave two phases.

- First: would be to monitor jointly by the members of the cross-sectoral organisation(multi-stakeholder platform). This approach will contribute to avoid resource duplicationand assessment of appropriateness of resource allocation.

- Second: would be to monitor jointly with the rightholders (beneficiaries). In thisapproach, representatives of farmers' organisations participate and contribute to assesswhether public goods and services were effectively and efficiently delivered.

In order to enhance people's participation in monitoring, semi/annual review and planningshould be practiced right from the community level to the national level as follows.

Community level S/ARP: conducted in each forest/farm organisation by the member of thecommunity organisation trained by the FFF project monitoring specialist. The review shouldcollect all the pertinent information that contributes to answer the achievement on the projectindicators. Community level S/ARP should be participated by all the concerned stakeholders(representatives of CBOs, school teachers, VDC officials, local NGOs, etc. at the communitylevel. Community level S/ARP, therefore, serves as a forum for all to get insight of the projectachievements as well as to ask questions on the project achievements. In this sense, it servesas a social and gender auditing of the project results as well.

District level S/ARP: conducted in the district by the partner organisation implementing the FFFProject in the district. District level S/ARP will present the summary results of all communitylevel S/ARP findings. District level S/ARP should be participated by all the district levelstakeholders including DDC officials, LDO, line agencies, district level CBOs and NGOs, etc.Since the summary of the project achievements are presented in detail in this forum, this forumserves as a forum for public auditing of the project results. As the district level review alsocollects suggestions from the stakeholders on what next to be done and what others cancontribute or join hands with the FFF project, it serves also as a forum for joint planning.

National/project level S/ARP: conducted by the project at the national/project level as asummary of all the project districts. The national level ARP should be participated by therepresentatives from the related line ministries, and the members of the project advisorycommittee. It, therefore, serves as a forum for policy feedback to the project for improvement inthe future and lessons learned for replication in the future in other similar/related projects in thefuture.

This method can be implemented by developing well designed formats (S/ARP formats), S/ARPconduction manual, data inputting and result extraction computer packages.

Proposed format for the preparation of FFF - Project Implementation Plan (FFF-PIP)In line with the comments and expectation of the participants of the baseline informationsharing workshop (2-3 July 2013), this study has proposed a simple format and the processthat needs to be followed to prepare a FFF-PIP as follows.


44

Forest and Farm Facility - Project Implementation Plan (FFF-PIP)(Proposed format and process)

1. INTRODUCTION1.1 BackgroundOne paragraph about FFFOne paragraph on the achievements of National Forest Programme Facility (nfp-Facility) andGrowing Forest Partnerships (GFP) initiativeOne paragraph on its approval by the government of Nepal to work in NepalOne paragraph on its initiative in Nepal and the orientation workshop of 16 Feb 2012One paragraph on the conceptualisation of the baseline study.One paragraph on the recommendation of the 2-3 June 2013 workshop that will show the needto prepare a project implementation plan (PIP)

1.2 The FFF ProjectOne paragraph on the nature of the projectState about the projectOne paragraph about the scope of the projectState what are the strategies and approaches that will shape the FFF project

1.3 PIP Preparation ProcessState about the process that was followed to prepare this PIPIt clearly mention here the recommendation of the workshop groups (2-3 June workshop)State what were the criteria for:- issues identification and prioritisation,- district selection, and- commodity selection and prioritisationExplain, how were these criteria used and the decision on the issues to address, districts forproject implementation and commodity to promoteState the approach adopted to achieve synergy with other existing projects

Present one table as follows: Consultation Rounds for the FFF PIPDescription Objectives Outputs Places and datesBaseline informationsharing

endorsement of thebaseline for theproject progressmonitoring

refinement of thebaseline information,projectimplementationmodality preparation

2-3 June 2013Kathmandu

1.4 Organisation of the PIP

2. PROJECT DESIGN2.1 The ProjectDescribe in this chapter the reformulated design for the project. Present here the process onhow was the logframe prepared.

Goal:Purpose:Outcomes:Outcome-wise outputs:Output-wise activities:


45

Present a logframe.Suggested results monitoring system and indicatorsObjectives Results Monitoring indicatorsGoal:Purpose:Outcomes:4. Outputs

4.14.2 4.3 4.4

5. 5.1 5.2

6. 6.1 6.2

Propose activities on broad headings such as:Conduct capacity building trainingConduct action researchStrengthen cooperativesPrepare and disseminate advocacy toolsBuild advocacy capacityEtc.

2.2 Review of Baseline SurveyState here how the baseline information for the selected indicators were identified asbenchmarks for monitoring and evaluating project progress.

State here how will the midterm and/or the end of the project evaluation will be made andcompared with the baseline information.

2.3 RBM-Logical Framework AnalysisPrepare a matrix here about the monitoring framework.

Objectives Results Indicators Data Sources CollectionMethods

Frequency Responsibility

2.4 Reach and Beneficiaries2.4.1 Piloting District2.4.2 Project sites2.4.3 The Beneficiaries2.4.4 Project Target


46

2.5 Assumptions and Risk Management Strategy2.5.1 Project risks assessment

Major Risks Level of perception

2.5.2 Project risks mitigation measuresPerceived high risks Mitigation measures

PROJECT STRATEGIES3.1 Sustainable livelihoods approach3.1.1 Strategies on business development3.1.2 Strategies on advocacy3.1.3 Strategies to promote cross-sectoral organisations3.2 Strategies for scaling up the project results and sustainability3.3 Gender Equity and Social Inclusion Strategy3.4 Environment strategy

3. PROJECT IMPLEMENTATION4.1 Designing of activities as per the project outputsThese are to be designed after getting approval of the Logframe with broad categories of activities.These activities now are the real activities to be implemented. For example:

Conduct soil fertility and nutrition management training in for technicians of agricultural servicecentres

Conduct farmers' field school on organic summer vegetable production Organise excursion visit to successful marketing cooperative to learn cooperative marketing

model Organise interaction meetings between the local government organisations and CFUG members

about the octroi hurdles between the districts Etc.

Activities Year 1 Year 2 Year 3


47

4.2 Budget4.2.1 Financial management4.2.2 Budget breakdown matrix

4. PROJECT MANAGEMENT4.1 Management Approach and Structure4.2 Project implementing partners4.3 Roles and Responsibilities of the Implementing PartnersPartners/Stakeholders

Roles and responsibilities

5.1 Project management units5.1.1 Project Management and Monitoring Unit in IUCN (PMMU)Explain the structure, staffing and administration mechanisms

5.1.2 Project advisory committee (PAC)Propose a structure of the advisory committee and specify the roles and responsibilities of theadvisory committee. Get it endorsed by the government.5.2 Monitoring and EvaluationHow will it be done, who will do it, and how frequently?5. APPROVAL OF THE FFF-PIPThe finally prepared FFF-PIP should be approved by the PAC.


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Kathmandu,ADS, Agriculture development strategy. Ministry of Agriculture development, Singh Durbar,

KathmanduANSAB. 1999. Forest Products Market/Enterprise Study Report. Asia Network for Sustainable

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Forest Products in Nepal: Myth or Reality?Forests and Livelihoods. Vol 7 No.1Batra, A. 2010. A consumer movement is born - Villages plug into the grid, manage their own

supply. http://base.d-p-h.info/fr/fiches/dph/fiche-dph-8367.htmlBhattarai, R. C., 2011. The Impact of Transaction Costs on Agriculture in Nepal. SANDEE,

Policy Brief. Number 51-11, March 2011.BJ. 2004. Banko Janakari. Department of Forest, Kathmandu, cited in Keshari, 2010.CBS, 2011. Population Census - preliminary results. Central Bureau of Statistics.KathmanduCBS, 2011. Preliminary results of Population Census 2011. Central Bureau of Statistics,

KathmanduCECI, 2006. CECI, 2006. Synthesis of Seminar Presentation and Discussions, First National

Trade Show and Seminar on Herbs, Herbal Products and Spices, 12-14 November 2005.Published by CECI March 2006

CECI, 2008. Sahakarya Project - End of the Project Progress Report. Centre for InternationalStudies and Cooperation, Baluwatar, Kathmandu

CFD, 2013, Community Forestry Division Database, Department of Forest.DOC, 2011. Cooperative principles. Department of Cooperatives. KathmanduDOCSI, 2012. Cottage and small industries registered in DICSI. Department of Cottage and

small Industries.. http://www.dcsi.gov.np/ind_profile/ip.php).FA. 1993. Forest Act 1993. Ministry of Forest and Soil Conservation, KathmanduFAO. 2009. Challenges and opportunities for Nepal’s small and medium forest enterprises

(SMFEs)FFF, 2013. Proceedings of the introductory meeting of the Forest & Farm Facility (FFF) in

Nepal on 16 February 2013 in Hotel Everest, Katmandu, Nepal.DoF, 2003, Forest Product Auction Action Plan-2060, Department of Forest, Babarmahal

Kathmandu.FR. 1995. Forest Regulation. Department for Forest, Babarmahal, Kathmandu.INBAR. 2011. Cross-border value chains for non-timber forest products in four different Asian

countries. Edited by Ralf Kwaschik. Global NTFP Partnership / International Network forBamboo and Rattan (INBAR). PR China

ITC. 2007. Export Potential Assessment in Nepal 2007. International Trade Centre UNCTAD/WTO Asia Trust Fund. September 2007

Kunwar, S. C., A. S. Ansari and H. Luintel. 2009. Non-timber Forest Products EnterpriseDevelopment: Regulatory Challenges in the Koshi Hills of Nepal. Journal of Forest andLivelihood 8(2) August 2009

LFLP. 2013, Leasehold Forestry and Livestock Programme, Department of ForestMalla, S.B., Shakya, P.R., Rajbhandari, K.R., Bhattrai, N.K. and Subedi, M.N. 1995. Minor

Forest Products of Nepal: General Status and Trade. Forest Resource InformationSystem (FRIS) Project Paper No. 4. Report submitted to Forestry Sector InstitutionalStrengthening Program, Component No. 2. FRIS Project, Finnish Forest and ParkService, Ministry of Forestry and Soil Conservation, Kathmandu, Nepal.

MOAC, 2008. Statistical information on Nepalese agriculture 2007/2008. Ministry of Agricultureand Cooperatives, Singh Durbar, Kathmandu.

MOAD, 2012. Nepalese agriculture and population. Ministry of Agriculture Development. SinghDurbar, Kathmandu

MOF, 2012. Economic Survey 2011-12. Ministry of Finance, GON, KathmanduMOI, 2011. Annual Report. Ministry of Irrigation, Singh Durbar, Kathmandu


49

MPFS. 1998. Master Plan for Forestry Sector Nepal (MPFS) - Main Report. Ministry of Forestand Soil Conservation, Kathmandu, Nepal

NESAC, 1998. Nepal human Development Report. Nepal South Asia Centre.NLSS 2004. Nepal Living standard Survey. Central Bureau of Statistics, KathmanduNLSS, 2010. Nepal Living Standard Survey 2010. Central Bureau of Statistics, Kathmandu.NNN. 2010. Notes on 34th Sharing meeting of NTFP National Netwrok (NNN). Asia Network for

Sustainable Agriculture and Bioresources (ANSAB), KathmanduNPC, 2007. Three Year Interim Plan. National Planning Commission, KathmanduNPC, 2010. Three Year Plan 2009/10 - 2012/13. National Planning Commission, KathmanduNYP, 2013. Nepal YP. Nepal business directory. http://www.nepalyp.com/ accessed 2 June

2013.Pokharel, S. B., V. P. Kesari, S. Das, D. Thapa 2009. Promotion of Non‐timber Forest Products

through Community Forestry: Improving livelihoods in Central Terai by applyinginnovative value chain approach SNV/Nepal CTP, Hetauda,

SQCC, 2011. Seed vision 2025 - seed sector development strategy. Seed Quality ControlCentre, Harihar Bhawah, Lalitpur, Nepal

WFDD. 2000. Updated progress review of women farmers' development. Singh Durbar,Kathmandu: Women Farmer Development Division, Ministry of Agriculture andCooperatives

Teijun, W. and Kinchi, L. (2008), Land Reform and National Development in Nepal - in SmallPeasant Agriculture and land reform in Nepal: Politics of contestations and contradictionspublished by NGO Federation Nepal.http://www.ngofederation.org/index.php?option=com_content&view=article&id=66:small-peasant-agriculture-and-land-reform-in-nepal-politics-of-contestations-and-contradictions&catid=36:president-blog&Itemid=27

Gautam, D. M. and D. R. Bhattarai, 2006. Postharvest horticulture. Pavitra and ShantaPublishers, Kathmandu

Wagle, S. 2012. Issues of forest governance in Nepal. Forestry Nepal 4/19/2012.http://www.forestrynepal.org/article/1725/5649 accessed on 28 July 2013.Acharya, K. P. and P. Gentle, 2008. Improving forest governance through advocacy: evidences fromNepal. http://iasc2008.glos.ac.uk/conference%20papers/papers/A/Acharya_113001.pdf

Kunwar, S. C., A. S. Ansari and H. Luintel. 2009. Non-timber Forest Products EnterpriseDevelopment: Regulatory Challenges Experienced in the Koshi Hills of Nepal. ForestAction DiscussionPaper 2009/4. Forest Action Nepal.IRG, 2006. Role of natural products in resource management, poverty alleviation and good governance -a case study of Jatamansi and wintergreen value chains in Nepal. International Resources Group,Washington.TI, 2012. Corruption perception index 2012. Transparency International.


50

Annexes

Annex 1: Listing of government organisations that support forest/farm organisations

Description Detail information

SN 1

Name of institution National Planning Commission

Contact name Member (Agriculture, forest, etc)

Contact address Singha Durbar, Kathmandu

Phone:(+977)-014211136

Fax:(+977)-014211700

Email:[email protected]

Principle function Apex body responsible for the formulation of national developmentpolicies, plans and strategies for overall development of the country.Provides strategic framework for policy formulation; coordinates inter-ministerial issues


SN 2

Name of institution Ministry of Forests and Soil Conservation

Contact name Secretary

Contact address Singhadurbar, Kathmandu, Nepal

Telephone : 4211567, Fax : 977-1-4211868

Email : [email protected], [email protected]

Principle function Developing and implementing, monitoring forest related policies,plans and programmes; conservation, promotion and utilisation offorest and forest products


SN 3

Name of institution Ministry of Agriculture Development


Contact address Singha Durbar, Kathmandu, Nepal.


51

Phone:4211706,4211950,4211981

Fax: 977-1- 4211935,

E-mail: [email protected]

Website: www.moad.gov.np

Principle function Responsible for the development of agriculture and allied fields in thecountry, and is responsible for overall development of agriculture(crops, livestock and fishery)


SN 4

Name of institution Ministry of Environment, Science and Technology


Contact address Singha Durbar, Kathmandu, Nepal.

Phone:4211641, 4211692

Fax: 977-1- 4211954,

E-mail: moenv.gov.np

Website: www.moenv.gov.np

Principle function Prepare, implement, monitor and evaluate environment relatedpolicies, plans and programs


SN 5

Name of institution Ministry of Irrigation


Contact address Singh Durbar, Kathmandu, Nepal

Tel. : 977-1-4211426

Fax : 977-1-4200026

E-mail : [email protected]

Website : http://www.moir.gov.np


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Principle function Prepare, implement, monitor and evaluate irrigation related policies,plans and programs; studies and management of water induceddisasters


SN 6

Name of institution Ministry of Women, Children and Social Welfare


Contact address Singha Durbar Kathmandu, Nepal

Phone: +977 1 4200408

Fax: +977 1 4200116

Email: [email protected]

website: http://www.mowcsw.gov.np

Principle function Prepare, implement, monitor and evaluate irrigation related policies,plans and programs.


SN 7

Name of institution Ministry of Local Development


Contact address Sri Mahal Pulchowk, LalitpurTel : (1) 552-1727/8/31Fax : (1) 552-2045Email : [email protected]: www.mld.gov.np

Principle function Planning, implementation, monitoring, evaluation of localdevelopment activities as envisaged by Local Self Governance Act,integrated rural development, promotion of indigenous technology


SN 8

Name of institution Ministry of Industry



53

Contact address Singha Durbar, KathmanduTel : (1) 421-1579Fax : (1) 421-1619Email : [email protected] : www.moi.gov.np

Principle function Industry related policy formulation, planning, implementation,monitoring and evaluation; promotion and preservation of cottage andrural Technology


54


SN 9

Name of institution Ministry of Land Reform


Contact address Singha Durbar, KathmanduTel : (1) 424-8797Fax : (1) 422-0108Email : [email protected] : www.molrm.gov.np

Principle function Land related policy formulation, planning, implementation, monitoringand evaluation; land registration and reformation of land tenuresystem


SN 10

Name of institution Ministry of Commerce and Supplies


Contact address Singha Durbar, KathmanduTel : (1) 423-0967/ 424-6246/ 422-6686Fax : (1) 422-0319/5594Email : [email protected] : www.moics.gov.np

Principle function Commerce and trade related policy, formulation, programmeplanning, implementation, monitoring, evaluation; trade promotion


SN 11

Name of institution Ministry of Cooperatives and Poverty Alleviation


Contact address Contact Us

Singhadurbar , Kathmandu

01-4211860, 4211690, 4211576

4200058, 4200055


55

Fax : 4211754

Principle function Promotion of Cooperatives, mobilization of poverty alleviation fund,create employment opportunity


SN 12

Name of institution Ministry of Youth and Sports


Contact address Kamalpokhari, Kathmandu,

Nepal.

Tel: +977-1-4416788

Fax: +977-1-4416489


Website: www.moys.gov.np

Principle function Policy formulation about youths and sports, training and skilldevelopment of youths, youth awareness raising and mobilization,etc.


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SN 13

Name of institution Department of Forests

Contact name Director General

Contact address Babarmahal, Kathmandu, Nepal

Phone : 977-1-4220303, 977-1-4221231, 977-1-4216379,

Fax : 977-1-4227374

Email : [email protected]

Website: http://dof.gov.np

Principle function Sustainable management, utilization, protection and development offorest resources outside the protected areas; planning and monitoringof community and national forests


SN 14

Name of institution Department of Plant Resources


Contact address Thapathali, Kathmandu

Tel: 4251160

Fax: 4251149

Email: banaspati@flora,com,np

Website: http://www.dpr.gov.np

Principle function Resource survey and collection of plant materials and preservation ofthe specimens in the National Herbarium and Plant Laboratories;agro-technology development on plants to provide services to thefarmers on techniques of commercial cultivation of importantmedicinal and economic plants.


SN 15

Name of institution Department of Soil Conservation and Watershed Management


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Contact address G.P.O. BOX 4719

Babar Mahal, Kathmandu, Nepal

Tel: 977-1-4220828/4220857

Fax: 977-1-4221067


Website: www.dscwm.gov.np

Principle function Maintain land productivity, reduce soil erosion and contribute indevelopment infrastructure protection by scientific management ofwatersheds


SN 16

Name of institution Department of Forest Resources Management


Contact address Babarmahal, Kathmandu, Nepal

Phone: 977-1-4256469, 4220482

Fax: 977-1-4220159

E-mail: [email protected], [email protected]

Website: www.dfrs.gov.np

Principle function Maintain and strengthen natural resource base to improve forestproductivity and production; and

to generate income and create employment


SN 17

Name of institution Department of National Parks and Wildlife Conservation


Contact address Department of National Parks and Wildlife Conservation

Babarmahal, Kathmandu.


58

Tel: 977-1-4220912, 4220850,

Fax: 977-1-4227926


Website:www.dnpwc.gov.np

Principle function Conservation of endangered and other wildlife species; scientificmanagement of habitat for wildlife species, regulated eco-tourism toimprove socio-economic condition of local communities


SN 18

Name of institution Department of Agriculture


Contact address Hariharbhawan, Lalitpur, Nepal

Phone No.:01-5010003,5521356,5521323


Website: http://doanepal.gov.np

Principle function Planning, implementation, monitoring and evaluation of agriculturalproduction; technology transfer through farmers' groups; enhanceproduction and reduce food insecurity


SN 19

Name of institution Department of Livestock Services



Phone : 01-5522056 / 5521610 / 5525478,

Fax : 01-5542915

Email: [email protected], [email protected],[email protected]


59

www.dls.gov.np

Principle function planning and implementation of livestock development programme toincrease livestock production and productivity, improve the economicand social condition of the poor, socially disadvantaged people andwomen through improved livestock farming, develop and improveexisting livestock farming as the main income source of the farmfamily and help in maintaining environmental balance andconservation


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SN 20

Name of institution Department of Local Infrastructure Development and AgricultureRoads (DOLIDAR)


Contact address Shree Mahal, Pulchok, Lalitpur, Nepal

Tel: 977-1-5555001,5555362,5543197

Fax : 0977-1-5555724

Email : [email protected] , [email protected]

Website: http://www.dolidar.gov.np

Principle function Undertake infrastructure development programmes in accordancewith decentralization policies for attaining the goals set forth by theGON’s National Strategy for Rural Infrastructure Development bymaking the local authorities technically capable and competent andensuring their accountable participation


SN 21

Name of institution Department of Women and Children


Contact address Department of Women and Children

Lalitpur, Kathmandu Valley

Principle function Implement the approved program on women’s development; monitorand evaluate programs on women’s development; impart thenecessary skill training to women; women’s empowerment;controlling trafficking in girls, prostitution, domestic violence and otheroffences against women


SN 22

Name of institution Department of Industries



61

Contact address Tripureshowr, Kathmandu, Nepal

Tel: 4262203, 4261302, 4261168, 4261169

Fax: 4261112


Website: http://www.doind.gov.np

Principle function Promotion of industries for the utilization of local resources;implementation of industrial programmes and policies effectively;technology transfer and enhance industrial productivity


SN 23

Name of institution Department of Commerce and Supplies


Contact address Babarmahal, Kathmandu, Nepal.

Tel: +977-1- 4243939, 4247913, 4247912, 4239123

Fax: +977-1-4249603


Website: www.doc.gov.np

Principle function Formulate and implement export and import policy; registration,administration and promotion of trading firms; create and promotefavorable trading environment for private sector participation;


SN 24

Name of institution Department of Food Technology and Quality Control


Contact address Babarmahal, Kathmandu, Nepal.

Ph: 01 4262369, 4262741, 4251132 Ext: 202, 211, 212

Fax: 977-1-4262337

Email: [email protected], [email protected], [email protected]

http://www.dftqc.gov.np


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Principle function Food Safety and Quality Control; Food Technology Development andtransfer; food and nutrition development; Food and Feed AnalyticalServices


SN 25

Name of institution Department of Cooperatives

Contact name Registrar

Contact address New Baneshwor, Kathmandu, Nepal

Tel: 977-1-4465362, 4461177


Website: www.deoc.gov.np

Principle function Create conducive environment for the establishment of memberbase cooperative societies based on membership followingcooperative principles and values to fulfill the needs of theirmembers; promote cooperative system as a means of economic,social and cultural development of the marginalized people living inthe country; develop cooperatives as means of transforming thetraditional mode of agricultural and non-agricultural production intocommercial production in rural level


SN 26

Name of institution National Dairy Development Board (NDDB)

Contact name Chairperson

Contact address Harihar Bhawan, Pulchowk, Lalitpur, nepalPost box: 5901Tel : 977-1-525400Fax: 977-1-532096E-mail: [email protected]

Website: http://nddb.gov.np/contact

Principle function An apex level policy-making body for dairy development; formulatingpolicies and plans of dairy development at the national level; developdairy industries; coordinate between all the private and public sectordairies within the country



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SN 27

Name of institution National Cooperative Development Board


Contact address Pulchok, Lalitpur, NepalPhone: 5010096, 5010190, 5010131, 5010237

Fax: 977-5010154

P.O.Box No: 5717 Kathmandu


Website: http://www.ncdb.org.np

Principle function Formulate cooperative policies; work-out cooperative legislations;help set up the structure of the cooperative movement from bottom totop; coordinate the activities of cooperatives in different sectors; andestablish necessary infrastructures required for facilitating theprocess of cooperative development


SN 28

Name of institution Timber Corporation of Nepal


Contact address Babar Mahal, Kathmandu, NEPAL

Phone: 4222192, 4225316

Fax: 4267238

Principle function Meet the forest products demands of the urban population and sellsawnwood and fuelwood as appropriate. The TCN acquires roundwood from the Department of Forests and produces sawn timber


SN 29

Name of institution Herb Production and Processing Centre Ltd


Contact address Koteshowr, Kathmandu

G.P.BOX NO 2679,KathamanduTel: 4992152 ,4992167,4992149


64

Fax: 00977-1-4992232Email:[email protected]

Website: http://hppcl.com.np

Principle function Cultivation of medicinal & aromatic plants; production of essential oilsand medicinal extracts; quality control; marketing; commitment toquality; distribution practice; shipment of the consignment


SN 30

Name of institution Nepal Agriculture Research Council (NARC)

Contact name Executive Director

Contact address Singhadurbar Plaza, Kathmandu

Post Box No. 5459, Kathmandu, Nepal

Phone: 977-1-4256837, 4262650, 4262567

Fax : 977-1-4262500


Website: http://www.narc.gov.np

Principle function Conduct qualitative studies and researches on different aspects ofagriculture; identify the existing problems in agriculture and find outthe solution; conduct qualitative agricultural research required fornational agricultural policies; coordinate, monitor and evaluate theagricultural research activities


SN 31

Name of institution National Agriculture Research and Development Fund (NARDF)

Contact name Member Secretary

Contact address Singh Darbar Plaza, Kathmandu, Nepal.Tel: 977-1-4265081Fax: 977-1-4216804Email: [email protected]

Website: ttp://www.nardf.org.np

Principle function Support to agricultural research and development for outputoriented work which aims to deliver measurable results within athree year period that in support to national objectives and prioritiesdefined in government policy documents; promote a more demand-


65

driven and pluralistic approach to increasing agriculturalproduction, through encouraging the development of institutionaland organisational partnerships together with the empowerment ofend-users


SN 32

Name of institution National Trust for Nature Conservation


Contact address P.O. Box: 3712, Khumaltar, Lalitpur, NepalTel: +977-1-5526571

+977-1-5526571, 5526573,Fax: [email protected], http://www.ntnc.org.np

Principle function Promote, conserve and manage nature in all its diversity

balancing human needs with the environment on a sustainable basisfor posterity - ensuring maximum community participation with duecognizance of the linkages between economics, environment andethics through a process in which people are both the principal actorsand beneficiaries


SN 33

Name of institution TU - Institute of Forestry

Contact name Dean

Contact address Hariyokharka, Pokhara, Nepal

P.O Box: 43Tel: +977-61-430469, 431689Fax: +977-61-430387Email: [email protected]: www.iof.edu.np

Principle function Academic training in forestry from PCL to Ph.D.; forestry research,extension and training



66

SN 34

Name of institution TU - Institute of Agriculture and Animal Sciences

Contact name Dean

Contact address Office of the Dean

Rampur, Chitwan, Nepal

Tel: +977-56-591141

Fax: +977-56-591021

Liaison Office

TU Complex, Kritipur, Kathmandu, Nepal

Tel: +977-1-4333902

Email: [email protected]: www.iaas.edu.np

Principle function Offers B.Sc. Agriculture (Bachelor of Science in Agriculture), B.V.Sc.& A.H. (Bachelor of Veterinary Science and Animal Husbandry),M.Sc. Agriculture, M.Sc. Animal Science, M.V.Sc., M.Sc. Aquacultureand Doctor of Philosophy (Ph.D.) programs, agricultural teaching,research and extension


SN 35

Name of institution Purvanchal University - HICAST

Contact name Principle

Contact address Kalanki, Kathmandu

Tel: 4273341

P.O.Box: 25535

Email: [email protected]; [email protected]

Website: http://www.hicast.edu.np

Principle function Offers Bachelor and masters programmes in agriculture, foodtechnology, animal science; agricultural teaching, research andextension



67

SN 36

Name of institution Council for Technical Education and Vocational Training (CTEVT)


Contact address Sanothimi Bhaktapur, Nepal

Tel: +977-1-6630408, 630769Fax: +977-1-6630294

P.O. Box: 3546, Kathmandu Nepal

E-mail: [email protected]@ctevt.org.np

Website: http://www.ctevt.org.np

Principle function Policy formulation, quality control, preparation of competency basedcurriculum, developing skill standards of various occupations andtesting the skills of the people, conduct various research studies andtraining needs assessment, etc.


SN 37

Name of institution Trade and Export Promotion Centre (TEPC)


Contact address Pulchowk, Lalitpur,P.O. Box 825, Kathmandu.Tel : 977-1-5525898/5532642Fax : 977-1-5525464Email : [email protected]

Website: http://www.tepc.gov.np

Principle function Advise on trade and export policy formulation, support to enhanceinternal and external market for agro-based and other products;disseminate trade-related information,

market testing of exportable products, organize platfor forbuyers/seller interaction, and enhance support services for exportpromotion


SN 38

Name of institution Seed Quality and Control Centre (SQCC)

Contact name Joint Secretary


68

Contact address Harihar Bhawan, Lalitpur, NepalTel: 977-1-5521359, 5521359Email: [email protected]: http://sqcc.gov.np/

Principle function Promotion of seed quality, mobilization of seed producers inproduction marketing of seeds


SN 39

Name of institution Agriculture Information and Communication Centre

Contact name Joint Secretary


Tel: 5522 248, 5525617

Fax: 5522 258

[email protected]

Web: www.aicc.gov.np

Principle function Production and broadcast of farm radio programs, televisionprogrammes and agricultural news, motivate farmers and growersusing media of mass communication to adopt modern farm practicesin order to increase farm productions, develop networks ofagricultural information and communication systems to enhanceinformation sharing within and among stakeholder organizations


SN 40

Name of institution District Forest Office (DFO)

Contact name DFO of the respective district (74 DFOs)

Contact address DFO, District Hqs

Principle function Prepare and implement district level programme on forestry, monitorthe functioning of forest user groups, provide technical backstoppingto forest user groups, etc


SN 41


69

Name of institution District Agriculture Development Office (DADO)

Contact name DADO of the respective district (75 DADOs)

Contact address DADO, District Hqs

Principle function Prepare and implement district level agriculture extensionprogramme, monitor agriculture development activities in the district,provide technical backstopping to the farmers in production andmarketing of agricultural produce, enhance capacity of farmers andtransfer technology, etc.


SN 42

Name of institution District Livestock Services Office (DLSO)

Contact name DLSO of the respective district (75 DLSOs)

Contact address DLSO, District Hqs

Principle function Prepare and implement district level livestock extension programme,monitor livestock development activities in the district, providetechnical backstopping to the farmers in production and marketing oflivestock produce, enhance capacity of farmers and transfertechnology, etc.


70


SN 43

Name of institution District Soil Conservation Office (DSCO)

Contact name DSCO of the respective districts (56 DSCOs)

Contact address DSCO, District Hqs

Principle function Prepare and implement district level soil conservation programme,monitor soil conservation activities at the district level, conductdemonstration and provide technical backstopping to the farmers insoil sonservation, enhance capacity of farmers and transfertechnology, etc. To meet the challenges of soil erosion andwatershed degradation faced by the District. To ensure proper landuse pattern with establishment of network with related sector such asforestry, agriculture and livestock.


SN 44

Name of institution District Development Committee (DDC)

Contact name DDC of the respective district (75 DDCs)

Contact address DDC, District Hqs

Principle function Prepare, implement and monitor district development programme,coordinate all the development activities in the district includingagriculture, livestock, forestry, land reform, give grants for theapproved programme, to any organization, association or body, beingsubject to the approved budget.


SN 45

Name of institution Village Development Committee (VDC)

Contact name VDC of the respective district (3,915 VDCs)

Contact address VDC Bhawan, VDC

Principle function Prepare, implement and monitor village development programmeincluding agriculture, livestock, livestock, forest, land reform, soilconservation, etc.



71

SN 46

Name of institution Municipality

Contact name Municipality of the respective district (58 Municipalities)

Contact address … Municipality office, … Municipality

Principle function Prepare, implement and monitor municipality developmentprogramme including agriculture, livestock, livestock, forest, landreform, soil conservation, etc.


SN 47

Name of institution Fair Trade Group Nepal


Contact address GPO Box 13620,

Harihar Bhawan Pulchwok, Kathmandu

Tel: 977-1-5549848

Fax: 977-1-5542608

e-mail:[email protected]

www.fairtradegroupnepal.org

Principle function A Consortium and network organization of fair Trade organizationbased in Nepal. Support in promoting fair Trade practice and providevarious services to enhance capacities. To create opportunities formarginalized products.


SN 48

Name of institution Nepal Chamber of Commerce (NCC)

Contact name President NCC

Contact address Chamber Bhawan, Kantipath

P. O. Box: 198, Kathmandu, NepalTel: +977-1-4230947Fax: +977-1-4229998



72

Principle function To assist in the development of national economy through thepromotion, protection of commerce and industries at thepublic/private sector.

To encourage in establishing academic institution related tocommerce and industry.


SN 49

Name of institution Nepal Business Forum (NBF)

Contact name NBF Secretariat Coordinator

Contact address NBF Secretariat Coordinator

Advisory Service in South Asia

World Bank Office

Hotel Yak and Yeti Complex

Durbar Marg, Kathmandu, Nepal

Telephone: +977-1-4226792

Fax:+977-1-4225112


www.ifc.org

Principle function To improve business environment in Nepal between the businesscommunity and government body.

To design an action plan for regulatory reforms related to investment,developing skills of the potential labour force, access to fund forbusiness including start up new business.


SN 50

Name of institution Cottage and Small Industry Development Board (CSIDB)


Contact address Tripureshowr, Kathmandu

Principle function To develop skills of cottage and small industries.

To increase public awareness about the significant of small andcottage industries for bolstering the socio-economic growth of thecountry.


73


SN 51

Name of institution Industrial Enterprise Development Institute (IEDI)


Contact address Tripureshwor, Kathmandu, Nepal

G.P.O.Box No: 3676

Phone: +977-1-4261339,4261469

Fax: +977-1-4261241


Principle function To assist industries/enterprise need-based services.

To provide quality support service to industry/enterprise development


SN 52

Name of institution Federation of Small and Medium Enterprises (FSME)

Contact name President, FSME

Contact address Bijulibazar, Kathmandu,Nepal

P.O.Box No: 8973,NPC:149

Telephone: +977-1-4783483


Principle function To promote micro, small and medium industries scattered all over thecountry.

To assist the process of mainstreaming the Nepali SMEs into theglobal economy.


74

Annex 2: Listing of private sector business firms


SN 1

Name of institution Federation of Nepalese Chamber of Commerce and Industries(FNCCI)

Contact name President

Contact address Federation of Nepalese Chambers of Commerce and Industry(FNCCI)

Pachali Shahid Shukra FNCCI Milan Marg, Teku

P.O. Box 269, Kathmandu, NEPAL

Te : (00977-1) 4262061 / 4262218 / 4266889

Fax : (00977-1) 4261022 / 4262007

E-mail : [email protected]

Website : http://www.fncci.org

Principle function Promote business and industry; protect the rights and interests ofbusiness and industrial communities; Provide information, advisory,consultative, promotional and representative services to business andgovernment and organises training / workshop / seminar on a regularbasis.


SN 2

Name of institution Federation of Nepalese Cottage and Small Industries (FNCSI)

Contact name President

Contact address Maitighar, P.O. Box: 6530, Ktm, Kathmandu

Phone: 00977-1-4222751; 4269817

Fax: 00977-1-4215602

Website: www.fncsi.org.np

Principle function Promote business and industry; protect the rights and interests ofbusiness and industrial communities; Provide information, advisory,consultative, promotional and representative services to business andgovernment and organises training / workshop / seminar on a regularbasis.


75


SN 3

Name of institution JADIBUTI Association Nepal (JABAN)

Contact name Mr. Rabindra Nath Shukla, Advisor

Contact address DSP Road Nepalgunj-6, Nepalgunj, Banke,

Tel: 00977-081-524884

Fax: 00977-081-524884


Website: www.jaban.com

Principle function Provide necessary support to the rural community for producing andmarketing quality jadibuti products; support producers to findinternational market; provide interactive platform for manufacturersimporters, exporters, dealers, suppliers and service providers, policymakers and consultants, and communities to discuss on NTFPrelated issues.


SN 4

Name of institution Himalayan Bio-Trade Ltd.


Contact address Himalayan Bio Trade Pvt. Ltd.

PO Box 8941, Block No.108, Dhapasi, Kathmandu, Nepal

Telephone: +977-1-4386690, +977-1-2083309


Website: http://himalayanbiotrade.com

Principle function To produce and market the highest quality natural products; promoteresponsible resource management; be socially committed;

Himalayan Bio Trade Private Limited is also a Chain of Custody(CoC) certified company, accredited by Forest Stewardship Council


76

(FSC) with COC Code: SW-COC-001465


SN 5

Name of institution Agro-Enterprise Centre (AEC)


Contact address FNCCI Building, Teku; PO Box 7651, Kathmandu, NepalPhone: 4262245, 4262260, 4267005;

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

Website: http://www.aec-fncci.org

Principle function To expand and strengthen market oriented private sector driven agroenterprises in order to increase the value and volume of high-valueproducts old domestically and internationally


SN 6

Name of institution Fauz Mohamad and Company

Contact name Falz Mahamad

Contact address Ward No. 5. Ghosi Tole, Nepalgunj

Municipality, Banke district, Nepal.

Principle function Trading and exporting medicinal and aromatic plants


SN 7

Name of institution Everest Enterprises

Contact name Amiruddin Mistri

Contact address Nepalgunj Municipality Ward No. 3, Nepalgunj

Phone: 977-81-520269

Principle function Trading and exporting medicinal and aromatic plants


77


SN 8

Name of institution Dabur Nepal Pvt. Ltd.

Contact name Manager

Contact address PO Box 14375, Teen Kune, Kathmandu, Nepal

Phone: 977 01 447 8010

Fax: 977 01 447 8030

Website: http://www.dabur.com/nepal

Principle function Processing of NTFPs


SN 9

Name of institution Nepal Salt Trading Corporation

Contact name General manager

Contact address Salt Trading Corporation LimitedCorporate Head OfficeP.O.Box: 483, Kathmandu, NepalTel: 4271418, 4270315, Fax: 977-1-4271704, [email protected] | [email protected]

Principle function Import and distribution of a wide range of products, including salt,coffee, cereals, pulses, sugar, flour and hand-crafted products


SN 10

Name of institution Gorkha Ayurbed Company Pvt. Ltd.


Contact address Soaltee Mode, Kathmandu, Nepal

Telephone: +977-1-4286873; +977-1-4286875

Email :[email protected]


78

Factory:

Haram Tari, Gorkha Bazar, Nepal

Telephone : +977-64-420170


Principle function Collection, cultivation and processing of Ayurveda Health products.


SN 11

Name of institution Samcheti Tea Industries


Contact address Rangeli Road-3

Biratnager

Tel: 977-21-526882

Fax: 977-21-525361

Principle function Tea collection, processing, packaging and export


SN 12

Name of institution District Coffee Co-operative Federation


Contact address Tamgash 4

Tel:977-79-520320

Fax: 977-79-521134


Principle function To collect coffee seeds from farmers

To process, package and export fine coffee overseases


79


SN 13

Name of institution Sadu Agro Traders and Supplies

Contact name Mr. Damodar Pokharel

Contact address Baletaxar 4 Gulmi

Tel: +977-9747013291


Principle function To supply quality seeds and pesticides

To assist technical support in farmer level


SN 14

Name of institution Satyawati Bee Concern

Contact name Mr. Raj Kumar Pandey, Manager

Contact address Manigram, 3 Rupendehi

Tel: +977-71-560275


Principle function To export Honey, to sell Proplis, Queen, Royal jelly


SN 15

Name of institution Federation of MEDEP Entrepreneurs

Contact name Ms Kesha Pariyar, Chairperson

Contact address C/ MEDEP

P.O. Box 107

Dhobighat, Lalitpur,Nepal

Tel: 977-1-5541949

Fax: 977-1-5541950


80


Principle function To help low-income families become entrepreneurs

To reduce poverty in the country

Description Detail informationSN 16Name of institution Alternative Herbal Product LimitedContact name Mr. Govinda Ghimire, ChairmanContact address Balkhu, 14 Kathmandu

Tel: +977-4036359/9851120541Email:[email protected]/ [email protected]

Principle function Production of Organic Products/ Natural Resource Based Products

--


81

Annex 3: Listing of community level organisations

SN 1Name Garpal CFUG, BaitadiDescription Detail informationOrganisation (as per mapping typology) Forest user groupOrganisational levels (tiers) PrimaryPurpose /kind of business/production Management and utilization of community

forestMission/mandate and stated main objectives Protection of forestFoundation year and background 1998Legal status (formal type of organisation) and way andnumber of registration

Registered under Forest Act

Main office/base (location) Garpal, Basantapur, BaitadiMembership base (members to be defined as mostappropriate: individuals/family orhouseholds/communities/organisations), and estimatednumber of members

138 households

Estimate existing membership in relation to total potential(%)

Membership by default (all HHs in thecommunity as users of that forest)

Outreach policy/initiatives to attract new members Everyone is member by defaultMember characteristics (socio-economic, ethnic, specificcommodity/crop)Number of members

1081 members; dalit 75

Female members and male/female member ratio Male 525; female 556; m/f=0.94Links to any political parties NoContacts with local/regional /national government(good/bad/regular)

Good

Geographical coverage 42 haMembership of international federation(s) NoMembership of higher-tier producer federations Yes; FECOFUN

Relationships with other producer groups ororganisations (rivalry, cooperation)

Cooperation

Relations with support organisations (international andlocal NGOs etc.)

Local NGOs and LAs

Funding (self/donor/government) – how is the groupcurrently funded, does it receive funding from anyoneelse (if so, what for), and how does it allocate/distributeits funding?

Self

Service provided to farm producer Benefit from conservation; technology ofproduction and collection; protection ofrights


82

SN 2Name Padali Community Forest, Lamatar -6Description Detail InformationOrganisation (as per mapping typology) Community Forest Users GroupsOrganisational levels (tiers) PrimaryPurpose /kind of business/production Conservation and Utilization of ForestMission/mandate and stated main objectives Forest Protection and fulfillment of the

basic need of local communitiesFoundation year and background 2052Legal status (formal type of organisation) and way andnumber of registration

Registered under Forest Act in DFO office

Main office/base (location) Lamatar 6Membership base (members to be defined as mostappropriate: individuals/family orhouseholds/communities/organisations), and estimatednumber of members

Individuals/ Family -117


Very High

Outreach policy/initiatives to attract new members Awareness activities, Ownership of theforest

Member characteristics (socio-economic, ethnic, specificcommodity/crop)Number of members

Janjati-21Dalit-16Others-80

Female members and male/female member ratio Male-311Female- 292Total-603

Links to any political parties NoContacts with local/regional /national government(good/bad/regular)

Good

Geographical coverage 46 ha, Lamatar -6Membership of international federation(s) NoMembership of higher-tier producer federations Yes, FECOFUNRelationships with other producer groups ororganisations (rivalry, cooperation)

Good


Good


Small supports from MSFP, TU, DFO,Forest Action etc

Service provided to farm producer Awareness, training, technology, fodderand forest products


83

SN 3Name Amritdharapani CFUG, Birendranagar,

Chitwan.Description Detail informationOrganisation (as per mapping typology) Forest user groupOrganisational levels (tiers) PrimaryPurpose /kind of business/production Management and utilization of community

forestMission/mandate and stated main objectives Protection of forestFoundation year and background January, 1996Legal status (formal type of organisation) and way andnumber of registration

Registered under Forest Act

Main office/base (location) Rasauli, Village, Birendranagar, ChitwanMembership base (members to be defined as mostappropriate: individuals/family orhouseholds/communities/organisations), and estimatednumber of members

814 households


Membership by default (all HHs in thecommunity as users of that forest)

Outreach policy/initiatives to attract new members Everyone is member by defaultMember characteristics (socio-economic, ethnic, specificcommodity/crop)Number of members

Tharu, Gurung, Magar, Tamang, Newar,Dalits and Bramin/Chettri

Female members and male/female member ratio Executive committee Male 8…; female6…; m/f= …0.85.


Good

Geographical coverage 1088 haMembership of international federation(s) NoMembership of higher-tier producer federations FECOFUNRelationships with other producer groups ororganisations (rivalry, cooperation)

Cooperation


NGO/CBO


Self.

Service provided to farm producer Benefit from conservation; technology ofproduction and collection; protection ofrights


84

SN 4Name Shree Chapagari CFDescription Detail InformationOrganisation (as per mapping typology) User GroupOrganisational levels (tiers) Primary

Purpose /kind of business/production Improve livelihood of community throughcommunity forest management, enhanceand management of forest, biodiversityconservation

Mission/mandate and stated main objectives Biodiversity Conservation and Optimumuse of forest product

Foundation year and background 2067Legal status (formal type of organisation) and way andnumber of registration

District Forest Nuwakot

Main office/base (location) Okhley 1,7,8,9, KakaniMembership base (members to be defined as mostappropriate: individuals/family orhouseholds/communities/organisations), and estimatednumber of members

Total Member 130, Executive body 11women


75%

Outreach policy/initiatives to attract new members Biodiversity conservation activities, forestproduct distribution, transparency


All women

Female members and male/female member ratio 100% femaleLinks to any political parties NoContacts with local/regional /national government(good/bad/regular)

Good relation with local , district lineagencies

Geographical coverage VDCMembership of international federation(s) NoMembership of higher-tier producer federations NoRelationships with other producer groups ororganisations (rivalry, cooperation)

Yes like cooperative and farmers group


Heifer International (INGO)


Self from membership, forest productselling

Service provided to farm producer Capacity development, forest product,NTFP promotion


85

SN 5Name Ganeshpur Milk Producers' Cooperative

Society, SurkhetDescription Detail informationOrganisation (as per mapping typology) Cooperative societyOrganisational levels (tiers) PrimaryPurpose /kind of business/production Milk collection and marketingMission/mandate and stated main objectives Mobilisation of farmers in milk producers'

cooperativeFoundation year and background 1997Legal status (formal type of organisation) and way andnumber of registration

Registered under Cooperative act

Main office/base (location) Ganeshpur, Chhinchu, SurkhetMembership base (members to be defined as mostappropriate: individuals/family orhouseholds/communities/organisations), and estimatednumber of members

108 households


about 20% (there are about 500 HHs thatthis MPCS can accommodate)

Outreach policy/initiatives to attract new members Pre-entry training, subsidized membershipto poor households


67 Bhramin-chhetries; 35 Janajatis; 6dalits;

Female members and male/female member ratio Male 76; female 32 females; m/f=2.37Links to any political parties NoContacts with local/regional /national government(good/bad/regular)

Good

Geographical coverage Chhinchu VDCMembership of international federation(s) NoMembership of higher-tier producer federations Yes; DMPCU SurkhetRelationships with other producer groups ororganisations (rivalry, cooperation)

Cooperation


Local NGOs; LAs; INGO Projects


Self and supporting projects

Service provided to farm producer Production training, produce marketing,product diversification training, animalhealth and nutrition management training


86

SN 6Name Saikur Agriculture Producers' Group,

Sanigaun, JumlaDescription Detail informationOrganisation (as per mapping typology) Producers' groupOrganisational levels (tiers) GrassrootsPurpose /kind of business/production Joining together to access technology and

agricultural inputsMission/mandate and stated main objectives Increase production and membership to be

able to form a cooperativeFoundation year and background 1997Legal status (formal type of organisation) and way andnumber of registration

Informal CBO

Main office/base (location) Dhital lahi, Ward 1, Sanigaun, JumlaMembership base (members to be defined as mostappropriate: individuals/family orhouseholds/communities/organisations), and estimatednumber of members

21 Households


about 33% (there are abot 70 householdsin the village)

Outreach policy/initiatives to attract new members Include more members for off-seasonvegetable production and marketing


13 Bhramin Chhetries; 5 Dalita, 3Janajatis,

Female members and male/female member ratio male 8, female 13; m/f= 0.61Links to any political parties NoContacts with local/regional /national government(good/bad/regular)

Good

Geographical coverage One ward (Dhital lahi)Membership of international federation(s) NoMembership of higher-tier producer federations NoRelationships with other producer groups ororganisations (rivalry, cooperation)

Cooperation


Agri.Coops, NGOs


Self - nominal membership fees

Service provided to farm producer Information on technology, inputs, andmarket price


87

SN 7Name Livestock producer Group (Cow)Description Detail InformationOrganization (as per mapping typology) Farmers groupOrganisational levels (tiers) Grassroots levelPurpose /kind of business/production Livestock farming for milk productionMission/mandate and stated main objectives Maximise production of milkFoundation year and background 2067Legal status (formal type of organisation) and way andnumber of registration

Registered in District LivestockDevelopment Office

Main office/base (location) Khumaltal, lalitpurMembership base (members to be defined as mostappropriate: individuals/family orhouseholds/communities/organisations), and estimatednumber of members

Individual23 member targeted upto 30 memebr


75 %

Outreach policy/initiatives to attract new members Livelihood support,Member characteristics (socio-economic, ethnic, specificcommodity/crop)Number of members

Interest group 7 women and bramin andchetteri

Female members and male/female member ratioLinks to any political parties NoContacts with local/regional /national government(good/bad/regular)

District level

Geographical coverage VDC/wardMembership of international federation(s) noMembership of higher-tier producer federations NoRelationships with other producer groups ororganisations (rivalry, cooperation)

Yes with milk collection center


No


Self-saving for maintenance andpromotion

Service provided to farm producer Organise members in to a interest group,access to dairy and milk collection center


88

SN 8Name Pavitra Janakalyan Agricultural

Cooperative SocietyDescription Detail InformationOrganisation (as per mapping typology) Cooperative societyOrganisational levels (tiers) PrimaryPurpose /kind of business/production Joining together to solve production and

marketing problemsMission/mandate and stated main objectives Access production technology, market

produce and fetch better priceFoundation year and background 2001Legal status (formal type of organisation) and way andnumber of registration

Formal CBO registered under Cooperativeact

Main office/base (location) Mehelkuna, SurkhetMembership base (members to be defined as mostappropriate: individuals/family orhouseholds/communities/organisations), and estimatednumber of members

794 HH


This is about 15 percent out of 6 VDCs

Outreach policy/initiatives to attract new members Expand vegetable seed volume andproduction area and bring in moremembers


120 Janajatis135 Dalits

Female members and male/female member ratio Female 54%, male 46%m/f = 0.85


Good

Geographical coverage 6 vdcsMembership of international federation(s) NoMembership of higher-tier producer federations Yes, District Ag. Coop UnionRelationships with other producer groups ororganisations (rivalry, cooperation)

Cooperation


INGO Projects, LAs


Self - membership, coop business, INGOs

Service provided to farm producer Training on production technology,production input sales, output marketing


89

SN 9Name Kushal Agriculture Cooperative limitedDescription Detail InformationOrganisation (as per mapping typology) CooperativeContract Person Mrs. Bhagwati Subedi (9849768568)Organisational levels (tiers) PrimaryPurpose /kind of business/production Support to the local communities for

microfinance for the income generationactivities especially focus on women.

Mission/mandate and stated main objectives Mobilise members savings and meet theircredit needs for the taking up localenterprises and generate income


District Cooperative Office

Main office/base (location) Lamatar 6, LalitpurMembership base (members to be defined as mostappropriate: individuals/family orhouseholds/communities/organisations), and estimatednumber of members

Individuals -170


200

Outreach policy/initiatives to attract new members Awareness activtiesMember characteristics (socio-economic, ethnic, specificcommodity/crop)Number of members

Janjati-30Dalit-20Others-120

Female members and male/female member ratio Male-40Female 120


Good

Geographical coverage Lamatar -6Membership of international federation(s) NoMembership of higher-tier producer federations NoRelationships with other producer groups ororganisations (rivalry, cooperation)

Good


Loose link


At the begaining by CEPRED, now frommembership and financial movement

Service provided to farm producer Various savings products, credit facility tothe members


90

SN 10Name Ghatalbaba Savings and credit

cooperative SocietyDescription Detail InformationOrganisation (as per mapping typology) Cooperative societyOrganisational levels (tiers) PrimaryPurpose /kind of business/production Joining together to solve rural finance

microfinance problemsMission/mandate and stated main objectives Mobilise members savings and meet their

credit needs for the taking up ruralenterprises and generate income


Formal CBO registered under cooperativeact

Main office/base (location) Amargadhi Municipality 5, DadeldhuraMembership base (members to be defined as mostappropriate: individuals/family orhouseholds/communities/organisations), and estimatednumber of members

310HHs


About 20 percent

Outreach policy/initiatives to attract new members orientation training to non-members,subsidized rate of entry fee for poor anddalits


50 HHs dalits60 HHs janajatis

Female members and male/female member ratio male 93; female 213 (m/f = 0.43)Links to any political parties NoContacts with local/regional /national government(good/bad/regular)

Good

Geographical coverage Ward 5 of Amargadhi Municipality,Dadeldhura

Membership of international federation(s) NoMembership of higher-tier producer federations Yes, District Savings and Credit Union;

National federation of Savings and CreditCooperative Union Nepal (NEFSCUN)


Cooperation


NGOs, LAs


Membership fees, income from lending tomembers,



91

SN 11Name Sangam savings and credit cooperative

SocietyDescription Detail InformationOrganisation (as per mapping typology) Cooperative societyOrganisational levels (tiers) PrimaryPurpose /kind of business/production Joining together to solve rural finance

microfinance problemsMission/mandate and stated main objectives Mobilise members savings and meet their

credit needs for the taking up ruralenterprises and generate income

Foundation year and background 30 December 1996Legal status (formal type of organisation) and way andnumber of registration

Formal CBO registered under cooperativeact

Main office/base (location) Bidur 4 Nuwakot

Membership base (members to be defined as mostappropriate: individuals/family orhouseholds/communities/organisations), and estimatednumber of members

Encourage to participate maximummembers in district


About 70%

Outreach policy/initiatives to attract new members orientation training to non-members,subsidized rate of entry fee for poor anddalits

Member characteristics (socio-economic, ethnic, specificcommodity/crop)Number of membersFemale members and male/female member ratioLinks to any political parties NoContacts with local/regional /national government(good/bad/regular)Geographical coverage Nuwakot DistrictMembership of international federation(s)Membership of higher-tier producer federations District Savings and Credit Union;

Nuwakot, National federation of Savingsand Credit Cooperative Union Nepal(NEFSCUN)


Cooperation

Relations with support organisations (international andlocal NGOs etc.)Funding (self/donor/government) – how is the groupcurrently funded, does it receive funding from anyoneelse (if so, what for), and how does it allocate/distributeits funding?

Membership fees, investments,



92

SN 12Name Lasho Phyafulla social women

entrepreneurship cooperativeDescription Detail InformationOrganisation (as per mapping typology) User GroupOrganisational levels (tiers) Grassroots level

Purpose /kind of business/production Improve livelihood of women throughentrepreneurship and leadership

Mission/mandate and stated main objectives Maximize the use fund for the agricultureproduct

Foundation year and background 2067, saving and credit for Agri andveterinary

Legal status (formal type of organisation) and way andnumber of registration

Divisional Cooperative Office Nuwakot

Main office/base (location) Okhley 1,7,8,9, KakaniMembership base (members to be defined as mostappropriate: individuals/family orhouseholds/communities/organisations), and estimatednumber of members

18 thematic area, with 18-20 memebr ineach areaTotal member – 368 Tamang and 2 Dalitcommunity


Yes

Outreach policy/initiatives to attract new members Community building, Biodiversity activities,fund mobilization, seed distribution


All women

Female members and male/female member ratio 100% femaleLinks to any political parties NoContacts with local/regional /national government(good/bad/regular)

Good relation with local , district lineagencies

Geographical coverage VDCMembership of international federation(s) NoMembership of higher-tier producer federations NoRelationships with other producer groups ororganisations (rivalry, cooperation)

Yes


Heifer International (INGO)


Self from regular saving

Service provided to farm producer Capacity development, Agriculture productdiversification, marketing, NTFP promotion


93

SN 13Name FECOFUN district ChapterDescription Detail InformationOrganisation (as per mapping typology) FECOFUN GorkhaOrganisational levels (tiers) District Chapter (second tier)Purpose /kind of business/production To conserve degraded forestMission/mandate and stated main objectives Scientific conservation and management of

forest resources.Foundation year and background 2053 B SLegal status (formal type of organisation) and way andnumber of registration

CBO

Main office/base (location) HaramTari, GorkhaMembership base (members to be defined as mostappropriate: individuals/family orhouseholds/communities/organisations), and estimatednumber of members

50% female out of 15 member


x

Outreach policy/initiatives to attract new members Yes only from Community based forestmanagement


CFUG

Female members and male/female member ratio 50-50 % in executive bodyLinks to any political parties noContacts with local/regional /national government(good/bad/regular)

cooperation

Geographical coverage District wiseMembership of international federation(s) NoMembership of higher-tier producer federations NoRelationships with other producer groups ororganisations (rivalry, cooperation)

yes


yes


Self, project based

Service provided to farm producer Policy advocacy and coordination


94

Annex 4: Listing of national level farmers organisations

SN 1Name FECOFUN National ChapterDescription Detail InformationOrganisation (as per mapping typology) Federation of Community Forestry Users,

NepalOrganisational levels (tiers) National FederationPurpose /kind of business/production Social movement organization represented

of forestMission/mandate and stated main objectives To reduce poverty through sustainable

forest management.Foundation year and background 1995Legal status (formal type of organisation) and way andnumber of registration

Formal CBO

Main office/base (location) Duwakot-1, BhaktapurTel: +977-1-6616408Fax:+ 977-1-6616427Email: [email protected]


13528 members,


all

Outreach policy/initiatives to attract new members NoMember characteristics (socio-economic, ethnic, specificcommodity/crop)Number of members

CF group

Female members and male/female member ratio 50-50%Links to any political parties NoContacts with local/regional /national government(good/bad/regular)

Good

Geographical coverage Nation wideMembership of international federation(s) YesMembership of higher-tier producer federationsRelationships with other producer groups ororganizations (rivalry, cooperation)

yes

Relations with support organizations (international andlocal NGOs etc.)

Cooperation


Self and donorsAdvocacy and project based funding

Service provided to farm producer Supported to district chapter , policyadvocacy


95

SN 2Name NEFSCUNDescription Detail InformationOrganisation (as per mapping typology) Cooperative federationOrganisational levels (tiers) NationalPurpose /kind of business/production Management support and wholesale lending to its

membersMission/mandate and stated main objectives Sustainable SACCOS in Nepal; through provision of

quality services and support to the members.• NEFSCUN Growth; through growth in membersand services.• NEFSCUN sustainability; aims to cover mostoperational costs through generating our own income.

Foundation year and background 1993: member based national apex organization ofSavings and Credit Cooperative Societies (SACCOS)and their District Unions (DUs) is committed to thedevelopment, promotion and strengthening of itsmember organizations

Legal status (formal type of organisation) andway and number of registration

Formal organization registered under cooperative Act1992

Main office/base (location) NECO Complex, Newbaneswar KathmanduMembership base (members to be defined asmost appropriate: individuals/family orhouseholds/communities/organisations), andestimated number of members

1607 SACCOS and 51 DUs

Estimate existing membership in relation tototal potential (%)

=1607/11851 = 13.56%

Outreach policy/initiatives to attract newmembers

Intensified representation, advocacy and lobbying. Enhancing SACCOS financial viability through

improved services. Promoting of knowledgeable board and staff’s of

SACCOS and DU’s. Rapid expansion of membership. Up scaling of services, qualitatively and

quantitatively – competitive positioning. Systems growth (members, services and assets).

Member characteristics (socio-economic,ethnic, specific commodity/crop)Number of members

These are all savings and credit cooperative societiesand district unions.

Female members and male/female memberratio

NA as the members are legal persons

Links to any political parties NoContacts with local/regional /nationalgovernment (good/bad/regular)

Good

Geographical coverage 70 districtsMembership of international federation(s) Asian Confederation of Credit Unions, World

Council of Credit UnionsMembership of higher-tier producerfederations

NCF


Cooperation

Relations with support organisations(international and local NGOs etc.)

Other Cooperative federations, MOCAP

Funding (self/donor/government) – how is thegroup currently funded, does it receive fundingfrom anyone else (if so, what for), and howdoes it allocate/distribute its funding?

Membership fees and certain projects for capacitybuilding

Service provided to farm producer Policies of SACCOS for lending credit to its members


96

SN 3Name CDCANDescription Detail InformationOrganisation (as per mapping typology) Cooperative federationOrganisational levels (tiers) NationalPurpose /kind of business/production Coordination of dairy businessMission/mandate and stated main objectives Support to establish MPCS, provide breed,

feed and animal health related technicalsupports, management capacitydevelopment of members,

Foundation year and background 1993; founded as member-based centralorganisation


Formal organization registered underCooperative Act 1992.

Main office/base (location) Naya Baneshwor, Kathmandu, Nepalemail: [email protected]


750 (37 DMPCU and 713 MPCS)


=750/1749= 42.88%

Outreach policy/initiatives to attract new members Extensive training on dairy farming andmilk processing through cooperatives


These are all milk producers societies

Female members and male/female member ratio NA as the members are legal personsLinks to any political parties NoContacts with local/regional /national government(good/bad/regular)

Good

Geographical coverage 62 districtsMembership of international federation(s) NoMembership of higher-tier producer federations NCFRelationships with other producer groups ororganisations (rivalry, cooperation)

Cooperation


I/NGOs, line ministries


Membership fees, loan from youth selfemployment fund

Service provided to farm producer Policies of MPCS for the promotion of dairyfarming


97

SN 4Name Central Fruits and Vegetable

Cooperative UnionDescription Detail InformationOrganisation (as per mapping typology) Central cooperative federationOrganisational levels (tiers) NationalPurpose /kind of business/production Coordination of fruits and vegetable

business of the cooperative societiesMission/mandate and stated main objectives Cooperative motivation, production,

processing and marketing related technicalsupports to members


Formal organization registered under theCooperative Act 1992.

Main office/base (location) Balkhu, KathmanduMembership base (members to be defined as mostappropriate: individuals/family orhouseholds/communities/organisations), and estimatednumber of members

71 (6 district Unions and 65 societies)


= 71/196 = 36%

Outreach policy/initiatives to attract new members Orientation training to cooperativesocieties on the importance of being amembers of the federation


These are primary level cooperativesocieties


Good

Geographical coverage 14 districtsMembership of international federation(s) NoMembership of higher-tier producer federations NCFRelationships with other producer groups ororganisations (rivalry, cooperation)

Cooperation




Membership fees, I/NGOs projects

Service provided to farm producer Policies of MPCS for the promotion of dairyfarming


98

SN 5Name National Cooperative FederationDescription Detail InformationOrganisation (as per mapping typology) National Cooperative FederationOrganisational levels (tiers) Apex of all federationsPurpose /kind of business/productionMission/mandate and stated main objectives The general objective of NCF/N is to

promote, strengthen and empower thecooperatives for the benefit to theirmembers on the basis of mutualcooperation through the participatorydevelopment process in the country.

Foundation year and background 1993: an apex body of the cooperativemovement of all types and levels ofcooperatives organized on the basis ofuniversally accepted cooperative valuesand principles.


Formal organization registered under theCooperative Act 1992.

Main office/base (location) Bijulibazar, Kathmandu, NepalMembership base (members to be defined as mostappropriate: individuals/family orhouseholds/communities/organisations), and estimatednumber of members

153 (12 national unions/federations; 141district unions)


About 90 percent full members

Outreach policy/initiatives to attract new members Orientation training to cooperative unionson the importance of being a members ofthe federation


These are either national federations ordistrict unions primary level cooperativesocieties


Good

Geographical coverage NAMembership of international federation(s) NoMembership of higher-tier producer federationsRelationships with other producer groups ororganisations (rivalry, cooperation)

Cooperation




Membership fees, INGOs projects

Service provided to farm producer Policies through their respectivefederations and district unions


99

Annex 5: Listing of cross-sectoral organisations

SN 1Description Detail InformationName of organisation Climate Change CouncilPurpose Provide coordination, guidance and direction for the

formulation and implementation of climate change-related policies;

Provide guidance for the integration of climate change-related aspects in the long-term policies, perspectiveplans and programmes;

Take necessary measures to make climate change anational development agenda;

Initiate and coordinate activities related to additionalfinancial and technical support to climate change-relatedprogramme and projects; and

Also initiate and coordinate for additional benefit fromclimate change-related international negotiations anddecisions.

Membership PM - Chair; DPM Vice chair,Members: 11 Ministers; VC NPC, Mem Env NPC, ChiefSecretary, Secretary (MOE), 8 Experts nominated by theGON,

Frequency of meetings Has met 8 times since 2009Level of political incidence Since 15 out of 25 are directly from the government, there

is influence of the ruling party politics.Level of support (or potential support) tolocal producer groups

Accessing funds from international sources andsupporting farmers in technology generation andadaptation to climate change

SN 2Description Detail InformationName of organisation National Development Council (NDC)Purpose For the consultation on the short-term and medium-term

and long-term development plans prepared by NPCMembership PM-Chair, VC of NPC-Vice Chair, All ministers and

MembersState Ministers, All parliamentary committee chairs,Chairpersons of parliamentary standing committees, NPCmembers, Governor general, 35 members from among thehigh reputed people,member secretary - Secretary of NPC

Frequency of meetings At least once a yearLevel of political incidence Reshuffled by the ruling party governmentLevel of support (or potential support) tolocal producer groups

Farmers' issues are brought to the council for discussionby various members. There is a policy


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SN 3Description Detail InformationName of organisation Environment Protection Council (EPC)Purpose

Provide advice to government on setting policies andstrategies to achieve the objective of sustainabledevelopment

Coordination at the highest level in government,private sector, academia, and others to facilitateimplementation of sustainable development policies

Membership PM-ChairpersonMembers - Ministers, secretaries, and representatives ofprivate sector, academia, and with members from expertsworking in the field as membersMoE is the secretariat to the Council

Frequency of meetings No meetings being held since 1998Level of political incidence Ruling party governmentLevel of support (or potential support) tolocal producer groups

Was expected to protect from environmental problems

SN 4Description Detail InformationName of organisation Nepal Veterinary CouncilPurpose To register the qualified veterinarian

To regulate veterinary professionals To regulate veterinary educational establishments To advocate government in matter related to veterinary

profession To examine and approve the annual program budget of

the CouncilMembership Chairperson - A grade registered veterinarian nominated

by the GONVice chairperson - 2 registered veterinarianMembers - 2 GON nominated registered at least B gradeveterinarian; 5 elected from among the registeredveterinarians, Chairperson of the Nepal veterinaryassociation

Frequency of meetings Four times a yearLevel of political incidence NoLevel of support (or potential support) tolocal producer groups

Policy formulation, fixation of standards for animal feeds,medicines, quality of meat and meat products, etc


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SN 5Description Detail InformationName of organisation Export Council of Nepal (ECON)Purpose Act as a catalyst for Export business development in the

country. To Provide advisory services to government and lobby

as and when required in formulation and execution ofexport business related policies.

Foster cooperation with related national and foreignorganizations.

To Create awareness for the promotion of exportbusiness.

To Create brotherhood feelings between exporters. To enhance the contributions of export trade sector to

national economy by promoting export business. To expand a trade on a sustained basis through gradual

reduction in trade imbalances.Membership Elected executive committee with 11 members

with 229 general membersFrequency of meetings General assembly once a year and other meetings as and

when requiredLevel of political incidence NoLevel of support (or potential support) tolocal producer groups

Information on trade and tradable goods

SN 6Description Detail InformationName of organisation District CouncilPurpose To oversee the planning process and appraise the district

development planMembership District Council shall consist of the Members as follows:

(a) Chairman and Deputy-chairman of each VillageDevelopment Committee in the District, (b) Mayor andDeputy Mayor of each Municipality in the District,(c) Members of the District Development Committee,(d) Members of the House of Representatives and theNational Assembly within the District, ex-officio Member,(e) Six persons including one woman nominated by theDistrict Council from amongst those social workers,socially and economically backward tribes andethnic communities, down-trodden and indigenous peoplewithin the District, belonging to the class, whoserepresentation in the District Council does notexist and who are in possession of the requiredqualifications to become the Member of the DistrictCouncil.

Frequency of meetings Normally twice a yearLevel of political incidence Elected bodyLevel of support (or potential support) tolocal producer groups

Approval of the forest/farm activities to be undertaken bythe DDC


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SN 7Description Detail InformationName of organisation Municipal CouncilPurpose To oversee the planning process and appraise the Municipality

development planMembership Mayor and and Vice Mayor of the Municipality as chair and vice

chair, members - Ward chairpersons, women ward members andward members of each ward committee, six to 20 personsincluding woman nominated by Municipal Council

Frequency of meetings Normally twice a yearLevel of political incidence Elected bodyLevel of support (or potential support) to localproducer groups

Approval of the forest/farm activities to be undertaken by theMunicipality

SN 8Description Detail InformationName of organisation Village CouncilPurpose To oversee the planning process and appraise the VDC

development planMembership Chairperson and Vice chairperson of the VDC as chair and vice

chair, members - Ward chairpersons, women ward members andward members of each ward committee, six persons includingone woman nominated by VDC

Frequency of meetings Normally twice a yearLevel of political incidence Elected bodyLevel of support (or potential support) to localproducer groups

Approval of the forest/farm activities to be undertaken by theVDC

SN 9Description Detail InformationName of organisation District Agriculture Development Committee (DADC)Purpose Monitoring of agriculture related interventions, providing

immediate feedback to the stakeholders for the effectiveimplementation of projects

Membership DDC Chairperson is the chair, DADO is the member secretaryand chiefs of LAs, farmers representatives, NGOs are themembers

Frequency of meetings At least three (four monthly) and more as and when requiredLevel of political incidence NoLevel of support (or potential support) to localproducer groups

Coordination of agricultural activities and reaching the farmers'groups with integrated production package.

SN 10Description Detail InformationName of organisation District Forest Sector Coordination Committee (DFSCC)Purpose To ensure that government bodies do actually promote and

attempt to balance societies' multiple interest with otherstakeholders rather than on their own to promote only their ownnarrow interest.

Membership DDC Chairperson is the Chairperson, DFO is the memberSecretary, and chiefs of LAs, farmers representatives, NGOs arethe members

Frequency of meetings At least three (four monthly) and more as and when requiredLevel of political incidence NoLevel of support (or potential support) to localproducer groups

Coordination of forest activities and reaching the forest user'sgroups with integrated forest development package.


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Annex 6: Listing of legal frameworks governing forest and farm sectors in Nepal

Annex 6.1: Multilateral Environmental Agreements

Legally binding instruments in which Nepal is a party1. Convention on Wetlands of International Importance Especially as Waterfowl Habitat

(Ramsar Convention), 19712. Convention on for the Protection of the World Cultural and Natural Heritage, 19723. Convention for the Safeguarding of the Intangible Cultural Heritage, 2003 (Nepal is not a

party)4. Convention on International Trade in Endangered Species of Wild Fauna and Flora

(CITES), 19735. Convention on the Conservation of Migratory Species of Wild Animals – CMS (23 June

1979)(Nepal is not a party of this convention)

6. International Tropical Timber Agreement (ITTA), 19947. Convention to Combat Desertification in those Countries experiencing devious Drought and

or Desertification, Particularly in Africa 19948. United Nation Convention on Biological Diversity, 19929. Cartagena Bio-safety Protocol to the CBD, 200210.Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of

Benefits Arising from their utilization 2010 (Nepal is not a party of this protocol)11.ILO convention No. 169, (Indigenous and Tribal Peoples Convention, 1989)12.International Treaty on the Plant Genetic Resource for Food and Agriculture (ITPGRA),

200113.(a) WTO – Trade Related Intellectual Property Rights (TRIPs)

(b) WTO-Agreement on Agriculture (AoA)(c) WTO- Agreement on application of sanitary and phyto-sanitary Measures

14.International Plant Protection Convention (IPPC), 195215.Plant Protection Agreement of the Asia and Pacific Region, 195616.Stockholm Convention on Persistent Organic Pollutants (POPs), 200117.Basel Convention on the Control of Trans-boundary Movements of Hazardous Wastes and

Their Disposal (1989)18.Convention on the Elimination of All forms of Discrimination against Women (CEDAW) 197919.Agreement on the Networks of Aquaculture Center in Asia and the Pacific, 1988

Legally non-binding instruments in which Nepal is a party20. Rio Declaration on Environment and Development 1992 (Rio Principles)21. Rio+ 20 declaration 2012 (Future we want)22. UN Millennium Development Goals (MDGs)23. UN Non-legally binding instrument on all types of forests, 2006

SAARC Charters in which Nepal has signed24.SAARC Charter (1985)25.Agreement on establishing the SAARC Food Bank (2007)26.16th Summit (2010) Thimphu Silver Jubilee Declaration “Towards a Green and Happy

South Asia”27.A SAARC Convention on Cooperation on Environment (not ratified yet)28.Agreement on South Asian Free Trade Area (SAFTA) 2004


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Annex 6.2: National legislation

Laws (act, regulations, directives and guidelines)1. Interim Constitution of Nepal 20072. Aquatic Animal Protection Act, 1961 (Amendment, 1998)3. National Park & Wild Life Reserve Act, 19734. Forest Act, 1993 and Forest Regulation 19955. Soil and Watershed Conservation Act 19826. Private Forests Nationalization Act, 19577. Environment Protection Act, 19978. National Trust for nature Conservation (NTNC) Act 20399. International Centre for Integrated Mountain development (ICIMOD Act 2040)10. Nepal Seed Act 198811. National Tea and Coffee Development Board Act 2049 (1993)12. Agriculture Crop Act 195413. Nepal Agricultural Research Council Act, 2048(1992)14. Agriculture and Forestry University Act, 2067 (2010)15. Irrigation Rules, 2056 (2000)16. Animal Feed Act 196517. Cattle Feed Act 197618. Medicine Act 197619. Feed Act, 2033 (1976)20. Seed Act 198821. Drugs Act, 2035, (1978)22. Food Act, 2052 (1996)23. Plant Protection Act, 2064 (2007)24. Pesticides Act, 2048 (1991)25. Animal Health and Livestock Services Act, 2055 (199926. National Dairy Development Board Act, 2048(1992)27. Animal Slaughterhouse and Meat Inspection Act, 2055(1999)28. Nepal Veterinary Council Act, 2055 (1999)29. Consumer Protection Act 199830. Industrial Enterprises Act, 199231. Local Self Governance Act 199932. Export, Import Control Act 195733. Labor Act, 199234. Draft Bill on CITES (2011)35. Draft bill on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits

Arising from their utilization (2000)36. Draft bill on protection of Plant varieties37. Collaborative Forest Management Guidelines 206838. Traditional Knowledge Documentation procedure 200739. Working procedure for Infrastructure construction and operation in Protected Areas, 2065


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Annex 6.3: National legislation

Policies/strategies1. National Conservation Strategy 19882. Master plan for the forestry Sector 19893. National Biodiversity Strategy 20024. National Biodiversity Strategy Implementation Plan 20055. The Elephant Conservation Action Plan 20106. The Greater One-horned Rhinoceros Conservation Action Plan (2006 - 2011)7. Tiger Recovery Plan8. Wildlife protection, breeding and research procedure 20609. Wildlife Compensation Policy, 206510. Wetland policy 201211. National Action Program (NAP) on Combat Desertification (2003)12. Forestry Sector Policy 200013. Leasehold Forest Policy, 200214. Herbs and NTFP policy 200415. Guideline for NTFP Based Enterprise 200516. Terai Arc Landscape (TAL) strategic plan (2004-2014)17. Sacred Himalayan Landscape - Nepal Strategic Plan (2006-2016)18. Churia Area Programme Strategy 200819. National Agro-biodiversity Policy 200820. Rangeland Policy, 201221. Fire management strategy 206722. Forest Encroachment control strategy 206923. Nepal Land-use Policy 206924. Agriculture Bio-diversity Policy, 2063 (2007)25. Bio-technology Policy 206326. National Bio-safety framework 206327. National Seed Policy, 2056 (2000)28. Agriculture Perspective Plan (APP) 1995/96- 2014/1529. National Agricultural Policy-206130. Agro-business Promotion Policy, 2064 (2006)31. National Tea Policy, 2057 (2000)32. National Coffee Policy, 206033. Irrigation Policy, 2060 (2003)34. National Fertilizer Policy, 2058 (2002)35. Agriculture Development Strategy 2013 (Draft)36. Dairy Development Policy, 2064 (2007)37. Organic Chemical Fertilizer Guideline 206838. National Action Plan (NAP-169)-for the implementation of ILO 16939. Climate Change Policy 201140. National Adaptation Programme for Action (NAPA) 201041. Local Adaptation Programme for Action (LAPA) framework 201242. Nepal Environmental Policies and Action Plan (NEPAP) 199343. Sustainable development agenda for Nepal, 200344. Revised Forest Sector Policy 200045. National Water Supply Sector Policy 1998 (Drinking water supply – MDG related)


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Annex 7 Forest/farm enterprises registered under DOCSI (as of 2012)List of forest/farm related enterprises registered under the department of Cottage and Small

Industries (as of 2012)

SN Type of enterprise Number

1 Food processing (including fruits) 5239

2 Mills (agricultural and forestry) 24335

3 Soft drinks (fruit juice, squash) 325

4 Tobacco and bindi 670

5 Rattan and wood furniture 7033

6 Collection and processing of herbs 119

7 Wool-threads 491

8 Saw-mill 1232

9 Staple food 2817

10 Handmade paper 487

11 Allo (natal) processing 57

12 Feed 453

13 Oil expeller 190

14 Insane sticks 498

15 Tea processing 81

16 Dairy processing 267

17 Spices 400

18 Sugar 304

19 Paper cartoon 21

20 Manure production 5

21 Veterinary medicine 8

22 Allo-cloth 92

23 Cardamom 6

24 Local wool and jute carpet manufacturing 218


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25 Ginger processing 15

26 Coffee processing 29

27 Nettle plant power 1

28 Veneer industry 16

29 Furniture 622

30 Pickles 15

31 Bakery 107

32 Sweets 42

33 Breads 27

34 Hatchery 2

35 Jatropa oil 2

36 Nursery 584

37 Farming and livestock raising 1962

38 Beekeeping 448

39 Poultry keeping and hatchery 1359

40 Tea farming 224

41 Milk chilling 148

42 Fish farming 108

43 Herb processing 10

44 Cold storage 85

Source: DOCSI, 2012b

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