Nepal Agricultural Market Development Programme (NAMDP)

Agriculture accounts for around 33% of Gross Domestic Product (GDP) of Nepal (The Economic Survey 2013-14, Ministry of Finance, Nepal). It dominates the rural economy of Nepal, with three quarters of households earning their livelihoods from the sector. Since the late nineties, and in particular since the Comprehensive Peace Accord (CPA) was signed in 2006, in almost all agriculture subsectors (crops, livestock, fishery, and forestry) there has been progress in terms of production and/or productivity.

Semi-commercial and commercial agriculture has started gaining momentum, though subsistence production still dominates. Agriculture market systems remain inefficient; serious deficits and untapped potentials prevail in the core transaction functions between supply and demand, as well as in (i) supporting functions like information, coordination, inputs, finance, market access, and transportation; and (ii) in the regulatory framework of rules, standards, norms and codes. The Nepal Agricultural Market Development Programme (NAMDP) is a market systems development programme under SDC's Nepal Agriculture Growth Initiative (NAGI) which aims to sustainably improve livelihoods of rural smallholders, especially disadvantaged groups and women-headed households, through participation in commercial agriculture and interconnected markets.

The Project

The objective framework of Nepal Agricultural Market Development Programme (NAMDP) is based on a long-term vision of thriving and inclusive agriculture markets that develop the comparative advantages for import substitution and export growth and thus contribute to poverty reduction. NAMDP is expected to produce tangible, visible and measurable impact in a number of commodity markets/value chains and cross-sectors. The programme follows Inclusive Market Development approach, also known as Making Markets Work for the Poor (M4P)/Market Systems Development (MSD) approach.

The first phase of NAMDP covers initial 8 months' preparatory period (from March to October, 2016) and about three years' implementation period (November 2016 to December 2019). The preparatory period focuses on in-depth analysis of several agro value-chains and the final selection of three commodity markets/value chains and two cross-sectors; and the elaboration of the final programme document.

The program, during the 1st half of Phase 1, will be concentrated in two spatial clusters in Nepal: The Eastern cluster including Ramechhap, Okhaldhunga and Khotang districts, and the Western cluster including Surkhet, Jajarkot, Dailekh, Kalikot, and Achham districts. During the 2nd half of Phase 1, the programme is to expand to other important and promising road corridors; these may include parts of the Terai region.

Results

  • 25,000 semi-commercial and commercial production units increase their additional net annual income by NRS 20'000 (approximately $ 200), of which 30% are women-led production units;
  • 1,600 new employments are created for poor and disadvantaged people.

Project countries

  • Nepal

Project duration

2016 - 2019

Funding

  • SDC

Working area

Enterprise

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