Vegetable Seed Project 2011-2014

• Research unit: SDC
• Project number: 7F-02960.03

Key words (German)

• Landwirtschaft
• Saatgut
• Einkommensförderung
• Nepal
• Ländliche Entwicklung

Short description (English)

The agriculture system in Nepal is gradually ransforming from subsistence to commercial production. The Government of Nepal, in its periodic development plans, considers agriculture to be a priority sector for poverty reduction. Among the different agricultural sub-sectors vegetable cultivation along accessible road heads is rapidly expanding. The export of mainly off-season vegetables to China and India is gradually increasing and has contributed to poverty reduction and the development of rural areas. However, because of their highly perishable nature, the production of off-season vegetables is less feasible in remote rural areas, where poverty is acute due to lack of access to roads and markets. Therefore, the production of low volume, high-value commodities, such as vegetable seeds, is one of the most important strategies in promoting economic growth in remote areas for poverty reduction.
In recent years, the demand for vegetable seed on local and international markets has been rising. The area cultivated for vegetable seeds in Nepal has increased from 82,000 ha in 1974/75 to 180,823 ha in 2004/05 and today, seed of more than 30 vegetable crops comprising 72 varieties is being produced. The first phase of the Promotion of Vegetable Seed for Poverty Reduction in Remote Areas of Nepal (PVSPR) project was able to contribute 4% of the national seed supply in 2003/04 which increased to 12% in 2005/06, despite the conflict and insurgency. The project helped to generate additional income of NRs. 33 million (CHF 0.55 million) from the sale of 120 metric tons of vegetable seed.
The project goal for the 2nd phase is to “to improve sustainable livelihoods through agriculture in remote rural areas” which the project aims to achieve through the following outcomes: (1) people in remote rural areas benefit from better livelihood options, and (2) Government policies allow NGO/private sector partnership in foundation seed production. By producing 300 metric tons of seed from 27 vegetable crops (comprising 52 varieties) the project aims to make a significant contribution to the national demand for seed. This is expected to generate an additional income of NRs. 85 million (CHF 1.42 million) for the seed producing farmers.
The project will work in eight remote districts of Nepal with 6,000 small farm families as its main beneficiaries. Special emphasis will be placed on the proportionate representation of women, Dalits, indigenous communities and conflict victims, as far as possible. The Nepalese NGO CEAPRED will be the main executing agency for this project. At the district level, the project will work with district-based line agencies, NGOs, CBOs and local entrepreneurs, while at the central level, a steering committee will include representatives from relevant Ministries, Departments, the Nepal Agricultural Research Council (NARC), the Social Welfare Council (SWC) and private seed entrepreneurs. In the 2nd phase, the project will widen its collaboration with policy advocacy organizations and networks at the central level to strengthen the process of creating effective learning and policy feedback mechanisms.
The credit proposal seeks an amount of CHF 1’450’000 for four years from 1 January 2007 to 31 December 2010.

Project aims (English)

Goal, outcome and outputs
The overall goal of the project is to:
“Contribute to improve sustainable livelihoods through agriculture improvement in remote rural areas.
The intended outcomes of the project are two-fold:
(1) People in remote rural areas benefit from better livelihood options.
(2) Government policies allow NGO/private sector partnership in foundation seed production.
In order to achieve these outcomes, five outputs have been identified:
Output 1: Vegetable seed producers are organized and empowered for the demand-based production and marketing of vegetable seed.
Output 2: Participating farmers produce quality vegetable seed (300 metric tons).
Output 3: 6'000 participating families have higher incomes and increased food security.
Output 4: Collaboration with other external development partners in policy debate forums regularized.
Output 5: Policy feedback to relevant partners and stakeholders improved to be more conducive to vegetable and vegetable seed production and the marketing environment.

Project areas and target groups
The current project phase covers 30 VDCs in five remote hill districts. Based on the recommendations of the external review and considering the project’s strengths and potential, the project will be expanded into neighbouring VDCs and districts in the mid and far western development regions. Some special pockets in the adjoining districts will be selected for selected crops and varieties.
The project will work with two categories of beneficiaries: i) direct beneficiaries, basically small producers who engage in vegetable seed production in remote areas of Nepal and ii) indirect beneficiaries such as seasonal and off-season vegetable producers along the road corridors of special pockets and traders at both the local and national level. In both categories, DAGs will receive priority in the production and marketing chain. The project is intended to benefit 6,000 small farm families in its second phase.

Working approaches
The project will employ a business approach to develop the seed sector as a self-sustaining, profit-making and viable strategy for both farmers and traders. The project will provide continued technical support and promote proportionate representation of DAGs in the whole seed production and marketing chain. The coordination teams at the district level will undertake the demand-based planning and effective implementation of the project. The contract between the producers and the traders will be facilitated by the district and central level project management teams, as appropriate. A central steering committee at the national level will facilitate policy feedback mechanisms, as relevant and required.