Nepal Portfolio Performance Review
(NPPR)
2015
Ministry of Agricultural Development
(MoAD)
Mr. Yogendra Kumar Karki
Joint Secretary, Planning Division
11 Sep, 2015
Organization of Presentation
Features and Status of Nepalese Agriculture
Agriculture Priorities
General Progress and Good Practices
Challenges and Gaps
Future Direction
Expected Sectoral Outputs
Expected Thematic Action Plan
Features of Nepalese Agriculture
• A small hilly country situated between two larger
economies of the World- China and India
• Three distinct physiographic regions (Mountain, Mid-hills
and Terai) with high climatic variability
Features of Nepalese Agriculture…
Small, extremely diverse and landlocked, Nepal confronts special
development challenges in the face of climate change
Its topography determines that only less than 20% of its land is cultivable
yet about 33.1 % of its GDP and more than 50 % of its export depend on
agriculture
main source of food, income and employment for the great Majority
(65.7% of the population)
Monsoon dependent, under developed
Subsistence and mixed farming system with domination of small holder
farmers (About 60% farmers)
Features of Nepalese Agriculture…
Low level of public and private investment
Suffered massively from natural calamities; Floods, Land Slides, Cold
Weather, Drought and Earthquakes
Fast growth in some high value commodities
vegetables, spices, dairy, poultry, fish etc
Features of Nepalese Agriculture (Mountain)
Features of Nepalese Agriculture(Hill)
Features of Nepalese Agriculture(Terai)
Status of Nepalese Agriculture
Area in 000' Ha
2620
3091
Agriculture Land Cultivated
Agriculture Land Uncultivated
383
Forest
1030
Water
Other
5828
Source: ABPSD, MoAD
Contribution of Agriculture to GDP at Constant
Prices
Contributio of Agriculture in GDP at Constant Price
(Percent)
37
36
35
34
33
36.64
35.87
35.86
35.57
34.83
35.02
35.01
34.38
34
33.1
32
31
2005/062006/072007/082008/092009/102010/112011/122012/132013/142014/15
Source: Economic Survey
Agriculture accounted for 36.64% of gross domestic product (GDP) in 2005/06
and, despite falling to 33.1% by 2014/15, remains by far the largest sector of the
economy.
Agriculture Growth Rate
Agriculture Growth Rate in Last Ten years (Percent)
7
6
5.8
5
4.5
4.6
4
2
Agriculture
3
3
2.9
2
1.8
1.9
1.1
1
1
0
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15
Source: Economic Survey
Agriculture Growth rate averaged 2.9 % during the last decade. Both of these figures
are above the population growth rate of 1.35 % per annum, but with huge year-onyear variation, the range being 5.8% in 2007/08 to 1% in 2006/07. This variation
reflects high weather dependence and an underdeveloped sector.
Composition of AGDP
Composition of AGDP,
Fruits & spices,
7.04%
Forestry, 8.10%
Cereals, 49.41%
Livestock,
25.68%
Source: ABPSD, MoAD, 2014
Vegetable, 9.71%
Domination of Cereal Crops followed by Livestock and Vegetables
Development Partners and their Supported Projects (in
number) through MoAD
5
5
4.5
4
3
3.5
3
2
2.5
2
1
1.5
1
1
SDC
EU
1
0.5
0
World
Bank
ADB
IFAD
GAFSP
Development Partners
Earthquakes and Losses in Agriculture
The earthquakes damaged agriculture infrastructures,
livestock, fisheries, crop lands and food and seed stocks
Damages have been extended to deaths, injuries and stress to
farmers as well as agriculture technicians along with the
damages to offices of agriculture extension, development and
research centres
the total damages and losses in agriculture sector amount to
about NPR 28.3 billion
Agriculture Priorities
Increasing production and productivity of key agricultural crops
Promoting agriculture commercialization and modernization for
increased efficiency and farm income
Addressing both food and nutrition security
Local economic development through agribusiness cluster
development
Alleviating poverty through smallholder agriculture development
General Progress
Agriculture
Development
Strategy
• guide agriculture development in
Nepal for the next two decades
Multi-sector
• provide direction for achieving
nutritional plan and
nutritional outcomes, as envisaged
food security action
by
the
Government
of
Nepal
plan
Zero Hunger
Challenge Intiative2025
• Set basis for ensuring that every
man, woman and child enjoy their
rights to adequate food
General Progress
Addition of 58 ha of land under cardamom plantation.
Rehabilitation of 400 ha of citrus orchard
Establishment of four seed storage and processing facilities
across the country
Addition of land under maize and oil seeds by 25,500 and 2000
ha respectively
Distribution of 3.1 million improved seed kits
Establishment/renovation of 200 collection centers
Rehabilitation of 68 irrigation schemes
Production and distribution of 9.6 million doses of vaccine
NPR 1,551,20,182 made available under agriculture insurance
107,000 liters of liquid nitrogen produced
Good Practices
Smart Subsidy:
Youth focused program:
Demand based programs:
Fertilizers, Seeds,
reducing youth migration
and increasing women
contribution in household
income
Small irrigation, Cooperative
Farming, Family Farming,
Market Structures
Food Quality Control:
Value Chain Support
Grants:
machineries, insurance
Problem based Research
and Development:
Farmers field
demonstration,
Participatory research
Good Manufacture
Practices, Joint Monitoring,
Green Strikers,
PACT, HVAP, RISMFP, HIMALI
KUBK, AFSP
Challenges and Gaps
Develop the key institutions and instruments for policy implementation
Increase factor productivity
Expand the commercialization of agriculture based on high-value crops
Improve the enabling environment for private sector development
Strengthen the partnership approach
Improve cross-sectoral interaction
Future Directions
Governance
Increased
Productivity
Profitable
Commercialization
Enhanced
Competitiveness
Recovery and
Reconstruction
Governance: clear targets for improved credibility of policy
commitment, engage leading stakeholders (both from
government and civil society) in the formulation and
implementation, and will monitor appropriately and
continuously
Increased Productivity: (i) effective agricultural research and
extension; (ii) efficient use of agricultural inputs; (iii) efficient
and sustainable practices and use of natural resources (land,
water, soils, and forests); and (iv) increased resilience to
climate change and disasters.
Profitable Commercialization: transforming the agricultural
sector from a substantial proportion of subsistence farming
into commercial purposes and is connected to the local,
national, and international markets.
Increased Competitiveness: Capturing energy, innovation and
inventiveness of the private sector and cooperative sector to
create some form of additionality
Recovery and Reconstruction: based on the "Build Back
Better" principle
12000
10000
9266
10523
Expected Sectoral Results:
Increased Agricultural Production
Baseline (in ‘000 Mt.)
69.4
79.8
300.9
317
1724
1748
1186
1197
3629
3720
22.5
25.9
0
194
207
2000
353.5
427
4000
1975.62
2081
6000
2145.29
2456
8000
4788.61
5213
Target (in ‘000 Mt.)
Expected Sectoral Results:
Improved food and nutrition security status
Number of food deficit districts
33
33
32
30
31
30
29
28
2014/15
2015/16
Sectoral Thematic Action Plan
Public Finance Management
Thematic
Areas
Thematic
Agreed Action
Challenge
Timely Release Timely budget
of budget
authorization by
ministry and
departments
Timely flow of
Accounting
Information
through field
level.
Timely
submission of
audit reports.
Use of computer
based accounting
system
implemented
Performance Indicators
Target
Date
More than 90 % of budget 1 Sep,
2015
authorized to
implementing units within
six weeks of budget
announcement
More than 25 %
15 July,
implementation unit
2016
introduced computer
based accounting system
Moe than 50 % of
program budget spent by
the end of second
trimester
25
March
2016
Sectoral Thematic Action Plan…
Thematic
Challenge
Agreed Action
Placement/retenti
on of staff in key
positions
Compliance to the
Civil Service Act and
Regulations provision
More than 95% of PDs and
all chiefs and district level
offices retained for a
minimum of two years
30 June,
2016
Human Resource
Development Plan
prepared and
implemented
More than 90% of
agricultural extension
workers are fulfilled.
30 June,
2016
Human resource development
Thematic
Areas
Performance Indicators
Human resource
development plan developed
and implementation initiated
Weak capacity of
technical
manpower
More than 25% of the
frontline extension workers
trained
Target
Date
30 June,
2015
15 July
2016
Sectoral Thematic Action Plan…
Monitoring & evaluation/
Managing for Development
Results
Thematic
Areas
Thematic
Challenge
Agreed Action
Performance
Indicators
Target
Date
Results based M &
E framework
developed and
implemented
Agriculture
Management
Information System
(AMIS) piloted
15 July
2016
Three Year M & E
Plan prepared and
implemented
All M & E Reports of
ministry uploaded to
Web portal
15 July,
2016
Weak M & E
System
Sectoral Thematic Action Plan…
Mutual Accountability
Procurement
Thematic
Areas
Thematic
Challenge
Agreed Action
Performance Indicators
Target
Date
Lack of
compliance with
PPA and PPR
Preparation of
Hundred of percent
Annual Procurement contracts awarded in the
Plan for FY 2015/16, first trimester
and monitor the
implementation
against the plan
15
Novem
ber,
2015
Weak
coordination,
program
duplication and
harmonization
TA and FDI reflected 80% of TA for FY 16/17
in MoF source book. reflected in the source
book.
80% of projects submits
audit reports to OAG for
on-budget-off-treasury
expenses.
1 Aug,
2015
15 Jan,
2016
Thank You