ADB grants $1mln aid for farmers in Nepal

The Asian Development Bank’s (ADB) Japan Fund for Poverty Reduction (JFPR), financed by the Japan government, has granted one million dollars aid to improve the livelihoods of poor farmers and disadvantaged groups in the Eastern Development Region of Nepal.

In the region’s rural areas, the poorest have limited access to resources, with many poor farmers having landholdings of a half a hectare or less. Women are mostly dependent on remittances, but irregular delivery often leaves them struggling for daily survival.

''The rural areas of Nepal's eastern hills face chronic poverty, with ethnic minorities, especially women, suffering among the worst,'' said Ms Susanne Nebel, an ADB Rural Development Specialist.

''Enabling the deprived to access opportunities and benefits from development efforts in the country is essential,'' she added.

The project will cover Dhankuta, Morang, Saptari, and Sunsari districts. It will help 6,000 people engage in microenterprises, such as off-season farming and high-value crop production, production of packaging materials, semiprocessing of fruits and vegetables, adding value to farm products, fishpond culture, and livestock rearing.

A 3,50,000 dollars livelihood support fund will be set up during the first year to finance househld, food, health and education needs to help the poorest access economic opportunities.

During the second year, 2,00,000 dollars will be allotted for an income generation fund earmarked for graduates of the project’s skills training programme.

During the third year, groups that have successfully set up microenterprises can access the commercial agriculture fund under an ADB-backed Commercial Agriculture Development Project.

For established farmer groups, the project will help set up micro-irrigation facilities on a subsidy basis. It will also provide training on skills needed in the agriculture value chain to prepare them for job opportunities.

It will also carry out a social mobilization programme that will create 600 self-help groups, improve adult literacy for another 6,000 people, develop their leadership skills, and consequently, increase their confidence and self-esteem.

The government will contribute 3,14,000 dollars equivalent toward the project’s total estimated cost of 1.314 million dollars. The Ministry of Agriculture and Cooperatives is the executing agency for the project.

The JFPR was set up in 2000 with an initial contribution of 90 million dollars, followed by additional contributions totaling 155 million dollars in 2002, and annual contributions up to 2006 bringing the total amount to 360 million dollars.

UNI XC CS HS1544

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