feed the future knowledge- based integrated sustainable agriculture

Feed the Future Knowledge-based Integrated

Sustainable Agriculture in Nepal (KISAN) II Project

Year 5 Annual Report

July 16, 2021 to July 15, 2022

FEED THE FUTURE KNOWLEDGE-

BASED

INTEGRATED SUSTAINABLE

AGRICULTURE IN NEPAL (KISAN) II

PROJECT

YEAR

5 ANNUAL REPORT

JULY

16, 2021 – JULY 15, 2022

CONTRACT

NUMBER AID-367-C-17-00001

DISCLAIMER

This report is made possible by the generous support of the American people through the United States

Agency for International Development (USAID) under the Feed the Future Initiative. The contents are the

responsibility of Winrock International and do not necessarily reflect the views of USAID or the United States

Government.

Cover photo:

Natthu Ram Badayak (right), proprietor of Nain Rice Oil and Flour Mill, a KISAN II partner, provides

technical training and demonstrations to support 1,650 farmers like Desh Rani Chaudhary (middle) and

Sona Devi Chaudhary (left) to cultivate lentils. This assistance also enhances farmers’ access to agri-inputs,

government subsidies, and markets. After realizing the benefits of lentil cultivation, Desh Rani and Sona Devi

doubled their lentil production area, increased lentil harvest by 93 percent (from 255 kg in 2021 to 490 kg

in 2022) and sold 450 kg to Nain Rice Oil and Flour Mill in 2022. Photo credit: Rabik Upadhayay for USAID.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE i

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TABLE OF CONTENTS

Acronyms...................................................................................................................................................................... v

Executive Summary .................................................................................................................................................. vii

Introduction ................................................................................................................................................................. 1

Impact Of Shocks On Agribusinesses And Farmers And Project Adaptations ........................................... 2

Covid-19 ................................................................................................................................................................... 2

Unexpected Heavy Rainfall And Flooding In October 2021........................................................................ 2

Impacts Of Russia-Ukraine War ......................................................................................................................... 3

Key Output Level Indicator Results ....................................................................................................................... 3

Key Outcome Level Indicator Results ................................................................................................................... 5

Farm-Level Yields ................................................................................................................................................... 5

Farm-Level Sales ..................................................................................................................................................... 7

Firm-Level Sales ...................................................................................................................................................... 9

Use Of Information And Communication Technologies .............................................................................. 9

Access To Finance ............................................................................................................................................... 10

Improved Management Practices And Technologies ................................................................................... 10

Inclusion .................................................................................................................................................................. 12

Enabling Environment And Government Collaboration ............................................................................. 13

Business Literacy Program ................................................................................................................................. 13

Collaboration, Learning, And Adapting ........................................................................................................... 13

Science, Technology, Innovation, And Research .......................................................................................... 14

Supplemental Scope Of Work .......................................................................................................................... 15

Indicators For Fine Rice And Maize For Feed And Other Industrial Purposes .................................... 15

Value Chains Closed Out In Year 5 ..................................................................................................................... 17

Vegetables .............................................................................................................................................................. 17

Lentils ...................................................................................................................................................................... 18

Goats ....................................................................................................................................................................... 20

Update On Activity Implementation .................................................................................................................... 22

Collaboration With Government Of Nepal .................................................................................................. 22

Activity Cl.1 Disseminate And Deepen Understanding Of The Private Sector-Led Approach ... 22

Activity Cl.2 Coordination With The Gon ............................................................................................... 23

Activity Cl 3 Building Stronger Collaboration Through Joint Sector Reviews. ................................ 24

Component 2: Strengthen The Competitiveness, Resilience, And Inclusiveness Of Selected

Agriculture Market Systems .............................................................................................................................. 25

Activity 2.1 Strengthen The Organization And Coordination Of Selected Market Systems ........ 25

Activity 2.2 Strengthen Partner Firms, Cooperatives, And Other Small And Medium Enterprises

To Support Selected Market Systems ........................................................................................................ 27

Activity 2.3 Enhance Financial Services Markets That Serve Selected Market Systems ................. 28

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Activity 2.4 Enhance Market Infrastructure And Other Services To Support Selected Market

Systems .............................................................................................................................................................. 29

Component 1: Improve The Productivity Of Selected Agriculture Market Systems .......................... 30

Activity 1.1 Strengthen The Capacity Of Input Supply Systems To Deliver Timely And

Affordable Productivity-Enhancing Technologies ..................................................................................... 31

Activity 1.2 Increasing Adoption Of Profitable, Productivity-Enhancing, And Climate-Smart

Technologies By All Groups, Including Youth, Women, And Disadvantaged Groups ................... 32

Component 3: Strengthen The Enabling Environment Of Selected Agriculture Market Systems.... 33

Activity 3.1 Build Capacity To Streamline, Harmonize, And Coordinate Gon Policies And

Regulations ........................................................................................................................................................ 33

Activity 3.2 Improve Investments, Management, And Governance Of Infrastructure ................... 35

Activity 3.3 Improve Systems To Increase The Quality Of Selected Commodities ....................... 36

Activity 3.4 Support Local Government Agencies To Improve And Rationalize Spending Related

To Market Systems Development ............................................................................................................... 36

Component 4: Increase Vulnerable Communities Ability To Act On Business Opportunities

Within Selected Markets Systems .................................................................................................................... 36

Activity 4.1 Enhance Literacy And Business Skills.................................................................................... 36

Component 5: Apply Collaboration, Learning And Adaptation To Market Systems Development 38

Monitoring, Evaluation, And Learning .................................................................................................................. 40

Grants Under Contract .......................................................................................................................................... 41

Operational And Communications Activities .................................................................................................... 42

Partnerships, Collaboration, And Knowledge Sharing ..................................................................................... 44

Responding To Covid-19 Pandemic In Nepal: Facilitating Systemic Change And Transformational

Growth In The Rice And Maize Sub-Sectors And Creating Agri-Employment Opportunities ............. 45

Activities To Achieve Ssow Objectives 1 And 2 .......................................................................................... 45

Sow Activity 1 Design And Streamline Interventions In Rice And Maize Sectors ........................... 45

Sow Activity 2 Strengthen The Capacity Of Rice And Maize Value Chain Actors (E.G., Millers,

Traders, Transporters, Input Suppliers, Warehouse Management Companies) .............................. 46

Sow Activity 3 Support Partners To Strengthen The Capacity Of Rice And Maize Farmers ....... 47

Sow Activity 4 Strengthen The Supply Chain And Promote Diversified Grain Sourcing .............. 49

Sow Activity 5 Strengthen Coordination With Gon And Industry Associations ............................ 50

Activities To Achieve Ssow Objective 3 ........................................................................................................ 50

Additional Mel And Cla Activities Pertaining To The Ssow ...................................................................... 50

Additional Grants Under Contract Activities For The Ssow .................................................................... 51

Annexes ........................................................................................................................................................................ 1

Annex 1. Success Stories ...................................................................................................................................... 1

Annex 2. Summary Of Signed Grants In Y5 .................................................................................................... 1

Annex 3. Select Activities For Y6t1 ................................................................................................................... 1

Annex 4. Detailed Implementation Plan Table ................................................................................................ 1

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Annex 5. Performance Indicator Tracking Table ........................................................................................... 1

Annex 6. Summary Of Fixed-Price Subcontracts ........................................................................................... 1

Annex 7. Summary Of Fixed-Price Purchase Orders.................................................................................... 1

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LIST OF TABLES

Table 1. Partnerships and Households Details by Type of Organization ...................................................... 4

Table 2. Project Reach at Beneficiary and Firm Level ........................................................................................ 4

Table 3. Farm-Level Yields of Targeted Commodities ...................................................................................... 5

Table 4. Farm-Level Annual Sales ........................................................................................................................... 7

Table 5. Farm-Level Annual Sales per Smallholder Farming Household ....................................................... 8

Table 6. Firm-Level Sales........................................................................................................................................... 9

Table 7. ICT Use among KISAN II Households .................................................................................................. 9

Table 8. Finance and Investment Outcomes ...................................................................................................... 10

Table 9. Farmer Adoption of Improved Management Practices and Technologies .................................. 11

Table 10. Inclusiveness Indicators ......................................................................................................................... 12

Table 11. KISAN II Policy Advocacy Support .................................................................................................... 13

Table 12. KISAN II BLP Indicators ........................................................................................................................ 13

Table 13. Collaboration, Learning, and Adaptation Indicators ...................................................................... 14

Table 14. Science, Technology, Innovation, and Research .............................................................................. 14

Table 15. Indicators under SSOW ........................................................................................................................ 15

Table 16. KISAN II-Supported Production and Sales of Fine Rice in SSOW Districts ............................ 16

Table 17. KISAN II-Supported Production and Sales of Industrial Maize in SSOW Districts ................ 16

Table 18. Import Substitution Analysis for Fine Rice and Maize Based on ZOI Production .................. 17

LIST OF FIGURES

Figure 1. Proportion of Individuals Participating in USG Food Security Programs ..................................... 5

Figure 2. Vegetable Crop Yields 2018–2022, with 2022 Yield Targets ........................................................ 6

Figure 3. Share of Commodities in Annual Sales Loss ....................................................................................... 8

Figure 4. Average Percentage Improvement Across Five Capacities by Type of Firm ............................ 12

Figure 5. KISAN II Accomplishments in Vegetable Sector ............................................................................. 18

Figure 6. KISAN II Accomplishments in Lentil Sector ..................................................................................... 19

Figure 7. KISAN II Accomplishments in Goat Sector ...................................................................................... 21

Figure 8. Business Literacy Program Participants as of Y5 ............................................................................. 37

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ACRONYMS

ADS Agriculture Development Strategy

ADS-JSR Agriculture Development Strategy–Joint Sector Review

AI Artificial insemination

AITC Agriculture Information and Training Center

AKC Agriculture Knowledge Center

BLP Business Literacy Program

BMMC Bihani Madhyavarti Multipurpose Cooperative

CCDABC Center for Crop Development and Agro-biodiversity Conservation

CEAPRED Center for Environmental and Agricultural Policy, Research, Extension and

Development

CLA Collaboration, learning and adaption

DAG Disadvantaged group

DEPROSC Development Project Service Center

DLS Department of Livestock Services

EMMP Environmental Management and Monitoring Plan

FAW Fall armyworm

FTFNIPM Feed the Future Nepal Integrated Pest Management

ha hectare(s)

HGI Himalayan General Insurance

IALDO Integrated Agriculture and Livestock Development Office

ICT Information, communication, and technology

IPM Integrated pest management

JNSC Joint National Steering Committee

JRIP Joint Rice Implementation Program

JTA Junior Technical Assistant

kg Kilogram(s)

KISAN II Knowledge-based Integrated Sustainable Agriculture in Nepal

GESI Gender Equality and Social Inclusion

GON Government of Nepal

LIBIRD Local Initiatives for Biodiversity, Research and Development

LQ Learning Question

MEL Monitoring, evaluation, and learning

MOALD Ministry of Agriculture and Livestock Development

MOAFTLM Ministry of Agriculture, Food Technology and Land Management

MOLMAC Ministry of Land Management, Agriculture and Cooperatives

MT Metric ton(s)

NAMEA Nepal Agriculture Machinery Entrepreneurs Association

NAP National Agriculture Policy

NLBO National Livestock Breeding Office

NRB Nepal Rastra Bank

NRs Nepal rupees

NSAF Nepal Seed and Fertilizer

NWCL Nepal Warehouse Company Public Limited

OSC Overseas Strategic Consulting Ltd.

PADS Provincial Agriculture Development Strategy

PAM Provincial Agriculture Ministry

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PCU Provincial Coordination Unit

PERSUAP Pesticides Evaluation Report and Safe Use Action Plan

PIU Project Implementation Unit

PPR Peste des Petits Ruminants

PMAMP Prime Minister Agriculture Modernization Project

PSA Public service announcement

PSE Private sector engagement

RFA Request for application

RMM Rice Mill Model

SME Small and medium enterprise

SMS Short message service

SOP Standard operating procedure

SSOW Supplemental Scope of Work

TC Technical Committee

TOT Training of trainers

USAID United States Agency for International Development

USD United States Dollar

USG US Government

Y5 Year 5

ZOI Zone of Influence

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EXECUTIVE SUMMARY

In Year 5 (Y5), the Feed the Future Nepal Knowledge-based Integrated Sustainable Agriculture in

Nepal (KISAN) II project continued to implement and promote a private-sector led approach to

increase the resilience, inclusiveness, and sustainability of income growth through agriculture

development in Nepal. During this reporting period, the country dealt with unexpected heavy rainfall

and flooding (in October 2021), which destroyed 14,000 hectares of rice crops, including in the

KISAN II Zone of Influence. COVID-19-related supply chain disruptions also continued in Y5.

Despite these challenges, to date KISAN II has reached 235,789 farming households, helping farmers

and market actors become more resilient in the face of market constraints through 177 partnerships

and strategic engagement with the Government of Nepal (GON). This has led to more than USD

85.4 million in farm sales, an increase of nearly 201 percent over the project’s adjusted baseline

sales. The figure below highlights key achievements of KISAN II as of the end of Y5.

Key Achievements of KISAN II as of Y5

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This year, KISAN II closed out three value

chains (goat, lentils, and vegetables) and the

Component 4 Business Literacy Program

(BLP). KISAN II’s interventions in the

vegetable sector helped increase average Y5

vegetable yields by 164 percent and Y5

vegetable sales by 391 percent compared to

baseline values. KISAN II’s Y5 lentil

interventions reached 33,654 lentil-producing

households and resulted in the production of

seven improved lentil varieties on nearly

5,000 hectares of land, with a 70 percent

increase in lentil farmer yields from baseline.

KISAN II’s goat sector support resulted in

315 artificial inseminations using improved

goat breed semen and reached 13,063

households with improved feed, health, and

husbandry guidance in Y5 to boost the

sector’s sustainability.

In Y5, KISAN II initiated supplemental scope

of work (SSOW) activities to respond to

COVID-19, promote transformational

change in the rice and maize sub-sectors, and

create agri-employment opportunities in

eight targeted districts. Under the SSOW,

KISAN II signed 25 new partnerships this

year (9 rice mills, 8 traders, 3 cooperatives, 3

agrovets, an insurance company and an

agriculture learning platform partner)

targeting an additional 35,900 households.

Promoting fine rice with GON

● To help the GON replicate KISAN II’s successful rice mill model (RMM), project staff

presented the model to the National Planning Commission, organized an RMM experience-

sharing visit for GON officials, and created a flyer, an animated video, and four television

episodes featuring the RMM. The project also provided GON officials in Province 1,

Madhesh Province, Lumbini Province, and Sudurpaschim Province with RMM technical

support and training. As a result, the GON incorporated the RMM into its annual work plan

through provincial agriculture ministries, the Agriculture Knowledge Center-Banke

implemented a fine rice promotion program, and the Bardiya Integrated Agriculture and

Livestock Development Office budgeted for fine rice promotion.

● KISAN II helped link partner rice mills with nine municipalities to implement a fine rice

promotion program. This led to municipal support of 85.4 metric tons of fine rice and 28

metric tons of yellow maize seeds at subsidized rates to 6,325 rice and 6,255 maize farmers.

Year 5 Highlights

• To date, partnered with 177 private sector

partners targeting 239,930 farming households.

• Supported 258,808 participants (73 percent

women) through trainings and demonstrations.

• Met Y5 yield targets for rice (99 percent), lentils

(91 percent), vegetables (95 percent), and goats

(99 percent).

• Exceeded Y5 annual farm-level sales targets for

goats (298 percent).

• Y5 firm-level sales of USD 59.3 million, 60

percent of which came from small or medium

enterprises, exceeded target by 41 percent.

• Facilitated GON investments of NRs. 109

million (USD 923,729) for irrigation, seeds,

machinery, polyhouses, and market infrastructure.

• Facilitated access to NRs. 26.3 million (USD

222,881) in wholesale loans for three partner

cooperatives.

• Supported the Krishi Guru digital application,

which was downloaded 19,800 times and

reached 39,080 agriculture stakeholders.

• Concluded the BLP, which graduated 62,494

participants (86 percent female, 59 percent

from disadvantaged groups) from long and short

courses to date.

• Fine rice and maize produced for feed and

industrial purposes by KISAN II-affiliated farmers

substituted imports by 8.6 percent and 24.8

percent, respectively, in Y5.

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Engaging three tiers of government for a sustainable agriculture sector

● KISAN II and partners conducted 18 meetings and 36 joint monitoring visits with municipal

officials. The project presented appreciation letters to key officials in 68 municipalities where

activities were closing and provided introductory letters to 18 municipalities where SSOW

activities were starting up. As a result of collaboration meetings and visits in Y5,

municipalities and some provincial- and federal-level organizations provided NRs. 109 million

(USD 923,729) for irrigation, seeds, machinery, polyhouses, and market infrastructure.

● KISAN II helped finalize a provincial agriculture development strategy (PADS) for

Sudurpaschim Province. The PADS was submitted for approval in March 2022 and is now

under consultation with concerned provincial ministries and the provincial planning

commission. KISAN II is finalizing the PADS for Lumbini Province, which is expected to be

completed in Y6T1.

● With KISAN II’s support, the Ministry of Agriculture and Livestock Development and

provincial agricultural ministries organized sub-national consultations in all provinces to

collect feedback on the National Agriculture Policy, Nepal Agriculture Extension Strategy,

Crop and Livestock Insurance Directives, and Subsidized Fertilizer Distribution Management

Directives. Inputs will be used to revise these policies to suit the federalized context, and to

monitor the production and processing of fine rice, industrial maize, tea, and cardamom in

accordance with decisions made at the March 2021 annual National Agriculture

Development Strategy–Joint Sector Review meeting.

Support to high potential sectors

● KISAN II trained 14 officials of National Livestock Breeding Office to produce quality goat

buck semen and trained 31 technical extension staff on using frozen buck semen for artificial

insemination. To date, trained technicians have conducted 315 artificial inseminations.

● KISAN II supported the upgrading of vehicles to transport live goats and to strengthen

market linkages. As a result, Umesh Khadhya Khudra Tatha Pasu Pankshi Bikri Farm in

Surkhet has sold 2,600 goats worth NRs. 48.6 million (USD 411,864) since April 2021

compared to just 900 goats valued at NRs. 15.7 million (USD 133,051) in 2020. Another

partner, Chaudhary Bangur Mashu Pasal, improved its transport of live goats and frozen

meat, boosting its average monthly collection of live goats by 79 percent.

● To date, KISAN II partner Hillpark Agriculture and Livestock Farm, in Banke, has provided

Boer goat breeding services to 800 does.

● A KISAN II rapid assessment to identify systemic maize sector constraints concluded that

maize imports can be minimized by improving the quality of maize produced in Nepal and

reducing post-harvest losses. Based on these findings, KISAN II supported aggregators

(Dhananjaya Trading, Annapurna Suppliers) to pilot a grain dryer and cocoon bags for grain

storage and signed a partnership with Nepal Warehousing Company Limited to install grain

silos, all of which will help reduce post-harvest losses.

Strengthening a resilient agriculture sector

● KISAN II has supported 208 firms, 206 of which improved their overall performance in Y5

across five domains.

Firm sales increased by 35 percent (141 percent over Y5 target) and

rice producers expanded the area under fine rice production by 123 percent over target.

208 firms supported by KISAN II also includes 31 retail agrovets affiliated with partner wholesale agrovets and

cooperatives.

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● KISAN II conducted virtual leadership development training to 36 board of director

members from 17 cooperative partners on how cooperatives can operate as efficient, for-

profit businesses. The project trained 42 representatives of 21 cooperative partners on

business diversification and financial management to enable them to analyze and select profit

centers for enhanced financial stability and sustainability to help them adapt to lingering

COVID-19 impacts.

● The project oriented partners on how to access subsidized agriculture and livestock loans.

As a result, three rice mills (Sunil Rice Mill, Sri Radha Krishna Rice Mill, and Saurav Rice Mill)

registered under the Office of the Company Registrar, and each obtained a subsidized loan

of NRs. 50 million (USD 423,729) for improving mill capacity. KISAN II also helped three

cooperative partners access wholesale loans worth a combined NRs. 26.3 million (USD

222,881), with additional pending loans of NRs. 20 million (USD 169,492).

● KISAN II linked Everest Insurance Company, Himalayan General Insurance, and Sanima

Insurance with partner cooperatives to allow farmers’ easier access to insurance services.

This led to one cooperative obtaining an insurance license and selling more than 100 policies

for cattle and goat coverage to its members.

● KISAN II graduated 9,397 participants from the BLP short course. In total, KISAN II’s

business literacy program graduated 62,494 participants (86 percent female, 59 percent from

disadvantaged groups) from short and long courses, meeting its life-of-project target (62,000

graduates).

● KISAN II conducted a rapid assessment on the use of post-COVID-19 relief and recovery

measures under the GON and Nepal Rastra Bank’s Monetary Policy 2020/21. The

assessment revealed limited use of these facilities by farmers and agro-entrepreneurs due to

an overall lack of awareness, complicated procedures, and inadequate business management

skills. KISAN II met with high-level officers from Nepal Rastra Bank to discuss the findings,

and the bank agreed to include the recommendations in the 2022/23 monetary policy.

Innovating and digitizing services to boost farmers’ success

● KISAN II partner ICT for Agriculture digitized and integrated KISAN II's agriculture training

manual into its Krishi Guru application and Facebook chat bot platforms to reach targeted

participants in the KISAN II Zone of Influence. Within two months, the Krishi Guru App was

downloaded 19,800 times reaching 39,080 new agriculture stakeholders.

● The project disseminated four videos to over 34,200 farmers (80 percent female) through

pico-projectors in BLP classes and through social media. A mini survey of 104 farming

households confirmed that more than 65 percent of farmers adopted technologies

promoted through videos and had no major issues understanding video messages.

● KISAN II disseminated 31 agri-technology related videos developed by partners to 9,397

participants (81 percent female) via smartphones during BLP classes. KISAN II uploaded

audio dramas and videos onto a memory card and distributed them to 2,521 participants

(2,018 female, 1,696 from disadvantaged groups) and to 134 community trainers (119

female).

Supplemental Scope of Work accomplishments

● KISAN II partnered with 25 firms targeting an additional 35,900 farming households to

implement SSOW activities in the rice and maize sectors. KISAN II conducted training of

trainers for 71 extension staff (32 female) to orient them on KISAN II’s private sector-led

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approach, with a focus on SSOW activities and technical aspects of fine rice and industrial

maize production.

● KISAN II signed partnerships with two maize partners, Nepal Warehouse Company Public

Limited and Annapurna Suppliers (Bardiya), for aggregation, storage, and marketing services.

The project also partnered with National Vision Agro Private Limited (Dang) to support

commercial maize livestock feed.

● SSOW partner Rana Agrovet scaled up its branchless banking counter, providing financial

services to 450 clients residing in remote Laljhadi Rural Municipality and providing

agriculture loans to clients worth NR. 5.6 million (USD 47,458).

● Nearly 22,000 rice producers associated with KISAN II partners planted fine rice on 11,706

hectares in six districts, exceeding the Y5 target by 123 percent.

● KISAN II-affiliated farmers (5,496) planted industrial maize on 1,774 hectares in eight

districts (55 percent of total maize produced). The yields from these plantings accounted for

86 percent of total maize sales.

● Fine rice and maize produced for feed and other industrial purposes by KISAN II-affiliated

farmers in eight districts provides a substitute for 8.6 percent of fine rice imports and 24.8

percent of feed and industrial maize imports.

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INTRODUCTION

The Knowledge-based Integrated Sustainable

Agriculture in Nepal (KISAN) II project seeks to

increase the resilience, inclusiveness, and

sustainability of income growth through

agriculture development with a focus on five

commodities: vegetables, rice, maize, lentils, and

goats. KISAN II contributes to the objectives of

the Government of Nepal’s (GON’s)

Agriculture Development Strategy and the US

Government (USG) Feed the Future Initiative.

The project has been implemented by a

consortium of organizations, each bringing

specialized expertise (see Box 1).

KISAN II has five specific components:

Component 1: Improved productivity of

selected agricultural market

systems

Component 2: Strengthened competitiveness, resilience, and inclusiveness of selected agricultural

market systems

Component 3: Strengthened enabling environment of selected agricultural market systems

Component 4: Increased ability of vulnerable communities to act on business opportunities within

selected market systems

Component 5: Collaboration, learning, and adaptation applied to market systems development

KISAN II uses a private sector-led facilitative approach to identify and address constraints within key

market systems. It works in partnership with multiple value chain actors, such as input suppliers,

cooperatives, agrovets, traders, millers, and financial service providers, to ensure farmers are food-

and income-secure. KISAN II also provides select households with business literacy training to

encourage vulnerable populations to participate in commercial agriculture. In the COVID-19

context, KISAN II pivoted to help its partners adapt to current constraints by revising business

strategies, accessing financial services, expanding or adding commodities and profit centers,

maintaining access to inputs, and using innovative means, such as short message service (SMS) and

other digital technologies, to safely reach customers. This not only helped partners cope with

COVID-19 but built their resilience to withstand future shocks.

In November 2020, the United States Agency for International Development (USAID) provided

additional resources to KISAN II through a supplemental scope of work (SSOW) to enable the

project to respond to the COVID-19 pandemic in Nepal and promote transformational change in

the rice and maize sub-sectors. Under the SSOW, KISAN II is investing in strategic partnerships,

scaling up the adoption of proven business models, transforming domestic staple crop supply chains

into competitive industries, and harnessing the talents and entrepreneurial spirit of migrant

returnees to address systemic challenges. Work under this scope is reported in the section titled

“Responding to COVID-19 pandemic in Nepal: Facilitating systemic change and transformational

Sub-contracts for all consortium partners except CEAPRED were closed as of the end of year 5.

Box 1. Consortium Brings Specialized Skills

Winrock International – Prime contractor;

provides overall direction and management,

facilitation of market systems development,

agribusiness enabling environment strengthening,

and collaborating, learning, and adapting

CEAPRED (Center for Environmental and

Agricultural Policy, Research, Extension and

Development) – Agricultural productivity

DEPROSC (Development Project Service

Center) – Business literacy, microfinance

Siddharth Inc – Business diagnostics, business

development services

Digital Green – Information, communication,

and technology (ICT)-based extension solutions

OSC (Overseas Strategic Consulting Limited) –

Behavior change analysis, communications

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growth in the rice and maize sub-sectors and creating agri-employment opportunities.” This year,

KISAN II closed out three of its five value chains (goats, lentils, and vegetables) as well as the

Component 4 Business Literacy Program. Starting in year 6 (Y6), the project will focus solely on

SSOW activities.

IMPACT OF SHOCKS ON AGRIBUSINESSES AND FARMERS

AND PROJECT ADAPTATIONS

COVID-19

COVID-19 continued to impact agribusinesses and farmers in year 5 (Y5). Although some seeds,

pesticides, and micronutrients were available, the market witnessed a shortfall of chemical fertilizers

like urea and di-ammonium phosphate, leading to inadequate supplies and higher prices. Agricultural

inputs such as hybrid seeds were also unavailable or expensive. Thus, farmers scaled back, planting

an average of 50 percent less than the target planting areas. This also decreased overall production.

Some key market centers were partially closed during the COVID-19 Omicron wave, which resulted

in disruptions to vegetable sales and other field-level activities in some project districts. However,

partners continued to adapt, using mechanisms that were followed during previous COVID-19

waves to sustain operations. Some rice millers provided transportation services to collect aggregated

rice and cereal crops from farmers’ groups. Vegetable traders also sent vehicles to fetch produce

directly from growers. Agrovets continued to disseminate key technical information through

extension services, SMS, radio messages on local FM stations, and home delivery services. While

conducting in-person field activities, partners followed COVID-19 safety precautions, and most

partners initiated digital payment systems and digital government tax payments, for added safety.

During the peak COVID-19 outbreak (2020 and 2021), most agribusinesses and farmers experienced

losses due to shortages of agri-inputs, decreased trade of agriculture commodities, and increased

operational costs. The re-opening of the economy in Y5 led to a spike in demand for all agricultural

commodities. As a result, some partners as well as farmers witnessed increased sales. While many

agribusinesses successfully adapted to the changing business environment, some struggled to

transition to a more resilient and sustainable business model. KISAN II continued efforts to support

these adaptations. Because many cooperatives faced potential liquidity crises, KISAN II trained

partner cooperatives on liquidity management and supported them to acquire wholesale loans. The

project also supported cooperatives to adopt digital payment systems for added safety and to adapt

to an increasingly digitized business context. To better enable producers to mitigate the risks

associated with external shocks, KISAN II provided packhouse management training to partner

cooperatives and supported them to operationalize cold storage facilities. KISAN II conducted

orientations to link market actors with mass SMS providers to enable them to provide remote

technical backstopping and marketing. To strengthen and improve the business operation and

management of selected rice mills, KISAN II offered mentorship and other services through a

business development service provider.

UNEXPECTED HEAVY RAINFALL AND FLOODING IN OCTOBER 2021

Abnormal post-monsoon downpours and flooding in mid-October 2021 caused enormous losses of

ready-to-harvest and harvested paddy across the KISAN II Zone of Influence (ZOI). According to

the GON Department of Hydrology and Meteorology more than 100 mm rain occurred in 24 hours

on October 18 in most parts of Western Nepal. Ultimately 14,000 hectares (ha) of crops were lost

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due to this climate event. KISAN II responded in force to help farmers by disseminating SMS alerts

on submerged and wet paddy harvesting, drying, and storage to more than 95,000 farmers. Later,

these farmers were linked with rice mills for sale of the salvageable rice. Despite these after-the-fact

mitigation measures, it was clear that weather information, disseminated through a robust early

warning system, would have helped farmers harvest in a timely fashion. Further, broader uptake of

crop insurance, which would have helped farmers recoup losses, and improved harvesting and

storage technologies could have affected the ultimate outcome for farmers in this time of crisis. To

that end, KISAN II will focus on harnessing weather information, promoting crop insurance, and

improving harvesting and storage technologies under its SSOW in years 6 and 7.

IMPACTS OF RUSSIA-UKRAINE WAR

Nepal’s agriculture sector is transitioning from largely subsistence-level to commercial. The private

sector is poised to increase investment in developing agro-enterprises, strengthening backward

linkages with farmers (producers), and delivering technical and supply chain services. Unfortunately,

the Russia-Ukraine war, which erupted in late February 2022, has caused an increase in global food

and agri-inputs prices that have negatively affected Nepal’s agricultural sector (see Box 2).

Box 2. A growing risk for Nepal:

Potential impacts of Russia-Ukraine War on KISAN II households

The Russia-Ukraine war, which erupted about six months ago, has caused an increase in global food prices

due to measures taken by many countries to safeguard their people against food insecurity and

deterioration of living standards. For example, India has banned the export of wheat to assure a supply

within its borders. Nepal’s agricultural output is low and food imports are rising. If India faces a food crisis,

it could limit food exports to Nepal as well. There is also a fear of fertilizer shortages for the same reason.

A rapid field assessment in KISAN II’s eight ZOI districts revealed the following challenges at household and

firm levels, following the start of the war:

• Soaring input prices increase farmers’ production costs, reducing their competitiveness. Indian farmers

fare better because of a much higher scale of production, combined with government support.

• Constraints may cause Nepali farmers to shift to low-input-requiring production systems.

• KISAN II interventions target vulnerable communities through inclusive business practices, and often

involves transporting relatively small volumes of produce for niche markets. Fuel costs have increased,

primarily because of the Russia-Ukraine war, making transport challenging.

• Private sector partners fear making large investments since soaring agri-input prices diminish demand

and lead to a potential decline in revenue.

• Agro-enterprises are facing constraints accessing credit from banks and financial institutions due to a

liquidity crunch.

Rising input costs, particularly of chemical fertilizers, machinery, and transportation, may make it difficult for

the GON to allocate increased funds to mitigate potential risks. However, as the global price for fine rice

and industrial maize soars, KISAN II sees an opportunity to motivate farmers and partners to escalate

production and marketing of these commodities.

KEY OUTPUT LEVEL INDICATOR RESULTS

In Y5, KISAN II performed well against key output indicators despite two major constraints:

unseasonal heavy rains (particularly in October 2021) and COVID-19-related national and district

prohibitory orders (during April-August 2021 and January-February 2022) which affected overall

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input supply, production, and agricultural sales. The following discussion compares key output

indicators’ targets to actual achievements and includes a brief explanation of factors that affected

results.

In Y5, KISAN II signed 25 new partnerships (9 rice mills, 8 traders, 3 cooperatives, 3 agrovets, an

insurance company and an agriculture learning platform partner) under the SSOW targeting an

additional 35,900 households. Through 177 partnerships to date,

KISAN II aimed to reach 239,930

farming households by the end of the performance period of Y5, but actually reached 235,789

farming households (98 percent of target). Table 1 shows the number of KISAN II-supported

partnerships by type, along with associated target/reached farming households details.

Table 1. Partnerships and households details by type of organization

Firm Type

Partner Households

No.

% of Total

Target

Actual

% of Target

Cooperatives

69 39 87,262 89,037 102

Agrovet/Input Suppliers

61 34 83,448 79,539 95

Traders

20 11 22,553 21,230 94

Rice Mills

41,589

40,987

Goat Farms

5,078

4,996

Insurance Companies

—

Learning and Training

—

Total

177

100

239,930

235,789

Table 2 shows the project reach for households, farmers, and firm-level indicators, including

performance against targets.

Table 2. Project reach at beneficiary and firm level

Indicat

or No.

Abbreviated Indicator Title

Target

Actual

% of

Target

Households and Farmers

EG. 3-1

Number of farming households benefiting directly from

USG assistance

233,000

235,789 101

EG. 3-2

Number of individuals (farmers, firms, and government)

participating in KISAN II program

237,800 258,808 109

EG.3.2-1

Number of individuals trained, who have received

short-term agriculture and food security training

81,800 85,223 104

Firms

K14

EG. 3.2-

Number of firms receiving organizational development

assistance

260 272 105

K22

EG.4.2-2

Number of firms intermediaries (cooperatives) serving

poor households and microenterprises

69 74 107

A household benefits directly if it has at least one individual who is a direct KISAN II beneficiary. An individual is a

direct beneficiary if s/he comes into direct contact with a set of interventions (goods or services) provided by a project

activity. Individuals who receive training or benefit from activity-supported technical assistance or service provision are

considered direct beneficiaries, as are those who receive a ration or another type of good.

KISAN II’s 177 partnerships include 171 grantees and 6 memoranda of understanding (MOUs) with household partners.

Of these, 152 are no longer active, 23 are active under the SSOW (rice and maize), and 2 others remain active. Wholesale

partners (agrovets/cooperatives) have 31 affiliated retailers, which brings the number of supported organizations to 208.

Although 233,000 is the target number of households in the Performance Indicators Tracking Table, the 177 partners

aimed to cover 239,930 households (an additional 6,930 households).

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These are participants of Feed the Future-funded programs, including those reached directly, those reached as part of

a deliberate service strategy, and those participating in markets the project is strengthening.

As shown in Table 2, 258,808 individuals participated in KISAN II-supported training and

demonstrations, including Business Literacy Program (BLP) training (K3). Of these, 73 percent were

women, 17 percent were youth and 10 percent were Dalit (Figure 1).

Figure 1. Proportion of individuals participating in USG food security programs

KEY OUTCOME LEVEL INDICATOR RESULTS

This section highlights key outcome level results including the new SSOW indicators on fine rice and

industrial maize. Some of the project indicators, especially production area and sales were adversely

impacted this year due to the impact of lingering effects of COVID-19 on supply chain, unexpected

rain and floods in October 2021, and the Russia-Ukraine war (see previous section). Despite these

constraints, commodity yields remained relatively steady. Detailed information on targets and

results, including factors affecting indicators, can be found in Annex 5 (Performance Indicator

Tracking Table).

FARM-LEVEL YIELDS

KISAN II met Y5 yield targets for rice (99 percent), lentils (91 percent), vegetables, (95 percent), and

goats (99 percent ).

The shortfall in maize yield (89 percent) was due mainly to unavailability of

quality seeds, disruptions in the supply chain, and lower adoption of improved technologies (see

Table 3). Despite this, the Y5 maize yield was 58 percent higher than the baseline yield (1.9 metric

tons [MT]/ha) and 20 percent higher than the national average yield.

Table 3. Farm-level yields of targeted commodities

Indicator No.

Commodity

Target

Actual

% of

Target

KISAN II ZOI

Average Yield (2020/21)

EG.3-10 (MT/ha)

Rice 5.28 5.21 99 3.81

Maize

4.00

3.54

2.96

Lentils

1.03

0.94

1.19

Vegetables

26.1

24.81

13.06

Based on +/-10 percent allowable deviation, these KISAN II yield targets are considered met.

Source: Statistical information on Nepalese agriculture, 2077/78 (2020/2021), GON, Statistics and Analysis Division, 2022.

99.6%

0.2%

0.1%

27.2%

72.8%

17%

83%

10%

35%

46%

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 6

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Indicator No.

Commodity

Target

Actual

% of

Target

KISAN II ZOI

Average Yield (2020/21)

EG.3-11

kg/animal)

Goats 6.22 6.18 99 NA

Figure 2 compares Y5 vegetable targets and actuals to baselines of ten KISAN II-focused vegetables.

Cauliflower and chili pepper yields exceeded targets by 11 percent and 18 percent, respectively;

whereas yields of cabbage, bottle gourd, and onion were 9 percent, 6 percent, and 24 percent lower

than the targets.

Even so, vegetable yields in the KISAN II ZOI remained higher than the national

average (Table 3).

Figure 2. Vegetable crop yields 2018–2022, with 2022 yield targets

Contributing factors for deviations of more or less than 10 percent are described. below:

● Cabbage. The overall area planting cabbage per household decreased by 42 percent and

production per household decreased by 38 percent. In addition, the yield for cabbage was

29.54 MT/ha, 11 percent lower than the target of 33.22 MT/ha. Reduced yield was due

mainly to October 2021 rain, which washed seedlings from the nursery beds and left farmers

no choice but to use damaged or poor-quality seedlings.

● Tomatoes. Because of reduced demand for tomatoes during the COVID-19 pandemic,

farmers reduced Y5 cultivation areas for tomato by 30 percent.

In addition, October 2021

rains destroyed all nurseries in Terai and farmers did not re-plant. This led to decreased

household production of 35 percent and decreased yield of 19 percent. Farmers in the hill

areas (about 75 percent of total) experienced lower yields (32.80 MT/ha) than in Terai

(55.67 MT/ha), pulling down the average yield (Table 3).

● Bitter gourd. Due to the untimely rains, farmers planted bitter gourds on 67 percent less

area than planned. Supply chain issues made it difficult or expensive to obtain better varieties

like Pali, thus farmers used alternate varieties which reduced production by 67 percent and

yield by 12 percent (26.63 MT/ha).

Rains and flooding impacted 63 percent of the total beneficiaries (126,888 households) in the Sudurpaschim hill districts,

Terai districts, and Palpa and Surkhet districts.

14.37

11.59

14.42

11.70

12.87

15.27

14.99

2.06

5.44

5.26

34.41

24.48

29.54

31.06

25.10

26.63

28.18

20.72

18.17

14.57

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

MT/Ha

2018 Baseline 2019 Actual 2020 Actual 2021 Actual 2022 Target 2022 Actual

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● Bottle gourd. Farmers could not plant bottle gourds on time due to October 2021 rains,

especially as most of these off-season bottle gourds are produced in plastic tunnels. Another

contributing factor for bitter gourd’s low yield was that farmers chose less expensive (less

productive) varieties as per availability in the market.

● Onion. Farmers lost 100 percent of onion seedlings in their nursery beds during the

October 2021 rain. As it was too late to re-sow, farmers re-planted the few seedlings that

remained, which were insufficient to cover the planned production area. Consequently, the

area transplanted in onions was reduced and the use of inferior seedlings caused yields to be

decreased by 24 percent from target.

● Chili pepper. As with tomatoes, farmers reduced production area for chili pepper because

of lack of demand during the pandemic. This 42 percent reduction in planting area, combined

with the destruction of Terai nurseries during October 2021 rains, led to a decrease in

production per household of 31 percent. Despite lower overall production, yields of chili

pepper increased by 11 percent due to the use of hybrid varieties.

FARM-LEVEL SALES

Due to significant weather events, KISAN II met only 49 percent of its overall Y5 annual farm-level

sales target in Y5. Rice, maize, lentil, and vegetable sales were 60 percent, 53 percent, 79 percent,

and 43 percent of targets, respectively. However, goat sales were 298 percent of the target, mainly

because of artificial insemination (AI) and intensive support by partners to goat raisers. Despite low

sales for commodities affected by the untimely rains, all exceeded baseline values (rice by 132

percent, maize by 332 percent, lentils by 231 percent, and vegetables by 391 percent) (Table 4).

Table 4. Farm-level Annual Sales

Indicato

r No.

Commodit

Baseline

2018

Y5 Target

(USD)

Y5 Actual

(USD)

% of

Target

% over

Baseline

K17

EG. 3.2-

Rice

6,789,764

26,240,488

15,755,631

232

Maize

769,592

6,325,000

3,323,944

432

Lentil

590976

2,466,102

1,958,159

331

Vegetables

11,901,397

135,827,574

58,430,439

491

Goats 830,9787 1,991,809 5,935,056 298 71

Total

28,361,516

172,850,974

85,403,228

301

Overall, the contributing factor that most affected the farm level sales performance was optimistic

target-setting based on the assumption that the COVID-19 situation would be normalized in Y5,

enabling KISAN II partners to work at full capacity from March 2022 onwards. In addition, the

targets assumed normal weather patterns and did not account for the unexpected and untimely rains

that flooded an area of 14,000 ha where rice was ready to harvest or just harvested, and damaged

lentils and vegetable crop nurseries and recently transplanted seedlings.

Commodity-specific

contributing factors for lower achievement are summarized below.

● Rice. Around 82,000 farmers associated with KISAN II partners planted rice on only 88

percent (43,488 ha) of the targeted cultivation area (49,460 ha) and harvested only 87

percent (226,666 MT) of the targeted production (260,995 MT). The lower production led

to farmers selling only 66 percent in volume (77,254 MT) and 60 percent in value (USD 15.7

million) as compared to targets. While some farmers were able to sell small quantities of

In a meeting with USAID held in early November 2021, it was agreed not to revise targets in response to extensive crop

damage but rather to observe the impacts of unexpected rain, make recommendations, and document lessons learned.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 8

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submerged/low quality rice at an extremely low price, ultimately USD 10.4 million worth of

loss and damage was incurred.

● Maize. Annual sales of maize were 53 percent below the target. Contributing factors

include lower maize yields (11 percent below target), farmers in the hills replaced maize with

alternative crops like soybeans and potatoes,

which resulted in a 30 percent reduction in

maize area. In addition, only

50 percent of producers sold maize versus the anticipated

target of 76 percent.

● Lentil. Annual sales of lentils were 11 percent below the target. Key reasons include

farmers planting lentils in 15 percent less area than targeted, lower lentil yields (9 percent

below target), and lower production (38 percent less than targeted). Farmers could not

plant lentils in lowland areas due to excessive soil moisture after the October 2021 untimely

rain. Although lentil prices were 27 percent higher than the target, farmers only sold 80

percent of the targeted annual sales.

● Vegetables. Annual sales for vegetables were 43 percent below the target and the annual

sales losses were greatest for this sector as compared to the other KISAN commodities

(Figure 3). The untimely October 2021 rain, which washed away farmers’ nurseries, left only

a small quantity of inferior quality seedlings that were not adequate to cover the targeted

planting area. This caused overall production and sales of vegetables to be low.

Figure 3. Share of commodities in annual sales loss.

● Goats. Annual goat sector sales were 198 percent above the target due to the use of AI

and partners' intensive support to goat farmers.

The average annual sales per smallholder farming household showed a trend similar to annual sales

(Table 5). The following factors were key influencers in reduced household-level sales: smaller

planted area, impact of climate events, and market uncertainty and lingering COVID-19 impacts.

Table 5. Farm-level annual sales per smallholder farming household

Commodity

Y5 Target (USD)

Y5 Actual (USD)

% of Target

Rice

320

193

Maize

127

Lentils

101

Vegetables

860

369

Goats

340

454

134

Due to the less perishable nature of the commodity and market demand, farmers chose crops like soybeans, potatoes,

and sugarcane (annual survey 2022).

18%

68%

Rice Maize Lentil Vegetables

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Commodity

Y5 Target (USD)

Y5 Actual (USD)

% of Target

Total

850

422

FIRM-LEVEL SALES

Total firm-level sales exceeded the Y5 target of USD 41.9 million by 41 percent mainly due to

increased farmers' demand for durable equipment and machinery (Table 6). Of this, 60 percent (USD

35.8 million) came from 37 small and medium enterprises (SMEs) and the remainder came from 171

microenterprises. In Y5, KISAN II focused on fine rice production and the sales of processed and

value-added products. Increased demand for durable equipment, machinery and liquid fertilizers as

well as skyrocketed price of agri-inputs increased sales for these partners by 53 percent and 254

percent, respectively, over Y4 sales. KISAN II partnered with 37 SMEs, which led to an increase in

average sales of 39 percent (USD 969,519 compared to anticipated average of USD 679,050). This

led to total sales that were 41 percent above the target. In Y5, partners continued business

operations through adaptations such as initiating digital payment systems, online delivery, and

establishing one-stop shops to provide agri-inputs, aggregate produce, and conduct financial

transactions.

Table 6. Firm-level sales

Firm Classification

No. of Firms

Total Sales

% of Target

Y5 Target

(USD)

Y5 Actual

(USD)

Y5 Target

(USD)

Y5 Actual

(USD)

Micro-enterprise

183

171

16,107,334

23,487,838

146

SME 38 37 25,874,147 35,872,214 139

Total

221

208

41,981,480

59,360,052

141

USE OF INFORMATION AND COMMUNICATION TECHNOLOGIES

A total of 81 percent of the farming households now have access to information on improved

management practices and technologies through information, communication, and technology (ICT)

channels (Table 7), 29 percent higher than the Y5 target. Fifty percent of these households have

applied the information to their farming practice. In Y5, 57 percent of the farmers supported by

KISAN II had smartphones, 15 percent more than in Y4. Of the farmers accessing ICT, 73 percent

were women, 21 percent were youth, and 7 percent were Dalit.

Table 7. ICT use among KISAN II households

Indicator No.

Indicator Title

Target (%)

Actual (%)

% of

Target

K20

EG.3.2-309-CUST

Percentage of USG-assisted

households accessing information on

improved technologies and practices

through improved ICT channels or

content

129

Text messages (SMS)

Extension videos

Mobile apps 32

Websites

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ACCESS TO FINANCE

In Y5, KISAN II exceeded targets for total agriculture financing (K23) by 28 percent (Table 8). While

smallholders and microenterprises targets for agriculture financing exceeded by 54 percent and 21

percent respectively, the SMEs were slightly under target (6 percent) due Nepal’s evolving liquidity

crunch. Overall, the project surpassed the combined target for new USG commitments and private

sector partner investment (K27) by 19 percent; only 91 percent of the targeted USG commitment

was achieved but the balance will be disbursed in Y6. Although the number of participants engaged in

group-based savings, microfinance, and lending programs underperformed the target (K24) by 19

percent, the value of their household savings deposits (K25) is 26 percent above the target,

reflecting an increase in average savings per household (from USD 48 to USD 70). Many households

increased deposits, indicating that farmers are returning to pre-COVID-19 saving patterns and/or

accessed loans for non-KISAN II targeted commodities (potatoes, wheat, livestock, etc.). Access of

loans for non-KISAN commodities resulted in outstanding balances on agriculture loans (K26) that

were 56 percent higher than the target.

Table 8. Finance and investment outcomes

Indicator No.

Indicator Title

Target

Actual

% of

Target

K23

EG. 3.2-27

Total agriculture-related financing

(USD)

59,344,896

76,017,944

128

Producer (smallholder)

31,645,065

48,630,689

154

Microenterprise

4,919,644

5,963,975

121

SME

22,780,187

21,423,280

K27

EG.3.1-14

Value of new USG commitments and

private sector investment

1,513,614

1,807,195

119

USG commitments

1,230,000

1,123,582

Private sector investment

283,614

683,613

241

K24

EG.4.2-7

Number of individuals participating in

USG-assisted group-based savings,

micro-finance, or lending programs

[IM-level]

150,176

121,139

K25

EG.3.2-311-CUST

Value of household savings deposits of

USG-assisted smallholders

6,773,719

8,529,707

126

K26

EG. 3.2-312-CUST

Value of the outstanding balance on

agriculture loans of USG-assisted

households

23,811,860

37,236,400

156

IMPROVED MANAGEMENT PRACTICES AND TECHNOLOGIES

In Y5, farmers applied fewer improved management practices and technologies than anticipated due

to the unexpected rains in October 2021, reduced intensity of in-person training and support

activities to farmers by former (grantee) partners, and COVID-19 restrictions on movement.

Farmers were discouraged from planting larger areas in Y5 as they could not sell their produce

(especially vegetables) in year 4 due to COVID-19 impacts. Reduced crop areas resulted in fewer

hectares under technology adoption. As KISAN II reduced its ZOI and focused efforts on the

SSOW, reductions in the intensity of training and other support activities led to a smaller number of

individuals adopting improved management practices and technologies.

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Table 9 details farmer adoption of improved practices and technologies based on the results of

KISAN II’s Y5 farm survey. At least one improved management practice or technology was adopted

by 97 percent of respondents. Reduced number of individuals cultivating in less area led to a 28

percent reduction in areas under improved management practices and technologies (K8) from the

target. Out of 53,321 ha where farmers applied improved management practices and technologies,

farmers applied technologies that promote climate risk reduction (K12) on 31,900 ha, which is 20

percent below the target for this indicator. However, the quantity of nutrient-rich vegetables kept

aside for home consumption (K41) surpassed the target by 29 percent as farmers consumed

produce that was not sold.

Table 9. Farmer adoption of improved management practices and technologies

Indicator

No.

Indicator Title

Target

Actual

% of

Target

EG.3.2.2-

Number of individuals who have applied improved

management practices and technologies

203,316

197,084

EG.3.2-25

Number of hectares under improved management

practices or technologies with USG assistance

74,075

53.321

K12

EG.3.2-28

Number of hectares under improved management

practices or technologies that promote improved

climate risk reduction and/or natural resources

management with USG assistance

39,961

31,900

K41

EG.3.3-11

Quantity of nutrient-rich value chain commodities set

aside home consumption (MT)

21,487

27,667

129

ORGANIZATIONAL CAPACITY DEVELOPMENT OUTCOMES

The performance of 206 of the firms supported by KISAN II improved in Y5.

Census data for Y5

suggests that firms are improving across all five capacity development domains: governance, general

management, human resources, financial management, and sustainability (Figure 4). Results differ

across types of organization and capacity domain. Agrovets performed well in human resources,

management, and sustainability (more than 90 percent improvement over baseline) but were weaker

in governance and financial management. Traders performed better in management and human

resources but are weaker in governance and financial management. Overall, partners who expanded

their customer base, provided extension services, and built linkages with vertical and horizontal

market actors had better performance. Poor performance in financial management and

sustainability—as shown for some agrovets, cooperatives, goat firms, millers, and traders—may be

the result of poor recordkeeping and/or lack of vision for business growth.

This includes 177 partners and 31 affiliated retail firms (101 agrovets, 71 cooperatives, 7 goat farms, 15 millers, and 14

traders).

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Figure 4. Average percentage improvement across five capacities by type of firm

INCLUSION

KISAN II met the Y5 target for women’s participation (K6) although youth access to productive

resources (K7) was under target.

This shortfall was the result of the lingering COVID-19 impacts

on loan availability and the fact that youth deplete their meager savings quickly, decreasing their

access to productive resources. Likewise, KISAN II met the target for women leadership (K49),

and surpassed youth trained on social or leadership skills (K51) by 33 percent through the BLP

program.

Table 10. Inclusiveness indicators

Indicator No.

Indicator Title

Target

(%)

Actual

(%)

% of

Target

GNDR-2

Percentage of participants in programs designed

to increase access to productive economic

resources who are female (unique)

105

YOUTH-3

Percentage of participants in programs designed

to increase access to productive economic

resources who are youth (unique)

K51

YOUTH-1

Number of youths trained in social or

leadership skills through USG assisted programs

2,700

3,593

133

K49

DR.4.3-304-CUST

Percent of leadership positions in business

management entities (firms) that are filled by a

woman or member of a vulnerable group

Gender equality and social inclusion (GESI) results from KISAN II's 2022 annual survey show that

over 54 percent of farmers associated with KISAN II partners are Janajati (indigenous), with an

average of 0.26 ha allocated per household for producing vegetables, rice, maize, and lentils. Dalit

households have the lowest average sales per households (with an average of 0.08 ha in cultivation).

Vegetables and goats are women-friendly commodities: in 62 percent of the households, decisions to

produce and sell vegetables are made by women compared to 53 percent for rice, while in 57

percent of households, decisions to produce and sell goats are made by women. More than 40

percent of goat farmers are Brahmin/Chhetri and these farmers have the highest average household

income from goat sales.

Feed the Future access to productive resources includes only those who had access to finance.

Leadership positions are owner, chair, vice chair, treasurer, and secretary; the actual was within +/- 10 percent of the

target, which qualifies as being met.

8991

Agrovet (101) Cooperative (71) Goat Farm (7) Miller (15) Trader (14)

Governance Management Human Resources Financial Mgmt Sustainability

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ENABLING ENVIRONMENT AND GOVERNMENT COLLABORATION

KISAN II continued to promote and support GON’s agriculture-related policies, laws, regulations,

guidelines, and operating procedures to create an enabling environment and collaboration. In Y5,

KISAN II intensively supported all policy works related with policy formulation (K28), and supported

GON requests for a market feasibility study, exposure visits, and an animated video on the Rice Mill

Model (RMM) (K34). This enabled KISAN II to exceed Y5 targets for both policy advocacy support

and studies on investment feasibility (Table 11).

Table 11. KISAN II policy advocacy support

Indicator No. Indicator Title

Target

Actual

% of

Target

K28

DR.2.1-301-

CUST

EG.3.1-12

Number of agricultural and nutritional enabling

environment policies analyzed, consulted on,

drafted, or revised, approved, and implemented

with USG assistance

4 6 150

K34

EG.3.2-313-CUST

Number of investment feasibility studies, exposure

tours, and/or guidance documents produced that

promote evidence-based local investment in

market system

4 9 225

Includes i) Private Sector Engagement Guidelines; ii) Food Safety Regulation on "Food Business Registration and

Licensing Regulation 2078)"; iii). Food Safety Regulation on "Food Export and Import Inspection and Certification

Regulation, 2078)"; iv). Joint Rice Intervention Program Operating Procedure, 2077 (2020); v). Provincial Agriculture

Development Strategy (PADS) for Lumbini Province; and vi). PADS for Sudurpaschim Province.

Includes i) Agricultural market feasibility study for Melamchi Municipality (2021); ii) Provincial level exposure visit; iii)

Public private partnership for self-sufficiency in rice (flyer), iv) Rice Mill Model animation video; and v) 4 TV episodes.

BUSINESS LITERACY PROGRAM

KISAN II met targets for all three BLP outcome-level indicators (Table 12). KISAN II and its partners

trained vulnerable households with the potential to adopt high-value commercial farming, enabling

them to improve farming practices, and integrate into existing market systems. In Y5, COVID-19

continued to pose challenges to conducting BLP training in a regular classroom environment. KISAN

II adapted its BLP training approach by conducting virtual training or a mix of virtual and in-person

training, as needed. As of the end of Y5, KISAN II completed its BLP activities and organized

community-level closing events engaging BLP graduates and local government representatives.

Table 12. KISAN II BLP indicators

Indicator No.

Indicator Title

Target

Actual

% of

Target

K36

EG.3.2-305-CUST

Number of people trained in entrepreneurial skills

9,000

9,397

104

K39

EG.3.2-314-CUST

Percentage of business literacy trainees that pass a

competency test

90%

89%

K40

EG.3.2-302-CUST

Percentage of entrepreneurial literacy trainees who

initiate or expand sales of goods and services

90%

83%

COLLABORATION, LEARNING, AND ADAPTING

KISAN II built the capacity of private sector organizations and staff to use adaptive management

approaches, and supported the use of collaboration, learning and adaptation (CLA) to build

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 14

AID-367-C-17-00001

competitive, inclusive, and resilient agriculture market systems. In Y5, KISAN II met all targets for

CLA at individual and firm level indicators (Table 13).

Table 13. Collaboration, learning, and adaptation indicators

Indicator

No.

Indicator Title

Target

Actual

% of

Target

Individual-level CLA indicators

K42

EG.3.2-1

Number of individuals who have received short-

term training on adaptive management

8,648 8,693 101

K45

EG.11-1

Number of people trained in climate change

adaptation supported by USG assistance

20,325 21,732 107

K46

EG.11-6

Number of people using climate information or

implementing risk-reducing actions to improve

resilience to climate change as supported by USG

assistance

24,708 26,570 108

Firm-level CLA indicators

K43

EG.3.2-4

Disaggregatio

Number of for-profit firms and organizations

receiving USG organizational assistance related

to CLA or monitoring shocks and stressors

21 21 100

K44

EG.3.2-20

Disaggregatio

Number of for-profit firms and organizations that

have applied CLA or have a mechanism in place

for monitoring shocks and stressors

12 13 106

K50

EG.5-3

Number of microenterprises supported by USG

assistance on agriculture and food security

related development

242 259 107

SCIENCE, TECHNOLOGY, INNOVATION, AND RESEARCH

KISAN II tracks a wide range of private sector investments that respond to identified challenges

(Table 14). In Y5, KISAN II continued several innovations through USG assistance (K47) and

achieved targets for all indicators. The innovations supported were: i) zero energy cool chamber,

cost-effective technology for storing vegetables to reduce post-harvest losses; ii) cool chambers,

temperature moderated cool rooms used to store perishable goods; iii) seed dryers, which eliminate

moisture from seeds and grains; iv) plastic mulching, a technology used to suppress weeds and

conserve water in vegetable production; and v) the RMM. Cool chambers and the RMM were

supported through USG assistance with demonstrated uptake by the public and private sectors,

enabling these innovations to be scaled up in Y5.

Table 14. Science, technology, innovation, and research

Indicator

No.

Indicator Title

Target

Actual

% of

Target

K47 STIR 10 Number of innovations supported through USG assistance

Total innovations

New innovations

Ongoing innovations

100

K48 STIR 11

Number of innovations supported through USG assistance

with demonstrated uptake by public and or private sector

100

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Supplemental Scope of Work

Under the SSOW, KISAN II met or exceeded all targets except the expansion of cultivated area for

industrial maize (K49). The percentage change in firm sales after receiving USG assistance (K54)

increased by 26 percentage points, indicating good growth and business despite constraints related

to COVID-19 and climate change impacts. In Y5, 106 private enterprises

increased access to

finance due to USG assistance against 113 targeted, but this still falls within 10 percent of the target

and qualifies as being met. KISAN II identified and engaged 3,356 migrant returnees and COVID-19-

affected persons in agribusiness in Y5 (K56) and will assess the value of sales per returnee and other

COVID-19-affected population (K57) in Y6. Rice producers expanded the area under fine rice

production (K58) by 223 percent of the target, whereas maize growers achieved only 37 percent of

the targeted area (K59). Farmers reduced areas under maize cultivation as they were discouraged by

being unable to sell all their maize production last year due to COVID-19 market disruptions. In Y5,

only 50% of producers could sell maize compared with a target of 76 percent.

Table 15. Indicators under SSOW

Indicator No. Indicator Title Y5 Target

Actual

% of

Target

K52 EG.5-1

Sales of firms receiving USG funded

assistance (USD)

41,981,480 59,360,052 141

K53 EG. 5.2-1

Number of firms receiving USG funded

technical assistance for improving business

performance (EG.5.2-1)

199 206 104

K54 Custom 1

Percentage change in sales of firms after

receiving USG assistance

9% 35% 383

K55 Custom 2

Number of private sector enterprises with

increased access to finance due to USG

assistance

113 106 94

K56 Custom 3

Number of migrant workers and other

population engaged in agri-businesses

3,000 3,356 111

K57 Custom 4

Value of sales per returnees and other

priority populations (USD)

1,200 NA NA

K58 Custom 5

Area expanded under fine rice with USG

assistance in two districts in Sudurpaschim

and four districts in Lumbini provinces

5,241 11,706 223

K59 Custom 6

Area expanded under maize for feed and

other industrial uses with USG assistance in

2 districts Sudurpaschim and 4 districts of

Lumbini, Palpa and Surkhet districts.

4,720 1,739 37

INDICATORS FOR FINE RICE AND MAIZE FOR FEED AND OTHER INDUSTRIAL

PURPOSES

In Y5, nearly 22,000 rice producers associated with KISAN II partners planted fine rice. They

exceeded the targeted area for expansion by 223 percent of the target by planting 11,706 ha in six

districts (Kanchanpur, Kailali, Banke, Bardiya, Dang, and Kapilvastu) (Table 15). Massive in-person

and social media promotion on fine rice production encouraged farmers to plant fine rice on 33

percent of their overall rice production area as (Table 16), compared to 17 percent fine rice

During planning, it was uncertain how many SSOW partners there would be, so the total number of firms accessing

finance was selected to give a clear picture of all firms accessing finance due to USG assistance. Beginning in Year 6, only

SSOW partners will be included under this indicator.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 16

AID-367-C-17-00001

production area coverage nationally

. It is observed that fine rice contributes to 33 percent of total

rice production and total production area, whereas it contributes to 29 percent (USD 3,706,281) to

total annual rice sales

Table 16. KISAN II-supported production and sales of fine rice in SSOW districts

Crops

Target

Area

(Ha)

Actual

Area

(Ha)

No of

Producers

Productio

n (MT)

Yield

MT/

No of

Sellers

Sales

Volume

(MT)

Sales

Value

(USD)

Fine Rice

5,241

11,706

21,898

60,390

5.16

9,124

17,120

3,706,281

% Fine Rice

/ All Rice

All Rice

49,460

34,964

74,558

184,460

5.28

37,279

63,851

12,760,864

% Fine Rice

/ All Rice

In Y5, 5,389 farmers associated with KISAN II partners planted industrial maize on 1,739 ha in eight

districts (Kanchanpur, Kailali, Banke, Bardiya, Dang, Surkhet, Palpa and Kapilvastu). This was 63

percent lower than the target area. Although the proportion of industrial maize over total maize

production area and production was 50 and 55 percent respectively,

Y5 sales of industrial maize

account for 86 percent of the total maize sales (USD 1,474,696) (Table 17).

Table 17. KISAN II-supported production and sales of industrial maize in SSOW

districts

Crops

Target

Area

(Ha)

Actual

Area

(Ha.)

No of

Producer

Production

(MT)

Yield/

No of

sellers

Sales

Qty

(MT)

Sales

Value

(USD)

Maize for Feed

Industry

4,720 1,739 5,389 7,359 4.23 5,389 5,511 1,474,696

All Maize

12,650

3,458

21.557

13,228

3.85

9,510

6,305

1,714,179

% Industrial

Maize / All

Maize

37 50 25 55 110 57 87 86

Production of fine rice and industrial maize in the SSOW ZOI reduces import burden.

An estimated 1.3 million MT of fine rice and 400,000 MT of maize will be imported to Nepal in FY

2021/2022.

Production in the eight SSOW districts (Kanchanpur, Kailali, Banke, Bardiya, Dang,

Kapilvastu, Surkhet, and Palpa) can substitute for some of these imports, as shown in Table 18. In

addition to providing the average national import volume and production of fine rice and maize for

feed and other industrial purposes, Table 18 shows total (KISAN II-related and other) fine rice and

industrial maize production in the SSOW ZOI. Based on these figures, fine rice production in the

SSOW districts can substitute for 8.6 percent of national imports while industrial maize production

in the SSOW districts can substitute for 24.8 percent of industrial maize imports. This is loosely

Rice varietal mapping in Nepal: Implication for development and adoption, MOALD (2015).

The fine rice sales figure reflects three factors: i) farmers kept some of the rice produced for home consumption apart

from selling it, ii) only 42% of the producers sold fine rice (i.e., 9,124 sellers out of 21,898 producers), and iii) the yield of

fine rice is about 2% lower than that of other rice (5.16 MT/ha).

The proportion of maize for feed and other industrial purposes is calculated as its ratio over total maize.

https://www.fao.org/giews/countrybrief/country.jsp?code=NPL&lang=ar

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 17

AID-367-C-17-00001

corroborated by recently published data from the GON Department of Customs showing an 18

percent decrease in fine rice import nationally.

Table 18. Import substitution analysis for fine rice and maize based on ZOI production

Particulars

Fine Rice (MT)

Maize for Feed and

Industrial Purposes (MT)

Estimated imports at national level

1,300,000

400,000

Total production in 8 SSOW districts

111,679

99,155

Private sector production under KISAN II

60,390

7,359

Production under agriculture knowledge centers

(AKCs), the Center for Crop Development and

Agro-biodiversity Conservation (CCDABC),

municipalities, cooperatives, and non-government

organizations (NGOs)

††

51,289

91,796

% Substitution **

8.6%

24.8%

* Source: https://www.fao.org/giews/countrybrief/country.jsp?code=NPL&lang=ar

††

Source: AKCs, CCDABC, Integrated Agriculture and Livestock Development Office, municipalities, NGOs and

cooperatives.

** % substitution is calculated as a ratio of total local production divided by total import quantity at the national level.

VALUE CHAINS CLOSED OUT IN YEAR 5

This year, KISAN II closed out three value chains (goat, lentils, and vegetables). This section provides

an overview of these value chains and key results

VEGETABLES

Nepal’s vegetable sector continues to be challenged by limited availability and accessibility of quality

agri-inputs, inadequate extension services, limited adoption of proper post-harvest practices and

technologies, poor road connectivity, and other logistical issues. KISAN II focused its efforts on

improving supply chain management, building the capacity of partners to provide quality extension

services, facilitating adoption of better post-harvest management practices, and upgrading production

planning and management based on market demand. Specific activities focused on:

● Linkages. To improve supply chain management, partners strengthened linkages among

farmers, input suppliers, and traders. By linking private sector firms and farmers with banks,

financial institutions, and insurance companies the project increased access to capital and

helped reduce risks. KISAN II also encouraged partners to give presentations to local

government officials and attend joint events, thus fostering productive relationships and the

potential leveraging of public resources.

● Capacity building to increase production. Farmer capacity and production was

enhanced through numerous training, demonstrations, and field days. Information was

disseminated in various forms—including through smart phone messaging and videos to help

farmers improve production technologies and practices and to address specific issues.

● Improved management. Farmers were encouraged to adopt production planning and

management based on market demand. Farmers and other value chain actors were

encouraged to reduce post-harvest losses through better post-harvest management.

https://www.customs.gov.np/page/fts-fy-207879

Technical briefs on three value chains (goat, lentils, and vegetables) will be ready for circulation in Y6T1.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 18

AID-367-C-17-00001

KISAN II used a wide range of

activities to facilitate linkages,

build capacity, and improve

management. The project

compiled a list of major vegetable

traders in KISAN II ZOIs and

shared it with farmers to facilitate

linkages. The success of a small-

scale cold chamber pilot at a

vegetable wholesaler in Surkhet

district led to replication of cold

chambers by other traders and

cooperatives. To build partners’

capacity to operate cold

chambers efficiently, KISAN II

developed packhouse operation

guidelines and trained partners on

cold chamber operation and

management. The project

promoted zero-energy cold

chambers at the farm level and

helped operationalize vegetable

collection centers during COVID-

19, providing partners with

support to implement COVID-19

safety protocols. Wholesale

vegetable market studies enabled

staff and partners to better

understand how these markets

function in Nepal. Collaboration with the Plant Quarantine and Pesticide Management Center

provided retail pesticide-licensing training to 36 potential entrepreneurs, increasing access to these

products. KISAN II supported the installation of 724 small irrigation schemes to boost vegetable

production. With the Ministry of Agriculture and Livestock Development (MOALD), KISAN II

developed materials on food safety and grading for post-harvest vegetable management and then

disseminated these materials through BLP training. Numerous field-level joint monitoring reviews

strengthened agri-sector collaboration, encouraged government buy-in, and boosted sustainability.

As a result of KISAN II’s interventions and activities in the vegetable sector, KISAN II helped

increase the average yield of vegetables by 164 percent and annual vegetable sales by 391 percent in

2022 compared to the 2018 baseline. These and other key results in the vegetable value chain are

illustrated in Figure 5.

LENTILS

Until 2018, Nepal was the world’s fifth largest producer of lentils. Lentils have high domestic

demand, great economic value, export potential, and benefits for the soil and humans, but are

weather sensitive. The annual lentil crop, fed by winter rains, thrives in cool conditions. Warmer

temperatures and wetter weather associated with climate change lowers yields and increases pests

Figure 5. KISAN II accomplishments in vegetable sector

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and diseases that spread in high humidity. Yet lentils remain part of Nepal’s staple diet and a major

source of protein and are thus an essential crop. Lentils have nitrogen-fixing properties and,

considering Nepal’s recurring fertilizer shortage, can help maintain soil quality. To improve lentil

production and sales, KISAN II partners conducted the following key activities:

● Trainings. In-class

instruction and coaching

to farmers on modern

practices and

technologies, including

production planning,

crop protection,

integrated pest

management (IPM), post-

harvest management,

and marketing.

● Demonstrations.

Agrovets and

cooperatives promoted

new technologies and

management practices

by showcasing results on

lead farmers’ fields. They

provided hands-on

lessons, inviting local

government officials to

attend, and providing

participants with a

firsthand view of lentil

demonstration site

successes, including IPM

applications.

● Field days. Agrovets,

cooperatives, and

traders introduced

farmers and invited

municipal representatives to positive outcomes of the training on demonstration plots.

Unexpected heavy flooding in October 2021 in Banke, Bardiya, Kanchanpur, Kailali, and Kapilvastu

districts occurred at the start of lentil planting season. KISAN II supported partners such as

Siddhababa Agro Private Limited to broadcast key technical messages on improved lentil cultivation

through local FM stations. This included information on sowing times and how to prepare land in

wet conditions. The radio promotion campaign generated increased demand that resulted in

Siddhababa selling 1.4 MT of lentil seeds, a 75 percent increase in sales volume from 2020. The

lentils were planted on 46 ha and produced 46 MT of lentils, 80 percent of which was sold to

aggregators and traders. Another partner, Sana Kisan Krishi Sahakari Cooperative, collaborated with

the Raising Incomes of Small and Medium Farmers Project (RISMFP) to purchase two processing

machines to construct a processing center. Under a cost-share scheme between RISMFP and KISAN

Figure 6. KISAN II accomplishments in lentil sector

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AID-367-C-17-00001

II, the cooperative purchased and installed a lentil scanner and polisher with a capacity of 2 MT per

hour. This equipment removes the seed coat from lentils, producing better quality pulse, and

preventing about 12 percent post-harvest losses during processing. Overall, the cooperative has

enhanced business through the processing, packaging, and sale of quality pulses.

In Y5, 33,654 lentil-producing households received technical support from 26 KISAN II partners (4

rice mills, 11 cooperatives, and 11 agrovets). This resulted in the production of seven improved lentil

varieties on 4,879 ha of land. In addition, KISAN II’s 2022 farm survey indicated lentil farmer yields of

0.94 MT/ha with sales of USD 1.9 million from 2,269 MT of lentils in 2022. Other key KISAN II

accomplishments in the lentil value chain are illustrated in Figure 6.

Climate change, productivity constraints, reduced domestic sales, and cheap imports have stifled

Nepal’s lentil value chain. Climate-related issues are being addressed by the ongoing breeding and

introduction of weather- and disease-resistant seed varieties. Lentils will continue to serve as an

important part of a diversified cropping strategy, in part because growing lentils is relatively easy and

the related costs to farmers are low. Using and building on the promotional skills from KISAN II

trainings, processors and others can now promote Nepali lentils, which are already cherished

nationally and internationally for their distinct taste. Given the right branding, a niche market for

Nepali lentils can be established easily, especially if supported by projects focused on trade and

competitive markets.

GOATS

Goats are a key livestock sector in the Nepalese farming system. Nearly half of all households in

Nepal raise goats and, according to MOALD (2018/19), goats contribute 14 percent to the national

livestock domestic gross product. Despite this, Nepal continues to import around 12 to 5 percent of

its total goat meat consumed from India. Most of the goats from India are sold in Kathmandu.

followed by Bharatpur, Nepalgunj, Butwal, Pokhara and Biratnagar. The growth of local goat

production is hampered by poor quality goats and use of traditional breeding practices by goat

farmers, among other factors.

To better identify goat sectoral constraints and to develop a clear strategy for the sector, KISAN II

conducted a rapid market assessment in year 2. The major sectoral constraints identified were: i)

poor quality breeding stock and indiscriminate breeding system with high rates of inbreeding; ii) lack

of access and information to quality feeds and fodder; iii) limited access to formal markets; and iv)

limited adoption of improved goat husbandry practices. To mitigate these constraints, KISAN II

focused efforts on the following areas:

● Improved goat breeds and breeding. In year 4, KISAN II partnered with the GON’s

Department of Livestock Services (DLS) to import 250 doses of frozen Boer semen from

the U.S. to introduce a new line of genetics to improve Nepal’s national herd.

To promote

the use of imported semen for high performing female goats, KISAN II supported BMP

Infology to develop and pilot a goat pedigree performance recording system. Used at various

goat farms, the system helped farmers record herd productivity data and identify the best

breeding animals. To enhance the production and distribution of quality goat semen in

Nepal, KISAN II supported GON’s National Livestock Breeding Office (NLBO) to train staff,

operationalize a unit in Gaughat (Banke district), and coordinate with the GON’s Agriculture

Poor breeding practices and the lack of pedigree recording system in Nepal has resulted in inbreeding, which has

undermined the genetic quality of Nepal’s existing Boer goat herd.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 21

AID-367-C-17-00001

Information and Training Center (AITC) to develop training manuals on goat AI and buck

semen production and processing. KISAN II, in close collaboration with DLS, trained 14

NLBO staff to produce quality buck semen in Gaughat, Pokhara, and Lahan, and trained 31

junior technical assistants (JTAs) on the use of frozen buck semen for AI. To date, trained

JTAs/AI technicians have successfully conducted 315 AIs. KISAN II also supported the

development of a standard operating procedure (SOP) for producing frozen goat semen; this

procedure has been approved by DLS and will be followed by all NLBOs.

● Strengthened goat

trading and

marketing. KISAN II

partnered with

Chaudhary Bangur

Masha Pasal and Umesh

Khadhya Khudra Tatha

Pasu Pankshi Bikri Farm

to strengthen goat

trading, marketing, and

the supply of live goats

and frozen meat. One

firm transports live

goats from rural to

urban areas, while the

other collects and

slaughters goats and

transports frozen meat

to urban markets.

KISAN II support

enabled these partners

to upgrade vehicles for

transporting live goats

(double decker) and

frozen meat (cold

chamber), upgrade a

slaughterhouse, and link

with buyers from urban

markets. These

innovations have

provided goat farmers with a secure market for their goats.

● Better feed, health, and husbandry practices. KISAN II, through increasing the

capacity of 28 private and public sector partners, reached 13,848 households in 15 districts.

Each household received trainings and extension services to adopt improved goat husbandry

practices, better health management, and feed formulation. The project partnered with

vaccine manufacturers like Hester Nepal to increase sales and adoption of the Peste des Petits

Ruminants (PPR) vaccine and feed supplements. To date, Hester has sold 260,375 doses of

PPR vaccines in KISAN II ZOIs.

● Goat resource centers. KISAN II supported Dhakal Goat Farm, Hill Park Agriculture and

Livestock Farm, and Majuwadevi Goat Farm to transform into goat resource centers that

Figure 7. KISAN II accomplishments in goat sector

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 22

AID-367-C-17-00001

provide multiple services. Farmers now have access to quality breed and breeding services,

fodder and forage for improved feeding, veterinary services, and access to formal markets to

sell their goats. The improved linkages between farmers and goat farms has helped increase

goat farmer incomes.

Figure 7 illustrates how these strategic activities have produced results in the goat value chain.

UPDATE ON ACTIVITY IMPLEMENTATION

KISAN II reports progress by component in this section, as outlined in the approved Y5 work plan.

Detailed progress against each activity is illustrated in the Detailed Implementation Plan table in

Annex 4; select activities planned for year 6, trimester 1 (Y6T1) are listed in Annex 3.

In Y5, KISAN II and its partners continued to collaborate closely with the GON at the federal,

provincial, and municipal levels to align KISAN II activities with the Agriculture Development

Strategy (ADS) and other GON policies and programs. The project coordinates with the GON

through formal and informal meetings and joint monitoring visits. In addition, it supports the GON

to implement successful KISAN II models in the GON system and contributes to MOALD efforts

through the Agriculture Development Strategy–Joint Sector Review (ADS-JSR) mechanism.

Activity CL.1 Disseminate and deepen understanding of the private sector-led approach

Collaborating with municipalities to broaden understanding of KISAN II’s private

sector-led approach to agriculture service delivery. To strengthen relationships between

private sector partners and municipal officials and to deepen officials’ understanding of the private

sector-led approach, KISAN II and its partners conducted 18 meetings and 36 joint monitoring visits

with municipal officials in Y5. In municipalities where project activities were ending, KISAN II and its

partners held meetings to discuss the project’s exit plan, lessons learned, best practices, and the

continuation of joint actions between the private sector and municipalities to provide extension

services to farmers beyond the project period. Due to the prevalence of COVID-19, KISAN II could

not organize in-person meetings in all areas, but project staff met with key officials and handed over

appreciation letters to 68 municipalities for their collaboration and support during activity

implementation where the project activities are ending. In areas where KISAN II is implementing

SSOW activities, the project held meetings to discuss the private sector-led approach and the need

for collaboration with municipalities and other agencies during implementation. During these

meetings, KISAN II handed over an introductory letter about the project approach to 18

municipalities. Though the political leadership has changed in several municipalities after the recent

local election, KISAN II has continued to update elected leaders on its approach. As a result of

collaboration meetings and visits in Y5, municipalities and other provincial- and federal-level

organizations leveraged NRs. 109 million (USD 923,729) for irrigation, seeds, machinery, polyhouses,

and market infrastructure. KISAN II also supported the municipalities to implement GON programs

focusing on the promotion of fine rice and industrial maize.

Collaboration with Government of Nepal

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 23

AID-367-C-17-00001

Activity CL.2 Coordination with the GON

Replicating successful KISAN II models through central-level coordination. KISAN II

coordinates with the GON at the central level through the Joint National Steering Committee

(JNSC) and Technical Committee (TC) to provide updates on project performance; promote KISAN

II approaches, best practices, and models to GON officials; facilitate replication in government

systems; obtain strategic guidance for better results; and seek support resolving policy issues toward

a better functioning market system. In Y5, because of changes in MOALD leadership and the

COVID-19 situation, the JNSC and TC met only once. In this meeting, guidance was provided to

relevant GON organizations and KISAN II on the following initiatives: i) approval of the Private

Sector Engagement (PSE) Guidelines; ii) support for initiatives to promote fine rice and industrial

maize; iii) transfer of grain milling, flour making, oil extracting, and food packing industries from

service-oriented category to agriculture and forest product-based industry category under the

Industrial Enterprise Act 2020; and iv) support for provincial agriculture development strategy

(PADS) formulation in Lumbini and Sudurpaschim provinces. These committees also suggested

improving reporting mechanisms and scaling up best practices, such as the RMM, in collaboration

with relevant rice sector stakeholders. The GON views the RMM as an appropriate means to

promote fine rice and invited KISAN II to present on the model in policy dialogues, workshops,

conferences, meetings, and other interactions. The RMM presentation to the National Planning

Commission (September 2021) will help ensure this model is replicated at a wider scale. Toward this

end, KISAN II organized an experience-sharing visit on the RMM for government participants of all

three tiers. The visit enabled participants to learn about the effectiveness of RMM for promoting fine

rice production directly from millers, farmers, and KISAN II staff. To illustrate how public-private

partnerships can support national self-sufficiency in rice, KISAN II also developed and shared a flyer,

an animation video, and four television episodes. In Y5, KISAN II provided technical support to the

GON through training, advice, and feedback on implementation procedures to replicate RMM widely

in Province 1, Madhesh Province, Lumbini Province, and Sudurpaschim Province.

Toward the end of Y5, KISAN II invited JNSC and TC members under the leadership of MOALD’s

Secretary to visit KISAN II sites in Banke, Bardiya, and Kailali districts. During the visit, participants

were impressed by the collaborative efforts of KISAN II, private sector partners (especially rice

mills), and the GON to promote fine rice, industrial maize, and spring rice and suggested these

efforts be continued. The experience made participants realize that a large proportion of locally

produced coarse rice is used for non-food purposes and that technical assistance and social

mobilization are needed to convert these coarse-rice cultivated areas into fine rice cultivation.

Participants also suggested that trials be held for submergence-tolerant rice varieties in flood-prone

areas of Kailali district. Following this suggestion, KISAN II and partners established trials using

seedlings of appropriate varieties from the National Rice Research Program.

Promoting collaboration with the private sector at the provincial level. Keeping ministries

at the center of provincial coordination, KISAN II engages with other provincial government

organizations and the Prime Minister Agriculture Modernization Project’s (PMAMP) provincial

coordination units (PCUs) and project implementation units (PIUs). In Y5, KISAN II held eight

provincial-level coordination meetings. This included meetings with Sudurpaschim, Karnali, Lumbini,

and Bagmati provinces to discuss project performance and exit plans and additional meetings in

Lumbini, Karnali, and Sudurpaschim provinces on mutual collaboration to promote fine rice, spring

rice, and industrial maize. KISAN II organized one provincial-level joint monitoring visit each in

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Sudurpaschim, Lumbini, and Bagmati provinces with beneficiary farmers, KISAN II partners, and

government officials. These visits motivated GON officials to leverage resources to enable private

sector partners to increase technical support for farmers. KISAN II also held 34 meetings with

agriculture knowledge centers (AKCs), veterinary hospital and livestock services expert centers, and

PMAMP PCUs and PIUs to discuss the technical aspects of current and planned field activities and

reinforce the need for continued collaboration with the private sector after KISAN II ends.

Strengthening district level linkages and coordination. KISAN II reported on project

progress at progress review workshops organized by district coordination committees in six

districts. To reinforce linkages between the GON and the private sector, KISAN II organized district

close-out meetings in seven districts where project activities ended in Y5.

Strengthening local capacity through municipal-level coordination. Local-level

coordination helps strengthen the capacity of municipalities to improve agriculture service delivery

to farmers and agro-entrepreneurs. This year, KISAN II completed an assessment on COVID-19’s

effects on agriculture service delivery at the municipal level, which provided recommendations on

planning for crises and on executing recovery programs. The study helps municipalities integrate

activities into their annual programs and budgets to ensure extension service delivery to farmers

during any crisis and to help farmers recoup losses incurred from unexpected shocks, like COVID-

19. Per requests by municipalities, KISAN II shared an electronic version of a resource book for

agriculture program planning, monitoring, and evaluation, which includes the step-by-step process

for municipal-level agriculture program planning, monitoring, and reporting.

Activity CL 3 Building stronger collaboration through joint sector reviews.

To improve coordination and collaboration between the GON and development partners in the

agriculture sector, KISAN II has supported MOALD with JSR initiatives since September 2018.

As decided in the second annual national JSR meeting in 2021, MOALD and provincial agriculture

ministries (PAMs), with support from KISAN II and other development partners, organized sub-

national consultations in all provinces to collect feedback on the National Agriculture Policy, Nepal

Agriculture Extension Strategy, Crop and Livestock Insurance Directives, and Subsidized Fertilizer

Distribution Management Directives. Inputs from these consultations will feed into revisions aligned

with the federalized context and to monitor the status of production and processing of fine rice,

industrial maize, tea, and cardamom. Following recommendations of the third agriculture sector

review, the tenth TC meeting, held in March 2022, identified three key agenda items for the third

annual national JSR meeting: i) increasing production and processing of fine rice, industrial maize, tea,

and cardamom; ii) promoting agriculture mechanization, digitization, and ICT-based M&E systems;

and iii) implementing key milestone actions of ADS. Due to COVID-19, the third annual JSR meeting

was conducted on a small scale combined with the national ADS Implementation Committee.

Identified agenda items were transformed into actions and incorporated into the annual program of

MOALD and the PAMs for fiscal year 2022/23. KISAN II supports the development of JSR

implementation procedures as part of a roadmap for institutionalizing JSR in the MOALD system,

and discussions are ongoing to incorporate the procedures into MOALD’s Three Tier Interrelations

Management Directives. Other steps for institutionalizing JSR and ensuring it continues after KISAN

II ends include incorporating JSR in the new National Agriculture Policy (NAP) and the upcoming

Agribusiness Promotion Bill.

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As the GON eased COVID-19 restrictions, KISAN II reactivated in-person capacity development

activities for its partners and resumed efforts to strengthen the overall market system by developing

networks, enhancing linkages, and facilitating coordination among stakeholders. Most partners

resumed field visits and group meetings to provide technical service to farmers. Some partners

continued to provide digital technical services via phone, SMS, and social media, while cooperatives

started providing mobile banking services. With KISAN II support, some traders and wholesalers

invested in storage technology and infrastructure (e.g., cold chambers and silos) to better manage

inventory during supply chain disruptions. KISAN II trained partner cooperatives on liquidity

management and supported them to acquire wholesale loans to help partners better adapt to the

lingering effects of COVID-19.

Activity 2.1 Strengthen the organization and coordination of selected market systems

Scaling of the RMM by the GON. In Y5, 18 rice mills (8 under the SSOW) continued to build

the capacity of farmers through training, demonstrations, and on-site coaching. As indicated in Box 3,

the RMM involves rice mills working directly with farmers to source domestic raw materials by

providing technical assistance, credit, and market guarantees. After witnessing the RMM's

effectiveness, the GON incorporated this model into its annual work plan through PAMs. For

example, reflecting the priority of fine rice, AKC-Banke implemented a “Fine and Aromatic Rice

Promotion Program '' in collaboration with KISAN II millers, who support farmers with agri-inputs.

In Bardiya, the Integrated Agriculture and Livestock Development Office (IALDO) and municipalities

have budgeted for fine rice promotion activities in annual programs. This year, IALDO-Bardiya

worked closely to align their fine rice promotion program with activities by partners Radha Krishna

Rice Mill and Saurav Rice Mill, and to implement this program on 60 ha. To date, IALDO-Bardiya has

supported farmers with seeds, irrigation pumps, and machinery worth NRs. 3.5 million (USD

29,661). In Kanchanpur, KISAN II coordinated with the AKC to leverage 12 MT of fine rice seeds at

a 50 percent subsidy and distribute these to farmers through partner Laxmi Khadya Udyog.

Box 3. Upgrading processing plant and linking with farmers boosts miller and farmer incomes

Before partnering with KISAN II, Sahu Rice Mill used its rice milling facility to process and supply coarse

rice. Local Banke farmers grew only medium and fine rice for household consumption as there was no

facility to process and market fine rice. In 2018, Sahu Rice Mill partnered with KISAN II and began providing

2,400 farmers with technical assistance to grow and market fine rice varieties. A cost-share agreement with

KISAN II enabled the mill to install modern rice processing equipment in 2019. The mill created its own fine

rice brand, Teli. which gained popularity within a year and a half and is now in high demand from dealers

from major markets in nearby districts. Processing and marketing fine rice helped Sahu Rice Mill realize an

additional NRs. 3,000 – 5,000 (USD 25 – 42) per MT. The mill also increased its volume and bolstered

earnings, which grew from NRs. 40 million (USD 338,983) in 2018 to NRs. 100 million (USD 847,458) in

2021. Farmers saved time and transportation costs by selling their rice at the mill’s nearby depot. As a

result, they increased their incomes by NRs. 2,000 – 4,000 (USD 17 - 34) per MT compared to what they

earned previously from intermediary buyers.

Improving Nepal’s goat breeding system. In year 5, 250 doses of frozen Boer semen was

successfully imported from the U.S. into Nepal. KISAN II, in close collaboration with the DLS,

Component 2: Strengthen the Competitiveness, Resilience, and

Inclusiveness of Selected Agriculture Market Systems

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trained 14 NLBO staff to produce quality buck semen and 31 JTAs to use frozen buck semen for AI.

To date, trained technicians have conducted 315 AIs. KISAN II also supported development of SOPs

for frozen goat semen production. KISAN II also supported NLBO to operationalize and develop

goat-related training manuals. (See goat value chain section in Page 20 for details).

Transforming goat sector by capacitating farmers and upgrading transportation

services. This year, KISAN II trained 13,063 farmers (9,004 female, 7,347 from disadvantaged

groups [DAG]) on improved goat breeds, feed/fodder management, balanced goat diets, marketing,

and good husbandry practices. By upgrading vehicles to transport live goats and strengthening

market linkages, Umesh Khadhya Khudra Tatha Pasu Pankshi Bikri Farm in Surkhet sold 2,600 goats

worth NRs. 48.6 million (USD 411,864) since April 2021 compared to just 900 goats valued at NRs.

15.7 million (USD 133,051) in 2020. The partner also installed an electric weighing scale at three

collection centers, which helps farmers receive fair market prices based on actual live goat weights.

Similarly, Chaudhary Bangur Mashu Pasal fabricated a double-decker truck to ensure safe

transportation of live goats and installed additional racks in the cooling chamber of frozen meat

transportation trucks, improving the transportation of processed frozen meat to urban markets.

Chaudhary Bangur increased its average monthly collection of live goats by 79 percent, from 70 live

goats in October 2021 to 125 live goats in January 2022 and increased the supply of processed

frozen goat meat from 1,137 kg to 2,031 kg.

Supporting goat collection point boosts business. Jeevanjyoti Mahila Bikash Bahuudeshiya

Sahakari Sanstha, a cooperative partner in Kailali, helped strengthen a nearby goat collection point to

assure better market opportunities for goat farmers and traders. KISAN II helped the cooperative

establish a shaded area for collecting live goats and a scale for weighing them. The collection point

doubled monthly collection and goat sales: before the improvements about 100 to 150 goats were

collected each month, while 250-300 goats are now collected.

Expanding goat services by KISAN II goat farm partner. To improve the genetics of local

goat breeds, KISAN II partner Hillpark Agriculture and Livestock Farm, in Banke, provides Boer goat

breeding services to more than 800 farmers at affordable prices. To date, Hillpark has provided

breeding services to 230 does. The farm also started producing silage and currently produces 2 MT

per day, selling it at NRs. 13,000 (USD 110) per MT to commercial livestock farms in Banke, Bardiya,

Dang, and Surkhet districts.

Designing interventions with new partners to increase industrial maize production and

utilization. In Y5, KISAN II designed interventions for the maize sector, focusing on a service-

delivery model. New partnerships with the Nepal Warehouse Company Public Limited and

Annapurna Suppliers (Bardiya) in Y5T3 focus on providing aggregation, storage, and marketing

services to farmers. Another partnership with National Vision Agro Private Limited (Dang) will work

with commercial farmers to produce livestock feed and partner Himalayan General Insurance will

pilot maize insurance activities. In Y5, the project conducted a rapid assessment to identify systemic

constraints faced by the private sector (feed mills and processors) and to identify ways to strengthen

the supply chain by working with maize producers. The rising demand in Nepal for maize and maize

products from the maize processing industry in Nepal indicates that imports can be minimized

through focused interventions that maximize the use of maize produced in Nepal. Such interventions

include reducing post-harvest losses and improving maize quality through the widespread adoption

of proper aggregation, drying, and storage practices; facilitating production of maize for livestock

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feed in the form of silage and pellet feed; and using highly productive seeds to maximize production.

Toward these ends, KISAN II partnered with Nepal Warehouse Company Public Limited (NWCL)

to improve the operation and management of silo storage for maize, and with National Vision Agro

Private Limited for the production of livestock feed (total mixed ration). KISAN II has also identified

to pilot the use of GrainPro’s 5 MT cocoon bags for maize aggregation and storage.

Attracting multi-stakeholder interest and investments in the maize sector. KISAN II and

Nepal Seed and Fertilizer (NSAF) coordinated with the AKC-Banke and IALDO-Bardiya to facilitate

an alliance between maize entrepreneurs in the two districts. Members of the alliance include lead

farmers, agrovets, seed companies, aggregators, processors, the Seed Entrepreneurs' Association of

Nepal, and agri-machinery suppliers. The alliance is responding to a request from the AKC and

PMAMP to develop maize pocket and block growing areas. IALDO-Bardiya linked farmers to the

alliance to help them access high-yielding varieties and markets for their produce, and to develop

maize-growing pocket areas on approximately 120 ha in Bardiya. The alliance also plans to involve

seed companies to improve the timely supply of quality seeds to farmers, and to bring more

processors into the alliance. KISAN II has suggested that the alliance be legally registered so it can

access government resources.

Installing modern machinery to improve lentil quality. KISAN II partner Sana Kisan Krishi

Sahakari, in Kailali, installed a lentil scanner and a polisher machine, upgrading the cooperative’s

processing capacity to 2 MT per hour. This equipment will help remove lentil seed coats, producing

good quality pulses. and preventing about 12 percent post-harvest losses during processing.

Using COVID-19 adaptations to help

partners and farmers. In Y5, KISAN II

continued to use efficient and cost-effective

adaptation strategies to deal with COVID-19

constraints. Realizing the effectiveness of SMS,

partners continued to use it to notify farmers

of technical information. To promote ICT-

based agri-extension services to farmers,

KISAN II partners Shree Hatemalo Agri

Market Cooperative, in Bardiya, and Sana Kisan

Krishi Sahakari Sanstha, in Dang, partnered

with GeoKrishi, a digital agriculture platform,

to pilot mobile-based digital agriculture

extension platforms to farmers. GeoKrishi

trained extension workers from the two

cooperatives, who then oriented associated

farmers on how to use the application. The

application enables farmers to send photos of diseased crops to technical experts and receive a

diagnosis within 24 hours.

Activity 2.2 Strengthen partner firms, cooperatives, and other small and medium

enterprises to support selected market systems

Bhupendra Khatri, a member of KISAN II cooperative partner,

Sana Kisan Krishi Sahakari Sanstha Limited in Dang, uses the

GeoKrishi agriculture app to calculate fertilizer requirements for

his crops, which he learned about during a training. In January

2022, Bhupendra bought 40 kg of fertilizer for his maize crop

from the cooperative, based on estimates from this app. Photo

credit: Sudha Mishra for USAID

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Building resilience of partners to maximize business potential. In Y5, KISAN II continued to

conduct capacity building activities for partners. KISAN II conducted training of trainers (TOT) for

88 extension staff (46 female) of processors, agrovets, and cooperatives. To build partners' adaptive

management skills to cope and respond to COVID-19’s impacts, KISAN II hired Sukalpa Private

Limited to develop a business capacity building module for partner agri-businesses. Sukalpa provided

virtual trainings to 43 select businesses on tools and techniques for using customer profiling to

enhance business. Following the trainings, KISAN II supported 23 agri-businesses to develop and

implement business plans in Y5. KISAN II conducted a virtual leadership development training for 36

board of director members from 17 cooperative partners on how cooperatives can operate as

efficient, for-profit businesses. The project also trained 42 representatives (16 female, 16 from

DAGs) of 21 cooperative partners on business diversification and financial management to enable

them to analyze and select profit centers for enhanced financial stability and sustainability. The

cooperatives developed business plans to create linkages with business development service

providers. In August 2021, KISAN II conducted a packhouse management training in Makawanpur to

aid Palung Bahuudessiya Sahakari Sanstha Limited and Sana Kisan Krishi Sahakari Sanstha Limited in

operating and managing packhouse and cold chamber storage facilities.

Activity 2.3 Enhance financial services markets that serve selected market systems

Improving access to subsidized agriculture loans. To help smallholder farmers easily access

interest subsidized agriculture loans, KISAN II partnered with R&D Innovative Solutions Private

Limited in Y5. In Y6, the company will orient 1,500 farmers on how to access interest subsidized

agriculture loans and support 600 farmers to apply for such loans. The project also oriented

partners on how to access subsidized agriculture and livestock loans. With KISAN II’s support, three

rice mills (Sunil Rice Mill, Sri Radha Krishna Rice Mill, and Saurav Rice Mill) registered under the

Office of the Company Registrar and obtained individual subsidized loans of NRs. 50 million (USD

423,729) to improve the overall efficiency and capacity of their mills. A fourth partner, Sahu Rice

Mill, is currently in the process of obtaining a subsidized loan.

Providing liquidity for cooperatives and customers in rural areas. COVID-19 created a

liquidity crisis for cooperatives when members were unable to repay loans and deposit savings, even

as requests for loans increased. To meet the growing demand for loans, KISAN II helped interested

cooperatives access wholesale loans from wholesale lending organizations. In Y5, Siddheshwor

Agriculture Cooperative and Bageshwori Agriculture Cooperative, in Banke, accessed wholesale

loans worth NRs. 5.8 million (USD 49,153) and NRs. 0.5 million (USD 4,237) respectively. Similarly,

Pulchok Agriculture Cooperative obtained a wholesale loan worth NRs. 20 million (USD 169,492)

from Rural Self-Reliance Development Center Microfinance, and Bihani Madhyavarti Multipurpose

Cooperative and Hatemalo Agri-market Cooperative have been linked with the National

Cooperative Bank to apply for wholesale loans of NRs. 10 million (USD 84,746). In Bardiya, KISAN II

supported a partner cooperative to offer remittance services that enabled customers to access

monies sent by overseas family members (see Box 4).

Box 4. Remittance services boost sales and help farmers access finance during COVID-19

Many farmers associated with KISAN II partner Bihani Madhyavarti Multipurpose Cooperative, in Bardiya,

struggled to access remittances sent by overseas family members during the COVID-19-induced

lockdown. KISAN II coordinated with IME Remit Limited to enable the cooperative to provide remittance

services, alongside its savings, credit, and other agricultural services. With KISAN II’s facilitation, IME

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Digitizing services to boost cooperatives' efficiency. The COVID-19 pandemic led many

partner cooperatives to digitize services so they could efficiently serve members. In Y5, Srijanshil

Bachat Thaha Rin Sahakari Santha, in Kanchanpur, Jeevanjyoti Mahila Bikas Bahuudesiya Sahakari

Sanstha, in Kailali, Silsila Multipurpose Cooperative, in Arghakhachi, and Pulchok Agriculture

Cooperative, in Kapilvastu, adopted E-banker software and started digital cooperative management

systems. Similarly, Bihani Madhyavarti Multipurpose Cooperative, in Bardiya, installed a digital

advance accounting software, and Gangamala Saving and Credit Cooperative, in Surkhet, upgraded

its digital financial system at its four branches and started providing services, such as SMS alerts,

balance transfers, utility payments, and mobile and TV recharge to more than 365 active members.

Kasturi Cooperative, in Jajarkot, installed advanced accounting software and started providing SMS

banking, tablet banking, and mobile banking services to its members.

Increasing farmers' resilience through micro-insurance. KISAN II helps provide farmers with

better access to crop and livestock insurance services by facilitating cooperative partners to become

official agents of select insurance companies. This allows the partners to offer micro-insurance

products directly to member farmers. In Y5, KISAN II linked Everest Insurance Company, Himalayan

General Insurance, and Sanima Insurance with partner cooperatives. Bihani Madhyavarti

Multipurpose Cooperative, in Bardiya, obtained a license from Everest Insurance Company and

started providing agriculture insurance services. To date, the cooperative has issued agriculture

insurance policies to 240 farmers in Bardiya, 210 of which were for crop insurance and 30 for

livestock. Similarly, Sindhu Krishi Sudhar Cooperative sold more than 100 insurance policies for

cattle and goat coverage to its members. KISAN II also coordinated with Nepal Insurance Company

to organize agriculture insurance agent training for partners in Kanchanpur. Six participants (four

cooperatives and two agrovets) successfully completed the training and the insurance company is in

the process of issuing agent codes to the participants.

Activity 2.4 Enhance market infrastructure and other services to support selected

market systems

Supporting partners to strengthen packhouse and cold storage systems enhances

vegetable aggregation and marketing. This year, KISAN II developed and disseminated a

packhouse manual to relevant partners, such as cooperatives and traders. A packhouse expert

visited and reviewed the packhouses and cold storage facilities of seven KISAN II partners from

three districts and guided them on optimal use. The expert also conducted trainings for KISAN II

partners Palung Bahuudessiya Sahakari Sanstha Limited and Sana Kisan Krishi Sahakari Sanstha

Limited on the importance of collaboration between farmers and packhouses to ensure quality of

stored produce. These partners are now establishing linkages for their packhouses with various

markets around Kathmandu and Pokhara.

Fostering linkages between market actors and partners to improve cold rooms. In Y5,

KISAN II made multiple visits to cold rooms established by partners in Bagmati Province (Jagaruk

Cooperative, Namuna Cooperative, Gurmukhi Cooperative, Aatmanirbhar Cooperative, and Palung

Remit Limited conducted training for Bihani Madhyavarti Multipurpose Cooperative, and the project

supported the cooperative in submitting the documentation needed to become an official IME Remit

Limited agent in April 2021. Within one year of establishing remittance services, the cooperative has

served 650 customers and earned an additional NRs. 133,425 (USD 1,131) in sales generated from

remittance service fees.

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Cooperative) to guide them on the efficient operation of cold rooms. During these visits, KISAN II

identified the need to install humidifiers and/or dehumidifiers and ethylene scrubbers

to increase

shelf life and help maintain the quality of stored produce. KISAN II facilitated a visit by Saptakrishi

Scientific Private Limited, a manufacturer of cold room products, to educate partners on the

importance of this equipment and to advise the cooperatives about suitable products. Partner

Kritidewal Cooperative, in Dailekh, initiated a new vegetable collection center in February 2022 and

within few days of operation, daily vegetable collection and sales increased to around 0.4 MT.

Kritidewal Cooperative also purchased a pick-up vehicle to transport vegetables to and from its

collection center. KISAN II is now guiding the cooperative to install a 10 MT cold chamber.

Promoting goat pedigree recording system increases marketing opportunities. KISAN II

partnered with the GON’s Department of Livestock Services (DLS) and imported 250 import frozen

Boer semen from the U.S. to introduce a new line of genetics to improve Nepal’s national herd.

Furthermore, to promote record-keeping for effective farm management, software producer BMP

Infology helped install a goat pedigree application at five partner goat farms. After observing the

usefulness of the system, two additional farms (not supported by KISAN II) also installed the

software. To further support farms using the application, BMP Infology identified needs and problems

faced by the farms and customized the application based on these needs. The app enables

commercial goat farmers to keep track of their herds, identify optimal animals for breeding, and

certify that the breeding animals they offer for sale have quality pedigrees. As a result, DLS can select

quality breeding bucks for semen production and distribution throughout Nepal.

Offering easy access to agriculture advisory services for Nepali

farmers through new ICT platform. In Y5, KISAN II partner ICT for

Agriculture digitized and integrated KISAN II's agriculture training manual

into the Krishi Guru application and Facebook chat bot platforms and

started creating marketing niches and promoting content digitally.

Activities included: i) boosting Facebook content to reach more

farmers/users, ii) promoting the application by using Google Ads to

increase application downloads, iii) creating awareness generating

content, and iv) customizing audiences to target women, migrant

workers, and youth. Within two months, the new application was

downloaded 19,800 times. Similarly, there were 19,280 new page likes on

Krishi Guru’s Facebook page. A total of 39,080 new agriculture

stakeholders are now connected to a digital agriculture platform as a

result of KISAN II’s support of ICT for Agriculture.

This year, KISAN II continued to help farmers increase crop production through partners’ extension

services; facilitating connections with input suppliers; leveraging subsidized resources from

municipalities, AKCs, IALDOs, and the PMAMP; and strengthening linkages with other market

actors. Y5 witnessed a surge of COVID-19 infections that lasted until mid-year. Although district

administration offices initially barred mass gatherings, bans were later lifted, allowing partners to

Ethylene scrubbers release ethylene gas to ripen vegetables and fruits, while also increasing shelf life.

Component 1: Improve the Productivity of Selected Agriculture

Market Systems

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resume planned field activities. Input suppliers, traders, and processors began to operate businesses

normally while adhering to COVID-19 safety measures. However, most agri-input suppliers had

difficulty maintaining stocks of seeds, insecticides, pesticides, and farm tools. Some partners were

able to supply essential agri-inputs to retailers; for example, Siddhartha Agri Center, in Dang, was

able to supply its affiliates in Dang, Rolpa, Rukum, and Pyuthan districts.

Activity 1.1 Strengthen the capacity of input supply systems to deliver timely and

affordable productivity-enhancing technologies

Facilitating linkages with input suppliers helps farmers access timely agri-inputs. KISAN

II and its partners organized a series of meetings among value chain actors, including wholesale and

retail agrovets, seed companies, machinery suppliers, cooperatives, and millers, to facilitate smooth

agri-input supply. To help partners manage the supply chain of high-yielding and popular fine rice and

industrial maize varieties, KISAN II mapped out potential suppliers and farmers’ preferences and

facilitated mutual business relationships with partner input suppliers (wholesalers, retailers, and

cooperatives) with other businesses, including rice millers. KISAN II helped Bihani Madhyavarti

Multipurpose Cooperative's manager obtain agrovet license training from AKC-Bardiya, enabling the

cooperative to establish a new agrovet in Bardiya and link with wholesale partner, Acharya Agro-

firm Trader to obtain agri-inputs. The project also linked Acharya Agro-firm trader with the GON's

research farms (National Grain Legume Research Program and Directorate of Agriculture Research,

Khajura) and with GATE Nepal to source lentil seeds and improved hybrid maize. Likewise, Tharu

Agrovet in Bardiya was linked with Sashi Agrovet to procure vegetable seeds and IPM tools. KISAN

II helped build business relationships of partner rice mills with municipalities to implement a fine rice

promotion program under the Center for Crop Development and Agro-biodiversity Conservation’s

(CCDABC’s) conditional grant to nine municipalities. The municipalities provided subsidized rates

for 85.4 MT of fine rice and 28 MT of yellow maize seeds to 6,325 and 6,255 farmers.

Promoting IPM practices and tools encourages adoption of safe, effective practices.

KISAN II promotes IPM to discourage the overuse of agro-chemicals, which can negatively impact

human health, the environment, and non-targeted (beneficial) species. In Y5, KISAN II conducted a

virtual IPM refresher training for 55 partners' extension workers (37 female), who then trained

9,130 farmers (7,112 female, 4,182 from DAGs). This year, KISAN II facilitated 172 IPM

demonstrations engaging 3,186 farmers (2,369 female, 2,032 from DAGs) and 12 plant health clinics

involving 403 farmers (240 female, 218 from DAGs), which encouraged farmers to adopt IPM

technologies to increase their production and helped increase agrovets’ sales of IPM products, such

as traps, lures, and biopesticides. Partners conducted 45 demonstrations engaging 900 farmers (630

female, 360 from DAGs) on Yellow Stem Borer in Kapilvastu, in collaboration with the Plant

Quarantine and Pesticide Management Center and the Feed the Future Nepal Integrated Pest

Management (FTFNIPM) activity. The project also developed an IPM brochure on rice and maize

pests and diseases, which was distributed to partners and farmers.

Joining hands with partners and GON helped combat fall armyworm. In Y5, FAW was

observed in maize crops during winter, spring, and summer seasons across all KISAN II districts, but

no significant damage was noted. KISAN II coordinated with NSAF and FTFNIPM projects to

monitor and manage fall armyworm (FAW) in KISAN II districts. KISAN II also regularly attended

FAW task force meetings organized by FTFNIPM and AKCs/IALDOs, at which the project shared

the FAW status and adopted management practices in project areas. Altogether, KISAN II partners

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conducted 108 demonstrations of FAW lures engaging 1,769 farmers (1,257 female, 751 from

DAGs) this year. The installation of lures in maize fields helped extension workers monitor FAW

and advise farmers on protective measures based on the stages of FAW larvae. KISAN II also sent an

SMS message to 40,576 farmers to help them identify and manage FAW. The project printed FAW-

related training materials and distributed them to farmers through partners. A PSA to build FAW

awareness was developed in local languages and aired through local FM stations this year. KISAN II

conducted a community-level campaign, in coordination with AKC and FTFNIPM, to help people

identify and manage FAW in KISAN II districts. As a result, municipalities, AKCs, PMAMP leveraged

more than NRS. 1.3 million (USD 11,017) to provide recommended agro-chemicals and sprayers to

farmers at a subsidized cost to help them manage FAW.

Activity 1.2 Increasing adoption of profitable, productivity-enhancing, and climate-

smart technologies by all groups, including youth, women, and disadvantaged groups

Developing and disseminating training and outreach materials to farmers. To date,

KISAN II developed more than 20 farmer-friendly outreach materials on improved agriculture

technologies and management practices and distributed them to more than 100,000 farmers through

partners and BLP trainings. In response to farmer demand, KISAN II developed and printed outreach

materials on IPM and productivity-enhancing technologies for rice and maize diseases and partners

distributed these to farmers. Similarly, the project distributed food safety booklets to partners and

lead farmers involved in commercial vegetable production and marketing.

Disseminating key technical messages through local FM radio and SMS. To improve lentil

production, KISAN II developed and aired a radio PSA in three local languages (Nepali, Tharu, and

Awadhi) through six local FM stations in Kailali, Kanchanpur, Banke, Bardiya, Dang, and Kapilvastu

districts. The PSA covered improved lentil varieties, optimum-sowing dates based on land type, and

details of local input suppliers. Similar PSAs were developed and aired for fine rice promotion. In

addition, KISAN II disseminated three messages via SMS to farmers to promote the production of

fresh vegetables, fine rice, and yellow maize production.

Agricultural technologies promoted through video-based extension approach. In Y5,

KISAN II continued to use a video-based extension approach to support partners to disseminate

knowledge on improved farming practices and innovative technologies among smallholders. Due to

COVID-19 safety precautions, BLP video dissemination continued in small groups during Y5. Over

34,200 farmers (80 percent female) viewed four videos via pico-projectors in BLP classes and

through social media platforms (Facebook, Viber, and WhatsApp). KISAN II developed two new

videos focused on a general introduction to Nepal agriculture, agriculture marketing, and goat

management practices. A mini survey engaged 104 farming households to assess changes in the

adoption of improved technologies and to measure the clarity of video messaging. The results

showed that more than 65 percent of farmers who watched a video adopted at least one technology

covered by the video, and that most farmers had no major issues understanding video messages.

Promoting improved technologies and management practices through demonstrations

and field days. As COVID-19 prohibitory orders eased, KISAN II partners increased field-level

activities. In Y5, partners held 304 demonstrations engaging 5,648 farmers (4,199 female, 3,603 from

DAGs) on technologies, including maize production, the use of corn shellers, off- and main-season

vegetable cultivation, plastic mulching, IPM tools, and the safe use of pesticides. These

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demonstrations promoted the replication of proven technologies and helped partners create

demand for agri-inputs (see Box 5). Partners also held 28 field days engaging 954 farmers (737

female, 584 from DAGs). Neighboring farmers and municipal representatives attended these events

to observe innovative, improved technologies and management practices promoted by partners and

applied by lead farmers. Participants interacted with lead farmers to understand the benefits of the

technologies and improved seed varieties, and to observe differences between their existing

practices and the demonstrated approaches.

Box 5. Demonstrations of improved technologies increases agrovet’s sales of agri-inputs

In Y5, Acharya Agrovet from Arghakhanchi district demonstrated the use of tray nurseries, plastic mulching,

and staking nets on farmers’ fields. Seeing the benefits of these technologies prompted farmers to purchase

more agri-inputs from the agrovet so they could replicate the practices on their own fields. According to

Mr. Pradip Acharya, proprietor of Acharya Agrovet,

“Such high demand of this technology is possible due to the demonstrations. I was able to sell around 150 sets of

200 plastic tray pieces, around 500 sets of IPM kits with different lures and traps, more than 500 rolls of plastic

mulching, and more than 300 pieces of sprinkler irrigation equipment during April to June 2022. My sales

increased by 25 percent.”

By adopting these newly learned technologies, farmers are raising healthy seedlings in plastic trays and have

reduced pesticide use by using lures.

In Y5, KISAN II continued to promote and support the GON’s agriculture-related policies, laws,

regulations, guidelines, and operating procedures. The ongoing COVID-19 pandemic and restrictions

on travel and group gatherings delayed implementation of some planned activities this year; these

will be carried forward to Y6.

Activity 3.1 Build capacity to streamline, harmonize, and coordinate GON policies and

regulations

Fostering an enabling environment for agribusiness and agriculture livelihoods by

supporting MOALD's policy agenda. In Y5, KISAN II continued to support the GON in the

following key policy agendas: i) PSE guidelines, ii) National Agriculture Policy (NAP), iii) agricultural

sector policy think tank, iv) PADS for Lumbini and Sudurpaschim provinces, v) technical operating

procedures for grain warehouses, and vi) rapid assessment on the use of COVID-19 relief and post-

COVID-19 recovery measures. This policy agenda, once in place, will strengthen the enabling

environment for agri-businesses and agricultural livelihoods.

Supporting MOALD to develop PSE guidelines to attract private investment in

agriculture. In support of MOALD’s efforts to promote PSE policies and legal frameworks, KISAN

II developed PSE guidelines through consultations with the private sector, GON, and related

stakeholders. In Y4, KISAN II incorporated feedback from stakeholders and submitted the revised

version to MOALD. At request of MOALD, KISAN II submitted a review report on the ADS (2014),

NAP (2004), and Agribusiness Promotion Policy (2006) to understand and highlight how these policy

documents address PSE in agriculture. MOALD organized several meetings and informal discussions

with KISAN II on the guidelines, and recently suggested the guidelines be attached to the

Component 3: Strengthen the Enabling Environment of Selected

Agriculture Market Systems

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Agribusiness Promotion Bill, which is under formulation. At the seventh JNSC meeting held in

February 2022, participants decided to move forward by requesting the federal Cabinet to approve

the PSE guidelines. KISAN II will continue to support MOALD on the approval process in Y6.

Supporting MOALD to formulate a new National Agriculture Policy. The NAP (2004) is

the current umbrella policy document for agriculture sector development in Nepal. Over the past 18

years, however, new opportunities and challenges have emerged that can transform this sector from

a socio-economic perspective. To address challenges such as reducing hunger, improving food and

nutrition security, poverty alleviation, climate change mitigation and adaptation, and inclusive

agriculture, MOALD is preparing a new policy document as a roadmap towards a more competitive,

inclusive, resilient, and sustainable agriculture sector. The second ADS-JSR annual meeting held in

February 2021 requested USAID’s support to formulate the new NAP. MOALD, in collaboration

with PAMs and development partners (including KISAN II), conducted sub-national consultations in

seven provinces and obtained feedback on the draft NAP. In Y5 KISAN II, in collaboration with

MOALD, started to incorporate feedback from sub-national consultations, private sector partners,

and experts. KISAN II will continue to support MOALD to finalize the NAP in Y6.

Supporting MOALD's policy think tank to strengthen the agricultural policy process. In

Y4, KISAN II supported MOALD to establish an Agricultural Sector Policy Think Tank, a key

platform to bring people together to support the GON in analyzing policies and addressing emerging

agricultural policy issues in a balanced manner. In Y5, MOALD held one advisory committee and two

task force committee meetings. The advisory committee meeting in July 2021 defined the

parameters of the think tank and concluded with a decision to develop a list of experts working in

seven thematic areas, including farmers’ rights and gender and social inclusion. In March 2022, the

first task force meeting finalized the roster of experts; in April 2022, the second meeting finalized

activities to be carried out by MOALD and KISAN II in Y6 to strengthen the policy process through

the think tank platform.

Supporting PADS formulation for Sudurpaschim and Lumbini provinces. In response to a

request from MOALD, KISAN II began supporting Sudurpaschim and Lumbini provinces to formulate

PADS in Y4. In Y5, KISAN II, with support from the Sustainable Research and Development Center,

incorporated feedback from the PADS Steering Committee meeting, the Ministry of Land

Management, Agriculture and Cooperatives (MOLMAC), MOALD, private sector stakeholders, and

agriculture experts. The finalized PADS for Sudurpaschim Province, submitted to MOLMAC for

approval in March 2022, is now under consultation with concerned provincial ministries and the

provincial planning commission. The final step will be approval by the provincial cabinet. In the Policy

and Program Speech 2079/80 (2022/23) given by the Governor of Sudurpaschim Province, the PADS

was presented a reference material, focused on providing: i) farmer access to improved seeds,

seedlings, breeds, fertilizer, irrigation, credit and insurance facility, and subsidized import tax; ii)

increased import substitution and export promotion, and an improved food and nutrition security

program; iii) enhanced area and production of fine rice, aromatic rice, and spring rice through the

RMM along with the adoption of modern drying technology, construction of warehouses, and

effective implementation of minimum support price; iv) seed self-sufficiency for rice, maize, and

wheat, and establishment of agriculture and livestock resource centers with private sector

leadership; and v) high priority to commercial production of vegetables, fruits, fish, and dairy through

promoting the private sector. Similarly, KISAN II is supporting the Ministry of Agriculture, Food

Technology and Land Management (MOAFTLM) in Lumbini Province to formulate its PADS with

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 35

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help from the Centre for Natural Resources Management, Analysis, Training and Policy Research.

The PADS has been revised based on inputs from the PADS Steering Committee, MOAFTLM,

MOALD, and other experts. KISAN II will submit the final PADS draft (both Nepali and English

versions) to MOAFTLM for approval in Y6.

Supporting development of technical operating procedures for grain warehousing. To

improve food security and food sovereignty in Nepal, all three tiers of government have prioritized

establishing warehouse facilities to help stabilize grain price fluctuations, minimize post-harvest

losses, and reduce imports. In Y5, KISAN II began developing technical operating procedures for

grain warehouses for use by the public and private sectors, and by cooperatives. In Y5, KISAN II

organized a meeting with partner NWCL to explore collaborative efforts to develop this procedure.

Participants agreed that NWCL will provide inputs and technical support to prepare the operating

procedure, while KISAN II, in collaboration with MOALD, PAMs, and NWCL, will finalize the

document in Y6.

Assessing farmers’ and agro-entrepreneurs’ use of government COVID-19 relief and

recovery measures. In Y5, KISAN II conducted a rapid assessment on the use of relief and post-

COVID-19 recovery measures under the GON and Nepal Rastra Bank (NRB)’s Monetary Policy

2020/21. The assessment focused on overall use of available COVID-19 relief packages by farmers

and agro-entrepreneurs (including KISAN II partners and beneficiaries, particularly women and those

from DAGs), constraints encountered, and measures for effective implementation of the policy. The

findings revealed limited use of these facilities by farmers and agro-entrepreneurs due to an overall

lack of awareness, complicated procedures, and inadequate business management skills, which

obstructed the process of loan disbursement to agriculture enterprises. In March 2022, KISAN II

met with the NRB to discuss the findings. KISAN II suggested better information dissemination,

simplified procedures, and training programs for agriculture entrepreneurs to improve the effective

implementation of COVID-19 relief and recovery provisions and facilities. NRB expressed its

commitment to include these suggestions in the upcoming monetary policy 2022/23.

Activity 3.2 Improve investments, management, and governance of infrastructure

Disseminating grain storage technology menu for farmers and traders. In collaboration

with the CCDABC, the Center for Agricultural Infrastructure Development and Mechanization

Promotion under MOALD, and the Nepal Agriculture Machinery Entrepreneurs Association

(NAMEA), KISAN II developed a detailed menu (and informational flyer) on grain storage

technologies, including technologies adopted successfully in Asia and worldwide. KISAN II published

a brief storage technology menu translated into Nepali. The publication has been distributed to

private sector actors, farmers, entrepreneurs and other users through government agencies, private

sector groups (NAMEA), and KISAN II’s field team to increase awareness of and investment in

proven post-harvest storage technologies. In Y6, NAMEA will continue to disseminate information

about grain storage technologies.

Assessing major issues and policy recommendations to improve rice sub-sector. In Y4,

KISAN II, in collaboration with the Association of Nepalese Rice, Oil, and Pulses Industry, completed

a study titled Landscape Analysis of Rice Milling Industries in Nepal. The study recommended: i)

upgrading the infrastructure and processing capacity of rice mills, and ii) increasing fine rice varieties

to reduce fine rice import and increase export. In Y5, KISAN II built on these recommendations by

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 36

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starting an assessment of major issues faced by private sector actors in the rice value chain,

especially fine rice. Key focal areas include import taxes (for paddy, rice, equipment, and spare

parts), input supplies, rice production, and warehouse/storage, drying, and milling. The assessment,

to be completed in Y6, will help the GON formulate a National Rice Policy to serve as a road map

for Nepal’s rice sub-sector, making it more competitive and commercial to reduce imports.

Activity 3.3 Improve systems to increase the quality of selected commodities

Promoting food safety through agricultural front-line workers. In Y4, KISAN II, in

collaboration with MOALD's AITC (Agriculture Information and Training Center) and USAID's

implementing partners, published a food safety booklet that focused on farm and harvest hygiene,

water supply quality and irrigation systems, the proper use of chemicals during vegetable production

and post-harvest management, and processing, transportation, and storage. In Y5, front-line workers

under KISAN II, Suaahara II, and AITC raised awareness of farm-level food safety considerations

during production, post-harvest handling, and the processing, transportation, and storage of

vegetables.

Activity 3.4 Support local government agencies to improve and rationalize spending

related to market systems development

Supporting Melamchi Municipality with agricultural market feasibility studies. In Y5,

KISAN II finalized an assessment that indicated the Bahunepati area in Melamchi Municipality is

suitable for establishing a 15-stall market collection center with potential capacity for 50 MT of cold

storage. In December 2021, KISAN II handed over the assessment report to the municipality. Based

on the report, the municipality has committed to an increased budget for vegetable production and

for establishing a market collection center in the next fiscal year’s municipal annual program.

Through the Business Literacy Program, KISAN II and partners train vulnerable households with the

potential to adopt high-value commercial farming, enabling them to improve farming practices and

integrate into existing market systems. In Y5, COVID-19 continued to conduct BLP through

classroom, virtual, or a mix of virtual and in-person training, as per participants’ needs. In Y5, KISAN

II graduated 9,397 participants from the BLP short course and achieved its life of project target of

graduating 62,000 participants. As of the end of Y5, KISAN II has completed BLP activities and

engaged BLP graduates and local government representatives in community-level closing events.

Activity 4.1 Enhance literacy and business skills

Updating and adapting business literacy training materials for virtual delivery. KISAN II

regularly adapts its training modules and materials based on learnings and evolving needs. In Y5,

KISAN II addressed continued COVID-19 challenges by modifying the short course training package

for virtual delivery. This included the development of a digital participant guide and the use of virtual

platforms (i.e., Viber and Facebook Messenger) supplemented by PowerPoint presentations,

audio/video content, and virtual engagement between participants and trainers. The short course

Component 4: Increase Vulnerable Communities Ability to Act on

Business Opportunities within Selected Markets Systems

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 37

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was supplemented by four new audio recordings and three new videos. During BLP classes in Y5,

KISAN II disseminated 31 agri-technology related videos developed by partners to 9,397 participants

(81 percent female, 60 percent from DAGs) via smartphones. KISAN II also uploaded audio dramas

and videos onto memory cards and distributed these to 2,521 participants (2,018 female, 1,696 from

DAGs) and 134 community trainers (119 female). A project video, What a Commercial Farmer

Should Know, integrated key learnings from BLP modules to encourage farmers to take up

commercial farming (see Box 6 for some key lessons learned by seven BLP graduates).

Box 6. Business literacy participants work in joint venture for commercial farming

Joining Tinghare Farmers’ Group, formed by KISAN II partner, Pratistha Cooperative, gave seven farmers in

Kavrepalanchowk the confidence to venture into commercial farming. After they participated in BLP long

course trainings, they realized there is huge potential for commercial vegetable cultivation in their area. Yet,

they were hesitant to start commercial farming independently, given the competitive market. After

completing training in July 2019, they came together to run a joint commercial farming venture to boost

their chances of success. They rented 0.1 ha of land and planted 1,200 tomato saplings with an investment

of NRs. 35,000 (USD 297). They produced and sold 1,000 kg of tomatoes, earning them NRs. 45,000 (USD

381). With this encouraging return, they decided to orient their cropping pattern to market demand. As a

result, they increased their annual income to NRs. 100,000 (USD 847) in the second season and to NRs.

400,000 (USD 3,390) in the following two years. Thrilled with the success of their joint venture, farmer

Kalpana Humagain said, "We learned two key lessons from the BLP training. Firstly, the use of agri-technologies is

required for commercial farming, and secondly, market study is essential before production planning. Our venture

was established based on these two foundations."

Building capacity of BLP trainers to conduct community trainings. In Y5, KISAN II

mobilized 28 existing master trainers and 548 new community trainers (85 percent female) to

conduct virtual and in-person short course community-level trainings. To refresh their knowledge,

KISAN II provided virtual TOT to 456 trainers (376 female). The project also organized an in-person

orientation that covered COVID-19 safety measures, reviewed short course topics, and built ICT

skills, such as how to create Google meetings, and how to use Viber and Facebook Messenger to

engage participants, manage online participants, and deliver virtual content. The trainers

subsequently presented short courses at 767 locations. KISAN II reviews with these trainers to

assess the effectiveness of virtual training delivery indicated that many participants still preferred in-

person training, although youth participants are more interested in virtual learning.

Training business literacy

participants. In Y5, KISAN II

coordinated with partners to

identify potential sites and

participants for BLP trainings,

interacted with participants at

518 sites, and enrolled 9,397

participants (81 percent female)

from 13 districts in the short

course. About 85 percent of

participants consistently

attended classes, despite

network and internet

42,287

20,564

62,851

42,118

20,376

62,494

34,897

18,696

53,593

Short course Long course Total

Enrolled Graduated Female

Figure 8. Business Literacy Program Participants as of Y5

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 38

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constraints at some sites. Graduates included 5,464 virtual participants and 3,933 in-person

participants, bringing the Y5 total graduates to 9,397 (7,622 female, 5,649 from DAGs). To date, the

project graduated 42,118 participants (34,897 female, 23,965 from DAGs) from the BLP short

course. Overall, KISAN II’s successful adaptive training delivery approach enabled 62,494 participants

(86 percent female, 59 percent from DAGs) to graduate from BLP courses (see Figure 8).

In Y5, KISAN II and partners continued to assist community trainers to address agri-technical issues,

such as improved production technology, IPM, post-harvest management, and agri-mechanization. To

supplement learnings from trainings, KISAN II conducted practical demonstrations on agri-

technologies, such as nursery preparation, mulching, plastic tunnels, drip irrigation, and safe handling

of pesticides. The project also used videos and audio dramas to supplement in-person classes, which

were disseminated to trainees with smartphones.

Linking BLP graduates with local

governments and other service providers.

Many BLP trainees have limited access to local

government, agri-business, and financial institution

services and provisions. To bridge this gap, KISAN

II invited municipal officials and private sector

representatives to attend final training sessions,

encouraging trainees to interact with these

visitors. Some local governments and other

agencies committed to support BLP graduates

through their respective programs. As a result,

BLP graduates will have subsidized support to

help them adopt commercial agricultural

technologies.

In Y5, KISAN II gathered evidence to answer learning questions, built the capacity of private sector

organizations and staff to use adaptive management approaches, and supported the use of

collaboration, learning and adaptation (CLA) to build competitive, inclusive, and resilient agriculture

market systems.

KISAN II’s learning questions examined partners' and farmers' competitiveness,

inclusiveness, and resilience. KISAN II examined four learning questions in Y5, two in T2 and

two in T3. Learning questions 4 is discussed below

Learning Question 4. What lessons were learned during KISAN II’s implementation of

activities to strengthen the market systems for vegetables, goats, and lentils?

Learning questions 1 and 2 are presented in KISAN II’s Y5T2 report. KISAN II is assessing learning question 3, results of

which will be included in Y6T1 report.

Component 5: Apply Collaboration, Learning and Adaptation to

Market Systems Development

BLP graduates in Sindhupalchowk receive machinery

support from AKC-Dhulikhel. Photo credit: Prakash

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 39

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Key lessons drawn from implementing activities to strengthen the market systems in KISAN II’s

three closing value chains—vegetables, goats, and lentils—are summarized below:

Vegetables

● Farmers’ perceptions about the value of private sector actors are critical to establishing

long-term business relationships with them. For example, most farmers feel they receive low

prices from aggregators/traders and that aggregators and traders have inordinately high

profit margins. However, they are not aware of high post-harvest losses (sometimes up to

40 percent) faced by aggregators and traders, which they try to cover with higher margins.

Trust is key to better relationships between farmers and private sector actors.

● Limited emphasis and investment in proper post-harvest management of vegetables leads to

the entire supply chain suffering from high post-harvest losses. It creates a huge gap between

the farmgate and retail prices since the collectors, traders, wholesalers, and retailers are

forced to add the cost of post-harvest losses and this burden is ultimately transferred to

consumers. To address this challenge, both private and public sectors should invest in the

establishment and efficient operation and management of cold storage facilities is key, along

with building the capacity of all supply chain actors (including farmers) on proper post-

harvest management technologies and practices.

Lentils

● Lentils are generally easy to grow and do not require irrigation, using residual moisture left

over from previous crops. Despite the high domestic demand for lentils as well as their great

economic value, export potential, and benefits for soil and humans, lentils are a high-risk and

weather sensitive crop. Warmer temperatures and wetter weather connected with climate

change damages crops, causing lower yields and a resurgence of pests and diseases, like

stemphylium blight—a fungal disease that spreads in high humidity.

● Climate-related issues are compounded by productivity constraints. Cheap import prices

have reduced domestic sales and resulted in farmers replacing their lentil fields with higher

value commercial vegetables and wheat crops. Due to lower volumes, mills are reluctant to

invest in lentil processing and prefer to ramp up rice and other grain production.

● Climate issues can be addressed by the ongoing breeding and introduction of weather- and

disease-resistant seed varieties.

● Lentils, like other legumes, fix nitrogen in the soil, and will continue to serve as an important

part of a diversified cropping strategy. The ongoing fertilizer crisis provides an opportunity

for the private sector and farmers to increase lentil production, but the sector needs a

strong push from the GON.

● Building on new promotional skills gained from KISAN II trainings, processors and other

market actors can promote the benefits and uniqueness of Nepali lentils. Already cherished

both nationally and internationally for their distinct taste, if given the right branding, a niche

market for Nepali lentils can be established easily, especially if supported by trade and

competitiveness initiatives.

Goat

● When designing project strategy for goat sector, it is important to consider the implication

of long gestation period and life-cycle of goats. Longer gestation period has direct implication

on the time taken by the project and private sector interventions to mature and yield

quantifiable results that will contribute to number of households benefitted.

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● KISAN II sector analysis identified the need to improve goat breed and breeding practices to

bring about systemic change in goat sector. To address this constraint, KISAN II focused on

partnering with buck service providers to provide improved breeding service to farmers,

which has yielded good results. However, working with buck service providers alone limited

the impact of the interventions since KISAN II was not able to extensively work with

breeder farms to improve the quality of buck provided to buck service providers. Working

with breeder farms to improve breed quality takes considerable time due to the gestation

period of goat, which may make quantifiable results available only after the project period.

Pause and Reflect workshop learnings feed into Y6 work planning. In Y5, KISAN II

conducted a series of pause and reflect workshops to analyze KISAN II’s operating context, including

the implications of COVID-19 and climate change impacts (like the unseasonal October 2021

flooding). Learnings from the workshops were analyzed and used to inform Y6 SSOW activities.

WIKISAN 2.0 offers staff new features. The WIKISAN 2.0 system tracks organizations,

activities, trainings, and participant data on a real-time basis. In Y5, Pathway Technologies and

Services Private Limited

modified WIKISAN 2.0 features to include three dashboards: i) results for

years 1-5, ii) results for years 6-7 and, iii) combined results for years 1-7. KISAN II’s monitoring,

evaluation, and learning (MEL) team continued to provide telephone and in-person support to field

staff to help them address issues with data entry and report features, such as summary reports,

detailed implementation plan reports, and the review of targets versus achievements.

Training enables data entry field staff to solve emerging issues. In Y5, with the easing of

COVID-19 travel restrictions, KISAN II resumed field-based trainings and on-the-spot data checks.

In January 2022, the MEL team trained 59 extension workers of grantee partners (35 female, 22

from DAGs) under the SSOW on exporting target and achievement data. During the training,

KISAN II identified and helped resolve issues, such as keeping standard group names, managing new

and continued participants, identifying participants without telephone numbers, and capturing data

on migrant returnees.

KISAN II undertakes 2022 annual farm survey. KISAN II’s 2022 annual farm survey universe

included 202,242 farming households, of which 980 samples were selected following the Feed the

Future sampling guide (2018).

Building on KISAN II’s experience in 2019 and international and

Nepal-specific experience carrying out in-person interviews, Full Bright Consultancy

contextualized

World Bank Survey Solution software into a computer-assisted in-person interview format.

Altogether, the team collected values for 22 farm-level performance indicators related to targeted

commodities. The 2022 annual farm survey used a two-stage cluster sampling design with a

systematic random selection of representative farm households, for which two separate clusters

were required: wards and households. In the first stage, wards (the primary sampling unit) were

selected from production areas (wards and municipalities) of KISAN II’s private firms. In the second

https://www.agrilinks.org/post/participant-based-survey-sampling-guide-feed-future-annual-monitoring-indicators

Full Bright Consultancy Private Limited. was established in 1986 under Private Company Act of Nepal to provide

consulting services to the public and private sectors in the areas of engineering, management, planning, and development of

infrastructure projects. http://www.fbc.com.np/

Monitoring, Evaluation, and Learning

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 41

AID-367-C-17-00001

stage, 20 representative farm households were selected from the selected wards, resulting in a total

number of samples. The sample size was determined following a two-stage cluster design sampling

approach and the Feed the Future Sampling Guide for Beneficiary-based Survey.

KISAN II assesses partners' performance via annual organizational census survey. KISAN

II completed an annual organizational census survey of 208 firms to assess partners’ effectiveness,

reach, and performance in Y5. Prior to data collection, KISAN II finalized the questionnaire and

provided refresher training to KISAN II area coordinators.

USAID approves updated MEL plan. In January 2022, KISAN II submitted a revised MEL plan to

USAID that included two additional SSOW indicators, as well as decisions from USAID and Feed the

Future on project-specific indicators, data collection, and reporting. USAID approved the MEL plan

in March 2022.

KISAN II submits project data to USAID. After incorporating USAID’s feedback on the

Performance Indicators Tracking Table, KISAN II updated the table in October 2021 with targets for

Y5, including SSOW indicators (See Annex 5 for this updated table).

USAID commissions KISAN II's end-line evaluation. In Y5, a USAID-appointed evaluation

team conducted an end-line project evaluation study engaging partners and farmer beneficiaries in

Baitadi, Kailali, Surkhet, Banke, and Nuwakot districts. The team examined how USAID's efforts to

strengthen key market actors' roles in select agriculture value chains have helped improve service

delivery to farmers and how the project contributed to creating an enabling environment for private

sector engagement in the agriculture sector. Study recommendations were shared with staff during

an annual planning workshop in May 2022. Recommendations for the project included enhancing the

focus on commercial production of rice and maize by expanding private sector engagement models;

expanding linkages with seed multipliers, wholesale fertilizer and input suppliers, and wholesale

suppliers of veterinary supplies; closer collaboration with AKCs; leveraging engagement with

MOALD and ADS; and connecting women and DAGs to local GON agencies. KISAN II discussed

these recommendations and incorporated them into the Y6 annual work plan.

Environmental compliance reinforces safety and protection. All project and grantee

technical staff were oriented on KISAN II’s Environmental Management and Monitoring Plan (EMMP)

and Pesticides Evaluation Report and Safe Use Action Plan (PERSUAP). In Y5, 71 grantee staff (30

female, 24 from DAGs) under the SSOW were trained on the EMMP and PERSUAP. KISAN II

reinforced the importance of safe environmental practices and safe pesticide use in all activities, in

accordance with these approved documents.

Through its grants program, KISAN II buys down the risk for private sector partners to promote

and adopt new technologies, innovations, and/or improved practices that facilitate commercial

agriculture—with an emphasis on engaging women, youth, and disadvantaged groups as target

https://agrilinks.org/library/sampling-guide-beneficiary-based-surveys-select-feed-future-agricultural-annual-monitoring

Grants under Contract

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 42

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participants. To date, KISAN II has signed agreements with 177 partners,

who are expected to

reach a combined 239,930 farming households by the end of their performance periods. The grants

are valued at USD 4.6 million,

with partners' cost-share contributions totaling USD 4.9 million

(48:52 cost-sharing ratio). In Y5, KISAN II made in-person visits to monitor the implementation of

94 partners and supported another 67 partners virtually to ensure timely reporting of grant

activities.

In Y5, KISAN II operated in accordance with its adjusted USAID-approved Post-Lockdown Risk

Mitigation Plan. With the increase in COVID-19 cases, KISAN II closed its Kathmandu office in early

January 2022, and then reopened it on February 21, 2022, following a reduction in cases. Regional

and cluster offices have been fully operational since July 2021.

Obligations increased to Y5 subcontractors. During Y5, KISAN II increased obligated funds to

subcontracts for CEAPRED, DEPROSC, and Pathway Technologies to carry out Y5 activities. KISAN

II also obtained USAID approval to increase the life of project estimated expenditures for

CEAPRED, OSC and Pathway Technologies. By the end of Y5, KISAN II closed out subcontracts for

DEPROSC, Digital Green, OSC, and Siddhartha Inc.

Fixed-price subcontracts issued. Thirteen fixed price subcontracts were operational in Y5. Nine

were completed in Y5, three will continue through Y6, and one will continue throughout the life of

the project (see Annex 6 for details).

Fixed-price purchase order for services issued. KISAN II continued services from seven

service providers for activities such as the development of an animated video on RMM, outreach

materials, and a financial analysis to objectively measure economic feasibility of the RMM (see Annex

7 for details).

Staffing update and staff trained. In the last months of Y5, KISAN II completed the recruitment

process for the vacant position of Business and Market Systems Director. At the end of Y5, KISAN II

had a total of 43 professional-level staff and 25 non-professional staff. In May 2022, the project

trained all staff on the Code of Conduct during the Y6 work planning workshop.

Short-term technical assistance engaged. During Y5, no-cost extensions were provided to

short-term technical assistance consultants for assignments related to vegetable packhouse activities,

a feasibility assessment of a vegetable market in Melamchi Municipality, and development of a

technology menu for paddy and maize storage. The project acquired consulting services to conduct a

rapid assessment on Nepal’s maize processing sector, provide customer profiling training, draft

standard operating protocols for goat buck semen production, and provide photography services.

Interns recruited. Eight interns successfully completed their tenure on KISAN II in Y4 and Y5.

The 177 partnerships include 171 grantee and six MOU partners. This total includes 148 grants awarded under the

original SOW, 23 grants under SSOW, and six households contributing MOU agreements. Partnerships with 152

organizations have ended and 25 grants are active.

The grants are valued more than the grants under contract budget (i.e., USD 4.5 million) due to exchange rate gain.

Operational and Communications Activities

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KISAN II procurement plan approved. KISAN II submitted a procurement plan for accounting

software and its customization operation in October 2021. USAID approved the plan in February

2022.

Updated SOP circulated to KISAN II staff. KISAN II’s employee handbook was updated and

circulated to all staff this year. The updated handbook was effective from March 2022.

Updated emergency management preparedness documents. KISAN II’s operations staff

continued to update project staff fortnightly about the status of COVID-19 cases and will provide

monthly updates in Y6. The project offices are operating in accordance with safety health protocols

and continue to comply with regulations and guidance from the GON and USAID.

Key deliverables submitted to USAID. During Y5, KISAN II submitted five key deliverables to

USAID, all of which were approved: the Y4 Annual Report, the Y5T1 and Y5T2 reports, the Y6

Annual Work Plan, and a Revised M&E Plan.

Ensuring compliance with branding and marking. KISAN II continued to reinforce compliance

with USAID Feed the Future branding and marketing guidelines to all staff and to obtain USAID

clearance for all KISAN II materials before printing and/or disseminating them to external audiences.

Bi-weekly updates and social media content submitted to USAID. KISAN II submitted 24

bi-weekly updates to USAID this year and two batches of social media content. See Annex 1 for

recent success stories.

Feed the Future features KISAN II

story in newsletter. KISAN II submitted

three project photos and captions for the

2022 Feed the Future Photo Contest and

collaborated with the Feed the Future

team to develop a women’s

empowerment story on Janata Agrovet.

The story was featured in Feed the

Future’s March 2022 newsletter.

Using multi-media to promote RMM successes. To amplify the success of RMM, KISAN II, in

collaboration with a media agency, developed and aired three episodes of a TV program featuring

speakers from diverse fields. The speakers included GON representatives, economists, private

sector actors, farmers, and KISAN II staff. The project also developed a two-page information sheet

and an animation video on the RMM to support the GON in promoting this model for replication.

KISAN II disseminates four informative SMS alerts to farmers. In Y5, KISAN II

disseminated four SMS alerts to more than 95,000 farmers. These included messages related to

codes of conduct and technical messages about vegetables, rice, and lentils.

Developing knowledge products on closing value chains. As activities wind down in three

target value chains, KISAN II collaborated with OSC and developed interactive technical briefs on

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AID-367-C-17-00001

goat, vegetable, and lentil value chains that summarizes KISAN II’s approaches and key results. These

will be disseminated in Y6.

Creating KISAN II digital library. During Y5, KISAN II created a Google Drive digital library

that includes all USAID-cleared project materials. The library enables the project to share its

extensive knowledge products with relevant stakeholders, such as GON and private sector partners.

PARTNERSHIPS, COLLABORATION, AND KNOWLEDGE

SHARING

To continuously improve project implementation, KISAN II coordinates with a wide range of

stakeholders, including USAID and other development partners, private sector representatives,

GON agencies and projects, and civil society representatives and organizations. Highlights from key

collaboration activities in Y5 are provided below.

Sharing KISAN II knowledge on scaling up the lentil value chain. KISAN II shared its

approaches and learnings on scaling up the lentil value chain in an interactive workshop in June 2022.

The event was organized by the CCDABC, in coordination with National Grain Legume Research

Program, the Khajura AKC and IALDO, and seed companies. Inputs from participants will contribute

to the development of a national-level strategy engaging the private sector to promote legumes.

Participating in a workshop on maize commercialization model. KISAN II participated in a

workshop on maize commercialization organized by NSAF in June 2022. The workshop engaged

maize value chain actors to overcome systemic constraints in the maize sub-sector. The group

discussed how to expand spring maize production and ensure product marketing by creating linkages

with aggregators and feed processors for enhanced maize production.

Training extension staff on the role of GESI in promoting technologies. In March 2022,

KISAN II, in collaboration with the FTFIPM project, trained 71 project staff (31 female) and partner

extension workers on how GESI can enhance the promotion and adoption of IPM technologies.

These extension workers will disseminate the knowledge they gained among farmers' groups to

promote IPM technologies.

Collaborating with NSAF to train partners and farmers on use of grain drying

machines. In May 2022, NSAF organized a demonstration of a mobile grain dryer for KISAN II staff

and partners, including Annapurna Supplier, to sensitize farmers on the use of drying machines to

dry harvested winter/spring maize. In addition to reducing farmers’ labor for drying using traditional

practices, the dryer will help farmers meet the quality of harvested grains demanded by feed mills.

Joining hands with development partners to safeguard maize from FAW. KISAN II

participated in USAID FAW task force committee meeting, updating the group on the status of

FAW and adopting management practices to combat FAW in KISAN II’s project areas. The task

force includes members from FTFNIPM, KISAN II, NSAF, and Farmer to Farmer projects.

Sharing KISAN II experiences to promote fine rice. In June 2022, KISAN II at a conference

on strengthening linkages among agriculture research, extension, and education organized by NARC

and other extension agencies. The overall objective of the conference was to discuss contemporary

issues and challenges in the extension service delivery system and to identify gaps and

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recommendations to improve extension service delivery in Nepal. KISAN II presented on using

private sector-led extension to promote fine rice in Nepal.

KISAN II’s supplemental scope of work (SSOW) enables the project to respond to COVID-19 in

Nepal, promote transformational change in the rice and maize sub-sectors, and create agri-

employment opportunities in eight districts in the SSOW ZOI.

Three SSOW objectives focus on

creating transformational change in the rice and maize sub-sectors to meet market demand and

connecting migrant returnees and others heavily affected by COVID-19 to agriculture-related

opportunities.

ACTIVITIES TO ACHIEVE SSOW OBJECTIVES 1 AND 2

● Enable market actors to upgrade their management and technical capacity and infrastructure to

meet domestic market demand for improved rice and maize products.

● Facilitate the adoption of inclusive business practices that expand market actors’ resource and

customer base and deliver benefits to a range of actors in the system, including smallholder farmers,

women, youth, and marginalized groups.

KISAN II began implementing SSOW activities in the field in Y5. These activities included developing

a service-based model for the industrial maize sector, using a layered approach through which actors

carry out activities that are central to their businesses to resolve constraints. For instance, agrovets

provide extension services to farmers on production of yellow industrial maize for poultry feed,

while traders/aggregators provide drying, transport, and aggregation services.

SOW Activity 1 Design and streamline interventions in rice and maize sectors

SOW Activity 1.1 Assessing and streamlining current rice and maize sector interventions

Developing new service delivery business models to strengthen maize sector and scale-

up rice mill model for the fine rice sector. KISAN II held a brainstorming and planning meeting

in Y5 to design new and innovative activities to strengthen the maize sector in the ZOI. Participants

developed a series of service delivery business models aimed at providing targeted services to

existing commercial maize and fine rice farming households, such as mechanization, agri-input

provision, marketing, aggregation, grain drying, financing, and insurance. KISAN II then published a

request for applications (RFA) to support maize market actors (feed mills, processors, traders,

wholesalers, and insurance companies) to establish stronger linkages with maize producers and carry

out additional functions, specifically aggregation, drying, insurance, and finance. KISAN II also

conducted a rapid assessment of the maize processing industry, which identified systemic constraints

faced by feed mills and processors and offered recommendations on how the private sector can

strengthen supply chains by working with Nepalese maize producers. Maize import substitution will

be a long-term process, considering the rising demand for maize and other maize products. The

report highlights a need to improve Nepali maize quality and reduce post-harvest losses in the

immediate term through widespread adoption of aggregation, drying and storage technologies and

Kapilvastu, Palpa, Dang, Banke, Bardiya, Surkhet, Kailali, and Kanchanpur districts.

RESPONDING TO COVID-19 PANDEMIC IN NEPAL:

FACILITATING SYSTEMIC CHANGE AND

TRANSFORMATIONAL GROWTH IN THE RICE AND MAIZE SUB-

SECTORS AND CREATING AGRI-EMPLOYMENT

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 46

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practices; freezing technologies to preserve fresh maize; increased production for livestock feed

(silage and pellet feed); and the use of highly productive seeds.

For fine rice, KISAN II continued to scale up and expand the RMM in the eight SSOW districts and

to actively participate in a series of multi-stakeholder meetings and industry-wide events. These

included a conference on strengthening linkages among agriculture research, extension, and

education for effective service delivery in Nepal during which KISAN II presented on private sector-

led extension to promote fine rice in Nepal. The aim was to help government agencies realize the

importance of the private sector in agriculture extension services in a federal governance context.

SOW Activity 2 Strengthen the capacity of rice and maize value chain actors (e.g.,

millers, traders, transporters, input suppliers, warehouse management companies)

SOW Activity 2.1 Identifying market actors and potential partners

Engaging new partners to help transform maize and rice sectors. This year, KISAN II

mapped 39 market actors in the SSOW ZOI to identify market constraints and potential partners

for SSOW interventions. KISAN II established 25 new partnerships (9 rice mills, 8 traders, 3

cooperatives, 3 agrovets, an insurance company and an agriculture learning platform partner),

targeting an additional 39,500 farming households. In the Kapilvastu cluster, KISAN II partnered with

6 partners (2 each in Kapilvastu, Dang, and Palpa) to serve 15,200 farming households and signed a

partnership with National Vision Agro Industries Private Limited in Dang to serve 2,000 maize

farming households to produce livestock feed. Similarly, in the Banke cluster, KISAN II signed 11

new partnerships (4 each in Bardiya and Surkhet and 3 in Banke) to work with 14,906 rice and maize

farming households. In the Kalilali cluster, KISAN II partnered with 4 firms (3 in Kanchanpur and 1 in

Kailali) to work with 5,100 households. KISAN II also signed partnerships with Nepal Warehouse

Company Public Limited and Himalayan General Insurance (HGI) to work with existing KISAN II

maize and rice farmers to promote proper grain storage and maize insurance, respectively.

SOW Activity 2.2 Investing in increasing technical capacity of rice and maize actors

Demonstrating the value of business development services to boost rice sector growth.

KISAN II hired Biruwa Advisors Private Limited to coach rice mill owners/managers on how to scale

up their services and sourcing networks. The overall aim was to demonstrate the economic value of

business development services and build the capacity of medium-sized rice processors to efficiently

operate and compete in the market. In Y5, Biruwa mentored five rice mills (Jalpa Rice Mill,

Marutinandan Agri Industries, Nain Rice Oil and Flour Mill, Bina Food Product and Udhyog, and

Swadista Rice Mill) on marketing, operations, and finance. Similarly in the maize sector, KISAN II is in

the process of hiring a business development consultant to help Buddhanagar Agro Farm (SSOW

partner working with maize producers) with business planning and strategy development,

development of SOPs, and customization of supply chain management software.

SOW Activity 2.3 Strengthening financial linkages

Seeking opportunities to expand access to finance and insurance among rice and maize

farmers. The GON has mandated that all insurance companies to provide crop and livestock

insurance to farmers and has offered an 80 percent subsidy on premiums, yet the adoption of

agricultural insurance remains very low in Nepal. Key reasons for low adoption rates include the

following: i) most crop insurance is based on production costs despite a provision for insurance

coverage based on the yields; ii) insurance agencies are located mainly in cities, making it difficult for

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farmers to obtain services; and iii) farmers are not well acquainted with the cumbersome and time

sensitive claim processes (see Box 7). KISAN II is partnering with HGI to help simplify the claim

process, make insurance services more accessible, and develop a policy to cover maize based on

yields. HGI will also develop an online portal and application where farmers and agents can process

claims virtually and HGI can monitor insurance services virtually. Through the platform, farmers will

receive notifications on the crop management practices that they need to adopt for optimal

production. HGI will also establish 75 new agricultural agents, train them to sell insurance policies,

and monitor farmers virtually.

Box 7. Crop loss evaluator training helps partner educate farmers on agriculture insurance

Agriculture is subject to risks like natural disasters and extreme weather, which can impact farmers’

incomes and livelihoods. Agriculture insurance minimizes such risks and aids in the recovery from crop

losses, but its adoption by farmers is low in Nepal, largely because many farmers are unaware of it. Those

farmers who have agriculture insurance are often unclear on claims procedures, such as whom to contact

for help at insurance companies. To address this issue, KISAN II, in coordination with IALDO and Everest

Insurance Company, conducted a training titled Crop and Livestock Insurance Destruction Evaluator

Licensing in November 2021. The 38 participants, including 13 extension workers from KISAN II partners,

were trained to educate farmers on the importance of crop insurance and on claim procedures to assist

farmers in filing timely claims for reimbursement. KISAN II and Everest Insurance Company plan to expand

farmers’ knowledge of crop insurance services in KISAN II’s working districts.

In Kanchanpur, SSOW partner Rana Agrovet is scaling up its branchless banking counter. To date, it

has enrolled and provides financial services to 450 clients residing in remote Laljhadi Rural Municipality.

These services include agriculture loans to five clients worth NR. 5.6 million (USD 47,458) and other

loans in process.

SOW Activity 2.4 Empowering women, DAGs, and vulnerable households

Building capacity of partners to use GESI lens for target marketing. This year, KISAN II

hired a consultant to build the capacity of interested partners in using a GESI lens for customer

profiling and strategic marketing. In March 2022, the consultant developed a training module and

trained 15 agrovet partners. The consultant also provided strategic marketing consultations and

support to five partners to implement customer profiling plan and strategies.

SOW Activity 3 Support partners to strengthen the capacity of rice and maize farmers

SOW Activity 3.1 Facilitating intensification and diversification of male and female farmers

and socially excluded groups into higher-value commodities

Forming inclusive farmers' groups. In Y5, KISAN II partnered with 25 firms to implement SOW

activities in the fine rice and industrial maize sub-sectors and oriented 71 partner staff (31 female) on

their grant agreements. Partners hired extension workers who received KISAN II-led TOT on

operational guidelines and technical issues. KISAN II helped new partners ensure inclusivity by

encouraging women to participate in farmers’ groups and by helping them develop as commercial

and semi-commercial producers. Drawing on this support, in Y5, SSOW partners formed 1,272

inclusive farmers’ groups involving 32,071 households (20,444 female-headed, 24,662 from DAGs).

SOW Activity 3.2 Strengthening the capacity of input supply systems to deliver timely and

affordable productivity-enhancing technologies

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Building capacity of new partners' extension workers. In Y5, KISAN II conducted TOT for 71

extension staff (32 female) of 19 partners to orient them on KISAN II’s private sector-led approach,

with a focus on SSOW activities and the technical aspects of fine rice and industrial maize

production. KISAN II also conducted a series of meetings with seed companies, agrovets, PMAMP,

and local governments to ease the supply of preferred fine rice and industrial maize seeds and

encouraged agrovets to stock up on seeds of popular varieties. In coordination with SSOW partners,

KISAN II developed a fine rice promotion poster and launched a fine rice promotional campaign to

raise awareness about fine rice varieties and the availability of suitable varieties in Terai districts. By

helping farmers understand market demand, this campaign encouraged them to purchase fine rice

varieties. To mitigate impacts from the current chemical fertilizer shortage, KISAN II met regularly

with the Agricultural Input Corporation and Salt Trading Company, facilitating linkages to enable

cooperatives to access fertilizers from these suppliers. As an alternative to fertilizers, KISAN II also

promoted the use of green manure at rice cultivation demonstrations.

Updating and disseminating productivity-enhancing training materials to farmers.

KISAN II has updated existing training and communication materials to include specific information

on fine rice and industrial maize production. This year, KISAN II reprinted 20,000 copies of

productivity-enhancing training materials related to fine rice and industrial maize production, which

partners are distributing to farmers

SOW Activity 3.3 Expanding the development, dissemination, and adoption of IPM

Promoting the use of IPM practices for fine rice and industrial maize cultivation. To

minimize the use of agrochemicals, KISAN II continues to promote IPM practices for fine rice and

industrial maize production in Y5. KISAN II coordinates with national, provincial, and district-level

governments and non-governmental counterparts to monitor and manage FAW. Collaboration with

counterparts helped provide early warnings on FAW through proactive field monitoring, while

demonstrations on FAW lures and traps helped farmers monitor FAW infestations in their fields and

apply pesticides in a timely manner. SSOW partners are now adopting IPM practices to identify and

monitor FAW in maize crops (see Box 8). KISAN II has developed communication materials on fine

rice and industrial maize IPM practices based on the GON’s IPM program and project learnings.

These materials were printed and distributed to farmers through partners.

Box 8. Joint field campaigns in Banke and Bardiya districts result in 30 percent drop in fall

armyworm infestations on spring maize

In April 2022, FAW infested 355 hectares of spring maize in Banke and 120 hectares in Bardiya, resulting in

around 40 percent of reported damage to crops in some locations. To minimize crop loss, KISAN II

coordinated with government agencies, including AKCs, IALDOs, local municipalities, district maize

alliances, and with other USAID projects such as FTFNIPM and NSAF, to jointly organize an FAW field

awareness campaign. The campaign included technical orientation sessions on spring maize cultivation,

maize field inspections, and pesticide distribution to increase the capacity of over 500 farmers in FAW

identification and management. The AKC in Banke organized a plant clinic in Raptisonari Municipality that

enabled the GON plant protection laboratory to recommend appropriate pesticides to about 260 farmers.

As part of the campaign, IALDO and local municipalities in Bardiya provided pesticides to 270 farmers and

developed radio jingles in Nepali, Tharu, and Awadhi languages to spread information on FAW identification

and management through seven local FM stations. The campaign was highly successful: the IALDO-Bardiya

and the AKC-Banke reported reductions in FAW infestation from 40 percent to 10 percent.

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SOW 3.5 Conducting training, demonstrations, field days, and exposure visits

Training farmers on productivity-enhancing technology. In Y5, partners conducted 712

demonstrations on lead farmers’ fields, engaging 12,051 farmers (8,264 women, 8,533 from DAGs)

on improved and hybrid seed varieties of fine rice and yellow maize, jab planters for maize planting,

rice transplanters, corn shellers, IPM technology, green manuring, and improved crop production

and management practices. These demonstrations helped agrovets generate demand for agri-inputs

and machinery.

In Y5, partners held 10 farmers’ field days at a successful demonstration site,

engaging 337 farmers (224 female, 310 from DAGs) to showcase technologies and encourage their

adoption. During the events, neighboring farmers and municipal representatives participated,

observing innovative, improved technologies and management practices promoted by partners and

applied by lead farmers. Participants interacted with lead farmers to understand the benefits of the

technologies and improved seed varieties, and to observe differences between their existing

practices and the demonstrated approaches. Similarly, KISAN II collaborated with PMAMP and AKC

for the promotion of spring rice through demonstrations of new seed varieties (see Box 9).

Box 9. Partner joins hands with PMAMP’s rice super zone program to expand spring rice

production area

With support from KISAN II, SSOW partner Bihani Madyavarti Multipurpose Cooperative, in Bardiya, is

working in close coordination with PMAMP’s rice super zone program to expand spring rice production.

The cooperative has officially registered 38 potential farmers groups under PMAMP’s rice super zone

program, enabling them to qualify for subsidies offered by the PMAMP to support spring rice production.

The cooperative also leveraged 6 MT of seeds worth of NRs. 216,000 (USD 1,831) from PMAMP at a 50

percent subsidy and distributed the seeds to farmers. By leveraging resources and mobilizing extension

workers to deliver technical advice, the cooperative expanded the spring rice production area to 1,500 ha

of land in Y5—a 40 percent increase from the Y4 spring rice area. The increased area allows farmers to

grow and sell rice twice a year, increasing their incomes and food security, and providing local raw materials

for the millers.

SOW Activity 4 Strengthen the supply chain and promote diversified grain sourcing

SOW Activity 4.2 Promoting post-harvest services in rice and maize sectors

Promoting aggregation. Aggregation of maize from farmers is a major supply chain constraint in

Nepal’s maize sector. Limited aggregation and storage capacity restricts many local aggregators and

traders, many of whom can procure only limited volumes of maize from farmers when the market is

flooded with maize. To increase the capacity of local aggregators and traders, KISAN II promotes

the use of GrainPro cocoon bags (5 MT and above). These bags enable aggregators and traders to

collect and store maize during the main season without compromising quality. In Y5, Dhananjaya

Trading and Annapurna Suppliers were identified as potential grantees to pilot these bags.

Piloting on-farm cereal drying technology. In coordination with the PMAMP’s rice super zone

program in Bardiya, Bihani Madhyabarti Multipurpose Cooperative (BMMC) leveraged NRs.

3,918,400 (USD 33,207) at a 50 percent subsidy for seeds, machineries, multi-crop dryers, and

warehouses to facilitate aggregation and marketing of farmers' produce. To help BMMC diversify,

KISAN II supported the cooperative in preparing operational guidelines for a multi-crop dryer

installed on its premises. The guidelines will help operationalize the dryer, enabling the cooperative

to increase its income. KISAN II also facilitated the revision of BMMC’s existing policy to conform to

the new Cooperative Act.

Sales resulting from demonstrations will be evaluated in the next season (March–June 2023).

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SOW Activity 5 Strengthen coordination with GON and industry associations

SOW Activity 5.1 Collaborating with GON and industry associations

Collaborating with the GON. Throughout the project lifetime, KISAN II has worked in

partnership with the GON, as demonstrated by the successful implementation of the Joint Rice

Implementation Program with GON agencies at the district and local government level. In Y5,

SSOW partners in Dang conducted three program sharing meetings in Tulsipur, Shantinagar, and

Tulsipur Sub-metropolitan city. In all meetings, partners presented on the SSOW program, and

KISAN II presented on the project’s private sector approach, especially to promote fine rice and

industrial maize. During the meetings, the chief administrative officers and branch heads of the

municipalities committed to continued collaboration with KISAN II. The newly elected officials at the

local level were also briefed on KISAN II’s private sector-led approach.

SOW Activity 5.2 Mapping warehouse investments (public and private)

Mapping of grain storage facilities completed. During Y5, KISAN II assessed 85 warehouse

and storage facilities across the SSOW ZOI to determine constraints and issues faced by operators

of these facilities. KISAN II developed a digital application for managing warehouse information and

entered data from 61 warehouses into the system. The grain storage facility assessment found that

the total capacity of mapped storage infrastructures is 52,156 MT, 42,441 MT of which is from 49

warehouses, 9,615 MT from 20 traditional structures, and 100 MT from one silo. KISAN II will

update this data regularly and help identify gaps in production areas and storage infrastructure. This

will enable decisionmakers, such as AKCs, PMAMP, and municipal and provincial agriculture

ministries, to make informed decisions about where to support grain warehouses and storage units.

ACTIVITIES TO ACHIEVE SSOW OBJECTIVE 3

● Assess the needs of migrant returnees and other populations heavily affected by the COVID-19 crisis

and connect them to agriculture-related employment opportunities.

Assessing agriculture labor markets and needs and aspirations of migrant returnees and

other populations heavily affected by COVID-19. In Y5, KISAN II hired Local Initiatives for

Biodiversity, Research and Development (LIBIRD) Consulting Private Limited to assess agriculture

labor markets for KISAN II’s targeted value chains in the current COVID-19 context. The

assessment, which LIBIRD submitted in March 2022, also helped to identify the needs and aspirations

of migrant returnees and other populations heavily affected by COVID-19. Findings indicate that the

greatest agricultural employment opportunities are in commercial vegetable farming, followed by

goat farming, and the operation, repair, and maintenance of agri-machinery. The employment sectors

most preferred by target populations are vegetable production, followed by goat farming, and

vegetable trading. In response to a request for proposals, KISAN II selected a firm to conduct

training and capacity building activities for the target populations in high-opportunity sectors,

including apprenticeships or on-the-job training, beginning in Y6. The firm will build the capacity of

more than 300 targeted participants on off-farm occupations, off-season vegetable production, and

improved goat rearing.

ADDITIONAL MEL AND CLA ACTIVITIES PERTAINING TO THE SSOW

The following supplementary SOW activities were embedded into Component 5 MEL/CLA activities,

described above.

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Applying learnings from KISAN II’s mid-year review. As a part of its mid-year review

workshop in February 2022, KISAN II organized virtual learning sessions on fine rice and industrial

maize related to SSOW activities. During the workshop, the group discussed challenges on data

collection and indicators for fine rice and maize and made recommendations for years 6 and 7.

Integrating SSOW indicators in 2022 annual farmers’ survey and annual organizational

census survey. KISAN II integrated SSOW requirements into the 2022 annual farmers’ survey and

annual organizational census survey. These included organizational indicators related to fine rice and

industrial maize, such as the adoption of firm-level technologies; sales; and millers' fine rice

collection, processing, and storage capacity. Qualitative information on fine rice and industrial maize

for feed contributed to KISAN II’s analysis of import substitution. KISAN II collected secondary

information for this analysis from AKCs and related agricultural offices at the district, provincial, and

national levels.

ADDITIONAL GRANTS UNDER CONTRACT ACTIVITIES FOR THE SSOW

Through SSOW activities, KISAN II aims to reach an additional of 33,000 rice and maize farming

households, using high-impact partnerships with larger market actors who can catalyze downstream

supply chain changes and support transformative change. Under the SSOW, 60 grant applications

were received and evaluated in years 4 and 5, and subaward agreements were signed with the

selected organizations. To date, USAID approved 23 new grants under the SSOW (8 rice mills, 8

traders, 3 cooperatives, 3 agrovets, and 1 insurance company). Similarly, KISAN II executed a cost

modification for a rice mill partner signed under the original SOW to work on SSOW activities. A

learning and training partner will develop and host an online learning platform using knowledge

products developed by KISAN II to help scale up the use of the online learning platform. These 25

partners

are targeting an additional 35,900 fine rice and industrial maize farming households, 8 of

which represent DAGs (refer to Annex 2 for details).

Of 25 active partnerships, 4 are women-owned and 21 are male-owned. Five partner proprietors are from ethnic groups

(three Tharu and two Newar) and three proprietors are from the Madhesi group.

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ANNEXES

ANNEX 1. SUCCESS STORIES

Submitted as separate attachments.

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ANNEX 2. SUMMARY OF SIGNED GRANTS IN Y5

No.

Name of Grantee

Firm Type

No. of Targeted

Households

Shree Kisan Innovation Hub

will develop and host an

online learning platform using agricultural knowledge

materials developed by KISAN II to help scale up the use

of the online learning platform. The platform will provide

users with access to farming skills on different topics, such

as maize, rice, goats, vegetables, dairy, fish, poultry, meat

and fish processing, and agri-entrepreneurship.

Learning and

training partner

Rana Agrovet will promote hybrid/improved maize

varieties, provide extension services, and link farmers

with traders and feed mills.

Agrovet

800

Bihani Madhyavarti Multipurpose Cooperative

(BMMC) will provide agri-extension and direct marketing

services to farmers and will conduct 352 fine rice

production and industrial maize post-harvest trainings and

66 demonstrations on rice and maize. BMMC will also

establish collection depots, initiate digital banking services,

and procure machines for a custom hire center to expand

its machinery services.

Cooperative 1,200

Saurav Rice and Oil Mill Private Limited will build

an agri-extension program, provide direct marketing

services, and provide 300 trainings on fine rice production

to farmers. Additionally, the mill will conduct 120

trainings on maize production and post-harvest

management and 20 demonstrations on seed varieties,

fertilizers, insecticides, and the use of FAW lures to maize

farmers.

Rice mill

2,500

Laxmi Khadya Udhyog will conduct 136 training-cum-

demonstrations on fine rice cultivation and post-harvest

practices, 120 trainings on main season rice production,

and 16 trainings on spring rice production. It will also

provide 136 add-on trainings on disease, pest, and weed

management, and 106 post-harvest handling trainings on

fine rice. The miller will also support KISAN II to install

four shallow tube wells in selected areas.

Rice mill

1,500

Bandali Khadya Udhyog will develop an agri-extension

program to boost the production of local varieties of fine

rice and industrial maize. It will conduct 180 trainings on

local varieties of fine rice and industrial maize production,

along with 90 varietal and technology demonstrations.

KISAN II will support the mill to purchase and install

machinery and equipment to process high volumes of

quality rice and maize products.

Rice mill

1,000

Sahu Rice Mill will provide extension services and a

buy-back guarantee to farmers, strengthen the fine rice

and industrial maize collection networks, and adopt

proactive marketing strategies to increase sales. It will

conduct 288 trainings, 30 demonstrations targeting fine

rice farmers, and 30 demonstrations targeting industrial

maize farmers.

Rice mill

1,800

Dhananjaya Trading will promote the production of

summer industrial maize, train farmers on proper

agronomical and IPM practices, and promote the use of

ICT platforms and applications. Through this partnership,

2,000 households will increase their production of quality

industrial maize, which will then be purchased by

Dhananjaya Trading and supplied to processors.

Trader

2,600

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 2-2

AID-367-C-17-00001

No.

Name of Grantee

Firm Type

No. of Targeted

Households

Nishcal Agrovet Center will support farmers to

increase the production of industrial maize and fine rice

by providing technical trainings and services and increasing

farmers’ access to agri-inputs. It will encourage farmers to

produce fine rice and quality industrial maize, enabling

gallawalas to supply quality grain to the processing

industry.

Agrovet

2,000

Suraj Suppliers

will strengthen linkages between rice

farmers and the output market through improved

production of fine rice and aggregation support. This

partnership will focus on market-led production, as Suraj

Suppliers will educate farmers on improved and hybrid

fine rice varieties (as demanded by rice mills) and will

provide farmers with technical knowledge.

Trader 600

Laxmi Agrovet will provide extension and marketing

services to farming households in Gurvakot, Lekhbesi, and

Simta municipalities, which are high potential areas for

industrial maize production. It will formulate marketing

strategies to link farmers with feed mills and collectors

and to ensure a supply of quality seeds and inputs.

Agrovet

1,000

Buddhanagar Agro Farm will develop an agri-

extension program for farmers in Kapilvastu and Palpa

districts, orient and support them on maize production

and processing, and support an increased production of

quality industrial maize.

Trader

2,000

Laxmi Foods Packaging Udhyog will develop an agri-

extension program to increase production of industrial

maize, educate farmers on high-value and high-yielding

maize varieties, and provide them with a buy-back

guarantee.

Trader

1,000

Thakur Agro Industries will build farmers' capacity for

fine rice production, improve management practices and

technologies, and improve post-harvest practices.

Rice mill

2,200

Pramod Rice Mill will expand its operations, provide

technical advice on fine rice production and collection

services, offer a buy-back guarantee to farmers, and adopt

proactive marketing strategies to expand sales.

Rice mill

2,200

Paicho Pasal

will support farmers in Palpa district to

increase the production of quality maize to meet food

industry requirements. It will organize maize farmers'

groups into blocks for easier collection and will provide

transportation for this block-based aggregation. It will also

establish outlets in major viable production pockets.

Trader 3,200

Jansewa Swablamban Bikas Bachat Tatha Rin

Sahakari Sanstha Limited will promote maize

commercialization through technical services to farmers

and aggregation of industrial maize in Palpa district. The

cooperative will build its organizational capacity to impart

technical know-how and aggregation services to farmers.

Cooperative 800

Om Shreeram Khadhya Udhyog Private Limited

will promote the production of fine rice, strengthen its

supply chain, and adopt proactive marketing strategies to

increase sales. The mill will conduct 864 demonstration-

based trainings and provide technical assistance and

collection services to farmers.

Rice mill 4,600

Sunil Rice Mill will contribute to the import substitution

of fine rice and industrial maize in Banke district by

Rice mill

2,000

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 2-3

AID-367-C-17-00001

No.

Name of Grantee

Firm Type

No. of Targeted

Households

increasing production and productivity. To improve rice

aggregation and sales to feed processors, the mill will

offer market assurance to farmers through two gallawalas

who will serve as collection depots.

Samriddhi Krishi Sahakari Sanstha Limited will

provide extension services to farmers and will encourage

them to produce industrial maize. The cooperative will

formulate marketing strategies to link farmers directly to

partner feed mills and collectors. The cooperative's

experience with seed production and agrovet operations

will enable farmers to access quality inputs required to

produce industrial maize.

Cooperative

1,000

Annapurna Suppliers will motivate 3,000 farmers to

grow yellow industrial maize as demanded by feed mills

and will hire six collectors to collect maize from farmers.

It will also provide market assurance to farmers through

six collection points to ease aggregation logistics.

Trader

National Vision Agro Private Limited

will install a

commercial maize dryer and produce total mixed ration

and pr (animal feed) during the off-season. This will ensure

a year-round supply of locally produced cattle feed and

reduce reliance on imported maize grains for feed.

Trader *

Nepal Warehousing Company Public Limited

(NWCL) will provide grain storage facility to farmers,

traders, and feed processors that will contribute to a

sustainable, transformational change in Nepal’s industrial

maize sector.

Trader

900**

Himalayan General Insurance Company Limited

(HGI) will develop an online portal where farmers/agents

can process insurance claims online and monitor insured

fields, and HGI can virtually monitor insurance services.

Insurance

company

Shree Radha Krishna Rice Mill will provide extension

services to farmers and will package and sell fine rice by

adopting targeted marketing strategies.

Rice mill

1,000

* These partners (Annapurna Suppliers and National Vision Agro Private Limited) will serve existing KISAN II farmer

beneficiaries.

** NWCL will serve 1,800 households, of which 900 are new.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 3-1

AID-367-C-17-00001

ANNEX 3. SELECT ACTIVITIES FOR Y6T1

Ensuring Enabling Environment for Agribusiness

▪ Conduct five municipal-level meetings and two municipal-level joint monitoring meetings.

▪ Conduct one technical committee (TC) meeting, one steering committee meeting, and three

provincial level meetings.

▪ Conduct five meetings with agriculture knowledge centers, veterinary hospital and livestock service

expert centers and the Prime Minister Agriculture Modernization Project.

▪ Conduct five meetings with district coordination committees and district chambers of commerce and

industry.

▪ Participate in district-level annual review meetings.

▪ Conduct one joint sector review TC meeting.

▪ Support GON for ICT-based M&E system.

▪ Support drafting of National Agriculture Policy.

▪ Conduct three Agricultural Sector Policy Think Tank meetings.

▪ Provide technical and coordination support to the GON for policy agenda (private sector engagement

guidelines, food safety regulations and provincial agriculture development strategies in Sudurpaschim

and Lumbini Provinces).

▪ Finalize policy brief report on major issues and policy recommendation in the rice sub-sector.

▪ Develop technical operating procedure for grain warehouses.

Objectives 1 and 2

▪ Conduct training of trainers for KISAN staff on business management.

▪ Train partners on finance, sales, and operations.

▪ Ensure business development service provider/s develop and market short courses related to

marketing, finance, administration, and sales.

▪ Train 500 farmers’ groups on digital platforms.

▪ Orient partners on digital software to help them optimize their businesses.

▪ Link 2,000 farmers with maize grain aggregators.

▪ Collaborate with Nepal Banking Association to promote business plan format to farmers.

▪ Link five partner firms and their associated farmers with commercial banks for interest subsidized

loans.

▪ Launch KISAN card.

▪ Prepare cost-benefit analysis on Rice Mill Model.

▪ Print and disseminate integrated pest management (IPM) training materials and train 8,000 farmers on

IPM. Distribute 20,000 copies of training materials on fine rice and industrial maize.

Objective 3

▪ Conduct capacity strengthening activities for 150 migrant returnees and other populations heavily

affected by COVID-19.

▪ Orient 150 target population individuals on access to financial services and business plan

requirements.

Grants Under Contract

▪ Approve five cost modifications, and coach and monitor at least 20 grantee partners.

Operations and Communications

▪ Develop and disseminate KISAN II biweekly updates, outreach materials, and learning pieces.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 4-1

AID-367-C-17-00001

ANNEX 4. DETAILED IMPLEMENTATION PLAN TABLE

Note: Only the output indicators, collected by trimester, are tracked in this table.

Activity

No.

Component, Sub-objective, Activity

Unit

Target

Achievement

Remarks

Collaboration with GON - CL 1 & 2

CL.1

Disseminate and deepen understanding of the private sector led approach

CL.1.1

Conduct municipal briefings on KISAN II exit plan

and continuation of private sector led

approach/activities in the GON system

Event

Because of the prevalence of COVID-19, the KISAN

II exit plan could not be discussed with

municipalities as envisaged. However, KISAN II field

staff met key officials in 68 municipalities and handed

over appreciation letters for their support and

collaboration in KISAN II activities.

CL.1.2

Joint monitoring visits with municipal officials (1-day)

- By project

Event

100

Visits were conducted as planned.

CL.1.3

Municipality level briefings/discussions on approach

and underlying activities (By partners)

Event

N/A

Conducted by partners.

CL.1.4

Joint monitoring visits with municipal officials (1-day)

— By partners

Event

N/A

Conducted by partners.

CL.2

Coordination with the Government of Nepal

CL.2.1

Central level coordination

CL.2.1.1

Conduct JNSC meetings

Event

Due to the rise in COVID-19 cases in the beginning

of Y5 and changes in MOALD leadership, JNSC

meeting could not be organized in T1.

CL.2.1.2 Conduct TC meetings Event 4 1 25 Due to COVID-19, the meeting could not be

organized in T1 and T2. In T3, a meeting with TC

members was held to discuss on draft AWP and

other relevant issues.

CL.2.1.3

Joint monitoring visits with JNSC and TC members

(3 days)

Event

100

The organization of this visit strengthened

collaboration among the GON, KISAN II, and

private sector in promoting fine rice and industrial

maize.

CL.2.2

Provincial level coordination

CL.2.2.1

Conduct meeting with provincial-level officers

Event

200

One round of virtual meetings was conducted with

all four provinces during district close out time and

another round of meetings was conducted later.

CL.2.2.2

Joint monitoring visits with officials working at the

provincial agricultural ministry (2 days)

Event

100

Joint monitoring visits were organized in Bagmati,

Lumbini, and Sudurpaschim provinces.

CL.2.2.3

Meeting with AKCs, VHLSEC, and PMAMP

Event

227

Due to COVID-19, meetings were organized

separately with individual offices; thus, the number

of meetings was increased.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 4-2

AID-367-C-17-00001

Activity

No.

Component, Sub-objective, Activity

Unit

Target

Achievement

Remarks

CL.2.3

District-level coordination

CL.2.3.1

Participate in district level review meeting

Event

N/A

CL.2.3.2

Conduct district level meetings to reinforce GON-

private sector linkages in agriculture service delivery

after KISAN II

Event

Due to COVID-19, KISAN II conducted virtual

close-out meetings for districts in Sudurpaschim,

Karnali, and Lumbini provinces and handed over

appreciation letter to 37 different organizations in

10 districts for their ongoing collaboration with

former partners.

CL.2.4

Municipal level coordination

CL.2.4.1

Complete COVID impact assessment in

municipalities and recommend for planning.

Report

100

Completed and the report was shared with

municipalities in T2.

CL.3

Support for Joint Sector Reviews (JSR)

CL.3.1

Annual national ADS-JSR committee meeting

Event

100

Completed; however, it was delayed and conducted

on a small scale (in conjunction with National ADS

Implementation Committee meeting) due to

COVID-19 followed by local elections.

CL.3.2

ADS-JSR technical committee meeting for review and

planning

Event

100

Completed.

CL.3.3

Prepare, print, and distribute third annual progress

report

Copies

300

100

Completed. Further, JSR brochure (in English and

Nepali) was updated, printed, and distributed.

CL.3.4

Prepare JSR operating procedure

Report

100

Preliminary draft prepared. Discussions are ongoing

whether it should be finalized as a stand-alone

document or integrated into MOALD's coordination

directives under preparation.

CL.3.5

Support sub-national level policy consultations in

Bagmati, Lumbini, Karnal, and Sudurpaschim

provinces

Event

100

KISAN II supported sub-national consultations in

Sudurpaschim and Lumbini provinces. However,

European Union resource was mobilized in

conducting sub-national consultations in Karnali and

Bagmati provinces.

Component 2: Strengthen the Competitiveness, Resilience, and Inclusiveness of Selected Agricultural Market Systems

2.0

Conduct and update opportunity mapping

exercise

No.

N/A

2.1

Sub-objective 2.1: Strengthen the organization and coordination of selected market systems

2.1.1

Conduct cost benefit analysis of Rice Mill Model

Report

100

Draft report has been submitted to KISAN II and

will be finalized by mid-August 2022

2.1.2 Establish new ICT partnership No. 1 1 100 Signing of partnership agreement with R&D

Innovative Solutions in process Activities will be

continued in Y6.

2.1.3

Train farmers

39000

39183

100

Completed.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 4-3

AID-367-C-17-00001

Activity

No.

Component, Sub-objective, Activity

Unit

Target

Achievement

Remarks

2.2

Sub-objective 2.2: Strengthen partner firms, cooperatives, and other SMEs to support selected market systems

2.2.1

Revise and disseminate COVID-19 relief instructional

materials

Copies

500

100

Completed.

2.2.2

Coach BOD and relevant staff of coops (60 coops)

Person

120

282

235

More participants as this was done virtually.

2.2.3

Conduct refresher TOT to grantee extension staff (3

days)

Person

160

Provided additional light touch support to phase-out

partners who have retained extension workers.

2.3

Enhance financial services markets that serve selected market systems

2.3.1

Ensure wholesale loans to expand access to

wholesale credit

No.

133

4 cooperative partners in Banke accessed wholesale

loans. Meanwhile, Bihani Madhyawarti Multipurpose

Cooperative and Hatemalo Agri-market

Cooperative have both been linked with National

Cooperative Bank and have applied to access

wholesale loans.

2.3.2

Enable cooperatives to use digital payment platforms

or digital finance

No.

233

4 cooperative partners adopted E-banker software

and started digital management of cooperative

system by replacing manual entry system. Moreover,

BMMC of Bardiya installed Digital Advance

Accounting Software, and Gangamala Savings and

Credit Cooperative of Surkhet upgraded its digital

financial system. Kasturi Cooperative of Jajarkot has

also installed an advanced accounting software and

has started providing digital services.

2.3.3

Facilitate coop licensing for micro-insurance

No.

117

6 KISAN II partner firms received insurance agent

training and are in process of receiving agent license.

BMMC in Bardiya obtained license from Everest

Insurance Company.

2.4

Enhance market infrastructure and other services to support selected market systems (Sub-objective 2.4)

2.4.1

Develop and disseminate warehousing SOP and

guidelines

No.

Report was received but was found to be plagiarized

from a document developed by the Government of

Bhutan. Techsol Pvt. Ltd. did not respond to any

formal communication on the matter. Contract was

terminated.

2.4.2

Support cooperatives in operation of cold storage or

packhouse

No.

125

Palung Bahuudessiya Sahakari Sanstha Limited and

Sana Kisan Krishi Sahakari Sanstha Limited received

training from post-harvest consultant. Aatmanirvar

Bahuudeshiya Sahakari Sanstha Limited, Suryamukhi

Sana Kisan Krishi Sahakari Sanstha Limited, and

Namuna Krishak Sahakari Sanstha Limited received

consultation from Saptkrishi Pvt. Ltd. on cold store

operation and management.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 4-4

AID-367-C-17-00001

Activity

No.

Component, Sub-objective, Activity

Unit

Target

Achievement

Remarks

2.4.3

Equip and launch custom hire operator

No.

100

Completed.

2.4.4

Conduct study on effectiveness of social media

marketing

Report

100

Completed.

2.4.5

Strengthen and launch ICT platform to increase

access to market information

No.

100

Partnership with Shree Kisan Innovation Hub has

been extended till November 2022 to complete the

deliverables.

2.4.6

Organize virtual orientation to link partners with

mass SMS service providers to increase access to

market information

Event

100

Conducted in April 2022.

2.4.7

Facilitate adoption of record keeping for breeding in

goat farms

No.

100

Two partner farms in Nuwakot and 3 GON farms

(Kailali, Kaski and Tanahun).

2.4.8

Facilitate importing of frozen Boer buck semen from

USA

Event

100

Completed.

2.4.9

Coach firm through BDS procurement and

assessment process

No.

100

Jalpa Rice Mill, Marutinandan Agri Industries, Nain

Rice Oil and Flour Mill, Bina Food Product and

Udhyog, Swadista Rice Mill received 6-month

mentorship from Biruwa Advisors.

2.4.10

Conduct meeting with National Goat Working

Group (NGWG)

Event

100

Completed.

Component 1: Improve Productivity of Selected Agricultural Marketing System.

1.1

Strengthen the capacity of input supply systems to deliver timely and affordable productivity-enhancing technologies

1.1.1

Conduct refresher TOT to grantees' extension

workers (3 days)

No.

160

Provided additional light touch support to phase-out

partners who have retained extension workers.

1.1.2

Disseminate technical message through mobile SMSs

No.

150

Sent SMSs related to rice, lentils, and vegetables.

1.1.3

Train extension workers on IPM (2 days)

No.

100

Completed.

1.1.4

Print and disseminate IPM training materials

Copies

10000

10,000

100

IPM on fine rice and industrial maize.

1.1.5 Disseminate technical message on IPM through

mobile SMSs

No. 2 2 100 Completed.

1.2

Increase adoption of profitable, productivity-enhancing, and climate-smart technologies by all groups, including youth, women, and disadvantaged

groups

1.2.1

Print and disseminate productivity enhancing training

materials

Copies

20000

20,000

100

Materials on fine rice and industrial maize.

1.2.2

Share video via mobile technology to participating

households

Person

10000

34,200

342

Provided technical support during lockdown by

sharing videos via mobile phones.

1.2.3

Conduct in-house assessment on the impact of

video-based extension approach among farmers and

the technology adoption rate.

No.

100

Report completed and shared with MEL team.

1.2.4

Conduct refresher training on video production (3-

days)

Event

In-person training was not possible due to COVID-

19 lockdown; thus the training was canceled.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 4-5

AID-367-C-17-00001

Activity

No.

Component, Sub-objective, Activity

Unit

Target

Achievement

Remarks

1.2.5

Conduct demonstration

No.

300

304

101

Completed.

1.2.6

Conduct field days

No.

133

Partners conducted more field days as activity is

useful to showcase partners' activities and to

leverage resources from municipalities.

Component 3: Strengthen the Enabling Environment of Selected Agricultural Market Systems

3.1

Sub-objective 3.1: Build capacity for streamlining, harmonizing, & coordinating GON policies & regulations

3.1.1

Technical support to MOALD for PSE guideline

approval process

Report

Seventh JNSC meeting held in February 2022

resulted in decision to request federal cabinet

approval of these guidelines. MOALD is planning to

attach the guidelines with Agribusiness Promotion

Bill, which is under process of formulation.

3.1.2 Technical support to MOALD for Food Safety

Regulations (licensing and registration of food

business, and import-export inspection and

certification) approval process

Event 2 0 0 Food safety regulations have submitted to MOALD's

DFTQC in Y4 for approval. These regulations will

go into the process as soon as the Food Safety and

Standard Bill is approved.

3.1.3

Support MOALD to formulate National Agriculture

Policy (NAP) and validation workshop

Report

MOALD conducted sub-national consultations in

seven provinces and obtained feedback on the draft

NAP. KISAN II started formulating NAP based on

feedback from sub-national consultations and will

finalize in Y6.

3.1.4

Support for Agricultural Sector Policy Think Tank to

strengthen policy analysis capacity building for GON

senior officials

Event

100

MOALD held one advisory committee and two task

force committee meetings.

3.1.5

Support to formulate provincial agriculture

development strategies (PADS) for Lumbini and

Sudurpaschim provinces

No.

100

KISAN II finalized and submitted PADS-SP to

MOLMAC-Sudurpaschim province in Y5 and

finalized PADS-LP in Y5 for submission to

MOAFTLM in Y6.

3.1.6

Prepare Agriculture Warehouse Act/Operating

Procedure

Report

KISAN II initiated preparing "Technical Procedure

for Grains Warehouse" in Y5 and will finalize in Y6.

3.1.7

Complete assessment of the utilization of COVID-19

relief and post-recovery measures under Monetary

Policy

Event

100

Completed this assessment in Y5T1.

3.1.8

Conduct PPD to finalize assessment of the utilization

of COVID-19 relief and post-recovery measures

under Monetary Policy

Event

100

KISAN II met with Nepal Rastra Bank (NRB) to

discuss the findings of the assessment and suggested

to improve the effective implementation of COVID-

19 relief and recovery provisions and facilities.

3.2

Sub-objective 3.2: Improve investments, management, and governance (e.g. standardization) of infrastructure

3.2.1

Finalize grain storage technology menu

Report

100

Completed.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 4-6

AID-367-C-17-00001

Activity

No.

Component, Sub-objective, Activity

Unit

Target

Achievement

Remarks

3.2.2

Print grain storage technology menu for distribution

Copy

500

3000

600

KISAN II published a brief storage technology menu,

translated into Nepali, and distributed to farmers

and traders through GON, private sector and

KISAN II.

3.2.3

Assess taxes and other issues on paddy and rice

Report

KISAN II initiated assessment on major issues and

policy recommendations to improve rice sub-sector

in Y5 and will finalize in Y6.

3.3

Sub-objective 3.3: Improve systems to increase the quality of selected commodities

3.3.1

Distribute food safety booklet to farmers, traders,

and consumers.

Copies

1000

2000

200

KISAN II published food safety booklet and

distributed to vegetable farmers through KISAN II,

Suaahara II, and GON agencies.

3.4

Sub-objective 3.4: Support local government agencies to improve and rationalize spending in support of market systems development

3.4.1

Complete case study with municipalities for

infrastructure investment

Report

100

KISAN II finalized agricultural market feasibility

study and submitted to Melamchi Municipality.

Component 4: Increase vulnerable communities’ ability to act on business opportunities within selected market systems (Business Literacy and Development)

4.1

Develop and adapt business literacy training materials

4.1.1

Prepare Module 6 (Business Development) contents

for virtual delivery including community TOT

package

Module

100

Completed and used during virtual training.

4.1.2

Disseminate compressed community videos to

participants through mobile devices

Person

9000

8,243

Some in-person participants did not have

smartphones.

4.1.3

Prepare a video on "What farmers need to learn for

commercial agriculture"

No.

100

Completed.

4.2

Recruit and train trainers

4.2.1

Recruit community trainers for short course

Person

340

548

161

Due to COVID-19, more trainers were recruited to

conduct in-person trainings in 767 locations for

smaller group of participants.

4.2.2

Conduct master TOT for master trainers for short

course (5 days)

Person

100

Organized TOT for 19 master trainers.

4.2.3

Conduct TOT for community trainers for short

course (5 days)

Person

340

333

Organized community trainer TOT events.

4.2.4

District level reviews and orientations for community

trainers

No.

340

333

Organized during middle of the short course.

4.3

Deliver business literacy training to poor, marginalized communities

4.3.1

Graduate 9,000 participants through regular short

business literacy course

Event

900

767

767 events were found to be sufficient to graduate

targeted 9,000 participants as in-person trainings

could accommodate more participants. A total of

9,397 participants graduated in Year 5.

4.3.2

Prepare component close-out assessment

Report

Preparation of a final report is in process.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 4-7

AID-367-C-17-00001

Activity

No.

Component, Sub-objective, Activity

Unit

Target

Achievement

Remarks

4.3.3

Link graduates with municipalities, financial

institutions, and other service providers

Event

900

767

Merged some events to make interactions more

effective.

Component 5: Collaborate, Learn and Adapt (Objective: Apply CLA to Market Systems Development)

Learning Questions

5.0.1

Implement a learning agenda to strengthen partner and beneficiary competitiveness, inclusiveness, and resilience

5.0.1.1

How did community video affect adoption of

recommended management practices and

technologies among BLP and non BLP participants?

Report

100

Completed.

5.0.1.2

How have training materials and program delivery

under BLP contributed for agri-entrepreneurship

development of participants, particularly of female

and marginalized participants?

Report

100

Completed.

5.0.1.3 Have services provided by private sector partners

such as training, demonstrations, exposure visits, field

visits, improved input quality and supply, and other

extension services helped KISAN II farmers

overcome barriers in the market system?

Report 1 1 100 Completed.

5.0.1.4

What lessons were learned during KISAN’s

implementation of activities to strengthen the market

systems for vegetables, goats, and lentils?

Report

100

Completed.

5.0.1.5

Prepare value chain specific case studies and/or

infographics.

Report

100

Completed.

5.1

CLA Activities

5.1.1 Conduct virtual mid-year reflection (pause and

reflect workshop)

Event 1 1 100 Completed.

5.1.2

Conduct cluster-level review and learn sessions

Event

100

Completed.

5.1.3

Conduct central level pause and reflect workshop

100

Completed.

5.1.4

Conduct MEL data-sharing workshop

Event

100

Completed.

MONITORING AND EVALUATION (M&E)

5.2

Sub-objective 5.5: Apply CLA to Monitoring and Evaluation

5.2.1

Update and submit MEL plan to USAID/Nepal

Report

100

Completed.

5.2.2 Upgrade and operationalize WIKISAN 2.0 (as

needed)

Event 1 1 100 Completed.

5.2.3

Train data entry field staff on data collection and

regular checks

Person

120

Additional staff were trained for data entry.

5.2.4

Conduct spot checks and internal DQA (as needed)

Event

100

Completed.

5.2.5

Design and conduct annual farmers’ survey to

measure outcomes

Event

100

Completed.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 4-8

AID-367-C-17-00001

Activity

No.

Component, Sub-objective, Activity

Unit

Target

Achievement

Remarks

5.2.6

Design and conduct annual organizational census

survey to measure outcomes

Event

100

Completed.

5.2.7

Submit project data to USAID and GON (as needed)

Report

100

Completed.

5.2.8

Train KISAN II and grantees' staff on EMMP and

PERSUAP (as needed)

person

GRANTS UNDER CONTRACT (GUC)

GUC.1

Close grants/MOU

No.

100

Completed.

GUC.2

Conduct exit interview of grantees

No.

OPERATIONAL AND COMMUNICATION ACTIVITIES (OP)

OP.1

Modify agreements with consortium subcontractors

Report

Modified 4 subcontracts.

OP.9

Develop and disseminate KISAN II bi-weekly updates,

outreach materials and learning pieces

Report

100

Completed.

OP.11 Develop value chain close-out products Report Developed 3 interactive technical briefs for 3 closing

value chains (goats, lentils, and vegetables). To be

finalized in early Y6.

OP.12

Develop KISAN II digital library

Event

Developed a KISAN II digital library that includes all

USAID-cleared project materials.

OP.14

Conduct annual review and planning meeting for

supplemental SOW

Event

100

Completed.

DETAILED ACTIVITIES PLANNED FOR SSOW

Obj. 1 & 2

Obj. 1: Enable market actors to upgrade their management and technical capacity and infrastructure to meet domestic market demand for

improved rice and maize products.

Obj. 2: Facilitate the adoption of inclusive business practices that expand market actors’ resources and customer base and deliver benefits to a

range of actors in the system, including smallholders’ farmers involved in the production of rice and maize.

SOW 1

Design and streamline interventions in rice and maize sectors

SOW 1.1 Updated implementation strategy and associated

activities

No. 1 1 100 Completed.

SOW 2

Strengthen the capacity of rice and maize value chain actors (millers, traders, transporters, input suppliers, warehouse management companies,

etc.)

SOW 2.1

Identify market actors and potential partners in ZOI

SOW 2.1.1

Establish partnership with private firms

No.

Grants.

SOW 2.2

Invest in increasing the technical capacity of rice & maize actors

SOW 2.2.1 Conduct management trainings to rice and maize

actors

Event 3 1 33 BDS service provider hired to provide management

and business training to Buddhanagar Agro. The

material developed (SOPs) will be used to support

other private sector entities in Y6.

SOW 2.3

Strengthen financial linkages

SOW 2.3.1

Facilitate for interest-subsidized loans

No.

100

Completed.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 4-9

AID-367-C-17-00001

Activity

No.

Component, Sub-objective, Activity

Unit

Target

Achievement

Remarks

SOW 2.3.2

Conduct linkage meetings

Event

100

Completed.

SOW 2.3.3

Expand digital payment system to partners

Event

100

Completed.

SOW 2.4

Empower women, DAGs and vulnerable households

SOW 2.4.1

Conduct training on customer profiling and targeted

marketing to include GESI/DAG households.

Event

100

Completed.

SOW 3

Support partners to strengthen the capacity of rice and maize farmers

SOW 3.1

Facilitate intensification and diversification of male and female farmers and socially excluded groups into higher-value commodities

SOW 3.1.1

Form farmer groups involving 32,000 farmers

Group

1,280

1,272

Ongoing

SOW 3.2

Strengthen the capacity of input supply systems to deliver timely and affordable productivity-enhancing technologies

SOW 3.2.1

Conduct TOT to private sector extension workers

Person

Partners delayed in hiring extension staff.

SOW 3.2.2

Print and disseminate existing productivity enhancing

training materials for rice and maize

Copies

20000

20,000

100

Completed.

SOW 3.3

Expand development, dissemination, and adoption of integrated pest management

SOW 3.3.1

Conduct TOT to private sector extension workers

on IPM

Person

Partners delayed in hiring extension staff.

SOW 3.3.2

Print and disseminate existing IPM training materials

for rice and maize

Copies

10000

10,000

100

Completed.

SOW 3.3.3

Train farmers on IPM

Person

10000

9130

Ongoing.

SOW 3.3.4

Disseminate technical message through mobile SMSs

Person

100

Promotion of fine rice and maize.

SOW 3.4

Combat fall armyworm

SOW 3.4.1

Train extension workers on FAW identification and

management

Person

100

Completed.

SOW 3.4.2

Train farmers on FAW management

Person

5000

100

Completed.

SOW 3.4.3

Print and disseminate existing FAW training materials

for rice and maize

Copies

5000

100

Completed.

SOW 3.4.4

Develop FAW awareness message in local languages

and aired by FM radio

No.

100

Aired in Nepali, Awadhi and Tharu language.

SOW 3.5

Conduct training, demonstrations, field days, and exposure visits

SOW 3.5.1

Train farmers on productivity enhancing technology

Person

32000

32,071

100

Completed.

SOW 3.5.2

Conduct demonstrations

No.

700

712

102

Completed

SOW 3.5.3

Conduct cost benefit analysis of hybrid maize

production in hill.

Report

100

Completed.

SOW 3.6

Improve post-harvest management and sales

SOW 3.6.1

Promotion of new production and post-harvest

technologies

No.

Delayed; will be completed in Y6.

SOW 3.7

Encourage savings and promote insurance

SOW 3.7.1

Conduct meeting with financial institutions

Event

100

Completed.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 4-10

AID-367-C-17-00001

Activity

No.

Component, Sub-objective, Activity

Unit

Target

Achievement

Remarks

SOW 3.7.2

Conduct insurance promotion activities

Event

100

Completed.

SOW 3.7.3

Conduct liaison meetings between financial

institutions (commercial banks, development banks,

cooperatives) and private companies to facilitate

warehouse receipts

Event

100

Completed.

SOW 4

Strengthen supply chain and promote diversified grain sourcing

SOW 4.1

Facilitate business negotiations and planning with input suppliers

SOW 4.1.1

Conduct linkage meetings

Event

100

Completed.

SOW 4.2

Promote aggregation in rice and maize sectors

SOW 4.2.1 Promote new technology for aggregation. No. 3 0 0 Due to global supply chain issues and high price

volatility, could not be conducted in Y5. Project’s

partnership and innovation fund advisory committee

has approved piloting of cocoon bags with new

grantee partners in Y6-Y7.

SOW 4.2.2

Establish partnerships with Nepal Warehousing

Company and trader

No.

100

Completed.

SOW 4.2.3

Pilot maize drying technology in two districts

Event

100

Completed.

SOW 5

Strengthen coordination with GON and industry associations

SOW 5.1

Collaborate with GON and industry associations

SOW 5.1.1

Conduct collaboration meeting with GON and

industry associations

Event

100

Meeting conducted with Nepal Feed Association,

Nepal Bankers Association and Participated in

workshop organized by Department of Agriculture

and Nepal Agriculture Extension Association.

SOW 5.2

Map warehouse investments (public and private)

SOW 5.2.1

Map warehouse investments (both public and private)

No.

100

Completed.

SOW 5.3

Collaborate with other actors

SOW 5.1.1 Conduct collaboration meeting with other

stakeholders

Event 3 3 100 Completed.

SOW 5.1.2

Conduct linkage meeting with ICT

providers/companies

Event

100

Completed.

Obj. 3

Assess the needs of migrant returnees and other populations heavily affected by the COVID-19 crisis and connect them to agriculture-related

employment opportunities

SOW 6

Continue review of returnee migrant workers and other groups heavily impacted by the COVID-19 and of relevant GON and non-governmental

resources

SOW 6.1

Assessment on needs and preferences of target

population (returnee migrants and COVID-19

affected population) completed

Report

100

Finalized in March 2022.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 4-11

AID-367-C-17-00001

Activity

No.

Component, Sub-objective, Activity

Unit

Target

Achievement

Remarks

SOW 7

Build capacity of migrant returnees and other populations heavily affected by the COVID-19 crisis

SOW 7.1

Select subcontractors

Person

KISAN II decided to conduct training and capacity

building activities to 314 target population through

one subcontractor. Firm has been selected and

onboarding of this firm will be completed early

Y6T1.

SOW 7.2

Conduct vocational training to migrant returnees.

Person

300

Delay in finalizing subcontract.

SOW 7.3

Conduct short-term training to targeted participants.

Person

150

Delay in finalizing subcontract.

SOW 7.4

Train participants and support them for NSTB skill

test and facilitate 15 in-kind grants.

Person

Delayed in finalizing subcontract.

SOW 7.5

Engage participants for OJT or apprenticeship

Person

Delay in finalizing subcontract.

SOW 7.6

Train participants on Business Management

Person

100

Delay in finalizing subcontract.

SOW 7.7

Train participants on Business Development

Person

400

Delay in finalizing subcontract.

SOW 8

Facilitate access to credit for migrant returnees and other populations heavily affected by the COVID-19 crisis through advocacy and coordination

with financial institutions

SOW 8.1

Orient target populations on access to financial

services and business plan requirements.

Person

1030

Delay in finalizing subcontract.

SOW 9

CLA and MEL Activities

SOW 9.1

Conduct MEL learning workshop on maize and fine

rice (in conjunction with Activity 5.1)

Report

100

Completed.

SOW 9.2

Design and conduct an annual farmers’ survey to

measure outcomes (in conjunction with Activity 5.2)

Event

100

All districts.

SOW 9.3

Design and conduct an annual organizational census

survey to measure outcome (in conjunction with

Activity 5.2)

Event

100

208 grant partners/affiliates surveyed.

SOW 9.4

Submit SOW performance data to USAID and GON

(As needed) (in conjunction with Activity 5.2)

100

Included in annual progress report 2022.

SOW 9.5

Update the KISAN II Environmental Management and

Monitoring Plan (EMMP) for Year 6 (in conjunction

with Activity 5.2)

Report

100

Completed.

SOW 9.6

Train grantees' staff on EMMP and PERSUAP

Person

Partner delay in hiring extension staff.

SOW 10

Grants under Contract (GUC) Activities

SOW 10.1

Issue an Annual Program Statement and/or RFA

targeting rice and maize sector actors (if needed)

No.

200

An additional RFA was published targeting maize

aggregators, processors, and other maize value chain

actors.

SOW 10.2

Award grants

No.

100

The total number of active partners is 25.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 5-1

AID-367-C-17-00001

ANNEX 5. PERFORMANCE INDICATOR TRACKING TABLE

KISAN

II Code

No.

Code No. in

M&E Plan

Indicator

Baseline

% of

Target

Deviation Notes

(With all disaggregated information as

mentioned in PIRS)

Target

Actual

EG. 3-1

(Nepal 2.1.1-4)

Number of households benefiting directly from

USG assistance under Feed the Future

233,000

235,789

101

EG.3-2

Number of individuals participating in USG food

security programs [IM-level]

237,800

258,808

109

K3 EG.3.2-1

(Nepal 2.1.1-3)

Number of individuals who have received USG

supported short-term agricultural sector

productivity or food security training [IM-level]

NA 81,800 85,223 104

EG.3.2-24

Number of individuals in the agriculture system

who have applied improved management

practices or technologies with USG assistance

[IM-level]

122,854

203,316

197,084

K5 Custom 1

(EG.3.2-

306_CUST)

Average number of improved management

practices or technologies applied per household

with USG assistance.

4 5.4 4.88 90

Type of Commodities: Rice

Type of Commodities: Maize

Type of Commodities: Lentil

Type of Commodities: Vegetables

Type of Commodities: Goats

GNDR-2

Percentage of female participants in USG-assisted

programs designed to increase access to

productive economic resources (assets, credit,

income, or employment)

80%

84%

105

YOUTH-3

Percentage of participants in USG-assisted

programs designed to increase access to

productive economic resources who are youth

(15-29) [IM-level]

15%

10%

K8 EG.3.2-25 Number of hectares under improved

management practices or technologies with USG

assistance [IM-level]

39,685 74,075 53,321 72 Reduced number of individuals cultivating

in a lesser area (28%) resulted in a lower

number of hectares.

Reporting 1

(EG. 3.2.-307-

CUST)

Total farm-level volumes (MT) produced of

targeted agricultural commodities with USG

assistance (rice, maize, lentil, vegetables, goats)

180,218

837,705

495,018

Due to COVID-19 constraints and

October 2021 heavy rain, as well as supply

chain constraints resulted in less cultivated

area and low production.

Commodities: Rice

101,894

260,995

226,666

Commodities: Maize

22,885

50,600

31,514

Commodities: Lentil

2,753

5,877

4,565

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 5-2

AID-367-C-17-00001

KISAN

II Code

No.

Code No. in

M&E Plan

Indicator

Baseline

% of

Target

Deviation Notes

(With all disaggregated information as

mentioned in PIRS)

Target

Actual

Commodities: Vegetables

48,448

519,770

231,156

Commodities: Goats

4,239

464

1,117

K10a

EG.3-10

Yield of targeted agricultural commodities among

program participants with USG assistance per

hectare [IM-level]

313

286

Crops: Rice

3.49

5.28

5.21

# of HH

82,000

81,597

# of male

39,872

35,395

# of female

21,262

46,202

Total Production (MT)

101,894

260,995

226,666

Unit of Production (Ha)

29,173

49,460

43,488

Crops: Maize

3.54

The shortfall is primarily due to

unavailability of quality seeds. supply chain

distortions, and lower technologies

adopted.

# of HH

50,000

48,978

# of male

34,479

22,468

# of female

23,472

26,510

Total Production (MT)

22,885

50,600

31,514

Unit of Production (Ha)

11,687

12,650

8,907

Crops: Lentil

1.03

0.94

# of HH

24,500

33,654

# of male

17,770

13,088

# of female

8,841

20,566

Total Production (MT)

2,753

5,877

4,565

Unit of Production (Ha)

5,001

5,713

4,879

Crops: Tomato

42.4

34.41

Reduction in cultivated area by 30%, led to

a decrease in production per household by

35% and yield by 19%. This reduction

mainly is due to hill farmers (75%)

experiencing lower yield (32.80 MT/ha)

than farmers in Terai (55.67 MT/ha).

# of HH

71,964

47,856

# of male

10,123

20,780

# of female

6,144

27,076

Total Production (MT)

9,459

101,754

43,660

Unit of Production (Ha)

658

2,400

1,269

Crops: Cauliflower

23.83

24.48

103

# of HH

109,193

73,883

# of male

11,891

5,877

# of female

7,868

68,006

Total Production (MT)

10,834

99,598

42,509

Unit of Production (Ha)

935

4,180

1,736

Crops: Cabbage

33.22

29.54

The reduction in yield was mainly due to

October 2021 rain, which washed seedlings

from nursery beds. Thus, farmers were left

# of HH

79,445

71,574

# of male

9,946

2,519

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 5-3

AID-367-C-17-00001

KISAN

II Code

No.

Code No. in

M&E Plan

Indicator

Baseline

% of

Target

Deviation Notes

(With all disaggregated information as

mentioned in PIRS)

Target

Actual

# of female

7,691

69,056

no choice but to use damaged or poor-

quality seedlings.

Total Production (MT)

7,740

93,878

39,866

Unit of Production (Ha)

537

2,826

1,350

Crops: Cucumber

32.42

31.06

# of HH

51,479

49,325

# of male

4,951

2,729

# of female

5,083

46,597

Total Production (MT)

4,011

60,437

22,794

Unit of Production (Ha)

343

1,864

734

Crops: Bitter gourd

28.52

25.1

Unexpected October 2021 rain flooded

the farmers’ field and therefore farmers

planted bitter gourd on 67% less area than

planned. Due to COVID-19 supply chain

distortion, better varieties like Pali were

not readily available and yield fell by 12%.

# of HH

47,560

35,053

# of male

4,111

1,469

# of female

3,846

33,583

Total Production (MT)

1,811

36,621

10,024

Unit of Production (Ha)

141

1,284

399

Crops: Bottle gourd

31.92

26.63

With reduced area due to October 2021

rain and delayed planting time, yield was

reduced (farmers chose a less productive

and cheaper variety as per availability in

market).

# of HH

27,432

26,657

# of male

2,741

1,259

# of female

4,553

25,397

Total Production (MT)

905

22,855

6,758

Unit of Production (Ha)

716

254

Crops: Eggplant

28.17

28.18

100

# of HH

7,838

9,235

# of male

1,680

# of female

1,415

9,235

Total Production (MT)

629

4,732

3,465

Unit of Production (Ha)

168

123

Crops: Chili pepper

18.69

20.72

111

The rate of decrease in production (31%) is

lower than the decrease rate in cultivated

area (42%). Despite of lower overall

production yields of chili pepper increased

by 11% due to the use of hybrid varieties.

# of HH

39,545

30,435

# of male

4,288

1,049

# of female

2,475

29,385

Total Production (MT)

1,784

23,103

11,390

Unit of Production (Ha)

864

1,236

550

Crops: Onion

22.78

18.17

Farmers’ transplanted area was reduced

and, with the use of the remaining inferior

seedlings, yield also decreased by 24%.

# of HH

28,501

35,682

# of male

4,862

3,148

# of female

5,393

32,534

Total Production (MT)

856

14,943

5,834

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 5-4

AID-367-C-17-00001

KISAN

II Code

No.

Code No. in

M&E Plan

Indicator

Baseline

% of

Target

Deviation Notes

(With all disaggregated information as

mentioned in PIRS)

Target

Actual

Unit of Production (Ha)

157

656

321

Crops: Green bean (French Bean)

14.2

14.57

103

# of HH

15,497

24,978

# of male

2,431

1,889

# of female

3,271

23,088

Total Production (MT)

868

7,127

3,789

Unit of Production (Ha)

165

502

260

Crops: Other vegs

20.19

17.69

# of HH

67,689

96,132

# of male

34,633

# of female

61,499

Total Production (MT)

54,722

41,067

Unit of Production (Ha)

2,711

2,321

K10b

EG.3-11

Yield of targeted agricultural commodities among

program participants with USG assistance per

animal [IM-level]

6.22

6.18

Product system: Small-holder mixed livestock-

crop

5,860

13,063

Live animals kg: Total

1,977,616

463,669

1,116,630

Unit of Production: Maximum number of herds

316,496

74,491

180,783

K11

EG.3.2-26

disaggregate

Value of annual sales of input suppliers receiving

USG assistance (IM-Level)

816,118

10,935,942

14,696,702.6

134

Firm: Microenterprise

816,118

8,099,244

11,600,750

143

Firm: Small and medium enterprise

2,836,698

3,095,953

109

K12 EG.3.2-28 Number of hectares under improved

management practices or technologies that

promote improved climate risk reduction and/or

natural resources management with USG

assistance [IM-level]

22,670 39,961 31,900 80 Fewer individuals applying lower number of

improved management practices and

technologies (K4) caused 20% reduction in

number of ha under improved management

practices and technologies that promote

improved climate risk reduction and/or

natural resources management (K12) by

20%.

K13 Custom 2 (EG.

3.2-308-CUST)

Average number of climate-smart technologies or

practices applied per household with USG

assistance.

2 1 1 100

K14

(EG.3.2-4)

Number of for-profit private enterprises,

producer organizations, water user associations,

women's groups, trade and business associations,

260

272

105

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 5-5

AID-367-C-17-00001

KISAN

II Code

No.

Code No. in

M&E Plan

Indicator

Baseline

% of

Target

Deviation Notes

(With all disaggregated information as

mentioned in PIRS)

Target

Actual

and community-based organizations (CBOs)

receiving USG food security related

organizational development assistance

K15

CBLD-9

Percent of USG-assisted organizations with

increased performance improvement [IM-level]

90%

99%

110

Numerator = number of organizations of this

type with improved performance

199

206

Denominator = number of USG-assisted

organizations of this type receiving organizational

capacity development support

221

208

K16 EG.3.2-20

Nepal 2.1.2-2

Number of for-profit private enterprises,

producer’s organizations, water user associations,

women's groups, trade and business associations

and community-based organizations (CBOs) that

applied improved organization-level management

practices or technologies with USG assistance [8]

(RAA) (WOG)

NA 210 208 99

K17

EG.3.2-26

Value of annual sales of producers and firms

receiving USG assistance

39,324,926

214,832,454

144,763,280

Producer: Smallholder

28,361,517

172,850,974

85,403,228

A single contributing factor to farm level

sales was optimistic target-setting based on

the assumption that the COVID-19

situation will be normalized in Y5, enabling

KISAN II partners to work at full capacity

from March 2022 onwards.

Agriculture commodities: Rice

The main reason for lower sales was the

untimely post-monsoon rain and floods in

October 2021, which caused enormous

loss of ready-to-harvest and newly

harvested paddy across KISAN II ZOI.

Rice: Value of sales ($ USD)

6,789,764

26,240,488

15,755,631

Volume of sales (MT)

26,872

117,750

77,254

Number of participants producers

61,134

82,000

81,597

Agriculture commodities: Maize

11.99

Maize: Value of sales ($ USD)

769,592

6,325,000

3,323,944

Contributing factors include lower maize

yield (11% reduction in maize yield) and

maize area reduction by 30%. In addition,

only 50% of producers sold maize versus

the anticipated Y5 target of 76%.

Volume of sales (MT)

3,340

25,300

12,044

Number of participants producers

57,951

50,000

48,978

Agriculture commodities: Lentil

1.43

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 5-6

AID-367-C-17-00001

KISAN

II Code

No.

Code No. in

M&E Plan

Indicator

Baseline

% of

Target

Deviation Notes

(With all disaggregated information as

mentioned in PIRS)

Target

Actual

Lentil: Value of sales ($ USD)

590,976

2,466,102

1,958,159

Key reasons include farmers planting lentils

in 15% less area cultivated than targeted,

lower lentil yields (9% below target), and

lower production (38% less than targeted).

Farmers could not plant lentils in lowland

areas due to excessive soil moisture after

the October 2021 untimely rain. Although

lentil prices were 27% higher than the

target, farmers only sold 80% of the

targeted annual sales.

Volume of sales (MT)

1,119

3,639

2,269

Number of participants producers

26,611

24,500

33,654

Agriculture commodities: Vegetables

0.67

Vegetables: Value of sales ($ USD)

11,901,397

135,827,574

58,430,439

The untimely October 2021 rain, which

washed away 100% of farmers’ nurseries,

left only a small quantity of inferior quality

seedlings that were not adequate to cover

the targeted planting area. As a result,

overall production and sales of vegetables

were low.

Volume of sales (MT)

39,343

461,276

196,987

Number of participants producers

58,968

158,000

158,261

Agriculture commodities: Goats

21.8

Annual goat sector sales were 198% above

the target due to the use of artificial

insemination and partners' intensive

support for goat raisers, which contributed

to the increases in meat sales.

Goat: Value of sales ($ USD)

8,309,787

1,991,809

5,935,056

298

Volume of sales (MT)

1,969

503

1,117

Number of participants producers

58,968

5,860

13,063

Producer: Non-smallholder

Firm: Microenterprise

1,285,299

16,107,333

23,487,838

146

Firm: Small and medium enterprise

9,678,110

25,874,147

35,872,214

139

K18

Reporting 2

(EG.3.2-2-

CUST)

Volume of annual sales (MT) of farms receiving

USG assistance (rice, maize, lentil, vegetables,

goats)

70,675

608,469

289,671

Untimely rain, COVID-19 effects, and

supply chain disturbance reduced

production of the targeted commodities

and sales volume.

K19

EG.3.2-24

disaggregate)

Nepal 2.1.1-2

Number of Individuals who have applied

improved management practices or technologies

with USG assistance – related to marketing and

distribution

32,094

133,214

164,270

123

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 5-7

AID-367-C-17-00001

KISAN

II Code

No.

Code No. in

M&E Plan

Indicator

Baseline

% of

Target

Deviation Notes

(With all disaggregated information as

mentioned in PIRS)

Target

Actual

K20

Custom 3

(EG.3.2-309-

CUST)

Percentage of USG-assisted Household accessing

information on improved technologies and

practices through improved ICT channels or

content

63%

81%

129

Numerator

127,649

163,651

Denominator

203,095

202,242

K21

Reporting 3

(EG.3.2-310-

CUST)

Percentage change in the number of

municipalities (palikas) in the ZOI that have

access to markets

43%

42%

K22

EG.4.2-2

Number of financial intermediaries serving poor

households and microenterprises supported by

USG assistance

107

K23

EG.3.2-27

Value of agriculture-related financing accessed as

a result of USG assistance [IM-level]

59,344,896

76,017,944

128

Size of recipient: Small Holders

31,645,065

48,630,689

Size of recipient: Individuals/microenterprises

4,919,644

5,963,975

Size of recipient: small and medium enterprises

22,780,187

21,423,280

K24

EG.4.2-7

Number of individuals participating in USG-

assisted group-based savings, micro-finance, or

lending programs [IM-level]

63,521

150,176

121,139

Access to finance by individuals

participating in group-based savings

reduced by COVID-19 movement

restrictions.

K25

Reporting 4

(EG.3.2-311-

CUST)

Value of household savings deposits of USG-

assisted smallholders

6,773,719

8,529,707

126

Even though the number of participating

individuals was reduced, per person

deposits increased by 26% above the target

as coping mechanism.

K26 Reporting 5

(EG.3.2-312-

CUST)

Value of the outstanding balance on agriculture

loans of USG-assisted households

NA 23,811,860 37,236,400 156 Farmers are taking more loans (increased

by 28% (K23) and outstanding loans also

increased by 56%.

K27

EG.3.1-14

Value of new USG commitments and private

sector investment leveraged by the USG to

support food security and nutrition [IM-level]

1,513,614

1,807,195

119

Increase in total commitment is due to

increased private sector leveraged amount.

USG commitment amount

1,230,000

1,123,582

Private sector partner leveraged amount

283,614

683,613

K28

DR.2.1-301 -

CUST and

EG.3.1-12

Nepal 1.4-1

Number of agricultural and nutritional enabling

environment policies analyzed, consulted on,

drafted, or revised, approved, and implemented

with USG assistance [IM-level]

150

Addressed government’s requests.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 5-8

AID-367-C-17-00001

KISAN

II Code

No.

Code No. in

M&E Plan

Indicator

Baseline

% of

Target

Deviation Notes

(With all disaggregated information as

mentioned in PIRS)

Target

Actual

K29

Nepal 2.1.2-2

EG.3.2-20

Disaggregate

Number of for-profit firms and organizations that

applied improved organization level technologies

or management practices with USG assistance –

for effective management and governance of

infrastructure (market, storage, and agro-

processing)

103

K30

EG.3.2-1

(Nepal 2.1.1-3)

disaggregate

Number of individuals who have received short-

term training – on food grading or safety

20,325

21,109

104

K31

K31 (EG.3.2-

disaggregate)

Number of farmers and others who applied

improved technologies or management practices

– on food grading or safety

18,718

19,983

107

K32

Nepal 2.1.2-1

EG.3.2-4

disaggregate

Number of for-profit firms and organizations

receiving USG organizational assistance – related

to food grading or safety

104

K33

Nepal 2.1.2-2

EG.3.2-20

Disaggregates

Number of for-profit firms and organizations that

applied improved organization level technologies

or management practices with USG assistance –

related to food grading or safety

104

K34

Custom 4

EG.3.2-313-

CUST

Number of investment feasibility studies,

exposure tours, and/or guidance documents

produced that promote evidence-based local

investment in market systems

225

Addressed government’s requests.

K35

K35 (EG.3.2-1

(Nepal 2.1.1-3)

disaggregate

Number of individuals who have received USG

supported short-term agricultural sector

productivity or food security training – related to

appropriate public and private sector roles and

support for market systems development

112

119

106

K36

K36 (4.5.2 -

Z15) EG.3.2-

305-CUST

Number of people trained in entrepreneurial

skills through USG supported programs

9,000

9,397

104

K37

Nepal 2.2.1-2

(4.5 ZOI)

EG.3.2-301-

CUST

Number of people trained in life skills through

USG supported programs

K38

Nepal 2.2.2-2

(4.5.2- ZO3)

EG.3.2-303-

CUST

Number of people trained in access to financial

services through USG supported programs

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 5-9

AID-367-C-17-00001

KISAN

II Code

No.

Code No. in

M&E Plan

Indicator

Baseline

% of

Target

Deviation Notes

(With all disaggregated information as

mentioned in PIRS)

Target

Actual

K39

Custom 4

EG.3.2-314-

CUST

Percentage of business literacy trainees that pass

a competency test

90%

89%

K40

Nepal 2.2.3-1

(4.5.2-ZOI)

EG.3.2-302-

CUST

Percentage of entrepreneurial literacy trainees

who initiate or expand sales of good and services

90%

83%

K41

Custom 5

EG.3.3-11

Quantity of nutrient-rich value chain

commodities produced by direct beneficiaries

with USG assistance that is set aside for home

consumption (MT)

2,066

21,487

27,667

129

Increased due to higher consumption as

farmers were not able to sell quantity

produced.

K42

EG.3.2-1

(Nepal 2.1.1-3)

disaggregate

Number of individuals who have received short-

term training on adaptive management

8,648

8,693

101

K43

EG.3.2-4

Disaggregates

Number of for-profit firms and organizations

receiving USG organizational assistance related to

CLA or monitoring shocks and stressors

100

K44

Nepal 2.1.2-2

EG.3.2-20

Disaggregates

Number of for-profit firms and organizations that

have applied CLA or have a mechanism in place

for monitoring shocks and stressors

106

K45

EG.3.2-1

EG. 11-1

(Nepal 2.1.1-3)

disaggregate

Number of people trained in climate change

adaptation supported by USG assistance

20,325

21,732

107

K46

EG.11-6

EG.3.2-24

disaggregate

Number of people using climate information or

implementing risk-reducing actions to improve

resilience to climate change as supported by USG

assistance

24,708

26,570

108

K47

STIR - 10

Number of innovations supported through USG

assistance

100

K48

STIR - 11

Number of innovations supported through USG

assistance with demonstrated uptake by the

public and/or private sector

100

K49 NEP PI 1.3.2-1

DR.4.3-304-

CUST

Percent of leadership positions in USG-supported

Business entities that are filled by a woman or

member of a vulnerable group

1 53% 48% 90

K50

EG.5-3

EG.3.2-4

disaggregate

Number of microenterprises supported by USG

assistance on agriculture and food security

related development

242

259

107

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 5-10

AID-367-C-17-00001

KISAN

II Code

No.

Code No. in

M&E Plan

Indicator

Baseline

% of

Target

Deviation Notes

(With all disaggregated information as

mentioned in PIRS)

Target

Actual

K51

Youth-1

Number of youth trained in soft skills/life skills

through USG assisted programs (K51)

2,700

3,593

133

K52 EG.5-1 USD sales of firms receiving USG funded

assistance

41,981,480 59,360,052 141 Sales increased as farmers had to pay more

for inputs like seeds, fertilizers, and agri-

inputs.

K53

EG. 5.2-1

Number of firms receiving USG funded technical

assistance for improving business performance

(EG.5.2-1)

199

206

104

K54

Custom 1

Percentage change in sales of firms after receiving

USG assistance

35%

383

Percentage increased due to increased

sales of firms.

K55 Custom 2 Number of private sector enterprises with

increased access to finance due to USG

assistance

113 106 94

K56

Custom 3

Number of migrant workers and other

population engaged in agribusinesses

3,000

3,356

111

KISAN II identified and engaged 3,356

migrant returnees and COVID-19 affected

population in agribusiness based on

demand.

K57 Custom 4 Value of sales per returnees and other priority

populations (USD)

1,200 NA NA Will be reported in Year 6 after having

obtained income from the agribusiness.

K58

Custom 5

Area expanded under fine rice with USG

assistance in 2 districts of Sudurpaschim and 4

districts of Lumbini province

3,132

5,241

11,706

223

Due to increasing demand of fine rice in

the market.

K59

Custom 6

Area expanded under maize for feed and other

industrial uses with USG assistance in 2 districts

of Sudurpaschim Province and 4 districts of

Lumbini, Palpa and Surkhet districts.

3,530

4,720

1,739

Farmers reduced the area under maize as

they could not sell all maize due to

COVID-19 market distortions last year. In

year 5, only 50% of producers could sell

maize compared with target of 76%.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 6-1

AID-367-C-17-00001

ANNEX 6. SUMMARY OF FIXED-PRICE SUBCONTRACTS

No.

Name of Firm

Assignment Details

Remarks

Pathway Technologies

Maintain and host KISAN II’s

WIKISAN2 M&E system and provide

web hosting, operations, and

management support to KISAN II.

Awarded in April 2018.

Will continue through life of

project.

Full Bright Consultancy

Private Limited

Conduct Y4 and Y5 farmer surveys.

Awarded in April 2022. Y4

survey completed. Y5

preliminary data submitted.

Sustainable Research

and Development

Center

Support in formulating Provincial

Agriculture Development Strategy

(PADS) in Sudurpaschim Province.

Awarded in July 2021.

Assignment completed with

no-cost extension.

NARMA Consultancy

Support in formulating PADS in Lumbini

Province.

Awarded in July 2021.

Assignment completed with no-

cost extension.

Local Initiatives for

Biodiversity, Research

and Development

Conduct Agriculture Sector Labor

Assessment and Assessment of

Employment Aspiration of Migrant

Returnees and Other Population

Heavily Affected by COVID-19 for

Increased Employment in Agricultural

Sector.

Awarded in November 2021.

Assignment completed with no-

cost extension.

Nepal Integrated

Development Initiatives

Assessment of disruptions in agricultural

operations at the field level due ongoing

COVID-19.

Awarded in March 2021.

Completed with no-cost

extension.

Biruwa Advisors

Private Limited

Provide business development services

to KISAN II rice and feed mills.

Awarded in December 2020.

Completed with no-cost

extension.

Sukalpa International

Private Limited

Develop capacity-building modules for

agrovets, traders, and goat farms.

Assignment completed.

Aria Solutions Private

Limited

Conduct a pilot assessment on

current state of access to finance, and

to understand how farmers and agri-

businesses impacted by COVID-19

are benefiting from the Nepal Rastra

Bank support measures implemented

by banks and financial institutions.

Awarded in January 2021.

Completed with no-cost

extension.

ICT for Agri Private

Limited

Digitize KISAN II’s existing agriculture

training manual that comprehensively

outlines production process for goats,

vegetables, maize, lentils, and rice.

Awarded in April 2021.

Assignment ongoing.

BMP Infology

Support five Boer goat farms to

improve and use cloud-based software

for record keeping and pedigree.

Awarded in June 2021.

Completed with no-cost

extension.

KISAN II PROJECT Y5 ANNUAL REPORT PAGE 7-1

AID-367-C-17-00001

ANNEX 7. SUMMARY OF FIXED-PRICE PURCHASE ORDERS

Fixed-price purchase orders were issued in Year 5 for the following services:

● Develop and air TV program.

● Develop an animated video on the RMM, and other outreach materials.

● Develop flyer on technology menu for grain storage.

● Conduct financial analysis to measure economic feasibility of the RMM.

● Develop and broadcast six radio public service announcements from Communication Corner (via

Ujyaalo Network).

● Update branding and marking of KISAN II materials.

● Design country-specific safeguarding guidelines, develop informative materials, conduct

interviews/surveys with staff and partners, and provide recommendations for further

capacity development of KISAN II.

● Develop business plan formats and guidelines in coordination with Nepal Bankers

Association; pilot the format and guidelines, gather feedback from loanees and banks on

viability, and update guidelines as needed.