Nepal

The government and the Asian Development Bank (ADB) have reached an agreement for the investments in the nuts and fruits in the hilly area project.

The government will fund Rs 1.88 billion for the project while Rs7.79 billion will be in a concessional loan from the Ordinary Capital Resources. Similarly, the financing includes Rs1.30 billion grant from the Asian Development Fund, and the ADB will administer Rs1.17 billion grant from the Global Agriculture and Food Security Programme.

The agreement was signed by Finance Secretary Krishna Hari Pushkar and the ADB Country Director for Nepal, Arnaud Cauchois.

The project will benefit over 30,000 households in Province 1 and Bagmati, Gandaki, Karnali and Sudurpaschim provinces, mainly through the development of around 10,000 hectares of climate-resilient fruit and nut orchard.

The demand for fruits and nuts has been on the rise in Nepal due to income growth, and improved knowledge of nutrition. But domestic production has been low to meet the surging demand.

The commercial farming of fruits and nuts in Nepal remains marginal and the abandonment of cultivable land in hilly areas is increasing as people are switching to other off-farm employment and relying on external remittances.

"In this context, the project will help to take an advantage of the country's favourable agro-climatic conditions to product quality horticulture crops and will support the government the government's declaration of the 2016-2026 Fruit Decade," said Finance Secretary Pushkar.

The agreement is a key part of the ADB's overall efforts to address potential risks on food, ADB Country Director Cauchois said, "Through this project we will support improving the livelihood and climate resilience of horticulture farmers in the hilly areas of the five provinces of Nepal." - RSS