A. Introduction
Nepal is one of the countries in the world which received PPCR (The Pilot Program for
Climate Resilience) funds from the Climate Investment Funds. The Government of
Nepal, together with ADB, IFC, and the World Bank prepared and presented a Country
Plan (commonly referred as SPCR) to the PPCR Sub-Committee, which was approved
in June 2011. Following the approval of Nepals SPCR, IFCs PPCR Program was also
approved by the Sub-Committee donors in October 2012.
In Nepal, the agricultural sector employs over two-thirds of the labour force and
contributes to roughly one-third of the Gross Domestic Product. Agricultural productivity
in Nepal is already challenged by limited access to quality inputs, high dependence on
rain, poor farming practices, very limited access to finance, significant male outmigration
and poor forward linkages; consequently, these factors contribute to serious food
security risks.
Climate Change is expected to affect agricultural productivity in Nepal through (i) rising
temperatures, (ii) climate variability and related changes in the timing, intensity, and
volume of rainfall, and (iii) increase in pests and diseases.
IFC commissioned a diagnostic study of the agribusiness sector, and based on various
critical factors such as vulnerability to climate change, contribution to food security,
importance to economy, farmer involvement, growth potential, level of
commercialization, level of interest among private sector actors to undertake support
services and ease of partnership with producers shortlisted three crops - rice, maize
and sugarcane - for strategic intervention under the PPCR project.
The increase in temperature and changes in rainfall are expected to have the following
impacts on production of the target crops:
Lead Firms: IFC has shortlisted three promising private sector companies in the Terai
region as Lead firms, who in close collaboration with IFC and the implementing agency
contracted by IFC is expected to implement the farmer level activities in their respective
catchment areas. These firms have direct business relationships with agrovets/dealers
in the region. This closely twined coordination arrangement between IFC, the lead firms,
the input supplier base of the lead firms, knowledge partners among government
departments/international agencies and project implementation agency will be
leveraged to transfer and disseminate technical skills and services to strengthen
farmers resilience to climate change.
Farmers: The project aims to train 15,000 (50% women) rice, maize and sugarcane
farmers in the Terai region (5000 farmers per crop) over a period of 4 years, in all
aspects of climate adaptive agriculture practices, through 15 local extensionists to be
embedded within the Lead Firms. These extensionists will be trained as Master
trainers in climate change adaptive agricultural practices and they in turn will train the
farmers, initially under direct supervision and in close coordination with the respective
subject matter specialists. The lead firms will arrange the farmer training sessions.
C. Market Failure
Of the 16 countries listed as being at "extreme" risk from climate change over the next
30 years, Nepal is the 4th most at risk. In order to become climate-resilient and reduce
the climate change impacts on production, Nepal's farmers and agribusiness companies
need to identify approaches for adapting to climate change impacts. This needs to
include access to inputs, to water, to training on good agricultural practices, to weather
information and market information, and to finance. However, currently farmers in Nepal
lack the ability and flexibility to respond to changes in climate and companies are
unaware of the models to support them. Key barriers to farmer resilience include:
1) Low levels of awareness and adoption of climate-resilient seed varieties.
Institutional mechanisms to update and inform farmers about releases of new
seed varieties are weak (except for maize) or non-existent, resulting in low
adoption of even the few varieties currently available. Better access to quality
seed could increase yield and thereby contributing to food security while also
reducing crop losses from climate change.
2) Lack of timely, reliable, and affordable access to water resources, and poor water
management practices. Farms in the Terai (plains) region are mostly rainfed, and
depend on erratic rains. Farmers require irrigation in the dry season (NovemberJune), but only 5-10% irrigate, using ground and surface water conveyed largely
through diesel pumps. The availability and cost of diesel fuel limits groundwater
use to only medium and large farmers, and even these farmers under-irrigate
because of costs. It is estimated that climate change will exacerbate these
issues, with more infrequent but more intense rains.
3) Inadequate input availability and knowledge of agriculture practices, especially
related to climate change. Government-provided extensionists have a limited role
in the agriculture sector, and while some large agriprocessors provide extension
services, they are inadequately trained and very few in number. This is reflected
in low average yield of rice, maize and sugarcane which in Nepal are 2.7 MT/ha,
2.1 MT/ha and 39.5 MT/ha, while the Southeast Asia average is 3.8 MT/ha, 3.2
MT/ha and 64.9 MT/ha, respectively. Affordability, availability, and timely
accessibility of chemical fertilizers and their balanced use are major barriers to
crop productivity. Information and knowledge of composting, plant nutrition, and
plant protection measures is also limited. Few, if any, government or private
sector companies are aware of specific practices or efforts to support farmers
adapt to climate change.
4) Absence of robust weather information delivery and early warning systems. In
Nepal today, critical infrastructure and services that help anticipate and
communicate early warning of severe weather events and better manage water
resources are weak. The absence of robust weather information delivery systems
affects the ability of farmers to cope with climate change-related weather
variability.
5) Lack of access to finance. The availability of agricultural credit is lowthe preimplementation study revealed that only 20% of farm households surveyed
receive loans from formal financial institutions (FIs). High transaction costs to
reach farming households, and limited awareness among farmers about financial
products, constrain the delivery of financial services to farmers.
D. Scope of work
Based in the Eastern Sugar Mill in Sunsari, Nepal and will need to directly report to
Sugarcane Coordinator.
The roles and responsibilities of the Extensionists will be, but not limited to, the
following:
To carry out regular and refresher trainings to 5000 sugarcane farmers in close
coordination with the sugarcane coordinator and Eastern sugar mill. Team of
experts will provide ToT to the extensionists on Climate Smart Agriculture
focusing on sugarcane farm management who will in turn disseminate the
applicable ideas to the farmers at the field during the course of their training.
To regularly monitor the demo plot established by lead firms and lead farmers in
consultation with experts.
To develop monthly report on training to sugarcane farmers and demo plot and
submit it to sugarcane coordinator.
E. Specific Requirements
F. Deliverables
The Extensionists will deliver the following to PAC