NLSIP aims creating sustainable agri-enterprises, value chains

Biratnagar, Sept. 5

Nepal Livestock Sector Innovation Project (NLSIP) implemented by the Ministry of Agriculture and Livestock Development (MoALD) is all set to mobilise Rs. 1.42 billion to various cooperatives and private firms in the agriculture sector in Koshi Province.

The project has signed 146 agreements that require Rs. 1.42 billion – Rs 223.4 million in equity, Rs. 496.2 million bank loan and Rs. 709.7 million matching grant to be provided by the NLSIP.

So far, the project has distributed about Rs. 240 million to various 42 companies, said Sudhir Kumar Singh, Project Coordination Chief of the NLSIP's Decentralised Level Support Unit in Biratnagar, the provincial Capital of Koshi.

According to him, the total budget of the project has been divided into two areas: 50 groups/cooperatives and 96 private firms with the share of Rs. 634 million and Rs. 795.3 million, respectively.  

The budget has to be utilised before June 30 next year. It is being implemented with the World Bank support of US$ 80 million (Rs. 10.5 billion).

Only the firms willing to share 50 per cent of the total cost of the business initiatives are eligible to enjoy the service. The eligible enterprises are selected through competition and the selected ones should be ready to invest 20 per cent project cost as equity and show bank assurance of mobilising 30 per cent of the project cost in loan.

The project that is being implemented in 289 local levels of 28 districts across the country, is active in Panchthar, Ilam, Jhapa, Morang, Sunsari, Dhankuta and Udaypur districts of Koshi Province.

But due to the limited budget, grant could not be provided to all the applicants, only the best ones are selected for the grant facility.

 

Increasing productivity, resilience

It aims to increase productivity, enhance value addition and improve climate resilience of smallholder farmers and agro-enterprises in the value-chains of meat, milk and chyangra (mountain goat) husbandry with the application of technology transfer and innovation.

Singh informed that the project support till date has also helped farmers cultivate fodder in 988 hectares of land. More than 57,000 kg of forage and fodder were produced in the past five years since the implementation of the project in 2018/19.

To ensure the sustainability of fodder production, nurseries are established in Ramdhuni Municipality of Sunsari district, Udayapurgadhi Rural Municipality of Udayapur, Pathari Municipality and Letang Municipality of Morang, Pakhribas Municipality of Dhankuta.

Likewise, 5675 marginalised farmers of 77 local bodies are organised in various groups and they  are being educated on various innovation in the sector and motivated to adopt them.

Meanwhile, about 454 sheds of small farmers were improved with the support of Rs. 24,000 per shed with the total budget of Rs. 10.6 million. It has resulted in healthy livestock development.  The project has also supported in goad breeding, establishmetn of fodder processing and grading unit, veterinary equipment and animal service centre.

"Our focus is supporting smallhoders and creating entrepreneurs," said Singh.

 

Hospitals with modern facilities

Livestock service centres or rural vet hospitals are established in five locations in Ilam, Jhapa, Morang and Udayapur, and livestock markets are established in Damak of Jhapa and Rangeli of Morang. The modern livestock service centres have modern facilities including ultrasound and laboratory.

Speaking at a discussion programme in Biratnagar last week, World Bank's Country Director for the Maldives, Nepal and Sri Lanka, Faris Hadad-Zervos, said that the multilateral donor was ready to support the government's initiative to modernise agriculture. According to him, creating sustainable system will be the WB's priority.

The project that began in 2018 has three components - strengthening government's system, policy and strategies, increasing the productivity of cattle with the application of high value equipment, development of service centres and technical support, and development of value chain and market.

 

Model programme

NLSIP has become a model for the sectorial development, said Umesh Dahal, Project Director of NLSIP at the MoALD.

While there is a mandatory insurance provision of livestock to obtain the grant and technical support, farmers and entrepreneurs are inspired to apply climate smart technologies.

Incorporation of the banks and financial institutions has increased the business viability as well as sustainability. When the entrepreneurs inject their equity and obtain loan from the BFIs, they are more serious about running their enterprise and there are high chances of success.

"We have learned a lot through the process that we went through while applying for and obtaining the grant money," said Sanjaya Chapagain of Banjara Agro Pvt. Ltd in Biratnagar. Banjara is set to create example of sustainable agriculture farm here. 

 Published in The Rising Nepal daily on 6 September 2023.