feed the future nepal knowledge-based integrated sustainable ...

Feed the Future Nepal Knowledge-Based Integrated

Sustainable Agriculture in Nepal (KISAN) II Project

Year 3 Annual Report

July 16, 2019 to July 15, 2020

FEED THE FUTURE NEPAL

KNOWLEDGE-BASED INTEGRATED

SUSTAINABLE AGRICULTURE IN

NEPAL (KISAN) II PROJECT

YEAR 3 ANNUAL REPORT

JULY 16, 2019 – JULY 15, 2020

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: Shanti Chaudhary in Kailali grows vegetables and other crops all year-round after benefiting

from agriculture related trainings, technical assistance, and irrigation support from KISAN II partner, Kishan

Agrovet Center. This shallow tube well benefits seven farming households and irrigates about two hectares of

land. (Photo credit: Robic Upadhayay for USAID)

KISAN II PROJECT YEAR 3 ANNUAL REPORT Page iii AID-367-C-17-00001

TABLE OF CONTENTS

Table Of Contents ........................................................................................................................................................... iii

Acronyms............................................................................................................................................................................ vi

Executive Summary ........................................................................................................................................................ viii

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

Key Output Level Indicator Results .............................................................................................................................. 1

Key Outcome Level Indicator Results .......................................................................................................................... 3

Farm-Level Yields .......................................................................................................................................................... 3

Farm-Level Sales ............................................................................................................................................................ 3

Firm-Level Sales ............................................................................................................................................................. 4

Access To Finance ........................................................................................................................................................ 5

Improved Management Practices And Technologies ............................................................................................ 5

Organizational Capacity Development Outcomes ............................................................................................... 5

Inclusion ........................................................................................................................................................................... 6

Enabling Environment And Government Collaboration ...................................................................................... 6

Business Literacy Program .......................................................................................................................................... 7

Collaboration, Learning And Adaptation................................................................................................................. 7

Science, Technology, Innovation, And Research (STIR) ...................................................................................... 7

Impact Of COVID-19 ....................................................................................................................................................... 8

Impact On Agribusinesses And Farmers ................................................................................................................. 8

COVID-19 Adaptations ............................................................................................................................................... 9

Migrant Returnees And Skillsets ................................................................................................................................ 9

Update On Activity Implementation ........................................................................................................................... 10

Collaboration With Government Of Nepal ......................................................................................................... 10

Engaging Municipalities To Understand And Support Production, Marketing, And Irrigation (Activity

CL.1) .......................................................................................................................................................................... 10

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

Market Systems............................................................................................................................................................ 13

Sub-Objective 2.1: Strengthen The Organization And Coordination Of Selected Market Systems .. 13

Sub-Objective 2.2: Strengthen The Organization And Coordination Of Selected Market Systems .. 17

Sub-Objective 2.3: Enhanced Financial Service Markets Serve Selected Market Systems .................... 17

Sub-Objective 2.4: Enhanced Market Infrastructure And Other Services To Support Selected

Market Systems ....................................................................................................................................................... 20

Sub-Objective 2.5: Expanded Trade In Domestic And Regional Markets To Support Agricultural

Market Systems Development ............................................................................................................................ 21

Component 1: Improve The Productivity Of Selected Agriculture Market Systems ................................. 22

Sub-Objective 1.1: Facilitate Intensification And Diversification Of Male And Female Farmers And

Socially Excluded Groups Into Higher-Value Commodities......................................................................... 22

Sub-Objective 1.2: Strengthen The Capacity Of Input Supply Systems To Deliver Timely And

Affordable Productivity-Enhancing Technologies ............................................................................................ 22

Sub-Objective 1.3: Increase Adoption Of Profitable, Productivity-Enhancing, And Climate-Smart

Technologies By All Groups, Including Youth, Women, And Disadvantaged Groups .......................... 24

Component 3: Strengthen The Enabling Environment Of Selected Agriculture Market Systems ........... 26

Sub-Objective 3.1: Build Capacity For Streamlining, Harmonizing, And Coordinating GON Policies

And Regulations ...................................................................................................................................................... 26

Sub-Objective 3.2: Improve Investments, Management, And Governance (E.G. Standardization) Of

Infrastructure ........................................................................................................................................................... 27

https://winrockintl-my.sharepoint.com/personal/babina_bajracharya_winrock_org/Documents/KISAN%20II%20Year%203%20Annual%20Report%20with%20USAID%20comments_August%2021,%202020.docx#_Toc49952503





KISAN II PROJECT YEAR 3 ANNUAL REPORT Page iv AID-367-C-17-00001

Sub-Objective 3.3: Improve Systems To Increase Quality Of Selected Commodities .......................... 28

Sub-Objective 3.4: Support Local Government Agencies To Improve Investments In Support Of

Market System Development .............................................................................................................................. 29

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

Selected Markets Systems ......................................................................................................................................... 30

Sub-Objective 4.1: Enhance Literacy And Business Skills ............................................................................. 30

Component 5: Apply Collaboration, Learning And Adaptation To Market Systems Development ....... 32

Mid-Year Program Review Workshop To Plan Next Steps And Narrow Scope Of Learning

Objectives ................................................................................................................................................................. 32

Learning Agenda...................................................................................................................................................... 32

Sub-Objective 5.1: Apply CLA To Advance Competitiveness..................................................................... 40

Sub-Objective 5.2: Apply CLA To Advance Inclusiveness ............................................................................ 40

Grants Under Contract ............................................................................................................................................. 42

Monitoring, Evaluation, And Learning (MEL) ........................................................................................................ 43

Operational, Financial, And Communications Activities .................................................................................... 45

Progress Reports And Bi-Weekly Updates Submitted To USAID (OP.1). .............................................. 45

Fixed Price Subcontracts Issued (OP. 2) ........................................................................................................... 46

New Staff Recruited And Trained (OP.4) ........................................................................................................ 46

Short-Term Technical Assistance Engaged ....................................................................................................... 46

Standard Operating Procedures Updates Underway (Activity OP.6) ....................................................... 47

Consultative Meetings Conducted (Activity OP.7) ........................................................................................ 47

Emergency Management Preparedness Documents Developed (Activity OP.8) .................................... 47

KISAN II Review And Annual Planning Workshops (Activity OP.10) ....................................................... 47

Partnership, Collaboration, And Knowledge Sharing.............................................................................................. 47

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

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

Annex 2. COVID-19 Impact On Crops And Farmer Coping Strategies ......................................................... 2

Annex 3. Summary Of Signed Memoranda Of Understanding .......................................................................... 4

Annex 4. Select Activities For Y4T1 ........................................................................................................................ 6

Annex 5. Detailed Implementation Plan .................................................................................................................. 8

Annex 6. Performance Indicator Tracking Table................................................................................................. 22







KISAN II PROJECT YEAR 3 ANNUAL REPORT Page v AID-367-C-17-00001

LIST OF TABLES Table 1. Y3 Project Reach At Beneficiary And Firm Level ...................................................................................... 2

Table 2. Y3 Cumulative Partnerships, Households, And Grant Details By Type Of Organization ............... 2

Table 3. Farm-Level Yields Of Targeted Commodities ............................................................................................ 3

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

Table 5. Farm-Level Annual Sales Per Smallholder Farming Household .............................................................. 4

Table 6. Firm-Level Sales.................................................................................................................................................. 4

Table 7. Finance And Investment Outcomes .............................................................................................................. 5

Table 8. Farmer Adoption Of Improved Management Practices And Technologies ........................................ 5

Table 9. Inclusiveness Indicators .................................................................................................................................... 6

Table 10. KISAN II Policy Advocacy Support ............................................................................................................. 6

Table 11. KISAN II Business Literacy Program Indicators ....................................................................................... 7

Table 12. Collaboration, Learning, And Adaptation Outputs ................................................................................. 7

Table 13. Science, Technology, Innovation, And Research ..................................................................................... 8

Table 14. Acquired Skills Of Migrant Returnees In KISAN II Households ........................................................ 10

Table 15. Y3 Capacity-Building Activities For Cooperatives ................................................................................ 15

Table 16. Y3 Farmer Yields And Income By Business Model ............................................................................... 32

Table 17. Improved Management Practices And Technologies And Yields By Commodity ......................... 36

Table 18. Major Learnings And Adaptive Management .......................................................................................... 43

Table 19. Detailed Implementation Plan Table ........................................................................................................... 8

Table 20. Performance Indicator Tracking Table ..................................................................................................... 22

LIST OF FIGURES Figure 1. Key Achievements Of KISAN II In Y3 ...................................................................................................... viii

Figure 2. Number Of Individuals Participating In USG Food Security Programs ............................................... 3

Figure 3. Y3 Vegetable Yields ......................................................................................................................................... 3

Figure 4. Average Percentage Improvement Across Five Capacities By Firm Type .......................................... 6

Figure 5. Types Of Private Sector Organizations Mapped To Date .................................................................... 13

Figure 6. Resource Leverage For KISAN II-Supported Irrigation Schemes ....................................................... 25

Figure 7. KISAN II Y3 Grant Partnerships By Type................................................................................................. 42

Figure 8. Impact Of COVID-19 On Input Availability ............................................................................................... 2

Figure 9. Effect Of COVID-19 Lockdown On Crop Harvest ................................................................................. 2

Figure 10. Effect Of COVID-19 Lockdown On Sales ............................................................................................... 3

Figure 11. Farmer Coping Strategies ............................................................................................................................. 3











KISAN II PROJECT YEAR 3 ANNUAL REPORT Page vi AID-367-C-17-00001

ACRONYMS ADP Agriculture Development Plan

ADS Agriculture Development Strategy

ADS-JSR Agricultural Development Strategy-Joint Sector Review

AI Artificial Insemination

AITC Agriculture Information and Training Center

AKC Agriculture Knowledge Centers

ANROPI Association of Nepalese Rice, Oil and Pulses Industries

BLB Branchless Banking

BLP Business Literacy Program

CATI Computer Aided Telephonic Interview

CBM Cluster Business Manager

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

CT Community Trainer

DAG Disadvantaged Group

DCC District Coordination Committee

DCCI District Chambers of Commerce and Industry

DEPROSC Development Project Service Center

DFS Digital Financing Services

DFTQC Department of Food Technology and Quality Control

DOLS Department of Livestock Services

DNA Data Not Available

DQA Data Quality Assessment

EMMP Environmental Management and Monitoring Plan

EU/TA European Union/Technical Assistance

FAO Food and Agriculture Organization

FAW Fall armyworm

FTFNIPM Feed the Future National Integrated Pest Management

FWEAN Federation of Women Entrepreneurs' Association of Nepal

GAP Good Agricultural Practices

GESI Gender Equality and Social Inclusion

GON Government of Nepal

HPALF Hill Park Agriculture and Livestock Farm

IPM Integrated Pest Management

JNSC Joint National Steering Committee

JRIP Joint Rice Intervention Program

KISAN II Knowledge-Based Integrated Sustainable Agriculture in Nepal

M&E Monitoring and Evaluation

MEL Monitoring, Evaluation and Learning

MOALD Ministry of Agriculture and Livestock Development

MOLMAC Ministry of Land Management, Agriculture and Cooperatives

MOU Memorandum of Understanding

MT Master Trainer

NARC Nepal Agricultural Research Council

KISAN II PROJECT YEAR 3 ANNUAL REPORT Page vii AID-367-C-17-00001

NIA Nepal Insurers' Association

NSAF Nepal Seed and Fertilizer Project

OSC Overseas Strategic Consulting, Ltd

PERSUAP Pesticide Evaluation Report and Safer Use Action Plan

PMAMP Prime Minister Agriculture Modernization Project

PPD Public Private Dialogue

PPR Peste des Petits Ruminants

PQPMC Plant Quarantine and Pesticide Management Centre

PSE Private Sector Engagement

RFA Request for Application

SACCO Saving and Credit Cooperative

SEED Strengthening Entrepreneurship and Enterprise Development

SFAN Safe Food Alliance Nepal

SMS Short Message Service

SMT Senior Master Trainer

STTA Short-Term Technical Assistance

SWO Stop Work Order

T1 Trimester 1 (or 2 or 3)

TC Technical Committee

TOT Training of Trainer

USAID United States Agency for International Development

USG U.S. Government

VHLSEC Veterinary Hospital and Livestock Services Expert Centers

Y3 Year 3

ZECC Zero-Energy Cooling Chamber

ZOI Zone of Influence

http://npponepal.gov.np/notice-board/2/2018/66703990

http://npponepal.gov.np/notice-board/2/2018/66703990

KISAN II PROJECT YEAR 3 ANNUAL REPORT Page viii AID-367-C-17-00001

EXECUTIVE SUMMARY In Year 3 (Y3, July 16, 2019 through July 15, 2020), the Feed the Future Nepal Knowledge-based

Integrated Sustainable Agriculture in Nepal (KISAN) II project adapted to challenging circumstances

while continuing to strengthen relationships among market actors within selected value chains to help

build resilient agribusinesses and farming households. Through KISAN II’s collaboration with 1501

private sector partners and the Government of Nepal (GON), 166,022 farming households have

benefitted from valuable technical support, quality inputs, and improved market linkages leading to more

than USD 175 million in farm sales, an increase of nearly 350% over the project’s baseline farm sales.

Figure 1 highlights key achievements of KISAN II as of Y3.

Figure 1. Key achievements of KISAN II in Y3

1 These 150 partnerships include 146 grants and 4 memoranda of understanding (MOU) partners. Two of the 146 grantee

partners dropped out, but their data was included as they were relatively advanced in their agreements; the performance

period of two other grantees ended in mid-2020.

KISAN II PROJECT YEAR 3 ANNUAL REPORT Page ix AID-367-C-17-00001

Box 1 summarizes project highlights; additional information about Y3 accomplishments and events is

detailed in the following sections.

Partnering with New Private Sector Actors

● KISAN II has engaged 150 private sector

partners, 32 of which were new in Y3.

Partners include 49 businesses run by

women and disadvantaged groups (DAGs).

Partners are targeting 187,690 farming

households (75% headed by women) and

have benefitted 166,022 households to date.

● KISAN II signed memoranda of

understanding (MOUs) with 17 strategic

partners this year. These partners include

banks to increase access to digital finance,

cold storage manufacturers, and the

Department of Livestock Services (DOLS)

to facilitate inputs for goat breeding. Annex

4 presents summaries of seven new MOU

partners that were added in the third

trimester of Y3 (Y3 T3).

● To date, KISAN II has mapped 3,814

organizations to identify new partners

and extend the project’s reach across two Feed the Future Zones of Influence (ZOIs).

Strengthening High-potential Sectors

● KISAN II exceeded Y3 yield targets for rice by 6%, maize by 23%, lentils by 8%, and vegetables

by 16%, but fell slightly short on offtake rate for goat rearing by 14%.

● KISAN II and the Ministry of Agriculture and Livestock Development (MOALD) developed a Joint

Rice Intervention Program (JRIP) to increase fine rice production in Nepal. JRIP uses a unique rice

mill model designed to increase production, decrease transaction costs, and contribute to import

substitution. Implementation began in April 2020 through KISAN II rice mill partners in six Terai

districts in Province 5 and Sudurpaschim Province.

● KISAN II conducted a comprehensive landscape study of 96 Nepali rice mills to identify the key

constraints they face with respect to upgrading and diversifying facilities. The project will use findings

from this study to strengthen KISAN II partner rice mills, including JRIP participants.

● KISAN II works with vegetable farmers over multiple seasons through 132 private sector partners

to produce and market high-value vegetables. Vegetable sales account for 84% of KISAN II’s total

agricultural sales across all sub-sectors.

● KISAN II began working in the goat sector in Y3 and now partners with 5 goat farms targeting

4,000 households and 10 other goat-sector grantees (cooperatives and agrovets) targeting 2,850

households. Through MOALD’s Agriculture Information and Training Center (AITC), KISAN II

provided two artificial insemination trainings to 31 participants this year. Trainees have since

inseminated 322 goats with a 53% success rate.

● Overall annual farm level sales exceeded KISAN II Y3 targets by 55% (by 47% for rice, by 124%

for maize, by 271% for lentil, by 53% for vegetables and 548% for goat) and the average sales per

smallholder farming household increased by 71% in total. Similarly, the firm level sales exceeded

Box 1: Numbers at a Glance

To date, 150 KISAN II private sector partners—

65 cooperatives, 58 agrovets, 12 traders, 10 rice

mills, and 5 goat farms—are working to provide new

services to 187,690 farming households. This led to

increased overall farm sales and higher farm yields for

rice, maize, lentils, and vegetables during Y3.

To date, KISAN II held 669 field days to scale up

adoption of technologies and motivate farmers to

shift to commercial farming.

In Y3, KISAN II tested 500 insect and disease

samples and 1,500 soil samples through 25

testing events in six districts. Provincial soil testing

and plant protection laboratories provided support at

the events, which reached over 1,168 farmers.

In Y3, 18,760 individuals (15,850 female)

graduated from the Business Literacy Program short

course with 90% passing the final exam. Many

graduates have adopted newly learned skills on their

farms and increased sales.

KISAN II PROJECT YEAR 3 ANNUAL REPORT Page x AID-367-C-17-00001

the Y3 target of USD 28.5 million by 128% and the overall average sales per firm also

exceeded the Y3 target by 66%.

Deeper Engagement with Government Partners

● In Y3, KISAN II further strengthened its relationship with the GON through two Technical

Committee (TC) and two Joint National Steering Committee (JNSC) meetings—the

project’s core mechanisms for formal government engagement. Discussions during these meetings

included collaborative actions such as the development of private sector engagement (PSE)

guidelines and the implementation a joint KISAN II and MOALD initiative to increase fine rice

production in Nepal.

● In January–February 2020, high-level officials from the United States Agency for International

Development (USAID) and KISAN II representatives met with leaders of all four provincial

Ministry of Land Management, Agriculture, and Cooperatives (MOLMACs) and other

relevant provincial organizations in the KISAN II ZOIs. Together, they identified areas for mutual

collaboration, such as the formation of donor-MOLMAC coordination mechanism and the

promotion of KISAN II’s proven models.

● KISAN II carried out 34 municipal-level briefings and 46 joint monitoring visits, motivating

municipal officials to collaborate and leverage approximately NRs. 15 million (USD 132,000) to

support agriculture production, marketing, improved technologies, mechanization, and irrigation-

related activities.

● KISAN II shared findings from a market feasibility study the project supported for Panauti

Municipality. The municipality now plans to allocate funds to develop a cold storage facility and

vegetable market.

Building More Capable and Resilient Agribusinesses

● In Y3, 154,084 farmers took part in KISAN II trainings, demonstrations, and field days to help

them produce and market high-value vegetables.

● This year, KISAN II provided training-of-trainers (TOT) to 68 new private sector extension

workers, and refresher training to 227 (of the 378 total) existing extension workers.

● KISAN II facilitated six linkage and sales meetings for 132 value chain actors, during which traders

and collectors shared market demands with farmers and producer groups. After the meeting in

Salyan, lead farmers and trader partner Shanta Tarkari Pasal agreed to trade 200 metric tons of

vegetables per week from May through December 2020.

● Six partner cooperatives accessed NRs. 39.6 million (USD 330,000) in wholesale loans, which

has helped them expand lending services to their members.

● In Y3, 768 new farmer groups and 13,865 new farmer group members initiated group

savings and credit activities.

● In Y3, KISAN II trained 10,457 participants (8,942 females, 3,288 youths) in the Business Literacy

Program (BLP) short course at 480 locations in 18 districts. Nearly all (99.8%) of the 20,674

individuals enrolled in the long course completed Module 1 and half of Module 2 before the COVID-

19 lockdown began in March 2020.

● KISAN II supported 251 irrigation schemes benefitting 3,593 farming households across 20

districts, helping to irrigate 589 hectares of land. Y3 total irrigation contributions were NRs.

32,093,027 (USD 267,442): 38% from communities, 22% from the government, 5% from other

institutions, and the remaining 35% from KISAN II.

KISAN II PROJECT YEAR 3 ANNUAL REPORT Page xi AID-367-C-17-00001

Piloting Innovative Approaches

● KISAN II continued to bring digital financial services (DFS) to farmers’ doorsteps through branchless

banking (BLB) by executing an MOU with Laxmi Bank in Y3. Currently, five KISAN II agrovet agents

in three districts—with two more pending—use BLB. In Y3, BLB served more than 437 accounts,

collected deposits totaling NRs. 795,905 (USD 6,633) and disbursed four loans totaling NRs. 6

million (USD 50,041).

● KISAN II MOU partner Prabhu Management offered discounted DFS to 11 partner cooperatives

(with 31 more pending) to help them provide minimal-contact banking services to members.

● KISAN II partnered with eSewa, the largest digital wallet service provider in Nepal, to provide

virtual training to 89 partners on operating mobile wallets and DFS.

● KISAN II partners developed 55 community videos to promote new technologies and best farming

practices and disseminated these to 83,000 farmers (80% women).

Adapting and Building Resilience during the COVID-19 Pandemic

● During lockdown, KISAN II facilitated sending seven technical- and market-related short message

service (SMS) communications to over 100,000 farmers, in addition to virtual extension support

and store-to-farm input delivery.

● KISAN II conducted a rapid market assessment to understand the impact of COVID-19 on

agribusinesses and farmers, and also initiated a follow-on study (to be competed in the first

trimester of Year 4) to examine COVID-19 impacts on subsistence and market systems resilience

and the associated needs of women and DAGs.

● To help agribusiness partners operate safely, remotely, and within the restricted lockdown

environment, KISAN II signed an MOU with eSewa to introduce digital financial and payment

services to grantee partners and their customers. This will help reduce overheads and promote lean

management while ensuring a safe operating environment during the COVID-19 pandemic.

● KISAN II is using MOUs to help address COVID-19 supply chain disruptions. KISAN II signed an

MOU with agri-tech company DV Excellus to strengthen its digital vegetable sales platform, Kheti.

Linkages to KISAN II cooperatives and traders will ensure secure and stable market access for Kheti.

KISAN II is also enhancing Kheti’s supply side by establishing a vegetable storage unit, strengthening

its management and supply system, and increasing its customer base. Similarly, KISAN II signed an

MOU with food delivery service firm Foodmandu to support its new vertical Foodmandu Fresh

service, which enables the company to collect and supply fresh produce based on customer demand.

The project is linking Foodmandu with KISAN II cooperative and trader partners for the supply of

reliable, fresh produce.

KISAN II PROJECT YEAR 3 ANNUAL REPORT Page 1 AID-367-C-17-00001

INTRODUCTION The Feed the Future Nepal Knowledge-based Integrated Sustainable Agriculture in Nepal (KISAN) II is a

five-year, USD 32.7 million project implemented by Winrock International in collaboration with three

Nepali and two international organizations. The Nepali organizations are the Center for Environmental

and Agricultural Policy, Research, Extension and Development (CEAPRED); the Development Project

Service Center (DEPROSC); and Siddharth Inc. The two international subcontractors are Digital Green

and Overseas Strategic Consulting, Ltd (OSC).

KISAN II contributes to the objectives of the Government of Nepal’s (GON’s) Agriculture

Development Strategy (ADS) and the U.S. Government’s (USG’s) Feed the Future Initiative. The project

has five components, implemented in its Zone of Influence (ZOI), which focus on:

● Strengthening relationships among input suppliers, millers, cooperatives, farmers, and buyers

within selected value chains. Strengthened relationships promote better planning, transparency, and

access to quality inputs, extension, and other services, thereby increasing yields and sales for

farmers and firms (Components 1 and 2);

● Strengthening the enabling environment for market development by helping the GON engage

the private sector in policy dialogues and by linking market actors to sources of finance (Component

3);

● Providing business literacy training to members of disadvantaged communities to enhance their

ability to shift from subsistence to commercial agriculture (Component 4); and

● Creating a culture of continuous learning and improvement within the team and project

partners (Component 5).

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

market systems. The result is strengthened and improved agriculture markets, improved value chain

efficiency, and the ability to manage unexpected shocks. Focusing on five commodities—vegetables, rice,

maize, lentils, and goats—KISAN II promotes the business case for buyers, intermediaries, and service

providers to improve their business outcomes through more substantial engagement with producers

and other value chain actors.

KISAN II works with multiple value chain actors to ensure farmers are food- and income-secure. The

project partners with input suppliers, cooperatives, agrovets, traders, millers, and financial service

providers. In addition, KISAN II provides select households with business literacy training to encourage

vulnerable populations to participate in commercial agriculture. Lastly, KISAN II facilitates a business

environment that enables participants to address critical market system constraints, reinforces KISAN

II’s interventions, and enhances the reach and value of benefits to women, youth, and marginalized

groups.

KEY OUTPUT LEVEL INDICATOR RESULTS During year 3 (Y3)—July 16, 2019 through July 15, 2020—KISAN II performed well against key output

and outcome targets despite inconsistent rainfall and the COVID-19 pandemic-related national

lockdown, both of which affected overall agri-input supply, production, and marketing activities for

farmers and private sector partners. The following discussion compares output and outcome targets to

achievements and includes key factors that affected the results.

To date, through 150 partnerships (146 grants and 4 strategic MOUs), KISAN II reached a total of

166,022 farming households with trainings, demonstrations, and other direct support provided by

partners. Table 1 shows the project reach for household, farmer, and firm level indicators, including the


performance against targets. (“K” numbers signify KISAN II indicators, while other numbers are Feed

the Future indicators used for monitoring and evaluation). Table 2 presents partnership and farm

household numbers, as well as grant information, such as value and cost share by type of organization.

Table 1. Y3 project reach at beneficiary and firm level

Indicator No. Abbreviated Indicator Title FY20

Target

FY20

Result %

Households and Farmers

K1

EG. 3-1

Number of farming households benefiting directly from

USG assistance a

180,000 166,022 92

K2

EG.3-2

Number of individuals (farmers, firms, and government)

participating in KISAN II program b

198,250 179,111 90

K3

EG.3.2-1

Number of individuals trained, who have received short-

term agriculture and food security training

191,200 154,084 81

Firms

K14

EG. 3.2-4

Number of firms receiving organizational development

assistance

200 243c 121

K22

EG.4.2-2

Number of financial intermediaries (cooperatives) serving

poor households and microenterprises

65 70 108

a A household benefits directly if it contains at least one individual who is a direct beneficiary. An individual is a direct beneficiary if s/he

comes into direct contact with the set of interventions (goods or services) provided by the 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. b 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 the markets the project is strengthening. c The 243 partner firms include 150 grantee partners, 64 sub-grantees of the grantee partners, and 29 strategic partners.

Table 2. Y3 cumulative partnerships, households, and grant details by type of organization

Firm Type

Partner Household Grant Amount (USD) Grant %

of

Portfolio

Value

No. % of

Total Target Actual %

Total

Value

Partner

Average

Partner

Cost

Share

Cooperatives 65 43 74,865 70,987 97 1,382,220 21,265 1,398,613 40

Agrovet/Input

Suppliers 58 39 74,675 68,600 96 1,367,267 23,574 1,133,393 40

Traders 12 8 11,900 11,686 106 209,567 17,464 196,296 6

Rice Mills 10 7 22,250 14,327 68 404,170 40,417 435,272 12

Goat Farms 5 3 4,000 422 16 85,805 17,161 82,528 2

Total 150 100 187,690 166,022 92.3 3,449,029 22,994 3,246,102 100

As shown in Table 1, 154,084 individuals participated in KISAN II-supported trainings and

demonstrations, including business literacy trainings (K3). Of these, 75% were women, 20% were

youths, and 10% were Dalits (Figure 2). Because of the lag between when partners formed farmer groups

and when they conducted trainings and demonstrations, the number of individuals trained (K3) is lower

than the number of individual project participants (K2) (see Table 1).


KEY OUTCOME LEVEL INDICATOR RESULTS

Farm-level Yields

KISAN II yields exceeded Y3 yield targets for rice, maize, lentils, vegetables and goat (Table 3).

Contributing factors differed by commodity: favorable climatic conditions (rice); additional technical

support from private sector partners (maize, lentils, and vegetables); high-yielding/hybrid varieties (lentils

and vegetables); and lack of intensive veterinary support from grantees (goats). Figure 3 compares Y3

vegetable targets and actuals to baseline and Y2 yields. Annex 6 (Performance Indicator Tracking Table)

provides additional details on yields.

Table 3. Farm-level yields of targeted commodities

Indicator No. Commodity Y3 Target

(MT/ha)

Y3 Actual

(MT/ha) %

EG.3-10 (Crops)

EG.3-12 (Goat)

Rice 4.97 5.28 106

Maize 3.27 4.04 123

Lentils 1.00 1.08 108

Vegetables 22.38 26.05 116

Goats 6.61 6.4 105

37.92

22.0932.53

30.1024.49

28.21 27.65

17.57

23.88

13.78

Tomato Cauliflower Cabbage Cucumber Bitter gourd Bottle

gourd

Eggplant Chili pepper Onion French

Bean

Yields shown in MT/ha

Baseline (2018) Year 2 Actual Year 3 Target Year 3 Actual

Figure 3. Y3 Vegetable Yields

99.7%

0.2% 0.2%

24.3%

75.7%

19.7%

80.3%

10.3%1.1%

37.5%

0.8%

44.4%

5.9%

Pro

duce

rs

Pro

pri

eto

rs

Gove

rn s

taff

Mal

e

Fem

ale

Youth

(15-

29)

30 p

lus

Dal

it

Musl

im

Bra

h/C

het

New

ar

Janaj

ati

Oth

ers

Figure 2. Number of individuals participating in USG food security programs


Farm-level Sales

Overall, farm level sales exceeded Y3 targets by 55% (Table 4), despite the nationwide lockdown and its

subsequent impacts on agricultural activities. Primarily, this is because the lockdown took effect on

March 22, 2020, affecting only the final three months of the survey period. Further, the farmer and firm-

level mitigation strategies outlined below helped maintain sales momentum, despite the lockdown.

Commodity-specific factors also contributed to high sales: higher-than-projected prices (rice and lentils,

especially in Hills, and goat meat), and a greater percentage of producers selling larger quantities of

products than anticipated (maize, lentils, and vegetables). Annex 6 (Performance Indicator Tracking

Table) provides additional details on sales.

Table 4. Farm-level annual sales

Indicator No. Commodity Y3 Target (USD) Y3 Actual (USD) %

K17

EG. 3.2-26

Rice 11,719,871 17,216,944 147

Maize 1,520,340 3,405,239 224

Lentils 549,389 2,039,258 371

Vegetables 81,436,160 124,764,749 153

Goats 79,121 512,825* 648

Total 95,383,088 147,774,158 155

* Includes value of meat/kids sold and breeding services.

The average sales per smallholder farming household increased by 71%. Maize, lentils, vegetables, and

goats were all significant contributors to the overall sales increase (Table 5).

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

Commodity Y3 Target (USD) Y3 Actual (USD) %

Rice 319 320 100

Maize 60 104 173

Lentils 59 107 181

Vegetables 422 1,025 243

Goats 158 323 204

Total 596 1022 171

Firm-level Sales

As shown in Table 6, firm level sales exceeded the Y3 target of USD 12.5 million by 128%. Of this, 64%

(USD 15.9 USD) came from 26 small and medium enterprises, with the remainder from 154

microenterprises. Similarly, overall average sales per firm also exceeded the Y3 target by 66%.

Table 6. Firm-level sales

Firm Classification

No. of Firms Total Sales

% Y3 Target

(USD)

Y3 Actual

(USD)

Y3 Target

(USD)

Y3 Actual

(USD)

Micro-enterprise 120 154 7,412,736 12,577,914 170

Small and medium

enterprise 11 26 5,118,696 15,969,276 312

Total 131 1802 12,531,432 28,547,190 228

2 180 is the number of firms (as per FTF classification) who were contracted before January 1, 2020 and were included in

annual survey (census universe).


Access to Finance

In Y3, KISAN II met its target for new agriculture financing-related partnerships (K23), although USG

commitments and private sector investment (K27) decreased this year due to smaller grant sizes and

associated cost-share amounts. The value of outstanding balances on agriculture loans (K26) was slightly

under target in Y3 but is anticipated to rise in Y4 (Table 7).

Table 7. Finance and investment outcomes

Indicator

No. Indicator Title Y3 Target Y3 Actual %

K23

EG.3.2-27

Total agriculture-related financing (USD) 31,404,860 46,639,065 149

Producer (smallholder) 28,569,600 30,728,777 108

Microenterprise: average per ME 1,563,500 2,922,182 187

Small and medium enterprise: average per

SME 1,271,760 12,988,106 1,021

K27

EG.3.1-14

Value of new USG commitments and private

sector investment 2,192,581 1,648,802 75

USG commitments 2,192,581 731,226 33

Private sector investment N/A 917,576 N/A

K26

EG.3.2-312-

CUST

Value of the outstanding balance on

agriculture loans of USG-assisted households 18,119,500 17,197,058 95

Improved Management Practices and Technologies

On the project’s Y3 farm survey, 100% of respondents said they had adopted at least one improved

management practice or technology. The lower percentage shown in Table 8 for K4 is a result of the

smaller size of the survey universe (144,855) than the 155,100 individuals targeted for applying improved

management practices and technologies.3 The quantity of nutrient-rich vegetables kept aside for home

consumption surpassed the Y3 target.

Table 8. Farmer adoption of improved management practices and technologies

Indicator

No. Indicator Title Y3 Target Y3 Actual %

K4

EG.3.2-24

Number of individuals who have applied improved

management practices and technologies 155,100 145,035 94

K41

EG.3.3-11

Quantity of nutrient-rich value chain commodities set

aside home consumption (MT) 13,076 13,561* 104

* Versus Y2 actual of 3,646 MT.

Organizational Capacity Development Outcomes

Census data for fiscal year 2020 suggests that firms are improving across all five capacity development

domains—governance, general management, human resources, financial management, and

sustainability—as shown in Figure 4.

3 In Y3, KISAN II’s annual farm survey included 144,855 farmers who were able to harvest at least one of the commodities

promoted by KISAN II during the year. The survey methodology used a web-based computer aided telephonic interview

(CATI) following World Bank’s ‘Survey Solution package.


Inclusion

Table 9 shows that KISAN II exceeded the Y3 target on women’s participation (K6) and met the target

for youth access to productive resources (K7).4 The project nearly met its Y3 target of having 53%

business leadership positions5 filled by women or members of vulnerable groups (K49).

Table 9. Inclusiveness indicators

Indicator No. Indicator Title Y3

Target

Y3

Actual %

K6 GNDR-2 Percentage of participants in programs designed to increase access

to productive economic resources who are female (unique) 70 82 117

K7 YOUTH-3 Percentage of participants in programs designed to increase access

to productive economic resources who are youth 15 15 100

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

53 49 92

Enabling Environment and Government Collaboration

KISAN II met its Y3 targets for policy advocacy support (K28) and support for studies on investment

feasibility (Table 10).

Table 10. KISAN II policy advocacy support


Target

Y3

Actual %

K28

EG.3.1-12

Number of agricultural and nutritional enabling environment policies

analyzed, consulted on, drafted or revised, approved and implemented

with USG assistance (two technical regulations and goat breeding

strategy) 1) analysis and 2) stakeholder consultation 3) drafting. a

3 3 100

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 systems b

5 5 100

a Includes: 1) Goat Breeding Strategy, 2) technical regulation on "Licensing and Registration of Food Businesses", and 3) technical

regulation on "Import-Export Inspection and Certification of Food Products." b Includes: 1) Case study to support Narayan municipality, Dailekh, in making investment decision on cool chambers, 2) case study to

support Bheri municipality, Jajarkot, in making investment decision on cool chambers, 3) feasibility study to support Panauti Municipality in

making investment decision on vegetable marketing centers, 4) identifying constraints that limit women's engagement in agribusiness, and

5) goat artificial insemination (AI) manual.

4 Feed the Future access to productive resources includes only those who had access to finance. 5 Leadership positions are owner, chair, vice chair, treasurer, and secretary.

68 66

25

7277

51

26

8190

65

18

90

71

42

22

807563

30

59

Agrovet (98) Cooperative (61) Miller (7) Trader (13)

Governance General Management HR Financial Management Sustainability

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


Business Literacy Program

KISAN II fell short of its target for entrepreneurial skills training (K36) due to the COVID-19 lockdown

and restrictions for group activities (Table 11). For the same reason, the project did not meet its target

for training in life skills (K37). However, the project met the targets for trainee competency testing

(K39) and nearly met the target for the number of trainees who initiated or expanded sales of goods

and service (K40).

Table 11. KISAN II Business Literacy Program indicators


Target

Y3

Actual %

K36

EG.3.2-305-CUST Number of people trained in entrepreneurial skills 22,078 10,457 47

K37

EG.3.2-301-CUST

Number of people trained in life skills through USG

supported programs 20,146 0 0

K39

EG.3.2-314-CUST Percentage of business literacy trainees that pass a

competency test 90 90 100

K40

EG.3.2-302-CUST

Percentage of entrepreneurial literacy trainees who

initiate or expand sales of goods and services 90 86 93

Collaboration, Learning and Adaptation

Collaboration, learning and adaptation (CLA) is a set of practices to improve development effectiveness.

KISAN II systematically applies CLA approaches that enable market actors and stakeholders to learn

from each other’s experiences and facilitate new ways of doing business that foster better relationships

and outcomes. The top three indicators in Table 12 focus on a relatively small subset of CLA-related

topics at the firm and farm level. The project nearly met the targets for the number of individuals

trained on adaptive management and climate change adaptation (K42 and K45) and met the target for

individuals taking risk-reducing actions (K46). Similarly, the organizational indicators on CLA (K44 and

K50) exceeded Y3 targets, with strong results for K43.

Table 12. Collaboration, learning, and adaptation outputs


Target

Y3

Actual %

Individual-level CLA indicators

K42

EG.3.2-1

Number of individuals who have received short-term training on

adaptive management 22,078 20,605 93

K45

EG.3.2

Number of people trained in climate change adaptation supported by

USG assistance 55,448 51,516 93

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

37,200 337,092 100

Firm-level CLA indicators

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

80 76 95

K44

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 40 44 110

K50

EG.5-3

Number of microenterprises supported by USG assistance on

agriculture and food security related development 200 227 114

Science, Technology, Innovation, and Research (STIR)

KISAN II tracks a wide range of investments that respond to identified challenges. In Y2, KISAN II

reported that cool chambers and zero energy for vegetable pre-cooling and storage were innovations


supported through USG assistance. In Y3, three additional private sector traders replicated the cool

chamber storage innovation. Also, in Y3, KISAN II observed that maize seed dryers, plastic mulching,6

and the rice mill model under STIR10 (Table 13) were taken up by 10 KISAN II rice milling partners.

Table 13. Science, technology, innovation, and research


Target

Y3

Actual %

K47

STIR 10 Number of innovations supported through USG assistance 3 3 100

K48

STIR 11

Number of innovations supported USG assistance with

demonstrated uptake by public and or private sector 2 2 100

IMPACT OF COVID-19 In response to the COVID-19 pandemic, the GON issued a nationwide lockdown from March 22, 2020,

through July 21, 2020, to protect its citizens and curb the spread of the disease. The lockdown imposed

strict travel restrictions, limited public movement, and enforced the closure of non-essential businesses.

These measures helped protect the population from disease exposure, but also drastically reduced

economic activities and disrupted Nepal’s agricultural supply chains and market system, which affected

various KISAN II project participants in different ways.

Impact on Agribusinesses and Farmers

Although the government eventually eased restrictions for agriculture-related activities, many agriculture

sector actors faced challenges during the lockdown.7 The demand for fresh vegetables decreased

because regular bulk consumers such as restaurants, hotels, educational institutions, and other non-

essential businesses closed. Coupled with logistical and operational difficulties faced by vegetable traders,

this reduced business and increased post-harvest losses for traders. As a result, traders are short on

working capital and have been unable to make timely payments to farmers.

Lockdown travel restrictions hindered farmers from visiting local agrovets to buy necessary agri-inputs.

With limited operating hours and restricted inter-district and -provincial movement, agrovets struggled

to maintain their stock of agri-inputs from wholesalers and input suppliers. Logistical challenges led to a

sharp rise in the cost of doing business and resulted in price increases for available agri-inputs, which put

additional strain on farmers’ purchasing capacity.

During the lockdown, farmers could not easily access their savings or take loans from cooperatives.

Many cooperatives reported significant increases in customer withdrawals; coupled with the logistical

challenges associated with collecting loan repayments from members this threatened cooperatives’

liquidity. Rice mills faced barriers to market access including limited paddy stock, labor shortages, and

logistical bottlenecks. Many goat farmers could not sell pure-bred kids for breeding, which forced them

to rear goats for meat, skip a breeding season, or breed with low-quality stock. The economic impacts

of COVID-19 appeared to be hardest on subsistence farmers and private sector business owners,

especially women and those from disadvantaged groups (DAG). A KISAN II-led rapid market assessment

on the impact of COVID-19 conducted early in trimester 3 of Y3 (Y3 T3) showed that the shock

experienced by farmers during the subsequent lockdown led to low performance, both on the farm and

market. Farmers from the DAG community suffered from reduced demand for their vegetables, falling

prices, supply chain disruptions, local movement restrictions, and other forms of social disparities.

6 Farmers re-use plastic for two crop cycles and then sell it to recyclers. 7 The COVID-19 lockdown affected only the last three months of the KISAN II Y3 survey period. Although Y3 agricultural

sales targets were affected minimally, longer-term impacts may be apparent during Y4 and onward.


COVID-19 Adaptations

Although many of KISAN II’s agribusiness partners took proactive steps to adapt to the changing

business environment, others needed support to transition to a sustainable model. Together with

government partners, KISAN II supported agribusinesses in adapting and responding to new constraints,

ultimately enabling farmers to access the inputs and support needed to remain competitive during the

crisis. KISAN II took steps to support the financial needs, resiliency, and access to inputs and

information of agribusinesses and farmers. As described in more detail under the Update on Activity

Implementation section, KISAN II:

● enabled agribusinesses to form strategic partnerships with financial institutions for new loans and

facilitated digital payment platforms and e-wallets to help them stay competitive during lockdown;

● continued to build long-term resilience among agri-entrepreneurs through the Business Literacy

Program and linked mills and wholesale agrovets with business development services to help them

transition to more efficient post-COVID-19 operations; and

● ensured farmers’ reliable and safe access to valuable agri-inputs and technical support by helping

agribusinesses implement innovative ways to reach customers without group-based activities. For

example, KISAN II facilitated technical- and market-related short message services (SMS) to over

100,000 farmers, in addition to virtual outreach and store-to-farm input delivery.

Specific results from KISAN II’s rapid market assessment conducted in June 2020 on the impact of

COVID-19 on specific crops, as well as farmers’ coping strategies, can be found in Annex 2. As a follow

up to KISAN II’s rapid market assessment during Y3 T3, the project initiated a rapid assessment to

examine COVID-19’s effects on women and DAG, to identify and learn from the challenges and

opportunities these groups faced during the pandemic. The study focuses on three major domains:

economic disruption, gender and social inclusion consequences, and market system resilience. KISAN II

will complete data collection in Y4 T1 and will use the findings to tailor interventions to the unique

needs of women and DAGs during Y4 T2 and T3.

Migrant Returnees and Skillsets

The COVID-19 pandemic has affected the economy worldwide, resulting in a massive loss of jobs and

global remittances to developing countries. Globally, about 200 million migrant workers and their

families have been affected.8 Nepal is the top recipient of remittances as a share of gross domestic

product in South Asia, and ranks fifth (28.6%) among remittance-dependent economies worldwide.9

About 15–33% of Nepalese migrant workers are expected to lose their jobs and return to Nepal,

straining the country’s ability to create job opportunities that match their skill sets. A study conducted

by Samridhi Foundation found that about 77% of Nepal’s returnees are no longer willing to re-migrate

abroad but have acquired skills at home or abroad (50% in agriculture, and others in driving, cooking,

electric repair, carpentry, and masonry)10. KISAN II's annual monitoring survey indicates that 13% of the

144,855 targeted households have one or more family members who have returned or expect to return

to Nepal, but only 4% of these have agriculture-related skills (Table 14). In Y4, KISAN II will join hands

with GON and private sector actors to explore ways to involve qualified and interested returnees in

agriculture and other agri-value chain activities.

8 https://www.ifad.org/en/web/latest/blog/asset/41969816 9 https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS?end=2018&locations=IN-LK-BD-NP-BT-

MV&most_recent_year_desc=true&start=1975&view=chart 10 https://samriddhi.org/publications/

https://asia.nikkei.com/Spotlight/Coronavirus/Coronavirus-wrecks-South-Asian-migrant-livelihoods-in-Middle-East

https://www.ifad.org/en/web/latest/blog/asset/41969816

https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS?end=2018&locations=IN-LK-BD-NP-BT-MV&most_recent_year_desc=true&start=1975&view=chart

https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS?end=2018&locations=IN-LK-BD-NP-BT-MV&most_recent_year_desc=true&start=1975&view=chart

https://samriddhi.org/publications/


Table 14. Acquired skills of migrant returnees in KISAN II households

Acquired Skill Area

Migrant Returnees Expected to Return Total

No. of

Households %

No. of

Households %

No. of

Households %

Agriculture 425 4 709 17 1,134 8

Service sector (cooking, shop,

hotel etc.) 3,969 40 2,551 60 6,520 46

Vocational skills (electrician,

plumber, construction workers,

carpenters)

1,843 19 992 23 2,835 20

General labor 1,701 17 3,118 0 4,819 12

Other skills 1,984 20 1,701 0 3,685 14

Total 9,922* 100 9,071** 100 18,993 100

*Number of Nepali households in which at least one household member has already returned from an overseas migrant job.

**Number of Nepali households in which at least one household member is expected to return from an overseas migrant job.

UPDATE ON ACTIVITY IMPLEMENTATION Progress is reported by component activity and objective in this section, as outlined in KISAN II’s

approved Y3 Annual Work Plan. The information presented reflects specific progress under each

component during this reporting period. Detailed progress against each activity is illustrated in the

Detailed Implementation Plan table in Annex 5.

KISAN II and its partners coordinate and collaborate closely with the GON at the federal, provincial,

and municipal levels. The project also coordinates with two district-level organizations, the District

Coordination Committee (DCC) and the District Chambers of Commerce and Industry (DCCI). This

engagement enables KISAN II to update public sector organizations on project activities, garner support

for implementation, and identify measures to integrate KISAN II’s successful models into GON

programs. The project coordinates with GON through formal and informal meetings, joint monitoring

visits, support of the Agricultural Development Strategy-Joint Sector Review (ADS-JSR) mechanism, and

collaboration to solve technical issues.

Engaging Municipalities to Understand and Support Production, Marketing, and Irrigation

(Activity CL.1)

Partnering with Municipal Leaders to Accelerate Project Implementation (Activity CL.1)

To deepen municipal leaders’ understanding of KISAN II's private-sector-led approach and facilitate

smooth program implementation, the project and its partner firms hold municipal-level briefings and

engage leaders through joint monitoring visits. KISAN II grantee partners also organize events to inform

local municipal officials of activity progress and lessons learned, which helps garner municipal support to

accelerate implementation. In Y3, KISAN II held 34 municipal-level briefings and discussions, 13 of which

were carried out directly by private sector partners. Joint monitoring visits provide an opportunity for

municipal-level officials, Agriculture Knowledge Centers (AKCs), and zone and super-zone

representatives of the Prime Minister Agriculture Modernization Project (PMAMP) to observe field

activity implementation and changes brought about by project interventions. These visits focus the

attention of elected representatives and officials on the agriculture sector and its importance.

Altogether, 46 joint monitoring visits were organized in Y3, 31 of which were conducted directly by

private sector partners.

Collaboration with Government of Nepal


Briefings and discussions with municipal officials, joint monitoring visits, and informal meetings have led

to municipalities and other GON entities leveraging their resources to support production, marketing,

improved technologies, mechanization, and irrigation-related activities carried out by KISAN II grantees.

In Y3, these KISAN partners leveraged approximately NPR 15 million (USD 132,000) from local

government to support agriculture activities, and additional support may be forthcoming. For example,

in Y3, KISAN II supported case studies for Narayan and Bheri Municipalities on establishing cool

chambers, and a feasibility study for Panauti Municipality to establish a vegetable market center. KISAN II

shared study findings with all three municipalities, who expressed interest in funding the projects in FY

2020/21. KISAN II will follow up with the municipalities in Y4 T1 to support resource allocation and to

facilitate the start of construction.

Mobilizing the Private Sector and Municipalities to Adapt Agribusinesses to COVID-19

During the first few weeks of the GON's national lockdown, municipalities were indecisive on how to

support agricultural activities. KISAN II’s grantee partners were crucial in motivating local leadership

(municipalities and wards) to facilitate marketing of agri-inputs and outputs. Grantees also supported

municipalities to conduct regular agricultural activities (e.g., the distribution of subsidized materials,

construction of plastic tunnels, and dissemination of virtual technical messages). In coordination with

municipalities, Jagaruk Cooperative of Nuwakot and Bhandari Agrovet of Palpa opted for door-to-door

vegetable sales to accommodate consumers limited by the strict lockdown. Similarly, in Banke, Bardiya,

Kapilvastu, and Dang districts, KISAN II partners provided rice as in-kind support for municipalities’ food

relief distribution. Acting on a request by Shivaraj Municipality of Kapilvastu, KISAN II conducted

vegetable production training for farmers. maintaining social distancing and other safety measures.

Central-level Coordination Results in Collaborative Action (Activity CL.2.1)

KISAN II coordinates with the federal government through two mechanisms, a Joint National Steering

Committee (JNSC) and a Technical Committee (TC). To provide opportunities for strategic guidance

and support during implementation and to monitor progress, a JNSC consisting of four USAID-funded

projects—KISAN II, the Nepal Seed and Fertilizer Project (NSAF), Sustainable Action for Resilience and

Food Security, and Promoting Agriculture, Health and Alternative Livelihoods—was formed with the

Secretary of MOALD as the Chair. To address operational issues during program implementation, a

separate TC for KISAN II was formed under the chairmanship of the Joint Secretary of Planning and

Development Cooperation Coordination Division under MOALD. This year, two JNSC meetings and

two TC meetings (of four planned TC meetings) were organized. KISAN facilitated an additional virtual

meeting in June to obtain feedback on the project’s Y4 T1 work plan; this meeting included the TC

chairperson and other senior officials from MOALD, Center for Crop Development and Agro-

biodiversity Conservation (CCDABC), Department of Food Technology and Quality Control (DFTQC),

and National Planning Commission.

Acting on decisions from the JNSC meeting in September 2019, KISAN II supported MOALD in

developing PSE guidelines. Similarly, KISAN II collaborated with MOALD to start implementation of the

Joint Rice Intervention Program (JRIP) to promote fine rice in six project districts in Terai regions.

Please see the Component 2 section (page 13) for details.

Provincial-level Coordination Identifies Areas for Collaborative Action (Activity CL. 2.2)

KISAN II coordinates with provincial-level organizations through formal and informal meetings, joint

monitoring visits, and joint efforts to manage operational issues. At the province level, the project works

with MOLMAC, national organizations that work at the sub-national level (e.g., the PMAMP’s zones and

super-zones), other public sector organizations, and other development partner-supported projects. In

Y3, KISAN II conducted four formal, five informal, and two virtual meetings with provincial MOLMACs,


which were attended by relevant provincial-level organizations and municipalities. Decisions resulting

from these engagements included supporting MOLMAC preparation of the Agriculture Development

Plan (ADP), promoting mechanization, replicating business literacy classes, developing business cases for

improved technologies, promoting market infrastructures, and expanding areas for maize and spring rice

production. Guided by decisions made during provincial-level joint monitoring visits with KISAN II and

USAID in Y3 T3, a Joint Technical Working Group that includes KISAN II was set up in all four

provinces, to help facilitate and monitor performance Similarly, Bagmati Province is in the process of

forming two new committees: a high-level agriculture development coordination committee, led by the

Minister, and a multi-stakeholder implementation coordination committee, led by the Secretary. KISAN

II will take part in both provincial committees. Other provincial-level collaborative actions planned for

Y4 T1 include support to finalize the ADP of Bagmati Province, and replication of KISAN II's BLP training

by Province 5 and Karnali Province.

KISAN II also conducted coordination meetings with 31 Agriculture Knowledge Centers (AKCs), the

Veterinary Hospital and Livestock Services Expert Centers (VHLSEC), and PMAMP zones and super-

zones. Through these meetings, KISAN II disseminated project extension materials—technical reports,

briefs, manuals, leaflets, and brochures—to farmers. To showcase KISAN II activities, three joint

monitoring visits were organized for government employees of Province 5, Karnali Province, and

Sudurpaschim Province. The provincial officials committed to supporting farmers with successful spring

rice production and marketing.

District-level Coordination Strengthens Collaborative Actions (CL.2.2.4 and 2.2.5)

In Y3 T2, KISAN II held coordination meetings with six DCCs and seven DCCIs. Participating DCCs and

DCCIs expressed interest in linking KISAN II beneficiaries, particularly vegetable producers, with nearby

markets where they could sell produce. The project team also participated in provincial and district-level

forums on minimizing damage from fall armyworms (FAW), contributed to FAW task force actions,

organized FAW trainings, and installed lures in FAW-prone areas. The KISAN II team is working closely

with public sector organizations such as the MOLMACs, AKCs, PMAMP zones and super-zones, Nepal

Agricultural Research Council (NARC) stations, plant protection laboratories, and the Plant Quarantine

and Pesticide Management Centre (PQPMC) to control FAW damage to rice in Banke and Bardiya

districts.

Support for Joint Sector Reviews (Activity CL 3)

The 2019 ADS-JSR recommended three actions;11 two are now completed and one is in the final stage.

Similarly, seven of the 11 actions agreed from the 2019 annual ADS-JSR meeting were implemented and

the remaining five are in different stages of progress, though delayed due to COVID-19 and the

subsequent lockdown. Three ADS-JSR Technical Committee meetings were held this year, but

preparatory work for the second annual ADS-JSR meeting has been postponed to October 2020 due to

the pandemic. KISAN II supported the development of the 2020 annual ADS-JSR report, a shorter

version of which was translated into Nepali and included in MOALD's Annual Progress Report

FY2018/19. MOALD is taking steps towards institutionalizing the joint sector review mechanism and

adopting the annual approach in the government system through a provision in the National Agriculture

Policy, which is being revised in coordination with development partners.

11 (1) Assessment of ongoing agriculture projects' alignment and contribution to ADS, (2) ADS orientation to MOLMACs

and selected municipalities, and (3) establishment of mechanisms for communication, coordination, and information flow

among federal, provincial, and local governments.


Opportunity Mapping Exercise Helps in New Partner Selection (Activity 2.0)

To date, KISAN II has mapped a total of 3,814 organizations (Figure 5), which include most of the

relevant agribusinesses in the ZOI. KISAN II used information from the maps to target and recruit new

partners and to extend the project’s reach across the two ZOIs, including some less commercial,

underserved areas and areas with high concentrations of disadvantaged groups (DAGs). In Y3, the

project signed 32 new grant partnership agreements.

Sub-objective 2.1: Strengthen the Organization and Coordination of Selected Market

Systems

Join Forces with GON to Reduce Rice Imports (Activity 2.1)

Nepal’s import of medium and fine rice varieties reached an all-time high in fiscal year 2018/19. Despite

greater domestic rice production and an increased annual budget allocation in agriculture by GON, the

import of milled rice to Nepal during the same period increased by 30 percent.12 KISAN II collaborated

with MOALD to scale up and showcase the project’s rice mill model to help reduce the import of

medium and fine rice varieties, increase fine rice production in Nepal, lower production and transaction

costs, and contribute to import substitution. This joint initiative targeted the 2020 rice season (Box 2).

Eight KISAN II rice mills and three cooperative partners currently participate in the Joint Rice

Intervention Program (JRIP) to demonstrate the impact of the rice mill model to local, provincial, and

federal officials. The model demonstrates how partnerships among various rice value chain actors (rice

mills, traders, machinery suppliers, agrovets, cooperatives, and farmers) can increase production and

improve the processing and marketing of medium and fine rice varieties. Through JRIP, GON officials

will increase their understanding of market systems development and prepare to replicate KISAN II's

rice mill model. Specifically, JRIP will demonstrate the impact of the rice mill model, emphasizing how

partnerships with various rice value chain actors can lead to increased production and improved

processing and marketing of fine rice varieties. Through government replication of this model, Nepal can

gradually reduce its dependency on rice imports to meet growing demand. Under JRIP, KISAN II

12 https://www.indexmundi.com/agriculture/?country=np&commodity=milled-rice&graph=imports

Component 2: Strengthen the Competitiveness, Resilience, and

Inclusiveness of Selected Agriculture Market Systems

13

16

46

73

180

205

331

371

413

1,032

1,134

Extension Service Provider

Seed Company

Insurance Company

Machinery Suppliers

Collection Center/Haat Bazaar

Farms and Grain Aggregators

Feed Processor and Millers

Vegetable Traders

Financial Institutions

Agrovet

Cooperatives (Agri/ Multipurpose)

No. of mapped organizations

Figure 5. Types of private sector organizations mapped to date

https://nam04.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.indexmundi.com%2Fagriculture%2F%3Fcountry%3Dnp%26commodity%3Dmilled-rice%26graph%3Dimports&data=02%7C01%7CKimberly.Keeton%40winrock.org%7C7404fb4f6755455f5a8608d82f297809%7C9be3e27628d84cd88f8402cf1911da9c%7C0%7C0%7C637311202445896139&sdata=mVgpIigpY%2BJB694M7MKnsf%2FrBrFvDqGx%2BmTuf4mX%2FUk%3D&reserved=0


partners have formed 315 farmer groups that

include 7,960 farming households and cover 3,786 ha

of land.

Identifying New Partnerships Across Value

Chains (Activity 2.1.1)

KISAN II uses cost-sharing grants to buy down risks

for private sector actors willing to pilot new

business models for input supply, service provision,

and commodity purchasing. To date, KISAN II has

signed agreements with 150 private sector partners

(49 partnerships with women- and DAG-led

businesses) through its Annual Program Statement.

These partners target 187,690 farming households

(75% headed by women). KISAN II received five

applications for modifications from current partners

to increase their household reach and approved the

proposal of Kasturi Cooperative from Jajarkot to

add 800 households. The remaining four applications

are under negotiation.

KISAN II also signed MOUs with 17 strategic

partners: banks and service providers to increase

access to digital finance; cold storage manufacturers

to enhance knowledge and awareness of available

cold storage technologies; and the Department of Livestock Services (DOLS) to increase production

and supply of quality buck semen and liquid nitrogen for breeding purposes. As described under the

Effects of COVID-19 section (beginning on page 8), the nationwide lockdown impacted the agricultural

sector heavily, as farmers had very limited access to agricultural inputs and were unable to sell their

fresh produce. To support farmers of ZOI II, KISAN II partnered with Kheti, Foodmandu, and munaa—

three digital food sales platforms—to link buyers with partner cooperatives and traders, and to link

farmers to markets. KISAN II is supporting these firms to scale their business, increase their customer

base, and source the required quantity, quality, and variety of vegetables they need directly from

farmers.

In light of the growing demand for medium and fine rice in Nepal, KISAN II published a Request for

Application (RFA) for rice millers interested in increased investment in domestic production, processing,

and marketing of premium rice. As a result, KISAN II signed agreements with two additional rice mill

partners this year, bringing the project total to 10.

Strengthening Vertical Linkages Among Actors (Activity 2.1.1)

Developing vertical linkages13 is a key KISAN II intervention to connect agrarian households with end

markets. KISAN II works closely with its partners to strengthen linkages and increase information flow

between traders and farmers, enabling farmers to meet market demands. To that end, KISAN II

conducted 132 meetings between traders, partners, and farmer groups in Y3. After a meeting in Salyan,

13 Vertical linkages are business relationships formed between actors working in different nodes of value/supply chain to

enable higher efficiency in moving the product or service to the end market.

Box 2. Joint Rice Intervention Program

Launches During 2020 Rice Season

This joint initiative between KISAN II and MOALD

was launched at the start of the 2020 rice season

(July/August), and includes 8 rice mills and 3

cooperatives targeting to reach 7,960 farmers with

improved rice production on nearly 4,000 ha. in six

Terai districts of Province 5 and Sudurpaschim

Province The goal of JRIP is to help reduce rice

imports by increasing production and productivity of

fine rice during the main and spring season. Both

KISAN II and the GON earmarked funds for this

purpose and are committed to using these resources

to successfully implement the program. JRIP also

provides an opportunity for federal, provincial, and

local government officials to increase their

understanding of the rice mill model and replicate it

in the GON's regular program.

To complement JRIP’s core goals, KISAN II is

collaborating with Cereal Systems Initiative for

South Asia to select existing service providers and

custom hire centers providing mechanization

services in the JRIP intervention area. KISAN II will

then provide demand-based training on

mechanization, to make service delivery more

efficient and accessible for farmers.


lead farmers signed an agreement with trader partner Shanta Tarkari Pasal to produce 200 metric tons

of vegetables per week from May through December 2020.

Building Capacity of Cooperatives Boosts Farmers’ Groups and Taps into Market Opportunities

(Activity 2.1.2)

KISAN II grantee partners provide formal training and technical backstopping to farmer groups to build

technical and management capacities. Technical training covers a wide range of topics, such as nursery

management; agronomic practices; integrated pest management (IPM) and nutrient management; post-

harvest management; production of rice, maize, and lentils; and food safety and grading. In addition to

individualized technical assistance, the project also conducts capacity-building training to help

cooperative partners develop action plans and address emerging issues. During technical training, KISAN

II trains grantees’ field staff on gender equality and social inclusion (GESI), enabling them to incorporate

these principles during their interactions with farmers. In Y3, KISAN II selected 12–15 cooperative

partners led by women and DAG to participate in a GESI-specific capacity building workshop to build

leadership and economic empowerment skills, enabling them to help cooperatives serve women and

DAG more effectively. Table 15 lists the KISAN II capacity-building activities conducted for partner

cooperatives in Y3, including trainings, coaching, and information sharing:

Table 15. Y3 capacity-building activities for cooperatives

Cluster Capacity-building Activities No. of cooperatives

trained

Dang

Agri-loan product development

Business plan preparation

Cooperative education

Generation of internal resources

Orientation on use of digital financial services (eSewa)

4

Kailali

Revision of statute as per new act

Policy amendment


5

Surkhet



Policy amendment

Internal auditing

Wholesale loan documentation

4

Kapilvastu

Operating guidelines preparation

Accounting

Cooperative education

2

Dadeldhura


Policies amendment

Financial literacy

5

Banke



Cooperative members' charter preparation

4

Kathmandu

Policy revision/amendment



6

All clusters Digital financing services to board of directors 21

Increasing Resilience of Vulnerable and Marginalized Groups through Technical Knowhow

(Activity 2.1.3)

KISAN II activities are designed to empower and link vulnerable and marginalized groups to markets.

This year, the project trained partner firms to work actively with marginalized groups and acknowledge

them as a viable customer base for their businesses. KISAN II developed and disseminated guidelines for

integrating GESI norms into program activities to serve farmers within an inclusive market system, with


priority given to the unique needs and roles of

women and DAGs in program activities. KISAN

II distributed booklets to staff and partners on

the use of these guidelines.

The project has already observed a shift in

partner firms’ willingness to treat vulnerable

groups as potential clients that can expand their

businesses. Mr. Samir Regmi, proprietor of

Laxmi Agrovet in Surkhet, shared the following:

"We are profit-oriented, but we didn't know

about inclusive models. Learning from KISAN II,

we have adopted an inclusive marketing model

to increase our sales." Since partnering with

KISAN II, Laxmi Agrovet has increased overall sales by 18–20% by adopting more strategic and inclusive

approaches that attract, expand, and retain a wider customer base. Approaches include discounts to

group customers, links with municipalities for further support, and one-to-one technical visits to

members. Of the 800 households this agrovet reaches, 70% are women, 30% are DAGs, and 10% are

youth farmers.

Strengthened Horizontal Linkages to Optimize Market Systems (Activity 2.1.4)

Horizontal linkages14 are also critical for a market system to sustain and thrive. Similarly placed actors

can form alliances and share resources, optimizing operations and benefitting all members of the value

chain. In the Dadeldhura and Kailali clusters, KISAN II facilitated six linkage and sales meetings among

132 value chain actors, enabling traders and collectors from nearby market points to share market

demands with farmers and producer groups and purchase vegetables from farmers who meet market

specifications. Similar discussions in Salyan helped improve market coordination, as traders were

oriented on the importance of sharing a demand schedule with farmers. This encouraged market-led

production and the adoption of post-harvest storage practices, such as zero energy cold storage to

reduce post-harvest losses. Such linkage activities offered a platform for value chain actors to share

individual experiences with supply chain management and to discuss possible collaboration to address

inefficiencies in the vegetable supply chain.

Increasing AI to Boost Production and Income in

the Goat Sector (Activity 2.1.5)

Nearly half of all Nepali households rear goats,

contributing about 21% to national meat production

and 12% to the national livestock gross domestic

product. Key constraints to growing the sector

include the poor genetic makeup of current goat

breeds and the traditional breeding practices used

by goat farmers. KISAN II is working closely with

the GON to boost the country’s goat sector using

artificial insemination (AI)—an important tool for

introducing more productive goat breeds, such as

14 Horizontal linkages are business relationships formed between two actors working in the same node of the value/supply

chain. The two actors pool resources to conduct mutually beneficial activities that also improve the overall performance of

the value/supply chain.

GESI interaction meeting held with KISAN II partner Laxmi

Agrovet and staff. Photo credit: Ghan Bahadur Thapa for

USAID

Twin goat kids born in Kavrepalanchowk as a result of AI

using 100% frozen Boer buck semen. Photo credit:

Balaram Chaulagain for USAID


Boer. This year, KISAN II collaborated with MOALD’s AITC to provide two AI trainings to 31

participants—mostly experienced cattle and buffalo inseminators. The participants have since used AI on

322 goats with a 53% success rate. To complement the training, KISAN II developed an AI manual in

collaboration with AITC, as well as two AI-related videos covering steps and procedures for AI

technicians, and forage-based goat farming techniques for farmers. These videos are currently being

reviewed by the National Livestock Breeding Office and AITC.

To date, KISAN II works with 15 grantee partners

in the goat sector (Box 3). The partners are from

eight districts and cover 6,850 households. In Y3,

KISAN II signed two strategic MOUs. One is with

the DOLS to increase the availability and supply of

diversified buck semen and to introduce an

American lineage of Boer buck. The second, with

Hester Biosciences Pvt. Ltd., aims to expand

distribution of a thermostable Peste des Petits

Ruminants (PPR)15 vaccine and feed supplements in

KISAN II’s ZOI, and to raise awareness on

improved goat husbandry and management

practices.

On the policy front, KISAN II supported MOALD

to conduct a public–private-dialogue (PPD) on goat

breeding. The dialogue included presentations by

NARC, DOLS, and private sector partners on their experiences and challenges with goat breeding.

Sub-objective 2.2: Strengthen the Organization and Coordination of Selected Market

Systems

Exposure Visits and Sales Meetings Expand Business Networks (Activity 2.2.1)

Because of poor production planning and management, farmers are often unable to supply vegetables

that meet market demands. As a result, collectors, traders, and wholesalers have little incentive to

establish linkages with farmers. To address this, KISAN II built the capacity of traders to communicate

demand schedules with farmer groups and cooperatives. In the Banke cluster, the project organized

exposure visits at regional vegetable markets in Attariya, Tikapur, Kohalpur, and Nepalgunj to enable the

Bihani Madhyavarti Multipurpose Cooperative to meet and negotiate with vegetable marketing centers

and establish better relationships to market members’ produce more effectively. Similarly, Rolpa KISAN

II supported Swargadwari Agrovet to conduct four sales meetings with other agrovets, dealers, agents,

and municipalities to expand their marketing and sales network. Such meetings also helped the agrovet

establish a business relationship with Jaljala Seed Company Udhyog and Bageshwori Agrovet.

Sub-objective 2.3: Enhanced Financial Service Markets Serve Selected Market Systems

Expanding SME Agribusiness Lending and Investment in Wholesale Loans (Activity 2.3.1)

In response to an increasing demand for loans from members of KISAN II cooperative partners, the

project is supporting partners to prepare the documents needed to apply for wholesale loans from

larger financial institutions. As a result, six partner cooperatives accessed a total of NRs. 39.6 million

(USD 330,000) in wholesale loans, which has helped them expand lending services to members.

Additionally, KISAN II facilitated three virtual orientations to educate partners on the criteria and

15 PPR is a viral disease found in goats and sheep which can infect 90% of the herd and kill up to 70% of infected animals.

Box 3. Livestock Farm Uses Incentives to Build

Capacity of Breeding Service Providers

KISAN II is working through 15 partners in the

livestock and goat sector to strengthen Nepal’s goat

sector potential and productivity.

Hill Park Agriculture and Livestock Farm (HPALF) in

Banke is one such partner. In addition to building its

own goat breeding capacity by using highly productive

Boer bucks, HPALF is building capacity for other

breeders in the area. With KISAN II support, HPALF

uses an incentive-based approach to encourage 10

small breeding service providers to adopt improved

breeding practices for their customers. HPALF offers

service providers a 50% discount on Boer bucks to

kick-start their breeding businesses. It also has a buy-

back program, which exchanges non-Boer bucks over

time to help maintain breed purity.


documentation for wholesale loans, with technical support from RMDC Laghubitta Bittiya Sanstha,

National Cooperative Bank Ltd., and Sana Kisan Laghubitta Bittiya Sanstha Ltd.

Branchless Banking through Agrovet Agents Picks Up Momentum (Activity 2.3.1.4)

Until recently, farmers and traders in remote areas with high production potential lacked access to the

banking and credit services required to start commercial farming and agri-businesses. KISAN II, through

an MOU with Laxmi Bank, has piloted branchless banking (BLB) through three agrovet agents in

Kavrepalanchowk, Dang, and Dadeldhura districts. These agrovets now serve more than 437 accounts

and have collected deposits totaling NRs. 795,905 (USD 6,633) from farmers and disbursed four loans

totaling NRs. 6 million (USD 50,041) this fiscal year. BLB is picking up momentum, with many

beneficiaries adopting good financial saving practices. Two new partner agrovets were added as BLB

agents in Y3 T2, and two more have applied to become agents. When the COVID-19 nationwide

lockdown limited farmer access to agri-inputs, support, and financial services, BLB agents managed to

keep their doors open and handle the increased demand for digital financial services, while implementing

adequate safety precautions.

Introducing Insurance to Increase Resilience Among Partners and Its Members (Activity 2.3.1.5)

Expanded lending services exposes cooperative partners to greater risks. To minimize these risks,

KISAN II links cooperatives to insurance agencies. In Y3, KISAN II collaborated with Nepal Insurers'

Association (NIA), an umbrella organization of Nepal’s insurance companies to hold a workshop for

partner cooperatives on how to market and operate micro-insurance for farmers. In addition to helping

farmers scale up commercial production, micro-insurance sales can provide cooperatives with a

supplemental, sustainable income source. As a result of this workshop, seven cooperative partners have

applied through NIA to provide insurance services through their own outlets. In addition, KISAN II

organized a virtual insurance orientation with NIA and Shikhar and Sanima insurance companies to

activate COVID-19 insurance for members and staff of three cooperatives. Following this orientation,

KISAN II partner, Gangamala Cooperative in Surkhet collaborated with Everest Insurance to launch a

COVID-19 insurance policy. The cooperative aims to enroll 7,000 members and has already registered

210. To facilitate this progress, KISAN II has integrated monitoring activities for insurance activities with

NIA and other insurance companies into the project’s work plan.

Increasing Access to Loans through Linkages with Larger Financial Institutions (Activity 2.3.2)

To increase access to rural credit, KISAN II organized a coordination meeting with four large financial

institutions, including a commercial bank. As a result, 58 farmers accessed agri-loans valued at NRs. 6.8

million (USD 56,670) in Y3. KISAN II also built the financial management capacity of accountants from

19 partner cooperatives, enhancing their knowledge and skills related to bookkeeping. The cooperatives

are now able to manage their accounts using prescribed formats that maintain transparency.

Spurring Increased Farming Investment with Interest-subsidized Agriculture Loans (Activity

2.3.1.2)

KISAN II established a partnership with Sanima Bank in Y2 to provide easy access to interest-subsidized

agriculture loans for eligible agribusinesses and agri-entrepreneurs. Through its private partners, KISAN

II actively seeks eligible applicants for this type of loan and helps loan-seekers navigate the application

process. This year, 12 individuals (one female) accessed a total of NRs. 16.3 million (USD 135,750)

in loans, with 11 additional loans underway.

Promoting New Profit Centers through Cooperative Exposure Visits (Activity 2.3.2.2)

Many cooperatives in Nepal run successful profit centers and generate additional revenue while

providing services to their members. To understand and assess the viability of profit centers, in January


2020 KISAN II organized exposure visits for 21 partner cooperatives to three successful cooperatives

and microfinance institutions based in Syangja, Chitwan, and Nawalparasi. Drawing on its learning from

the visit, Silsila Multipurpose Cooperative in Arghakhanchi opened an agrovet shop and collection

center, and Kasturi Multipurpose Cooperative in Jajarkot is working toward this goal. The potential for

additional revenue, which translates into higher savings, serves as an attractive incentive for cooperatives

to continue providing these services to farmers, even after the KISAN II grant ends.

Increasing Savings by Individuals and Farmers (Activity 2.3.3)

To ease quick access to financial services for farmers, KISAN II promotes savings and credit at the

farmers’ group level. Part of KISAN II’s training of trainers (TOT) for grantee extension staff includes a

session on increasing group savings and credit services. KISAN II also coaches cooperatives to increase

their internal capital. This year, a total of 768 new farmer groups and 13,865 new farmer group

members initiated group savings and credit activities. To date, a total of 1,105 groups and 20,268

members are engaged in group savings and credit activities. Group savings helps farmers access capital

to purchase inputs.

Promoting and Using Digital Finance Presents New Service Line for Cooperatives (Activity

2.3.1.3)

KISAN II MOU partner Prabhu Management offers its core banking solution at a discounted rate to

partner cooperatives for error-free digital financing services (DFS). These include remittance services,

digital payment and transfer of funds, SMS banking, and utility payments—all of which are especially

critical during the COVID-19 pandemic. Of the 51 cooperatives with the interest and potential to adopt

DFS, 11 now provide DFS, with 10 more in the negotiation stage and 20 in the documentation stage. By

adopting DFS into their service offerings, partner cooperatives can increase membership, transactions,

and trust, as well as reliability and ease of service delivery. During the nationwide lockdown, Prabhu

Management oriented Gangamala Saving and Credit Cooperative (SACCO) on DFS and the use of digital

conferencing platforms, so it could continue to provide technical backstopping support to its partners.

As a result, the SACCO is now establishing contactless, secure digital services for its members.

In the current COVID-19 context, many KISAN II partners and farmers continue to face challenges

accessing financial services due to social distancing rules, limited mobility, and shortened business hours.

KISAN II has partnered with eSewa, the largest digital wallet service provider in Nepal, to build partners'

capacity to operate mobile wallets and introduce DFS. This will help reduce overhead costs, while

offering safer, minimal-contact payment options. A virtual training in June 2020, led by eSewa, enabled 89

interested KISAN II partners to learn about mobile wallet services and consider becoming official eSewa

agents. Out of 13 interested partners, three agrovets have already signed up to become eSewa agents.

KISAN II Facilitates Dialogue to Help Safeguard Cooperatives During COVID-19 Crisis

KISAN II organized a virtual meeting to develop strategies to mitigate COVID-19-related financial crises

for cooperatives. Attended by 41 participants, the meeting was moderated by the deputy CEO of

Sanakisan Laghu Bitta Bittiya Sanstha Ltd. (SKBBL). Technical presentations focused on challenges faced

by cooperatives during lockdown and mitigation strategies by the National Cooperative Federation;

government perspectives on actions to curb COVID-19 impacts (led by the Department of

Cooperatives); measures to manage capital, preserve liquidity, and strengthen profit centers (led by the

CEO of the Nepal Federation of Savings and Credit Cooperatives Union); and advice on accessing

wholesale loans during COVID-19 (led by SKBBL). The discussion also covered key strategies to help

safeguard cooperatives, such as increasing operational efficiency, maintaining liquidity, expanding into

new businesses centers (such as agrovet, remittance, or insurance services), and the merger of


interested cooperatives. KISAN II developed and shared a report detailing these strategies at the

government, national organization, and cooperative levels.

Sub-objective 2.4: Enhanced Market Infrastructure and Other Services to Support Selected

Market Systems

Showcasing Successful Storage and Warehousing Technologies Aids Replication (Activity 2.4.1)

KISAN II facilitated an exposure visit to a KISAN II-supported cold room facility in Surkhet for 27

grantee representatives from two clusters who plan to open cold chambers but have limited knowledge

on cold chamber installation or operation. KISAN II also promoted zero-energy cooling chamber

(ZECC) technologies to reduce post-harvest storage losses for small- and medium-size farmers and

traders. To date, KISAN II has supported construction of three ZECCs; another seven were

constructed by traders who witnessed the benefit of this cooling system. To increase awareness about

ZECC among large wholesalers and retailers, KISAN II signed an MOU with New Siddhartha

Refrigeration and conducted a workshop for 31 private actors in Kathmandu. The workshop included a

technical presentation by a KISAN II grantee and client of New Siddhartha Refrigeration, Mr. Prabal

Shahi, who shared his positive experience operating a cold room that paid for itself in just 1.5 years.

After the workshop, Aatmanirbhar Cooperative installed a 50-metric-ton-capacity cold chamber with

financial support from Bagmati Province, Panchkhal Municipality, and KISAN II.

Increasing Access to Mechanized Services for Improved Productivity (Activity 2.4.2)

In Y3, KISAN II partners continued to promote agri-mechanization through numerous farmer-level

demonstrations to increase access to equipment such as electric shellers, mini-tillers, reapers, threshers,

and shallow tube wells. MOU partner Modern Agriculture Farm, a custom hiring farm in Bardiya,

demonstrated the use of modern machinery for crop production and harvesting to farmers, including a

seed drill for dry direct seeded rice, a laser land leveler for land reconsolidation and precision leveling,

and a combine harvester to harvest rice, maize, and wheat. Many KISAN II partners also received

support from PMAMP to operate custom hiring centers offering mechanized equipment to member

farmers.

A major constraint for maize producers is the lack of efficient drying technology. To address the issue,

KISAN II signed an MOU with Krishi Tech Nepal Private Limited to promote and facilitate the adoption

of improved grain drying technology. Krishi developed a mobile, portable grain dryer that can dry about

500 kgs of shelled maize in roughly three hours, and demonstrated its use in Banke, Makwanpur,

Nuwakot, and Pyuthan. Following the demonstration, Krishi Tech is remodeling the dryer, adapting it

from wood fire to electric, in order to make it more user-friendly. The adapted version is expected by

early 2021, as delivery of raw materials into Nepal are delayed due to lockdown restrictions. Once the

remodeled dryer is ready, Krishi Tech will conduct another round of demonstrations among

cooperatives, agro-vets, and government agencies.

Promoting Adherence to Safer Post-harvest Standards for Better Prices (Activity 2.4.3)

Despite the increasing demand for safer food in urban areas, consumers do not yet trust product

labeling and are unwilling to pay premium prices for safe, quality products. Consequently, farmers as well

as private sector actors are reluctant to invest in improved production, harvesting, and post-harvest

practices. KISAN II signed an MOU with Safe Food Alliance Nepal (SFAN)16 to develop and implement

voluntary guidelines to cover all major nodes along the supply chain, from production to marketing.

These guidelines will be rolled out to the 15 SFAN members in Province 3, 70% of whom are producers,

16 SFAN is a non-profit sharing private organization which works for building credibility of agricultural products, promotes

fair pricing and helps trade facilitation.


to ensure the quality of vegetables remains intact as they move along the supply chain to consumers.

The guidelines will enable SFAN to earn the trust of consumers and eventually enable farmers to benefit

from product price differentiation. KISAN II also drafted a post-harvest manual for vegetables that could

lead to price differentiation based on improved post-harvest management. KISAN II staff and selected

grantees will be oriented on the postharvest guidelines in Y4.

Use of SMS Ensures Timely Information Dissemination to Farmers During Lockdown (Activity

2.4.4)

In Nepal, farmers’ lack of access to timely technical knowledge directly impacts farm yields and incomes.

KISAN II partnered with Laxmi Agrovet Center of Surkhet to pilot the dissemination of technical

knowledge to 400 farmers through mass SMS in March 2020. This proved to be an important means of

delivering timely technical assistance to farmers during the COVID-19 pandemic. KISAN II facilitated

sending seven mass SMSs and four grantee-specific technical messages to over 100,000 farmers on behalf

of private sector partners. As a result, farmers phoned partners to inquire about technical information

and to order essential agri-inputs, helping to boost agrovet sales, despite limited operating hours during

the lockdown.

Extending Business Development Services to Miller Partners (Activity 2.4.5)

KISAN II is constantly building the capacity of partner firms to enhance their business, management, and

governance approaches. A KISAN II partner analysis in Y3 showed that rice and feed millers understand

the benefits of business development services better than other partner types. Despite this, most rice

and feed millers face similar constraints to achieving transformational growth: weak organizational

capacity among firms; low adoption of appropriate improved technologies and management practices;

supply chain inefficiencies related to production volume, varietal selection, consistency, and quality; and

insufficient storage and product aggregation. In June 2020, KISAN II published an RFP to provide

consulting and mentoring services to millers interested in overcoming existing technical gaps and

inefficiencies to develop their business growth strategies. The selected consulting firm will provide

business development services to KISAN II miller partners in Y4.

Sub-objective 2.5: Expanded Trade in Domestic and Regional Markets to Support

Agricultural Market Systems Development

Deeper Look at Lentil Sector Reveals Systemic Weaknesses (Activity 2.5.1)

Once a top global lentil producer, Nepal has fallen behind because it has not adapted its business to

changing market demands. In Y3, KISAN II concluded a rapid assessment of the lentil sector in five

districts, identifying major private sector actors, constraints, gaps, and opportunities for possible

intervention. The three major constraints identified in the assessment include lack of adequate input

supply, mechanization, and export promotion, although agronomy was also an important constraining

factor. The study report will be finalized in Y4 and will guide KISAN II’s work with lentil processors to

increase operational efficiency, strengthen the supply chain, and link them with farmers for technical

support and market guarantees. The project plans to release an RFA in Y4 T1 targeting lentil value chain

actors.


Through its partners, KISAN II conducts trainings, demonstrations, and field days for farmer groups,

encouraging them to adopt improved agricultural technologies and practices to enhance their crop

productivity and income. KISAN II collaborates with other Feed the Future projects to identify the best

technologies and management practices and integrate them into KISAN II’s training curriculum for

farmers.

Sub-objective 1.1: Facilitate Intensification and Diversification of Male and Female Farmers

and Socially Excluded Groups into Higher-Value Commodities

Inclusive Technical Trainings to 122,000 Farmers Boosts Commercialization of High-Value

Commodities (Activity 1.1.1)

In Y3, KISAN II’s private sector partners formed 5,250 farmer groups, bringing the current total for the

project to 6,520 farmer groups, comprising 184,590 farmers. In T3 alone, after an exemption from

USAID and the easing of lockdown, partners formed 440 farmer groups, including 11,000 farmers (75%

women). During Y3, 122,000 farmers benefited from trainings, demonstrations, and field days that

helped them produce and market rice, maize, lentils, and high-value vegetables. KISAN II helps private

sector partners ensure inclusivity by encouraging women to participate in farmers’ groups and by helping

them develop as commercial and semi-commercial producers. KISAN II partners also facilitate linkages

with buyers for sustainable income growth.

Sub-Objective 1.2: Strengthen the Capacity of Input Supply Systems to Deliver Timely and

Affordable Productivity-Enhancing Technologies

Empowering Agrovets to Better Serve Customers with Quality Inputs and Services (Activity 1.2.1)

KISAN II works through wholesale and retail agrovets to improve farmer access to quality inputs. The

project builds the capacity of agrovet extension workers through informal and formal trainings on

commercial crop production. KISAN II also equips them with tools, methodologies, and approaches to

deliver extension services more efficiently and effectively. This year, the project provided TOT to 68

new private sector extension staff, and refresher training to 210 existing extension staff, all while

integrating inclusive approaches. The training uses a practical approach that combines field work and

discussion to enhance the learning experience, empower participants, and facilitate sharing. Participants

gained technical knowledge and confidence to tackle issues related to crop and vegetable production

and management. KISAN II did not conduct TOTs in T3 because of COVID-19, however, KISAN II staff

continued to provide coaching and mentoring to grantees virtually, through individual phone calls to

discuss issues, or via Microsoft Teams for common topics with small groups.

The project also facilitated interactions between agrovets and farmers to further strengthen linkages

between farmer groups and major agrovets in each cluster by sending information directly to farmers

through SMS (see discussion on page 24 under Activity 2.4.4) on technical topics such as pest

management and seed availability, and to provide operational information such as agrovets' business

hours and delivery services for farmers. To ensure a smooth supply of rice and maize seeds, and

pesticides needed for FAW management during the lockdown, KISAN II coordinated with AKCs and

local government to link agrovets with seed companies.

Component 1: Improve the Productivity of Selected Agriculture

Market Systems


Enhancing Input Supply and Service Delivery to Farmers through Outreach Service (Activity

1.2.2)

To date, 56 agrovet and 61 cooperative partners have used outreach services to provide 145,000

farmers with improved quality inputs and extension services. To strengthen input management and

delivery systems, KISAN II linked cooperatives with agrovets, and linked retail and wholesale agrovets,

enabling cooperatives and retail agrovets to supply necessary agri-inputs in bulk to farmers. In Y3, more

than 20 cooperatives opened mini-outlets to supply agri-inputs, helping increase farmer access to quality

inputs. For example, Aatmanirbhar Cooperative in Kavrepalanchowk strengthened its agro-outlet and

inventory management system to improve agri-input supply.

In Y3, KISAN II encouraged agrovets and cooperatives to expand outreach services to suit their

customers' needs. To address farmers’ plant and soil health issues, KISAN II’s private sector partners

conducted mobile clinics in their communities, collaborating with AKCs, municipalities, and provincial-

level laboratories. To date, 11 soil testing and 14 plant health events were held by private sector

partners in six districts, with support from provincial-level soil testing and plant protection laboratories,

reaching over 1,168 farmers. Government officers and technicians with knowledge on soil health and

plant protection identified issues and provided plant protection advisory services to farmers at the

community level. During the events, 1,500 soil samples, and 500 insect and disease samples were tested,

providing farmers with immediate solutions to soil health and pest problems and improved insight on

crop management. Offering such services in the community improves relationships between farmers and

private sector partners, thereby boosting outlet sales.

Promoting IPM Practices Encourages Farmers to Adopt Safer Food Production Practices (Activity

1.2.3)

In Y3, KISAN II trained 122 private sector

extension staff (from 105 partners) on IPM; these

participants disseminated IPM knowledge to their

farmer groups. To promote the appropriate use

of pesticides and to introduce alternatives to

chemical pesticides, such as lures and botanical or

organic pesticides, KISAN II private sector

partners trained 31,291 farmers on IPM. Partners

encouraged vegetable farmers to adopt IPM

practices and technologies, such as bio-pesticides

and pheromones for insect trapping, to enhance

safe food production. In Dang, Siddhartha Agri

Center installed FAW monitoring lures in 10

maize-growing areas to monitor pest populations and advise farmers about when to spray pesticides.

KISAN II also coordinates regularly with the Feed the Future National Integrated Pest Management

(FTFNIPM) project on IPM-related activities through trainings, workshops, and FAW task force

meetings. As a result, a common FAW brochure was developed in close coordination with all USAID

projects.

IPM technology demonstration by private sector staff in

Kavrepalanchowk. Photo credit: Balkrishna Shrestha for USAID


Sub-Objective 1.3: Increase Adoption of Profitable, Productivity-Enhancing, and Climate-

Smart Technologies by All Groups, Including Youth, Women, and Disadvantaged Groups

Visual Materials Help Improve Farmers' Adoption of Technologies and Management Practices.

(Activity 1.3.1)

In response to the identified needs of farmers, KISAN II developed farmer-friendly extension materials

on 20 improved agriculture technologies and management practices and distributed these materials

through private sector partners. Beyond KISAN II, private sector partners may be able to continue

accessing similar technical support from established cooperatives, such as BISCOL in Kavrepalanchowk,

Udaydev in Kanchanpur, and Siddharth Agri-Center in Dang. Identified farmer needs included low

productivity, crop protection, post-harvest management, packaging, safer use of pesticides, and storage

grain pests. The materials, which are mostly pictorial, contain easy-to-follow instructions on cultivation

and harvesting practices for targeted commodities and are in high demand by farmers. KISAN II shared

the materials with USAID projects such as NSAF and FTFNIPM and used them extensively in the

project’s Business Literacy Program. KISAN II also developed and disseminated FAW-related training

materials in coordination with the National FAW Taskforce, and contributed to other FAW materials,

including a factsheet to help farmers identify FAW and adopt timely, recommended management

practices. Working with NSAF, KISAN II compiled best fertilizer application practices in rice, maize,

tomato, and cauliflower, and will distribute related materials to farmers in Y4.

Transferring Agricultural Technologies Rapidly to More than 90,000 Farmers Using Locally

Produced Videos (Activity 1.3.3)

KISAN II private sector partners are expanding outreach, linkages, and overall business by adopting a

video-based extension approach to educate farmers about their products and services. In Y3, KISAN II

supported partner development of 55 community videos, which were presented to 90,931 farmers (80%

women) using a discussion and recall method. Videos covered topics such as low plastic tunnel farming,

post-harvest technology, market-led production, and AI in goats. The videos were used extensively in

Business Literacy Program (BLP) trainings, reaching 10,038 participants (90% women) who have been

learning and adopting technologies. The COVID-19 lockdown temporarily halted video presentations,

but KISAN II tested alternative dissemination approaches, including mobile devices and social media

platforms such as Facebook, Viber, and WhatsApp.

Scaling Up Best Technologies and Management Practices through Demonstrations, Field Days,

and Exposure Visits (Activity 1.3.4)

Targeted technology demonstrations are a proven

extension tool to increase farmer adoption of new

technologies and management practices, and to increase

farmer demand for agri-inputs. In Y3, KISAN II partners

conducted 4,425 crop production and management

demonstrations in lead farmers’ fields. Demonstrations

focused on IPM technology, fine rice varieties, maize

hybrid varieties, line sowing of lentils, super grain bags,

seed drilling, plastic mulching, post-harvest technology,

improved vegetable varieties, and balanced use of

chemical fertilizers. KISAN II also conducted farmer field

days in collaboration with private sector partners to

extend project learnings to a wider audience. To date,

669 field days (34 in Y3 T3) have helped scale up the

adoption of technologies and improved practices and motivate farmers to shift to commercial farming

Box 4. Increasing Maize Yield with a

Nepali Hybrid Variety

KISAN II partner Siddhartha Agri Center from

Dang organized a demonstration of Rampur

Hybrid-10 maize variety for members of the

Milijuli Farmers' group. Learning from the

demonstration, farmers adopted improved

maize variety and farming practices that

increased maize yields from 3 MT

/ha up to 5.4 MT/ha. Pleased with the increased

yield, the maize farmers plan to expand

cultivation areas in the coming year. In addition,

KISAN II is coordinating with NSAF to source

seed and promote this improved maize variety

for the upcoming season.


(see Box 4). Cereal and vegetable crop demonstrations, attended by 16,725 farmers (70% females), were

held at different stages of the crop cycle, allowing farmers to discuss the pros and cons of the

demonstrated technologies. The grantee extension workers conducting the demonstrations used KISAN

II GESI guidelines to help them communicate effectively with women, DAGs, and semi-literate and

illiterate farmers.

Access to Irrigation Boosts Commercialization of High-Value Commodities (Activity 1.3.5)

Access to irrigation is critical for scaling up commercial

vegetable farming for year-round production. In Y3,

KISAN II accelerated its irrigation program by mobilizing

irrigation technicians and extending irrigation support to

farmer groups, prioritizing women and DAGs. Private

sector partners implemented 42% (106) of the 251

irrigation schemes installed this year. Installations

benefited 3,593 farming households across 20 districts

and helped irrigate 589 hectares of land. In T3 alone,

KISAN II completed 136 irrigation schemes, 54% (74) of

which were implemented by partners. KISAN II

collaborated with municipalities, the PMAMP, and

organizations such as Plan Nepal, to leverage resources

(see Box 5). Y3’s total irrigation contributions of NRs.

32,093,027 (USD 267,442) included 38% from

communities, 22% from the GON, 5% from other

institutions, and 35% from KISAN II (Figure 6).

Identifying High-Yield and Climate-Resilient Seed Varieties through Collaboration with NSAF

In Y3, KISAN II coordinated with NSAF to establish 15 lentil varietal demonstrations in Banke and

Bardiya districts. These demonstrations, conducted by KISAN II rice mill partners, included new lentil

varieties (Khajura-3, Khajura-4 and black lentil) that are rich in zinc and iron and are tolerant to fusarium

wilt and stemphylium blight diseases. The black lentil variety performed best despite poor weather

conditions, highlighting its potential for climate resilience. Further coordination with NSAF linked a

NSAF-supported seed company, GATE Nepal, with the KISAN II-supported Jaljala Agriculture

Cooperative for seed production of the new lentil variety. The collaboration aim was to produce large

quantities of black lentil seeds and make them available to farmers. Black lentils were planted on 0.5 ha

Box 5. Municipal Support Creates

Enabling Environment for Commercial

Vegetable Farming

KISAN II partner Tharu Agrovet Center, in

Bardiya, signed an MOU with Thakur Baba

Municipality to install nine shallow tube wells

with electric motors valued at NRs. 700,000

(USD 5,833) for three farmer groups. After

completing installation, which was monitored

by the municipality, the agrovet’s extension

workers began providing technical support to

farmers for high-value vegetable cultivation.

After observing the agrovet’s work with

farmers, the Mayor and Deputy Mayor of

Thakur Baba decided to support additional

irrigation schemes through Tharu Agrovet. As a

result, local farmers have been motivated to

expand their vegetable production areas.

38%

35%

22%

5%

Communities

KISAN II

Government

Other Institutions

Figure 6. Resource leverage for KISAN II-supported irrigation schemes


of land and the cooperative harvested 250 kg of seeds, which are being safely stored for next year's

planting season.

KISAN II also coordinated with NSAF to promote the Rampur Hybrid-10 maize variety. NSAF provided

27 sets of the variety, which were planted in Banke, Bardiya, and Dang districts for demonstration. The

performance was excellent, yielding an average of 5.4 metric tons per hectare. KISAN II will promote

the new variety for the upcoming maize growing season and link its agrovet partners with NSAF's seed

companies. Similarly, rice millers in Banke conducted six varietal demonstrations of rice, including high-

yielding and stress-tolerant varieties (e.g., Hardinath-3 and Bahuguni-2).

Joining Hands to Combat Fall Armyworm and Locusts

KISAN II participates regularly in technical meetings conducted by USAID's FAW Task Force committee

based in Kathmandu. During the third trimester of Y3, KISAN II participated in a virtual training

conducted by Farmer-to-Farmer experts, who provided the latest knowledge and skills on FAW

management. KISAN II organized two TOTs on FAW identification and management in November 2019

for 80 GON personnel and implementing partners in collaboration with the Directorate of Agriculture

Development of Karnali and Sudurpaschim Provinces in Surkhet and Dhangadhi. KISAN II works closely

with FTFNIPM and NSAF to monitor and manage FAW and participated in a virtual meeting on the safe

use of pesticides, conducted by FTFNIPM.

During a virtual meeting in July 2020, the FAW Task Force committee discussed the current status of

FAW and the recently arrived desert locust, including action plans for both. Despite locust occurrences

in many Feed the Future ZOI districts, actual crop damage and loss was not significant, except for some

damage to the maize crop in Dang and Pyuthan districts. Nevertheless, the projects will remain alert and

ready to combat locusts as needed. Participants agreed to mobilize the existing Feed the Future FAW

Task Force committee for locust surveillance, coordination, and management at both federal and

provincial levels, and to develop a fact sheet based on PQPMC's materials. Agrovets and pesticide

suppliers will supply recommended pesticides and suitable sprayers, including readily available

biopesticide (metarhizium with a neem base solution). KISAN II developed a locust management-related

SMS and disseminated it to more than 100,000 farmers.

To strengthen the enabling environment for selected agricultural market systems, KISAN II coordinates

with public sector organizations at the federal, provincial, and municipal levels and with private sector

organizations, such as the Association of Nepalese Rice, Oil and Pulses Industries (ANROPI) and the

Federation of Women Entrepreneurs' Association of Nepal (FWEAN).

Sub-objective 3.1: Build Capacity for Streamlining, Harmonizing, and Coordinating GON

Policies and Regulations

Fostering an Enabling Environment for Agribusiness by Supporting the MOALD Policy Agenda

(Activity 3.1.1)

KISAN II, in coordination with the MOALD DFTQC, engaged a subcontractor to draft two technical

regulations related to licensing and registration of food businesses and import-export inspection and

certification. Both regulations are required for effective implementation of food laws that align with

international best practices. KISAN II submitted the draft regulations to DFTQC for further discussion

Component 3: Strengthen the Enabling Environment of Selected

Agriculture Market Systems


in the TC. The TC meetings and PPD to refine the draft regulations were delayed due to the COVID-19

lockdown, however, KISAN II is consulting with DFTQC on alternative online mechanisms to conduct

the discussions.

In Y3, MOALD drafted the Agribusiness Promotion Bill, incorporating inputs from the Ministry of Law,

Justice and Parliamentary Affairs, and the Ministry of Finance. Although the Bill has not yet been

submitted to the Council of Ministers for endorsement and registration in Parliament, KISAN II remains

in regular communication with relevant MOALD officials. In the meantime, KISAN II selected a

consultancy firm to help MOALD assess existing PSE in agribusiness and draft PSE guidelines. In a recent

meeting, KISAN II learned that MOALD is drafting a new Agriculture Bill that will cover different sectors

including agri-business promotion. As the content of the Agribusiness Promotion Bill is expected to be

incorporated into the new Agriculture Bill, the PSE guidelines will now likely be aligned with the

proposed Agriculture Bill. These guidelines, which should be completed in Y4 T1, will illustrate the roles

and responsibilities of the private sector and will be designed to encourage new entrants into the

agriculture sector. The KISAN II consultant is conducting a situational analysis, via desk review, of policy

documents and reports, and interacting online with relevant stakeholders. Visits to seven provinces had

been planned to interact with public sector officials at all three tiers of government and with private

sector organizations, but these were postponed due to lockdown.

This year, to promote the goat sector and support standardization of quality goat breeding stock and

meat quality, KISAN II collaborated with MOALD, DOLS, AITC, NARC, Nepal Agricultural Market

Development Program, the SAHAJ project, and the Federal Goat Association Nepal, to conduct a series

of goat working group meetings, a PPD on the goat breeding strategy, and two goat AI trainings. In

addition, KISAN II finalized the Goat Breeding Strategy and Goat AI training manual, both of which are

ready for wider circulation.

Engaging Private Sector in Policy Dialogue (Activity 3.1.2)

KISAN II partnered with FWEAN in Y3 on an assessment to identify constraints that limit women’s

engagement in agribusiness in Nepal. FWEAN conducted a PPD in December 2019 to obtain inputs

from key government and private sector stakeholders. FWEAN is using the final study report and policy

brief developed from the assessment as an advocacy tool with the Ministry of Finance and Ministry of

Industry. Planners and policymakers at the federal and provincial levels are also using the report and

policy brief, which are being circulated to officials, district chapter presidents, and development partners

for practical application.

To promote favorable policies that boost investments in Nepal’s rice mills, KISAN II collaborated with

ANROPI to conduct a rice mill survey and focus group discussions with rice millers in different parts of

Nepal. KISAN II is finalizing the report and incorporating inputs from relevant stakeholders. Because of

the lockdown, KISAN II postponed the planned evidence-based policy advocacy meeting with the GON

to introduce policy reform measures needed to improve rice milling in Nepal. The meeting is now

planned for Y4 T1.

Sub-objective 3.2: Improve Investments, Management, and Governance (e.g.

Standardization) of Infrastructure

Menu of Proven Post-Harvest Technologies Drafted to Inform GON Program (Activity 3.2.1)

In partnership with the Center for Agricultural Infrastructure Development and Mechanization

Promotion, and the CCDABC, KISAN II developed a draft menu of proven technologies for rural grain

storage and dryers. In addition to a list of small-scale drying equipment, the final menu, which will be

finalized in Y4 T1, will include basic information to help farmers adopt the technologies.


Rice Mill Study Conducted to Enhance Competitiveness of Nepal's Rice Milling Industry (Activity

3.2.2)

In Y3, KISAN II commissioned a comprehensive survey and study of existing rice mills to identify key

constraints faced by Nepali rice mills interested in upgrading and diversifying milling facilities. The results

of this study will enhance the competitiveness of Nepal’s rice milling industry as it shifts to medium and

fine rice milling. The selected consulting firm, in coordination with ANROPI, completed a survey of 100

rice mills, including 86 mills located in Nepal’s major grain belts, 10 closed mills, and 4 mills that border

India. The draft report is underway and will be finalized after a validation workshop in Y4 T1. Findings,

including key sector constraints and specific recommendations, will be used to strengthen KISAN II rice

mills participating in the JRIP, jointly implemented with MOALD.

Targeted Training Builds Policy Analysis Capacity for Senior Officials (Activity 3.2.3.1)

KISAN II facilitated a customized training on agricultural policy analysis in Hyderabad, India, with support

from MANAGE India (formerly the National Institute of Agricultural Extension Management).

Participants included 13 senior officials from the federal and provincial government (Box 6). Following

positive response from the initial training, MOALD requested KISAN II’s support to organize a similar

training in Kathmandu for other government officials, using previously trained officials as resource

persons. KISAN II will coordinate with MOALD to develop a training plan in Y4 T2 for a possible

training event in T3, depending on the state of the COVID-19 pandemic.

KISAN II Supports Municipal Planning Training (Activity 3.2.3.3)

KISAN II collaborated with provincial ministries to

plan two trainings on agriculture-related program

planning, investing, monitoring, and evaluation to help

local municipalities prepare annual plans and program

budgets for the 2020/21 fiscal year. The trainings,

scheduled for April 2020, targeted elected

representatives and executives of 10 municipalities in

Bagmati Province and Province 5. Because of

lockdown and restrictions on group programs, the

trainings were first put on hold, and later cancelled.

However, considering the importance of this type

training in building the capacity of GON officials, the

TC recommended during the June 2020 meeting that

KISAN II organize a similar type of training in Nepal

in fiscal year 2020/21.

Sub-objective 3.3: Improve Systems to Increase Quality of Selected Commodities

Development of Industry-Driven Commodity Norms and Standards

Joining Hands with SFAN to Promote Industry-Driven Commodity Norms and Standards (Activity

3.3.1)

In Y3, KISAN II drafted commodity grading norms for six vegetables (capsicum, okra, broccoli,

cauliflower, cabbage, and tomato). The norms aligned with international and regional quality grading

practices and were shared with select vegetable producers and wholesale members of SFAN. KISAN II

signed an MOU with SFAN to develop and implement a simpler, private-sector-friendly version of the

guidelines to address key points in supply chains, including production, harvesting, post-harvest handling,

and marketing.

Box 6. Policy Training for GON Officials –

An Important Capacity Building Event

In coordination with MOALD and USAID, KISAN

II worked with MANAGE India to provide a

tailor-made training on agriculture policy

formulation review and analysis. The MANAGE

India training was attended by participants from

nine Asian and African countries, including a large

majority from GON. After the training, the

MANAGE team commented that the Nepal

delegation’s participation was impressive in terms

of level of understanding, knowledge, innovative

thinking and commitment. The GON has been

able to utilize the trained personnel in policy

related works and plans to use learning from the

training for future capacity building of GON

officials.


USAID Projects Jointly Promote Safe Food Practices (Activity 3.3.2)

KISAN II is collaborating with Suaahara II to raise farmer awareness about farm-level food safety and

gender equality considerations. KISAN II drafted food safety-related messages for Suaahara II to

customize and broadcast through its radio program.

KISAN II also developed training content on food safety and grading for post-harvest management of

vegetables, rice, and maize. This content will be disseminated through the BLP training for farmer

groups. At MOALD’s request, KISAN II supported two government officials to participate in regional

training on good agricultural practices (GAP) in South Asian countries. These officials now serve as

resource persons for GAP trainings in Nepal.

Sub-objective 3.4: Support Local Government Agencies to Improve Investments in

Support of Market System Development

Successful Operation of Cooperative-led Cooling System Encourages GON to Replicate (Activity

3.4.1)

KISAN II builds the capacity of local governments to invest in increased market access for farmers and

increased adoption of private sector or cooperative-led models. After visiting elected officials of

Narayan and Bheri Municipalities (of Dailekh and Jajarkot districts respectively), and AKC-Jajarkot,

KISAN II interns developed case studies that analyzed the feasibility of cold rooms based on a KISAN II

partner’s installed multi-chamber cold room in Surkhet. This study helped convince Narayani

Municipality to support Kritidewal Multipurpose Cooperatives with the installation of a pre-cooling

system.

Feasibility Study of Agriculture Market in Panauti Municipality Commissioned (Activity 3.4.1.1)

In Y3, following a request from the mayor of Panauti Municipality and four partner cooperatives in

Kavrepalanchowk district, KISAN II commissioned a feasibility study on the viability of developing an

agricultural market in Panauti Municipality. KISAN II shared study findings with municipality officials and

the Municipality now plans to allocate resources for developing a cold storage and vegetable market in

fiscal year 2020/21. To maximize investment from different stakeholders, the municipality included a

market plan in its policy and requested KISAN II’s assistance to procure funds and other technical

services from MOLMAC in Bagmati Province. KISAN II is pursuing this request under the newly initiated

provincial joint working group.

Provincial- and Municipal-level Consultations Support ADS Implementation (Activity 3.4.2)

On the basis of decisions made at the ADS-JSR committee meeting in August 2019, KISAN II and

European Union/Technical Assistance (EU/TA) agreed to implement four activities jointly to help

MOALD achieve its ADS objectives. In joint meetings, KISAN II agreed to organize provincial- and

municipal-level consultations and workshops in all provinces in its ZOI. EU/TA agreed to recruit

planning and monitoring and evaluation (M&E) consultants to lead the development of planning

guidelines, ADS, and a progress monitoring and reporting system for all three tiers of government.

EU/TA completed planning orientations with municipality officials at the provincial level just before the

lockdown began. However, planned workshops/trainings at the municipality level were halted because of

the lockdown.


New Coordination Mechanisms Will Better Align Agricultural Priorities and Joint Action Plans

(Activity 3.4.2)

KISAN II supported a study in Y2 on strengthening agricultural linkages in the three tiers of government,

with the aim of identifying better measures to link organizations in the agricultural sector with the

current system of governance. MOALD has initiated several of the actions proposed in the study,

including aligning federal and provincial policies, plans, and programs, resulting in such actions as the

recently launched three-tier implementation of the JRIP. MOALD has begun the process of forming two

coordination mechanisms to align federal and provincial policies, plans, and programs; one at the

Ministerial level and one at the Secretary level. The agriculture ministers of all provincial governments

and the federal government agreed to develop and implement joint action plans in priority areas of

agriculture for fiscal year 2020/21, including programs under the National Food Security Mission and a

COVID-19 recovery plan.

Many farmers in the KISAN II ZOI lack the business, marketing, financial, and technical skills needed to

initiate or expand agri-enterprises. Under Component 4, KISAN II trains selected households from areas

with high commercial agriculture potential, equipping them with the knowledge, skills, and confidence

they need to sustainably integrate themselves into the market system, while simultaneously enhancing

their business literacy skills. KISAN II offers two types of training packages in its Business Literacy

Program. The long course program (5 modules, 10 months) targets 30,000 illiterate or semi-literate

farmers. The short course program (1 module, 2 months) targets 40,000 literate participants.

Sub-objective 4.1: Enhance Literacy and Business Skills

Collaboration and Field Testing Helps Finalize BLP Materials (Activity 4.1.1)

In Y3, KISAN II developed three training modules for the

Business Literacy Program—Module 3 (life skills), Module 4

(entrepreneurship skills), and Module 5 (access to finance)—and

adapted these to emerging needs (see Box 7 for all modules).

The project also conducted field testing of these modules with

BLP trainees in seven districts with different literacy levels,

geographies, genders, and ethnicities. To finalize the modules,

KISAN II consulted with MOALD, AITC, cooperatives, banks,

financial institutions, and other projects (e.g., Helvetas, Centre

for Microfinance, Safer Migration Project, and Hamro Samman). KISAN II also updated its popular

Module 6 and finalized four facilitator guidebooks to support consistent implementation.

Screening Videos Encourages Adoption of Improved Technologies (Activity 4.1.1.8)

To improve learning, KISAN II disseminated videos related to agri-technologies to 10,038 BLP

participants (9,031 females, 4,739 DAG) from 459 locations. These videos educated trainees on topics

such as market-led production plans, IPM technology, nursery management, soil treatment, post-harvest

management, and agri- mechanization. Observing technology demonstrations through video has helped

motivate the farmers to adopt improved technologies.

Box 7. KISAN II’s Approach to

Improving Business Literacy

Module 1: Literacy and Numeracy

Module 2: Nutrition

Module 3: Life Skills

Module 4: Entrepreneurship Skills

Module 5: Access to Finance

Module 6: Business Development

Component 4: Increase Vulnerable Communities Ability to Act on

Business Opportunities within Selected Markets Systems


Building Capacity of Trainers Helps Scale-up BLP Trainings (Activity 4.1.2)

In Y3, KISAN II recruited 717 BLP trainers (the plan

had been to recruit 1,172 trainers, but this was

curtailed due to nationwide lockdown). The project

organized 32 TOTs for nine senior master trainers,

64 master trainers, and 644 community trainers to

deliver BLP short and long courses. The largest

training for master trainers was in October 2019 in

Nepalgunj and included 80 trainees implementing

the long course in 23 KISAN II districts. Participants

learned about Module 1 (literacy and numeracy),

Module 2 (nutrition), facilitation skills, proper use of

facilitator guidebooks, how to handle

implementation issues, GESI norms and approach,

and beneficiary registration. Post-test results following the training showed that participants' knowledge

and confidence levels increased. Following these trainings, community trainers delivered BLP short

course training to 10,457 participants (8,942 females, 3,288 youths) in 18 districts. To help resume BLP

courses after the COVID-19-related lag, KISAN II organized an online refresher training for the short

course in June 2020.

Engaging Private Sector Partners in Community-level BLP Trainings (Activity 4.1.3)

KISAN II engages private sector partners to

manage community-level BLP using a standard

step-by-step process for identifying suitable sites,

preparing logistics, initiating training, and

reviewing and planning for future sessions. Some

partner agrovets at training sites have reported a

boost in sales as a result of increased demand for

inputs and technologies from Module 6

participants.

KISAN II, in coordination with grantees, organized

1,000 community-level meetings involving 20,000

potential beneficiaries in September and October

2019. As a result, 946 locations from 23 districts

were identified and finalized for the long course

program. Out of the 20,674 individuals enrolled in

the long course, 99.8% completed Module 1 and

half of Module 2 before the COVID-19 related

lockdown began in March 2020.

KISAN II also conducted two batches of the short

course at 480 locations in 18 districts, with 10,457 graduates (8,942 females, 5,858 DAG) and only 13

dropouts. To date, the project has trained 18,760 individuals (15,850 females) in the short course, of

which 16,937 (90%) passed the final exam (see Box 8 for a participant’s perspective). Additionally,

KISAN II coordinated with the local government at several training sites to provide agriculture inputs

and tools to KISAN II participants. To promote commercial farming among participants, Shivaraj,

Buddhabhumi, and Shitganga Municipalities provided equipment and inputs—including mini tillers, water

Box 8. Quote from BLP Participant

Gita Thapa, BLP participant of short course from Palpa

district says, as a result of the BLP course, "I believe in

commercial agriculture and I use the latest production

technologies to grow a variety of vegetables. I have

reinvested income into mushroom cultivation and goat

rearing, which has helped diversify my family’s income.”

Gita’s husband, who worked overseas for 11 years,

added, "The positive change in my family’s financial status

was possible due to the KISAN II training. Our income

from the last two years is equal to that of my past 11

years.

BLP participants during training classroom setting in

Krishnapur-2, Kanchanpur in August 2019. Photo credit: Anita

Singh Madai for USAID


pumps, spray tanks, plastic tunnels, and hybrid seeds—worth NRs. 871,220 (USD 7,260) to 414 BLP

participants in Kapilvastu District in Y3.

After observing BLP trainings, MOLMACs in Karnali and Province 5 have indicated interest in replicating

BLP's Module 6 training. As mutually agreed, KISAN II will provide technical assistance.

Collaboration, learning, and adaptation (CLA) permeates all KISAN II activities. In Y3, KISAN II gathered

information and evidence to answer high-level learning questions, built the capacity of private sector

organizations and staff to use adaptive management, and supported the use of CLA in building

competitive, inclusive, and resilient agriculture market systems development. Consistent with CLA

principles, KISAN II’s CLA activities are integrated into cluster, regional, and central-level events,

facilitating a practice of continuous learning and improvement that improves program planning and

implementation.

Mid-year Program Review Workshop to Plan Next Steps and Narrow Scope of Learning

Objectives

In January 2020, KISAN II organized a mid-year review and reflection workshop that included key cluster

and central team members, and staff from Winrock International headquarters. The team reviewed Y3

mid-year program progress, discussed key challenges, and planned the next steps in project

implementation. The team also reviewed KISAN II learning questions, resulting in a refreshed but

narrowed scope of learning objectives.

Learning Agenda

In Y3, KISAN II reviewed the 10 project learning questions (LQ) and developed a learning checklist to

guide interviews and the collection of information needed to answer these questions. The following

sections summarize responses to KISAN II’s learning questions.

Learning Questions on Competitiveness

LQ 1: Which implementation business models lead to the best farmer outcomes in terms of yields and incomes?

KISAN II implements different business models in partnership with market actors such as agrovets,

cooperatives, traders, millers, and goat farmers. Y3 annual survey suggest that different models are

effective for different commodities, as shown in Table 16.

Table 16. Y3 farmer yields and income by business model

Business

Model

Vegetables Rice Maize Lentils Goats

Yield

(MT/

Ha)

Incomea

(USD)

Yield

(MT/

Ha)

Income

(USD)

Yield

(MT/

Ha)

Income

(USD)

Yield

(MT/

Ha)

Income

(USD)

Offtake

rate

(kg/

goat)

Income

(USD)

Agrovet 26.2 1,070 5.3 313 4.2 116 1.1 95 7.32 345

Cooperative 25.7 947 5.1 277 3.8 80 1.0 65

6.12 318

Trader 27.1 1,231 5.0 269 3.9 182 n/a n/a n/a n/a

Miller n/a n/a 5.4 438 n/a n/a 1.1 170 n/a n/a

a Gross income (in USD), as per Y3 annual farm survey results. Income includes sales from commodities per household, without deducting

the cost of production.

Component 5: Apply Collaboration, Learning and Adaptation to

Market Systems Development


Vegetables. Though yields are highest for the

trader model (27.1 MT/ha), differences in farmers'

yields among the business models are not

significant. While the agrovet model supports

vegetable farmers with necessary inputs, the trader

model is associated with significantly higher annual

incomes (USD 1,231) for vegetable farmers, likely

because farmer income depends on both

production and sales. Farmers working with traders

are more likely to have higher sales because: 1)

they sell a greater percentage of their produce to

the trader, who can provide relevant market

information for production planning and timely

decision-making, and 2) the trader can offer a better price if the farmer’s produce meets demand

requirements.

Rice. Rice farmers who work with millers are better off than those who do not, both in terms of yields

and incomes. Rice farmers working with millers had an average yield of 5.4 MT/ha and income of USD

438, comparatively higher than that of farmers working with agrovets, cooperatives, or traders. Farmers

working with millers were able to sell 53% of their produce, while farmers working with agrovets,

cooperatives and traders were able to sell only 42%, 44%, and 42% of their produce, respectively.

Maize. Though farmers working with agrovets had better yields for maize (4.2 MT/ha), the income for

farmers associated with traders was 57% higher than those associated with agrovets and 128% higher

than those associated with cooperatives. Maize farmers working with traders sold 42% of their produce,

compared to maize farmers working with agrovets, who sold 44% of their produce.

Lentils. In the lentil sector, farmers working with rice millers17 and agrovets had the same yields (1.1

MT/ha), but those working with millers had greater income (79% more than agrovets and 162% more

than cooperatives). Farmers working with millers and agrovets sold a higher percentage of their produce

(70%) than farmers working with cooperatives (58%).

Goats. Goat farmers affiliated with agrovets had both higher yields (7.32 kg/goat) and higher incomes

(USD 345) than farmers working with cooperatives. Goat farmers affiliated with agrovets had both

higher yields (7.32 MT/hagoat) and higher incomes (USD 345) than farmers working with cooperatives.

In conclusion, model outcomes are commodity specific and should consider factors beyond yield and

sales, such as household coverage, EcoRegion, area by households, price, etc., which will be further

assessed and reported in Y4 T1. As of now, in the vegetable sector, KISAN II found that traders have

the most impact on farmer incomes, given that income depends not only on increased production, but

also on increased sales volume and price. In the rice and lentil sectors, millers helped farmers achieve

higher yields and income. Similarly, traders boosted farmer income the most in case of maize, and

agrovets in case of goat farmers.

LQ 2: How can adoption of post-harvest technologies and practices make enterprises (farmers and firms) more

competitive?

17 Rice millers also process lentils. An RFA for lentil market actors, including lentil millers, will be released in Y4 T1.

Members of Hajari farmers' group learning post-harvest

grading practice during refresher training in Kanchanpur.

Photo credit: Anup Bam for USAID


KISAN II promotes innovative post-harvest technologies to firms and farmers to help improve the

quality of marketed products. Through this work, KISAN II has learned that although farmers in Nepal

see little benefit in applying post-harvest practices, traders have a much greater incentive. A study

carried out by KISAN II in July 2020 indicated that 95% of KISAN II farmers who participated in a post-

harvest training or demonstration program gained some knowledge about post-harvest practices—such

as cleaning, sorting, grading, and packaging—that could add value to their products. However, although

80% of surveyed farmers indicated that post-harvest practices gained them between NRs. 3–5 (USD

0.03–0.04) more per kg, 77% said that the extra money paid by traders for cleaned, graded, and sorted

products is not enough to cover the cost of post-harvest practices, and therefore, is not cost effective.

As traders often hold a monopoly in vegetable markets, farmers are compelled to sell their produce at

whatever price is offered, even if the produce is graded. Nevertheless, 85% of farmers said they will

continue to adopt basic post-harvest practices because the resulting products are easier to sell and lead

to better linkages with traders, allowing farmers to reliably market vegetables, albeit at a minimum

premium.

Fluctuations in vegetable prices are often associated with demand and supply. For example, during the

rainy season the demand for tomatoes is high, but production is low, and traders buy Nepali tomatoes

during this time without considering the quality. Most traders also import vegetables from India year-

round, which makes Nepal-produced vegetables less competitive. With traders unwilling to pay

premium prices for graded and cleaned Nepali vegetables, farmers are discouraged from adopting post-

harvest practices. In contrast, most of the traders KISAN II works with are adopting sorting and grading

practices. Generally, the price of clean and graded products is high, and consumers from urban cities

(e.g., Pokhara, Butwal, and Kathmandu) will pay more for such products.

One promising post-harvest management technology is the low-cost cooling chamber, which helps

retain the freshness of perishable commodities. KISAN II partner, Babu and Shahi traders, in Surkhet

demonstrated that by using a cold chamber, perishable vegetables could be stored for up to one week

and bring a good market price. Noting its advantages, neighboring traders have adopted the technology

in Surkhet and some other districts.

LQ 3: How can irrigation be promoted through a private sector/commercial model?

Lack of irrigation water is a frequently reported constraint by farmers in KISAN II’s annual farmer

surveys and KISAN II has developed 491 irrigation schemes through private sector partners and local

government investment to address this issue. The total contribution to KISAN II’s irrigation schemes to

date is NRs. 55,758,750 (USD 486,569). Around 40% of this was financed directly by the project, 38% by

municipalities or federal projects such as PMAMP, and 22% from farmers. In total, these schemes have

benefited 6,866 households across 20 districts and irrigated 1,247 hectares of land. In Y2 and Y3, KISAN

II adapted its irrigation strategy to facilitate more private sector investment by extending support to

more commercial wards, with a 50% cost-share arrangement between the project and private sector

partners.

Direct irrigation investment by the private sector has not gained traction, as many private sector

partners view expensive irrigation facilities as a joint responsibility between government and

communities. However, the private sector has promoted irrigation through linkages to local

government, which has taken ownership in many communities. KISAN II has observed an increasing

trend throughout KISAN II’s ZOI of municipalities investing local government funds into irrigation

schemes within their communities. KISAN II concludes that investment in irrigation schemes often

comes from multiple sources (i.e., public-private-community-development-partner partnerships).

Promoting irrigation solely through a commercial model has not succeeded; leveraging the public


sector’s demonstrated interest in supporting irrigation has proven a more viable option for improving

farmers’ reliable access to irrigation facilities.

Learning questions on inclusiveness

LQ 4: Will simple-to-follow, improved management practice training materials and “leave behinds” increase

adoption rates among women and farmers from DAGs?

A KISAN II analysis of technology adoption among women and disadvantaged farmers conducted in Y1

suggests that using visual aids, materials, and radio messages with simple and clear actions can promote

improved practices among those groups. Consequently, the project developed and disseminated simple

visual training materials, leaflets, videos, crop calendars, and business literacy manuals.

In July 2020, KISAN II conducted a quick phone survey to seven women and disadvantaged farmers from

seven clusters, to better understand the general response to, and effectiveness of, the distributed

materials. Four respondents said the materials were good for educated farmers, but somewhat difficult

to understand for illiterate and semi-literate farmers, who needed help from their children, friends, or

local Junior Technical Assistant to understand the information. Two farmers said the technical

information on crop diseases and symptoms (which look similar in various stages), and pesticide names

(which were listed in English) were difficult to retain. All respondents confirmed that the pictures used

in the materials were easy to understand, as was the information conveyed on farming techniques, such

as selecting improved seed, soil treatment, crop spacing, and seed treatments. Most respondents applied

the new practices on their fields, citing the training materials as a helpful reference to recall what they

learned in farmer trainings. The respondents agreed that the materials helped them apply new skills and

technologies, and that they perceive this to have resulted in increased incomes.

KISAN II farmers have mixed literacy levels, and the project will continue to develop more pictorial-

based materials and short community videos for farmers—especially women and DAG—with lower

literacy levels. Since many depend on Junior Technical Assistants or field staff to comprehend and apply

information in the materials, KISAN II will continue to build the capacity of those field staff on

inclusiveness, effective communication, and group facilitation skills.

LQ 5: What adaptations to our approach—coaching/training/TA/grants—lead to higher adoption and greater

income change among women, youth, and DAGs?

Based on learnings from KISAN, KISAN II introduced field-based activities, such as on-site coaching, field

trainings, demonstrations, videos, home visits by Junior Technical Assistants, and exposure visits to

transfer knowledge on improved agriculture technologies to farmers. To gauge the effectiveness of these

approaches at the field level, especially for women, youth, and DAGs, KISAN II conducted a rapid

qualitative survey of seven women and DAG farmers from seven clusters who had participated in these

types of extension activities.

Respondents agreed that most of the activities were effective in helping them learn new farming

techniques. Their adoption and replication of practices was facilitated by observing and then applying

techniques such as grading, packaging, and using new tools. All respondents said the skills and techniques

learned through these field-based activities have enabled them to double their production compared to

the previous season or harvest. “I used to earn NRs. 18,000 (USD 150) by selling bitter gourd grown on 0.03

hectares. By shifting to growing in three tunnels on the same land, I now earn NRs. 60,000 (USD 500),” said

Ekrani Rani Rana, in Kanchanpur.

KISAN II partners’ field-based extension activities are particularly effective among women and DAG

farmers, as they provide opportunities to see techniques firsthand combined with in-kind support, such

as seeds and tools, which encourage farmers to adopt the practices. By scaling up field-based and


demonstration-type activities, KISAN II partners not only motivate subsistence farmers to move toward

commercial farming but also boost their own profits by engaging a solid customer base.

LQ 6: Does business literacy training combined with agriculture training increase the ability of vulnerable and

DAG households to act on the right type of business opportunities?

KISAN II's BLP training packages are customized to meet the needs of vulnerable and DAG households

and help them transform from subsistence to at least semi-commercial farming—especially in terms of

production scale and expanded market access. KISAN II conducted a mini-survey on farmer

performance in Y3, which revealed that BLP-trained households outperformed non-BLP trained

households in terms of land cultivation. BLP households increased cultivation by 743 square meters

(33%), and non-BLP households with KISAN II technical training increased cultivation by 383 square

meters (23%). Likewise, BLP households expanded produce sales more than non-BLP households: 14

BLP participants explored additional or new markets since partnering with KISAN II versus 12 non-BLP

participants. Four of these BLP participants have expanded sales to outside districts, but none of the

non-BLP participants have sold to other districts. However, in terms of annual sales, non-BLP

participants realized a much larger increase (207%) than did BLP participants (68%). Thus, while BLP

training may not help increase annual sales as much as technical training, the results seem to indicate

that combined BLP and technical training offer the best results for vulnerable households.

Learning questions on resilience

LQ 7: Do KISAN II private sector-led activities buffer or better equip farmers to cope with environmental,

economic, and political shocks?

KISAN II’s private sector-led activities are designed to strengthen the relationships among farmers and

market actors and to ensure that farmers have access to market actors, such as financial institutions,

agrovets, cooperatives, and millers. Project data shows that, at baseline, the average number of

improved management practices and technologies (MPT) per household was 4.28 across all

commodities. Y2 and Y3 annual survey results indicate average annual changes in the adoption of MPTs

across all commodities of 81.07% and –18.45%, respectively. This includes a 26% increase in adoption of

climate-smart technologies and practices in Y2 as compared to the baseline. The adoption of improved

MPTs has led to a marked increase in yields (Table 17). The baseline average yield (metric tons/ha) of

rice, maize, lentils, and vegetables was 3.49, 1.96, 0.55, and 9.39, respectively. The average year-on-year

increase in yields across all commodities was 50.36% in Y2 and 58.04% in Y3. Improved access to

markets enabled farmers to sell 55.84% of their produce across all KISAN II commodities in Y2 and 60%

in Y3. The resulting increase in incomes helps provide farmers with the financial flexibility to withstand

shocks and stresses.

Table 17. Improved management practices and technologies and yields by commodity

Commodity

Y2 Y3

MPTs Adopted Yield

(MT/ha) MPTs Adopted

Yield

(MT/ha)

Vegetables 11 15.83 6.76 26.33

Rice 11 4.26 7.01 5.2

Maize 6 2.25 6.20 3.97

Lentils 3 0.8 5.30 1.07

Average across commodities 7.75 5.79 6.32

KISAN II cooperative partners also contribute to developing farmer resilience by linking them to

insurance products, such as micro-insurance and agriculture/livestock insurance, which protect farmers

from sudden shocks and stresses and encourage commercial production. KISAN conducted an insurance


orientation workshop in Y3 and seven KISAN II cooperative partners are in the process of receiving a

corporate agency to operate micro-insurance, which will further expand financial services for farmers.

During the COVID-19 lockdown, farmers struggled to access agri-inputs and markets. KISAN II

collected information from all active marketing agents and agrovets across the KISAN II ZOI, linking

private actors with farmers in their working areas. In Sindhupalchowk, farmers accessed 20,000 packets

of FAW pesticides through KISAN II partner, New Panch Pokhari Kirana Tatha Agrovet Centre. In

Dang, 250 commercial farmers were linked to KISAN II trader partner, Lumbini Tarkari, which

purchased about 20 MT of produce daily.

By strengthening linkages to local market actors who are permanently embedded in the market system,

farmers can access inputs, insurance products, technical services, and marketing facilities—even during

an unprecedented global pandemic. This continued access to services allows farmers to increase

production and earn income, thus making them more resilient to shocks and stresses.

LQ 8: Does market-led production planning lead to better farmer incomes and enable farmers to withstand

market price fluctuation better?

KISAN II found that market-led production

helps farmers better plan their farm

production, allowing them to withstand market

price fluctuations and maximize profits.

Adopting market-led production enables

farmers to: 1) analyze price fluctuations and

produce the right variety, quality, and quantity,

as defined by traders; 2) stagger planting to

extend the harvest period; 3) increase their

bargaining capacity; and 4) gain confidence to

increase their investment in vegetable farming

(see Box 9).

For example, by adopting market-led

production planning and shifting their

production pattern by two months, farmers

from the Likhu Kisan Krishak Samuha Farmers’

Group in Nuwakot doubled the price per kg

for their produce. Farmers in the area usually

plant cauliflower during October-November

and harvest during December-January, earning

about NRs. 30-40 (USD 0.25-0.3) per kg. After

discussions with traders, the group realized

that if they moved their harvest to September-

October, coinciding with the Dashain festival,

they could potentially double their prices.

Thus, with the right technical support, they

planted cauliflower in July-August, harvested it

in September-October, and earned up to NRs.

80/kg (USD 0.70), encouraging them to further

adopt market-led production. In Surkhet, the

Sunaulo Farmers’ Group used its link to a local trader in nearby Birendranagar to sustain vegetable sales

Box 9. Market-Led Production Earns Premium

Returns for Farmers

Ram Belas Chaudhary, a member of the Hajari Farmers’

Group in Kanchanpur, earned a net profit of NRs. 124,200

(USD 1,035) in one season after adopting market-led

production. After analyzing the market data, Mr. Chaudhary

saw the opportunity to maximize his profits by selling

bottle gourd in July-August when the price is at its

premium. He took a loan of NRs. 60,000 (USD 500) and

rented 0.2 hectares of land just to plant bottle gourd. With

the right technologies, he managed to harvest a total of

10.2 MT, and traders gathered at his field to directly buy his

produce.

“I did not have any problem selling my vegetables. Traders

bought the vegetables from the field itself. I was able to increase

my profits through this market led approach, by producing

vegetables during off-period, when the market demand is high,

and the production is low."

KISAN II partner, Samjhauta Multipurpose Cooperative helped

Ram Belas in Kanchanpur link with the local trader who visits his

farm to collect the harvest if the volume is met as per the

market demand and pays the premium price for the quality

produces. Photo credit: Anup Bam for USAID


during the COVID-19 crisis. Group member, Ms. Khagisara GC stated, “I earned more than before from

vegetables during lockdown and received a premium price. I also supplied vegetables to a [COVID-19]

quarantine site managed by Bheri Ganga Municipality. Now I realize that we can get premium prices for

vegetable if we follow the market-led production plans.”

Learning questions on policy development

LQ 9: How can KISAN II best build the capacity of local government units to increase municipality-level

investment in an agriculture sector that responds to market and local farmer needs?

Over the past three years, KISAN II has observed that engaging in continuous and close coordination

with GON organizations at the federal, provincial, and municipal levels results in increased municipal

investment in project activities and joint municipal activities with KISAN II grantees. The increased

investment from the municipal governments is evident from the funding leveraged by these organizations

for installing irrigation schemes. The latest estimate (as of June 2020) shows the amount leveraged by

the local governments has been NRs. 4,066,727, compared to KISAN II’s investment equivalent of NRs.

4,291,878 (almost equal to co-investment) through grantees and direct project support.

KISAN II facilitates municipal leaders to engage in agriculture through municipal briefings on KISAN II’s

private sector approach; joint monitoring visits; trainings for municipal officials on program planning; and

discussions to showcase private sector partners’ contributions to strengthening value chain linkages.

KISAN II also encourages private sector grantees to engage with local government to attract and

leverage municipal support for agricultural growth. As a result, municipal governments have regularly co-

financed KISAN II-supported irrigation schemes and contributed to production inputs and farm

machinery for grantees' beneficiary farmers. They also contribute on the marketing side by co-financing

small market infrastructure, such as collection centers, cold chambers, storage facilities, and provide

material support to BLP beneficiaries. This is a part of a “pull strategy” through which grantees create

business cases to attract investment from the municipalities. For example, Panuati municipality’s

commitment to invest in market infrastructure building was triggered by the positive findings of a market

feasibility study commissioned by KISAN II at the request of the municipality.

As a part of its “push strategy” to advocate for a market system approach and private sector led

development model, KISAN II organizes regular joint meetings and field visits to showcase best

practices; provides technical and program management training to municipal staff and elected

representatives on how the private sector model works; shares local planning and monitoring tools; and

offers program prioritization and resource mapping guidance. KISAN II builds the capacity of municipal

officials to develop innovative and market-oriented programs in the agriculture sector by involving them

in program planning, implementation, and M&E training. Most participating municipalities increase their

agriculture budgets. For example, after participating in training, Shivaraj Municipality of Kapilvastu

increased its investment in the agriculture sector and began inviting KISAN II staff to meetings to

explore new activities for its annual programs. KISAN II partners’ technical support has been valuable,

and many municipalities sustain close contact with KISAN II and grantee staff for help on allocating

agriculture resources and developing and implementing programs.

Towards the end of Y3, KISAN II and MOALD developed a joint rice implementation program (JRIP).

The program is implemented in 20 municipalities of six districts, requiring KISAN II staff to engage

regularly with local government officials. For field level collaboration and monitoring, municipalities are

designated as members of the JRIP working committee, led by MOLMAC, alongside KISAN II’s partner

rice millers and cooperatives. This creates an opportunity for actors engaged in JRIP implementation to

forge alliances and ensure complementarity with municipal-executed rice programs (such as those under

National Food Security Mission, PMAMP, and COVID-19 Recovery Plan).


Some municipalities within KISAN II ZOIs are interested in developing marketing infrastructure and

requested case studies on successful models and feasibility studies from KISAN II to inform their

investment decisions. On the basis of KISAN II studies carried out in Y3, Narayan Municipality in Dailekh

and Bheri Municipality in Jajarkot committed to investing in multi-chamber cold rooms through local

cooperatives. Similarly, Panauti Municipality of Kavrepalanchowk is developing wholesale markets with

satellite collection centers, by integrating its own resources with that of other potential investors.

LQ 10: What are the grain storage options and modalities that would benefit farmers and be financially viable

(sustainable)?

Grain storage is a critical component of agriculture, as it provides ample benefits to farmers, including

food security, quality assurance, post-harvest management and has income and health implications.

KISAN II researched different grain storage options available and beneficial to farmers in Nepal and

classified them into two types: traditional and modern. Traditional grain storage, popular among farmers

for its low cost and ease of management, can store from 3.5–18 MT of grain and can be built to farmer

specifications. Popular traditional grain storage options in Nepal include moda,18 munar,19 kothi,20 and

madki.21 Modern grain storage options are integrated with technologies to ensure minimum post-harvest

losses, health benefits, and higher incomes for farmers. Popular options among KISAN II partner

cooperatives, rice millers, and feed millers include self-built silos, hermetic storage, community storage,

and warehouses, which can store more than 50 MT of grains and cost about NRs. 2 million (USD

16,667). Farmers prefer traditional storage because of its low cost (NRs. 50,000 (USD 417) and easy

management and access; however, farmers who use traditional storage options face high post-harvest

losses due to high moisture, pest and rodent infestations, and limited aeration. In recent years, some

farmers have adopted lower-cost modern grain storage options, such as hermetic bags, which cost a

reasonable NR. 360 (USD 3) and are also durable and accessible. Many farmers remain reluctant to shift

to modern technologies and community-managed warehouses because of the lack of policies, unclear

benefits, high costs, and unskilled human resources and management systems. This prevents farmers

from accessing improved grain storage that could improve grain quality and lead to premium prices

To introduce farmers to the benefits of modern grain storage and grain credit options, KISAN II initiated

an inventory credit service among its partner cooperatives. The service encouraged farmers to access

grain storage and loans by using grain as collateral. KISAN II approached 10 cooperatives to introduce

the new service, but the cooperatives were reluctant to introduce it and were not confident that

farmers would embrace inventory credit. After negotiations, Sana Kisan Krishi Sahakari Sanstha Limited

agreed to introduce inventory credit to its members. Unfortunately, its members did not respond

positively to the idea. The cooperative decided to introduce inventory credit on a small scale by

establishing a warehouse with 25 MT capacity to store paddy, and to open credit line options to a small

group of members. However, a 25 MT warehouse can serve only one to two farmers; at least 100 MT

of storage capacity is needed for the inventory credit mechanism to function smoothly. Thus, KISAN II

decided to not promote inventory credit through Sana Kisan Krishi Sahakari Sanstha Limited. Through

the process, however, the KISAN II team realized that an inventory credit system requires a cooperative

with the managerial, operational, and infrastructural capacity to scale the service and create confidence

among its members.

18 A structure made from bamboo, mud, cow dung and hay. 19 Improved form of moda inside the house. 20 Storage room. 21 Pitcher made from mud to store grain.


In Y4, KISAN II will identify partners to introduce business models for grain storage technologies. In the

process, KISAN II will strengthen partners’ capacity—managerial, business, and infrastructure—to

introduce concepts, such as warehouse receipts and inventory credit. In the meantime, KISAN II will

continue to promote new grain storage technologies to farmers by highlighting potential benefits.

Sub-objective 5.1: Apply CLA to Advance Competitiveness

Building GON Interest to Test and Scale Up Market System Development Approach (Activity

5.1.1)

In Y3, KISAN II shared information about its objectives, private sector engagement, and market system

development approach with government and private sector partners collaborating on Component 2

activities. The project incorporated sessions on market system development into all provincial-, district-,

and municipal-level meetings, proving information on topics such as cost-benefit analysis and seasonality

to farmers and KISAN II partner firms. A similar sharing meeting was organized for MOLMAC officials,

who appreciated the joint agreement between their Ministry, the private sector, and KISAN II to test

and scale up the market system development approach. In Province 5, MOLMAC emphasized its interest

in working with KISAN II to learn more about market system development.

Review and Reporting Workshops Guide Grantees' Next Steps (Activity 5.1.4)

During Y3, KISAN II organized 15 cluster-level pause and reflect workshops. The cluster team reviewed

each grantee’s progress and performance, analyzed which activities went well and which did not, and

made decisions on which activities to drop or amend. As a result, 51 grantees requested to amend their

contracts with KISAN II.

Sub-objective 5.2: Apply CLA to Advance Inclusiveness

GESI Mainstreaming Training to Enhance Gender Lens throughout Program (Activity 5.2.1)

KISAN II selected a consultant to conduct a GESI mainstreaming workshop for senior management staff

and field staff, but the workshop has been postponed until Y4 due to COVID-19. The main objective of

the workshop is to enhance project staff and private sector partner (selected cooperatives and agrovets)

understanding of GESI norms and constraints in agriculture business development, and thus improve

gender and social inclusion integration and mainstreaming in KISAN II programming.

Review and Reflection Workshops Help Integrate GESI in Program Activities (Activity 5.2.3)

All seven clusters conducted cluster-level review, reflection, and learning workshops in Y3 to review

overall annual targets as well as each grantee’s progress and performance. During the workshops, the

KISAN II team discussed issues related to inclusiveness and identified solutions to address key challenges

for effective and timely implementation. Practical suggestions to improve inclusiveness included building

understanding among private sector partners about GESI norms, providing additional discount rates for

poor and vulnerable farmers, and seeking additional support from local government and municipalities

for joint interventions for women and vulnerable communities. KISAN II will integrate these solutions

into activities and conduct GESI mainstreaming training for business owners to help them realize that

prioritizing women and DAGs—both as producers and customers—leads to a more sustainable business

model in the long term. In Y4 T2, KISAN II will develop additional GESI tools and a checklist for private

sector firms to ensure inclusiveness in their business strategies.

Engaging Directly with USAID and Other USAID Projects (Activity 5.2.2)

During Y3, KISAN II coordinated and engaged with USAID and other USAID-funded projects on the

activities described below.


High-level visits allow USAID to see KISAN II achievements firsthand. In Y3, four high-level USAID teams

visited KISAN II districts, observed program activities, and interacted with beneficiaries and private

sector partners. The visiting team included:

● Kavrepalanchowk district: USAID Assistant to the Administrator and the Deputy Chief of Mission;

● Kavrepalanchowk district: USAID Assistant to the Administrator, Deputy Chief of Mission, USAID

Nepal Acting Mission Director, Strengthening Entrepreneurship and Enterprise Development (SEED)

Director, Feed the Future coordinator, Bureau of Resilience and Food Security team, and KISAN II

Chief of Party;

● Sindhupalchowk and Kavrepalanchowk districts: Bureau of Resilience and Food Security team,

USAID Development Outreach Communications representative and KISAN II Chief of Party; and

● Kavrepalanchowk district: U.S. congressional delegation and USAID Nepal team.

Coordination with USAID funded project results in facilitated collaboration. In Y3, the Banke and Surkhet

clusters organized two meetings with other USAID projects. Kapilvastu, Dadeldhura, Surkhet, and Banke

clusters participated in meetings organized by other implementing partners, including the Suaahara II

project, NSAF project, Paani project, and the International Water Management Institute. During these

meetings, implementing partners shared information about program activities and identified areas for

collaboration. For instance, KISAN II collaborated with NSAF to conduct demonstrations of zinc- and

iron-fortified lentil varieties and stress-tolerant rice varieties through KISAN II private sector partners.

Similarly, following a partner meeting, KISAN II and Suaahara II agreed to enroll Suaahara II village model

farmers into KISAN II BLP Module 6 trainings. Further, KISAN II shared training manuals, a vegetable

directory, and informational flier to the Suaahara II team and village model farmers and provided

technical support to Suaahara II farmers in overlapping districts. Additionally, KISAN II shared learnings

on integrating GESI into IPM interventions with the FTFNIPM project and supported it in developing a

survey questionnaire.

Linking with NSAF to develop toolkits, evaluate commodity performance, and for mapping exercise. During this

reporting period, KISAN II collaborated with NSAF to develop and disseminate toolkits of best

management practices on fertilizer use for rice, maize, cauliflower, and tomato. KISAN II also

collaborated with NSAF and its seed company to evaluate the performance of rice and lentil varieties

and identified high-yielding varieties for the next season (see Sub-objective 1.3 for details). KISAN II

supported NSAF to conduct a mapping exercise on the COVID-19 pandemic's effect on agriculture by

sharing information about agro-dealers and locations of FAW infestations.

Development partners jointly combat FAW and locusts. KISAN II, NSAF, and FTFNIPM met to discuss the

current FAW status in 25 ZOI districts. The group also discussed a FAW survey and surveillance plan

for the upcoming maize season and recognized an ongoing collaboration with the Food and Agriculture

Organization (FAO)-FAW project, which is being implemented by PQPMC. KISAN II also collaborated

with FTFNIPM to develop locust awareness and management related SMSs and disseminated them to

more than 100,000 farmers, in response to the recent locust invasion experienced in the region. a

KISAN II adopts tested GESI tools from other USAID projects. KISAN II participates in USAID’s quarterly

GESI Working Group meetings, organized to strengthen USAID’s GESI community of practice and make

projects more gender-responsive and socially inclusive. During the COVID-19 crisis, the meetings

shifted to bi-weekly frequency to enable participants to share programmatic experiences during the

pandemic and discuss specific challenges faced by women and DAGs. Based on learnings from these

meetings, KISAN II will adopt Suaahara II's GESI tools supporting women's leadership and training tools

for field extension workers. KISAN II also initiated a dialogue with GESI focal points on the USAID


Sajhedari and Civil Society: Mutual Accountability Project, to collaborate on support for women and

DAGs in the COVID-19 response.

The KISAN II grants program buys down partner grantees’ risk for testing new technologies, solutions,

or working relationships, crucial elements for unlocking the transformational potential of selected

agriculture market systems in KISAN II’s ZOI. The program seeks opportunities to engage women,

youth, and disadvantaged groups by targeting them as project participants, working with women and

DAG-led organizations. Private sector actors—rice millers, traders, cooperatives, wholesale agrovets,

retail agrovets, goat farms, and others—invest a considerable amount of money and effort into the

agriculture sector. Through partnerships with KISAN II, these actors can use grant support to

implement activities that strengthen linkages between businesses and smallholder farmers. Local and

provincial governments may also contribute resources to bolster partners’ activities.

KISAN II has received 448 concept papers from applicants to date, and signed agreements with 150

private sector partners. 22 The agreements are valued at USD 3.4 million; partner cost-share

contributions of USD 3.2 million reflect a cost-sharing ratio of 52:38. Jointly, the 150 partners are

expected to reach 187,690 farming households by the end of their performance periods. Figure 7 shows

the breakdown of partners by type.

During Y3, KISAN II visited 146 grantees to monitor their implementation of grant activities and coach

them on reporting. Given the impressive work done by existing private sector partners,

USAID approved KISAN II’s request to increase the total Grants Under Contract budget from USD 3.5

million to USD 3.8 million.

22 150 partnerships include 146 grantees and 4 contributing MOU partners who provided extension services to local

farmers and contributed to grant activities as private sector investment. The 150 partnerships include three new grant

awards (approved in July 2020), two dropped partners, and two who ended in mid-2020. Four MOU partner agreements

also ended this year, leaving 142 remaining active partners.

Grants Under Contract

150

142

65

58

12

10

5

Total partners through Y3

Active partners by end of Y3

Cooperatives

Agrovet/Input Suppliers

Traders

Rice Mills

Goat Farms

Figure 7. KISAN II Y3 grant partnerships by type


Sub-objective 5.5: Apply CLA to M&E

Under KISAN II, monitoring and evaluation (M&E) serves multiple purposes and constituencies, including

the overall project management, beneficiaries, external stakeholders, and USAID. While testing CLA

techniques, data collection, and reporting, the project has evolved to meet programmatic needs and

challenges. This process-based learning approach informed an improved monitoring method for data

collection and supports the program team in making evidence-based program decisions. As shown in

Table 18, KISAN II has identified learnings and adopted appropriate adaptive practices for better

outcomes.

Table 18. Major learnings and adaptive management

Major Learnings KISAN II's Adaptive Practices

• KISAN II's facilitation approach and

private sector implementation makes

M&E and learning more complex.

• Customized M&E system with web based WIKSAN 2.0. data

management system.

• Rolled out baseline survey of private sector partners and annual

organizational census survey of partners whose agreement was signed

before each December.

• Frequent changes in customized data

management system due to new ideas

from program or project innovation

poses a challenge.

• Changed from paper-based data collection and data entry system to

mobile application and web-browser, followed by data verification and

data cleaning by the call center, thus helping to create harmonized data

flow from grantees to the main server.

• Private sector is reluctant to collect

farm and socio-economic data of the

households in general, specifically

during the lockdown period.

• Reduced data entry fields in Participant Enrolment Form (PEF) by 80%

and started collecting only key disaggregation information needed for

USAID reporting such as gender, age, and ethnicity.

• Annual monitoring household survey

by contracted private firm with web-

based, computer-aided in-person

interview was not possible during

lockdown period.

• Developed process and protocols for web-based, computer-based

telephonic interviews and conducted annual monitoring farm survey by

phone, after agreement by USAID.

The following are updates on the application of CLA to M&E activities conducted in Y3.

USAID Approves KISAN II's Updated MEL Plan (Activity 5.5.1)

KISAN II updated its March 2018 version of the MEL Plan this year, incorporating recommended

changes related to indicators, definitions, and counting. KISAN II conducted two consultative meetings

with USAID to update the proposed changes and submitted the revised draft MEL plan to USAID on

March16, 2020. The revised plan was approved by USAID on June 1, 2020.

KISAN II Regularly Improves Features and Publishes WIKISAN 2.0 (Activity 5.5.2)

KISAN II conducts weekly online meeting with sub-contractor Pathways Private Ltd. for data cleaning

and processing to ensure error-free reporting. To allow field staff to devote more time to mentor

grantees, a short version of the Participant Enrolment Form (PEF) was developed and introduced in May

2020. To identify security vulnerabilities and software configuration, Winrock International conducted a

Pentest23 of WIKISAN 2.0, and subsequently developed terms of reference (TOR) to address the

23 The Pentest method tests areas of weakness in the software systems (in terms of security) to determine if weak points

might allow the system to be broken into.

Monitoring, Evaluation, and Learning (MEL)


identified vulnerabilities. In Y4, Pathways Private Ltd. will suggest mitigation measures to rectify these

vulnerabilities.

KISAN II Discontinued Use of DevResults (Activity 5.5.3)

KISAN II discontinued using DevResults in 2020, as WIKISAN 2.0's data management system fulfills

USAID requirements for data disaggregation.

KISAN II Conducts Virtual MEL Training (Activity 5.5.4)

On the basis of guidance from the GON and USAID related to the COVID-19 pandemic, a planned

internal MEL training for key program staff was conducted virtually through multiple video conference

sessions in March 2020.

Field Staff Trained for Better Data Collection (Activity 5.5.5)

To improve the data verification process and assist field staff in making corrections in WIKISAN 2.0, the

KISAN II MEL team trained 102 participants from 12 districts in four clusters. The trainings covered

common critical data collection issues and solutions. Following the training, participants committed to

continue the data cleaning process with all grantees.

Incorporated Action Points for Data Quality Assessment (Activity 5.5.6)

KISAN II implemented the action plan, incorporating recommendations from USAID's Data Quality

Assessment (DQA) held in October 2019. USAID's DQA team recommended the following actions: 1)

use USAID prescribed template to update KISAN II MEL plan, 2) help private sector grantees develop

and maintain their financial record-keeping system, and 3) develop an action plan immediately following

the P (performance) score assessment. By March 2020, KISAN II had updated its MEL Plan, provided

100 financial record-keeping trainings to grantees, and strengthened grantees’ capacity to prepare plans

based on the previous year’s performance.

GIS Maps Improve Program Reviews and Updates (Activity 5.5.7)

Based on program needs, KISAN II continued to update and share maps related to irrigation schemes,

opportunity mapping, and grantee status. KISAN II started reporting activity location data by trimester in

USAID Nepal’s common unified web GIS platform.

KISAN II Undertakes Annual Monitoring Farm Survey (Activity 5.5.8)

Due to the lockdown, KISAN II developed a process and protocols for web- and computer-based

telephonic interviews and conducted its annual monitoring farm survey by phone, as agreed by USAID.

The survey measured progress on key program indicators related to production, consumption, and sales

of targeted commodities.

Annual Organizational Census Survey Helps Measure Firm Level Outcomes (Activity 5.5.9)

KISAN II collected information on the value of sales, access to credit, capital investment, and application

of organizational-level management practices and technologies of the 180 eligible firms for the annual

organization census survey and performance scoring. The results are reported in Annex 6 (Performance

Indicator Tracking Table).

Regular Spots Checks and Internal DQA Enhance Data Quality (Activity 5.5.10)

In Y3, the KISAN II MEL team supported all clusters to maintain data quality and enter results into

WIKISAN. The team identified data errors and outliers in WIKISAN and shared information with

clusters to rectify the errors.


Updated Project Data Shared with USAID (Activity 5.5.11)

KISAN II incorporated feedback from USAID and uploaded final values for 2019 performance indicator

results into the Feed the Future Monitoring System. The project also shared its updated Performance

Indicator Tracking Table with USAID.

Environmental Compliance (Activity 5.5.12)

All project and grantee technical staff were oriented on KISAN II’s Environmental Management and

Monitoring Plan (EMMP) and Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP). KISAN

II reinforced the importance of safe environmental practices and safe pesticide use at all project events

and trainings, in accordance with the approved PERSUAP and EMMP. KISAN II updated the EMMP and

submitted it to USAID along with the work plan for Y4 T1.

During the first two trimesters of Y3, KISAN II activities were implemented near peak capacity. In the

third trimester, however, KISAN II’s operations were severely affected by the COVID-19 pandemic, as

the GON mandated a nationwide lockdown starting on March 22 and USAID issued a subsequent stop

work order (SWO). At Winrock's request, USAID approved an exception to the SWO on March 27

and allowed KISAN II to continue extension services to farmers, facilitating output marketing, and

supporting activities to maintain agri-input supply and irrigation-related work. Most project staff

continued programmatic project support and desk work during the suspension period, in accordance

with Winrock International’s telework policy; 21 support staff were on administrative leave. Field

activities, supervision, monitoring, and reporting activities are expected to gain momentum since GON

officially lifted the lockdown on July 21, 2020.

The GON eased the lockdown on June 11, 2020, and USAID cancelled the SWO on June 14. At first,

only government offices, non-governmental organizations, and private offices were allowed to open, in

two working shifts. KISAN II resumed work at the Kathmandu office, opening at 33%–50% capacity

beginning July 14, in accordance with USAID’s approved post-lockdown risk mitigation plan. KISAN II

will soon re-open its regional office in Nepalgunj and cluster offices, to ensure continued implementation

of field activities.

Progress reports and bi-weekly updates submitted to USAID (OP.1).

KISAN II developed and submitted the Y2 Annual Progress Report, Y3 First Trimester Report, and Y3

Second Trimester Report to USAID, all of which were approved by the COR. KISAN II also submitted

13 bi-weekly updates, and an updated Grants Under Contracts Manual to USAID this year.

Other communication highlights include the following:

● KISAN II wins third place in Feed the Future's 2020 Photo Contest.

KISAN II submitted four photos for the 2020 Feed the Future Photo

Contest. One placed third and another was acknowledged with an

Honorable Mention.

● Success story published in Feed the Future's March newsletter. A

KISAN II success story highlighting the project’s mechanization support

to farmers was featured in Feed the Future's March 2020 newsletter,

published in April 2020.

Operational, Financial, and Communications Activities


● Submission to 2020 USAID Digital Development Awards. In early June 2020, KISAN II submitted an

entry for the USAID 2020 Digital Development Awards. This award program recognizes activities

that use digital technology to sustain open, secure, and inclusive digital ecosystems that improve

measurable development and humanitarian-assistance outcomes. The submission highlighted

KISAN’s Branchless Banking service, which partners with private banks to bring much-needed digital

financial services to farmers’ doorsteps. KISAN II also developed a flier on

● the project’s Branchless Banking activity to showcase this work. Award winners have not yet been

announced.

Fixed Price Subcontracts Issued (OP. 2)

In Y3, the following subcontracts were issued, completed, or amended.

● Obligations for CEAPRED, DEPROSC, Digital Green, OSC, and Pathway Technologies and Services

subcontracts were increased to implement Y3 activities.

● The Pathway Technologies and Services subcontract remained operational to maintain KISAN II’s

WIKISAN2 M&E system, which will continue throughout the life of the project. Under a separate

fixed price award, the subcontractor completed development and implementation of WIKISAN2.0

and continues to provide web hosting and operations and management support to KISAN II.

● MountDigit Technology, which was contracted to organize workshops/events and orientation

programs on agriculture and agribusiness related policies in Provinces 3, 5, 6, and 7, completed its

assignment. The final report has been submitted and approved by Winrock International.

● Full Bright Consultancy Pvt. Ltd. submitted its 2019 final report for the farmer survey assignment

and began a computer-aided telephonic interview survey for the Y4 farmer survey in June 2020.

● Business Promotion Research and Communication Pvt. Ltd., which was subcontracted to conduct a

landscape analysis of Nepal’s rice milling industry, submitted the final report for the study. The

accompanying workshop, originally planned for February or March 2020, is now scheduled for Y4

T1.

● FWEAN was contracted to undertake a policy assessment, organize policy advocacy events for

empowering and capacitating women agri-entrepreneurs, and make policy recommendations to

GON for creating favorable enabling environments to attract women and other potential

entrepreneurs in agribusiness. FWEAN has submitted the final report.

● NARMA Consultancy initiated its assignment of drafting PSE guidelines in May 2020.

● PACE Nepal Pvt. Ltd. was awarded a subcontract to provide technical support to develop food

regulations for export-import inspection, certification of food and food products, and licensing and

registration of food businesses. Winrock International approved the inception report submitted by

PACE in February 2020.

New Staff Recruited and Trained (OP.4)

During Y3, KISAN II recruited key positions, including Chief of Party and Deputy Chief of

Party/Agriculture, and welcomed two new Cluster Business Managers (CBMs) and a Senior

Communications and Outreach Manager. The project trained all staff on the Code of Conduct in June

2020.

Short-Term Technical Assistance Engaged

During this year, KISAN II engaged short-term technical assistance (STTA) for technical assignments,

including an internal DQA, feasibility assessment of vegetable wholesale market, study of wholesale and

auction market, rapid assessment of the lentil sector, guidelines for vegetable pack house, and a training


manual on AI in the goat sector. The project also acquired STTA support for technical guidance on a

rice milling study, photography support, and developing project communications materials.

Standard Operating Procedures Updates Underway (Activity OP.6)

The KISAN II employee handbook is being updated to comply with the GON Labor Act. In response to

Winrock International's request, USAID approved a lump-sum payment for unused annual leave to each

Cooperating Country National staff member.

Consultative Meetings Conducted (Activity OP.7)

KISAN II conducts regular meetings with three tiers of governments, donors, and other Feed the Future

projects to ensure collaboration, avoid duplication of efforts, and build synergies where possible. These

stakeholders are invited to all sector-wide events and regular meetings are held to coordinate on

multiple joint activities, especially in Components 1, 2 and 4. In January and March 2020, USAID and the

KISAN II team traveled to four provincial capitals (Hetauda, Dhangadi, Surkhet and Butwal) and met

with senior provincial GON officials from MOLMAC and the Planning Commission. During the

meetings, both parties outlined key priorities and discussed and agreed on opportunities for partnership

and collaboration.

Emergency Management Preparedness Documents Developed (Activity OP.8)

KISAN II submitted its post-lockdown COVID-9 risk mitigation plan in May 2020, which was approved

by USAID. The project also updated the security management handbook this year.

KISAN II Review and Annual Planning Workshops (Activity OP.10)

Due to the unpredictable nature of COVID19-related restrictions and future effects, KISAN II requested

USAID to allow submission of a Y4 T1 work plan. USAID approved the request and KISAN II conducted

the work planning process virtually, including a series of discussions to draft Y4 T1 activities based on an

analysis of Y3 achievements and active scenario planning. The team also discussed details, such as

validation of interventions, assumptions, and potential innovations. KISAN II submitted the Y4 T1 work

plan to USAID in June 2020 along with a coordination plan with GON, GESI plan, and EMMP; the work

plan was approved by USAID on July 13, 2020. Annex 4 lists select activities to be undertaken in Y4 T1.

The work plan for Y4 T2 and T3 will be submitted on October 16, 2020.

PARTNERSHIP, COLLABORATION, AND KNOWLEDGE SHARING KISAN II meets regularly with a wide range of organizations, including USAID partners, private sector

representatives, associations, GON agencies and projects, other development partners, and civil society

representatives and organizations. These meetings help inform KISAN II’s implementation. Below are

highlights from key collaboration activities in Y3; these activities are discussed in more detail under Sub-

objectives 1.3 and 5.2, above.

● KISAN II coordinated with NSAF project on the following: 1) lentil varietal demonstrations in

Banke and Bardiya districts; 2) seed production activities for a new lentil variety; and 3) promotion

of the Rampur Hybrid-10 maize variety.

● KISAN II attended a virtual meeting of the FAW Task Force on July 3, which covered the current

field status of FAW and recent Desert Locust invasion An FTFNIPM expert also gave a presentation

during KISAN II weekly staff meeting on the current status of FAW in Nepal and possible control

measures to implement during the nationwide lockdown.

● The F2F program organized a two-day virtual training on FAW on May 22, 2020, for KISAN II

senior level staff and cluster business managers. Participants discussed how other countries are

managing FAW and a viable management strategy to control it in Nepal. A similar training was


conducted on May 29, 2020, for field-level staff on the surveillance, identification, and management

of FAW.

● The USAID SEED MEL Working Group—a platform for USAID and implementing partners to

collaborate and share ideas, lessons learned, and challenges related to monitoring, evaluation and

learning—organized a meeting in June 2020. The objective of the meeting was to share experiences

and learn how different partners are monitoring field programs in the constrained operating

environment due to COVID-19. KISAN II gave a presentation on how it is monitoring field activities

and adopting technologies, such as telephonic surveys, to conduct its annual monitoring survey.

KISAN II PROJECT YEAR 3 ANNUAL REPORT Page 1

AID-367-C-17-00001

ANNEXES

Annex 1. Success Stories

Upgrading from Coarse Rice to Premium Rice Pays Off Success Story

Before 2019, Jiledar Tharu, a 42-year-old farmer from Nepal’s Banke district, cultivated coarse rice and lentils using traditional methods. His yields were low and, because he lacked market linkages, he sold his meager rice harvest to intermediaries rather than directly to mills. Consequently, he lost about NRs. 3,000 (USD 25) per metric ton in profits. Jiledar’s lack of knowledge on how to cultivate fine rice varieties, access needed inputs, and link to market actors who would pay premium prices for high-quality rice caused him—and many farmers like him—to miss an opportunity to earn a better living.

The USAID Knowledge-based Integrated Sustainable Agriculture in Nepal II (KISAN II) project works with 150 private agribusinesses, including 10 rice mills. These firms support 187,000 farming households with technical assistance to increase farm yields and incomes.

In 2019, Jiledar joined the Laligurans Farmers’ Group formed by KISAN II partner Sunil Rice Mill. Through this group, he learned the benefits of fine rice production and observed improved cultivation practices firsthand at demonstrations and farmer field days. Sunil Rice Mill linked Jiledar to Gorkha Seed Company in Dang and GATE Nepal in Banke to procure fine rice seeds. Jiledar began to cultivate fine rice on one hectare of land, while continuing to cultivate one hectare of coarse rice. That year he realized a 42% increase in overall rice production from the previous year. Further, his direct link to the rice mill through the farmers’ group enabled him to cut out the middleman. As a result of the new linkages and improved practices, he doubled his combined income from rice and lentils from NRs. 9,600 (USD 80) per month to NRs. 20,000 (USD 167) per month.

Jiledar realized the benefits of shifting to fine rice. “I used to cultivate coarse rice using traditional knowledge. Learning from Sunil Rice Mill, I started producing fine rice varieties using improved techniques. Now, I earn extra income due to both increased yield and premium price.”

In June 2020, Jiledar skipped coarse rice altogether and planted 1.5 hectares of fine rice and 0.5 ha of medium-fine rice, knowing the pay-off would be worthwhile. With his increased income, Jiledar purchased inputs to help expand his cultivated area and paid off one-third of his children’s educational loan.

The shift to fine rice production benefits mills as well as farmers. Mills prefer to source quality rice directly—and reliably—from local rice growers instead of from higher-priced intermediaries. Before partnering with KISAN II, Sunil Rice Mill purchased 70% of its rice from intermediaries - 75% coarse rice and 25% fine (and medium-fine) rice. This season, the mill increased its overall purchase of fine (and medium-fine) rice to 50%. As a result, its annual sales increased by 45%, from NRs. 87.5 million (USD 729,448) to NRs. 127 million (USD 1.06 million) respectively. The mill now plans to install a silky polisher machine to double its processing capacity from 2 to 4 metric tons per hour.

Through the Joint Rice Intervention Program (JRIP) led by KISAN II and the Government of Nepal, Sunil Rice Mill now helps 400 farmers in Banke produce fine rice on 348 hectares. The mill procured 11 metric tons of high-yield fine rice seeds from Gorkha Seed Company and sell this directly to farmers with no mark-up to enable farmers to cultivate fine rice for the mill. “I used to purchase most of the paddy from middlemen and the production of fine rice in my coverage area was nominal. After partnering with KISAN II, I now work with more than 2,500 farming households, including 400 associated with JRIP, promoting fine rice varieties and providing technical assistance to farmers so that both farmers and the mill benefit from the growing consumer demand for fine rice,” says Jit Bahadur Khatri, owner of Sunil Rice Mill.

Since 2018, KISAN has partnered with 10 rice mills and reached over rice 15,222 farmers, who had an average yield of 5.28 metric tons/ha and earned USD 320 in fiscal year 2020.

Helping Nepali rice millers enable farmers to shift to high-value rice varieties

Jiledar Tharu, a Nepali rice farmer, earns premium returns by selling fine rice varieties, after receiving training and technical guidance from KISAN II partner, Sunil Rice Mill.

Sunil Rice Mill now sources 25% more fine and medium-fine rice, which has increased the value of sales by 45%.

www.feedthefuture.gov

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Boosting Nepal’s Goat Sector with More Productive Breeding

Success Story

With goats contributing about 21% to the national meat production, Nepal’s goat sector

has the potential to thrive. Unfortunately, this potential is limited by the poor genetics of

current breeds and the use of traditional breeding practices. The USAID Knowledge-

based Integrated Sustainable Agriculture in Nepal II project (KISAN II) is helping to

strengthen Nepal’s goat sector by promoting artificial insemination (AI) to introduce

more productive goat breeds, such as the Boer breed.

In December 2019, Balaram Chaulagain, a veterinary technician from Chaulagain Vet

Center just outside Kathmandu Valley, took the first step to accelerate his goat breeding

business: he enrolled in a KISAN II-supported goat AI training conducted by the Ministry

of Agriculture and Livestock Development’s (MOALD) Agricultural Information and

Training Center (AITC). Although Balaram had used AI on cattle, his success rate was

only 10–15% instead of the typical 70% success rate. He was also not sure how to apply

AI to goats.

After gaining specialized knowledge on goat AI through the training, Balaram put his new

skills to use and inseminated 72 goats in six months. The procedure led to successful

conceptions in 64 goats on the first try, and six goats have already given birth to healthy

kids. Balaram is thrilled with his new 89% success rate.

Balaram began offering breeding services to local farmers to help them produce better

kids that fetch higher prices. He uses purebred Boer-buck (premium) seed stock sourced

from Nepal’s National Livestock Breeding Office, a division of the Department of

Livestock Services.

Mrs. Sita Neupane, a smallholder goat farmer, is one of Balaram’s satisfied customers. She

earned NRs. 90,000–100,000 (USD 750–835) selling half-Boer kids bred through

Balaram’s AI services. The nominal fee of NRs. 200–400 (USD 1.70–3.30) for a single AI

breeding service was much lower than the NRs. 300,000 (USD 2,500) she would have

paid to buy a purebred Boer goat. Mr. Kedar Dhital, another goat farmer, is another of

Balaram’s happy customers. His purchase of the AI service resulted in the birth of a large

male kid that weighs an impressive 12 kgs at 45 days old. Mr. Dhital says, “It's

amazing…We can generate more income by using AI. When [Balaram] does AI, we hardly need

to repeat it again.”

Chaulagain Vet Center offers embedded goat husbandry services, along with breeding

services. Its carefully stored supply of Boer semen, as well as referee and buck semen, are

preserved with liquid nitrogen. Although AI is new to goat farmers, Balaram’s impressive

results have demonstrated its benefits to farmers and brought him many new customers.

Balaram is pleased that his new skills save time and gain the trust of farmers. “Now, with a

success rate of about 89%, I occasionally have to repeat AI in the same goat. The training in

December helped me a lot.”

To strengthen the country’s goat sector, KISAN II coordinated with the Nepal

Agricultural Market Development Project to support the MOALD in developing a goat

breeding strategy and to engage members of the government-formed Goat Working

Group. KISAN II has created a goat AI manual, in collaboration with the AITC, to help

standardize and commercialize goat breeding in Nepal. In the past year, KISAN II held 31

AI trainings; participants have since inseminated 322 goats with a 53% success rate.

KISAN II has 15 grantee partners in the goat sector, which work with 6,850 households

in eight districts.

Technical training and support

help boost goat breeder’s

success rate from 15% to 89%

in just six months.

Goat breeder and vet technician, Balaram

Chaulagain, checks the supply of liquid nitrogen

used to preserve semen for the AI breeding

process.

Balaram’s happy customer Sita Neupane shows off

her 50% Boer breed twin goat kids, conceived via

AI through Balaram’s KISAN II-supported

veterinary center.

www.feedthefuture.gov

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AID-367-C-17-00001

Annex 2. COVID-19 Impact on Crops and Farmer Coping Strategies24

During Nepal’s lockdown period, the ability of farmers to buy inputs, and harvest and sell produce

differed by commodity. Thus, farmers adopted different coping strategies, as discussed below.

Input Availability

Figure 8 illustrates how

COVID-19 affected

input availability for

various crops.

● Rice: 66% of

surveyed farmers

could buy some

necessary agri-

inputs from

suppliers, but only

9% could access

the full quantity of

inputs needed.

● Maize: 54% of

farmers could buy some agri-inputs, but only 10% could buy the full quantity of inputs needed.

● Lentils: 60% of lentil farmers harvested their crop before or around the lockdown period (April–

June 2020), and thus were not affected.

● Vegetables: Though 41% of farmers could buy some agri-inputs from agrovets and suppliers, only

27% could buy the inputs needed for specific vegetable crops.

● Goats: 30% of farmers could buy some necessary veterinary medicines and feed supplements, but

27% had no access to required inputs from agrovets.

Harvesting Crops

Figure 9 shows the effect of COVID-19 on the harvesting of specific types of crops.

● Rice: Harvesting was not an

issue for 95% of farmers, as

the main season rice was

harvested well before

lockdown.

● Maize: Because the harvest

season is August–October,

86% of farmers could

harvest their full crop as

normal.

● Lentils: While 50% of

farmers harvested during

lockdown, 40% did so

before lockdown, and 10%

could not harvest at all and experienced crop damage from waterlogging.

24 This is based on perception of farmers on COVID 19 lockdown impact from March 22- July 21, 2020; findings should not

be generalized to whole reporting period.

25%

66%

9%

0%

30%

54%

10%6%

10% 10%

20%

60%

20%

41%

27%

13%

27%30%

21% 21%

Not able to buy

necessary Agri

inputs

Able to buy some

Agri-inputs

Able to buy

required Agri inputs

Not Applicable

Rice (208) Maize (90) Lentils (10) Vegetables (485) Goat (33)

Figure 8. Impact of COVID-19 on input availability

0% 0% 4%

95%

1% 0%13%

86%

10% 10%

40% 40%

20%30%

0%

15%

55%

Not able to

harvest

Able to harvest

partially

Able to harvest all Not Applicable

Rice (208) Maize (90)

Lentils (10) Vegetables (485)

Goat (33) Linear (Vegetables (485))

Figure 9. Effect of COVID-19 lockdown on crop harvest


AID-367-C-17-00001

● Vegetables: Harvesting was not an issue for farmers who harvested winter vegetables crops

before lockdown (51%). After lockdown, 27% harvested partially and for 20% farmers, it was not

applicable as there was not enough volume to sell. 2% of the farmers were affected as they could

not sell as planned. Overall, this did not affect much the total harvested amount.

● Goats: Only 15% of farmers sold goats during the lockdown period. More than 55% raised goats to

sell during September–October.

Sales

Figure 10 shows the effect of COVID-19 on the sales of specific types of crops.

● Rice: 94% of

farmers sold

their paddy well

before lockdown

period and were

not affected.

● Maize: 84% of

farmers sold

their harvest

before the

lockdown

period and were

not affected.

● Lentils: 40% of

farmers sold all of their lentils before lockdown, and 10% could not sell at all during lockdown.

● Vegetables: 29% of farmers sold all their produce, 48% sold some produce, and 8% could not sell

any because of their remote locations. Soon after lockdown, local municipalities began facilitating

vegetable marketing and some cooperatives helped farmers use agriculture ambulances and

government vehicles to increase sales in months two and three of lockdown.

● Goats: 24% of farmers sold goats during lockdown and 36% could not sell. More than 39% of

farmers raised their goats for sale during September–October.

Coping Strategies

As shown in Figure 11, most (85%) of the 1,022 farmers KISAN II sampled used savings to cover living

expenses during the COVID-19 pandemic. Many also borrowed money (14%) or relied on family (13%)

to cover living expenses

Figure SEQ Figure \* ARABIC8. Farmer coping strategies

0% 0%5%

94%

9%3%

8%

80%

10%

30%

20%

40%

8%

48%

29%

15%

36%

12% 12%

39%

Not able to sell Only able to sell

some of them

Able to sell Not Applicable

Rice (208) Maize (90) Lentils (10) Vegetables (485) Goat (33)

Figure 10. Effect of COVID-19 lockdown on sales

85.5

14

13.4

7.5

6.7

5.6

2.5

0 20 40 60 80 100

Spent savings to cover living expense

Borrowed money to cover living expenses

Relied on the help of [extended] family members

Left in farm fallow

Find another earning occupation

Change groups

Sold assets to cover living expenses

Figure 11. Farmer coping strategies


AID-367-C-17-00001

Annex 3. Summary of Signed Memoranda of Understanding

KISAN II signed 14 MOUs with strategic partners during Y3. Summaries of the MOUs added in Y3 T3

are provided below.

1. eSewa

During the COVID-19 pandemic, all types of businesses needed to find ways to conduct business

remotely, adopt social distancing measures, and adapt to a restrictive business environment that limited.

public movement and operating hours. Given this context, KISAN II signed an MOU with eSewa to

introduce digital financial service applications to staff, grantee partners, and grantee customers, building

capacity to use digital wallets and banking applications. By shifting to digital financing and payment

services, KISAN II partners can reduce costs and overheads, and switch to lean management, all while

ensuring safe social distancing.

2. DV Excellus Pvt. Ltd.

DV Excellus is an agri-tech company that developed a digital platform called Kheti for vegetable sales.

Using this platform, the firm managed to conduct door-to-door vegetable sales in Kathmandu and

Pokhara during the COVID-19 lockdown when many other businesses were shut down. KISAN II signed

an MOU with Kheti to strengthen its capacity to supply fresh vegetables and link it to KISAN II

cooperative and trader partners to ensure stable market access. KISAN II will also help Kheti establish a

vegetable storage unit and strengthen its management and supply system through a demand schedule

and by sourcing vegetables from KISAN II partner farmers in the Kathmandu cluster.

3. Foodmandu

The national lockdown impacted the agricultural sector heavily, restricting farmer access to agri-inputs

and markets, and slowing the supply of vegetables from nearby districts to Kathmandu. Nepal’s popular

food delivery service, Foodmandu, expanded its business by adding a new vertical Foodmandu Fresh

service that collects and supplies fresh produce based on customer demand. KISAN II signed an MOU

with Foodmandu to strengthen its capacity to supply fresh vegetables and link them with KISAN II

cooperative and trader partners to ensure secure and stable market access.

4. Mutual Undertaking between Non-resident Nepalese and Agriculture Authority (Munaa)

To ease the currently strained supply of fresh vegetables resulting from the national lockdown, social

enterprise Munaa signed an MOU with Bagmati Province to establish collection points and processing

units within its districts. Munaa facilitates vegetable collection from farmers, cooperatives, and the

largest wholesale market in Kathmandu, to meet urban consumer demand. To support this effort,

KISAN II collaborated with Munaa to link farmers, cooperatives, and traders from adjoining districts to

Munaa’s supply chain and to support Munaa’s supply chain logistics and the establishment of five supply

centers in Kathmandu.

5. Department of Livestock Services (DOLS) – Nepal Livestock Breeding Office

Goat farming in Nepal is characterized by scattered production, low productivity, and low farm offtake,

primarily because of the poor genetic makeup of existing goat breeds and haphazard breeding practices

by farmers. Using frozen semen from selected high-quality breeds, especially Boer goats, proper artificial

insemination (AI) practices can significantly improve the genetic makeup of current goad breeds. KISAN

II signed an MOU with DOLS to execute a collaborative pilot program to develop and implement a

standard operating procedure for producing frozen buck semen. This will improve goat productivity

through the adoption of an improved rotational insemination model using AI technology.


AID-367-C-17-00001

6. Hester Biosciences Nepal Private Ltd. (HBNPL)

Although the GON has planned to eradicate the Peste des Petits Ruminants (PPR) disease by 2030,

access to goat health management services and availability of PPR vaccinations are major constraints for

rural goat farmers. KISAN II collaborated with HBNPL to enable KISAN II goat farmers and breeders to

access a thermostable PPR vaccine. HBNPL is one of the few private sector entities in Nepal that

produces thermostable vaccines, which are suitable for remote areas where refrigeration facilities suffer

due to lack of electricity. This MOU will help strengthen the disrupted supply chain of PPR vaccination

caused by COVID-19, complement GON's PPR eradication program, and increase adoption of PPR at

the farm level.

7. Heifer Project International

KISAN II established 15 goat sector partnerships—including commercial goat farms, agrovets, and

cooperatives—that currently serve 6,860 households. The lockdown hampered the supply of goat

medicines, concentrated feed, and supplements, and reduced the demand for chevon. Farmers are

encouraged to develop their own balanced goat feed with locally available inputs, but they have limited

knowledge to ensure their herds are fed a balanced diet. KISAN II and Heifer Project International

signed an MOU to increase the adoption of Heifer’s Livestock Feeding Support Tool (L-FST) and

mobile-based Virtual Collection Center (VCC) among KISAN II beneficiaries. L-FST guides farmers in

developing a balanced ration for their animals using locally available feed and feeding resources. VCC

systemizes channels for effective collection and marketing of chevon, which saves farmers time and

resources.


AID-367-C-17-00001

Annex 4. Select Activities for Y4T1

The approved work plan for Y4 T1 includes the following activities:

Collaboration with GON

● Conduct Steering Committee and Technical Committee meetings and conduct joint monitoring

visits with committee members.

● Conduct ADS-JSR Technical Committee and National ADS-JSR Coordination Meeting.

● Conduct meetings with provincial-level officials and conduct joint monitoring visits with personnel

from those provinces.

● Conduct meetings with AKC, VHLSEC, PMAMP, DCCI, and private sector partners.

● Conduct assessments of two municipalities on the effects of COVID-19 and help develop recovery

plans, especially for vulnerable groups.

● Conduct municipal-level briefings and discussions, and joint monitoring visits with selected

municipalities where JRIP is implemented.

Components 2 and 1

● Conduct trainings for AKC, municipalities, and PMAMP in JRIP districts.

● Build capacity of municipal extension staff.

● Establish three new ICT and three new goat partnerships.

● Organize input-partner meetings.

● Conduct market analysis on changing demand.

● Launch a virtual KISAN information site.

● Link five cooperatives to retail outlets.

● Develop COVID-19 relief instructional materials.

● Build capacity of cooperative board members.

● Conduct training for or provide technical assistance to 90 partners.

● Conduct TOTs and refresher TOTs to grantees’ extension staff.

● Provide extension services to 192,090 households through partners.

● Pilot establishing safe vegetable collection points with “safe selling” guidelines and video.

● Conduct virtual industry-wide learning events.

● Develop warehouse management and hygiene guidelines, and standard operating procedures.

● Disseminate information on savings and credit through SMS, social media, radio, and KISAN II virtual

platform.

● Facilitate wholesale loans and help cooperatives obtain licenses for microinsurance.

● Pilot pedigree recording system for goat breeding.

● Pilot ICT solutions to market information/e-extension and establish one ICT forum.

● Coach firms through BDS procurement and assessment process.

● Develop and implement women’s leadership program.

● Conduct district-level awareness program on FAW in 21 districts.

● Print and distribute FAW identification and FAW/locust control brochures.

● Develop new training materials.

● Conduct demonstrations and field days for farmers.

● Install irrigation schemes.

Component 3

● Develop food safety regulation and PSE guidelines.

● Conduct PPDs required for food safety regulations and to finalize rice landscape study.

● Conduct rapid assessment of relief utilization and post-COVID-19 recovery measures.


AID-367-C-17-00001

● Develop campaign to promote safe food practices.

● Finalize a menu of proven post-harvest technologies and infrastructure.

● Finalize ADP ADS for Bagmati Province.

● Identify interested municipalities to leverage funds to replicate successful market system

development models.

Component 4

● Update modules 1 and 6 and print modules.

● Develop videos.

● Conduct needs assessment of migrant returnees.

● Conduct TOTs and refresher TOTs to for master trainers and community trainers.

● Provide technical assistance to Province 5 and Karnali Province MOLMACs to adapt Module 6.

● Continue Business Literacy Training.

Component 5

● Conduct assessments to answer the following learning questions:

o What factors have enabled private companies to remain competitive in response to the COVID-

19 pandemic?

o How has market demand changed due to consequences of COVID-19 pandemic?

o How is the COVID-19 pandemic affecting the resilience, inclusiveness, and competitiveness of

women and DAG?

● Conduct pause and reflect workshop.

● Develop policy briefs.

● Develop concept note on the assessment of COVID-19 impacts on women, youth, and DAGs.

● Train staff on data collection and regular checks.

Grants Under Contract (GUC)

● Establish three new partnerships and amend cost modification of 10 existing grants.

Operation, Finance, and Communication

● Submit deliverables and bi-weekly updates to USAID.

● Amend SOWs of partners.


AID-367-C-17-00001

Annex 5. Detailed Implementation Plan

Table 19. Detailed Implementation Plan Table

Activit

y

No.

Component, Sub-objective,

Specific Result/Output, Activity Unit

Y3

Target

Y3

Achievement % Remarks

Collaboration with GON - CL 1 & 2

CL.1 Disseminate and deepen understanding of the private

sector-led approach

CL.1.1 Municipality-level briefings/discussions on approach and

underlying activities

CL.1.1.1 Briefings/discussions on approach and underlying activities in sub-

metropolitan area Event 4 0 0 Discussed during informal meetings.

CL.1.1.2 Briefings/discussions on approach and underlying activities in

municipality Event 26 21 80 Could not achieve target due to COVID-19.

CL.1.2 Municipality-level briefings/discussions on approach and

underlying activities and progress Event 13 These meetings were done by grantees.

CL.1.3 Joint monitoring visits with municipality officials (1 day) (by

KISAN II) Event 30 15 50 Could not achieve target due to COVID-19.

CL.1.4 Joint monitoring visits with municipality officials (1 day) (by

grantee) Event 31 These meetings were done by grantees.

CL.2 Coordination with the Government of Nepal

CL.2.1 Central-level coordination

CL.2.1.1 Conduct steering committee meetings Event 2 2 100

CL.2.1.3 Conduct technical committee meetings Event 4 2 50

CL.2.1.3 Joint monitoring visits with steering and technical committee

members (3 days) Person 20 0 0 Could not achieve target due to COVID-19.

CL.2.2 Provincial-level coordination

CL.2.2.1 Conduct meeting with provincial-level officers Event 4 6 150 Conducted four meetings formally and two virtually. Also

conducted five informal meetings.

CL.2.2.2 Joint monitoring visits with the officials working at the provincial

agricultural ministry (2 days) Person 40 15 37 Could not achieve target due to COVID-19.

CL.2.2.3 Meeting with AKCs, VHLSEC, and PMAMP Event 20 31 155

CL.2.2.4 Conduct meeting with DCC Event 25 6 24

KISAN II did not organize all meetings this year but

participated in meetings organized by DCC. To date, at

least one meeting has been organized with each of 25

DCCs.

CL.2.2.5 Conduct meeting with DCCI and private sectors Event 25 7 28 Could not achieve target due to COVID-19.

CL.3 Support for Joint Sector Reviews (JSR)

CL.3.1 National ADS-JSR coordination meeting Event 1 0 0 Could not conduct due to COVID-19.


AID-367-C-17-00001

Activit

y

No.



Y3

Target

Y3


CL.3.2 ADS-JSR technical committee meeting for review and planning Event 3 3 100

Component 2: Strengthen the Competitiveness, Resilience, and Inclusiveness of Selected Agricultural Market Systems

2.0 Conduct and update opportunity mapping exercise No. 16 To date, 3,814 organizations are mapped.

2.1 Sub-objective 2.1: Strengthen the organization and

coordination of selected market systems

2.1.1 Streamline vertical linkages and select partners

2.1.1.1 Establish new partnerships No. 25 34 0 32 established through Annual Program Statement and 2

through rice RFA

2.1.1.2 TOT for partner staff

2.1.1.3 Conduct pre/post-season out grower/new

buyer/wholesale market forums

2.1.1.3.1 Conduct pre-season out grower/new buyer/wholesale market

forums Event 50 132 132

2.1.1.3.2 Conduct post-season out grower/new buyer/wholesale market

forums Event 50

2.1.1.4

Develop the capacity of traders, buyers, and output marketing

actors to prepare demand schedule and production plan and

communicate these to farmers and cooperatives.

Event 14 10 71

Conducted in Kavrepalanchowk, Nuwakot,

Makwanpur, Sindhupalchowk, Dailekh,

Surkhet, Salyan, Kailali, Kanchanpur and Banke.

2.1.1.5 Piloting the integration of traders-farmers cyclic production

planning implementation (Market led) Event 1 3 300 With Foodmandu, Kheti, and Munaa

2.1.1.6 Workshop to link grantees with agri-input suppliers to improve

access to new and improved agri-inputs Event 1 0 0 Could not conduct due to COVID-19.

2.1.1.7 Workshop to link grantees with agri-input suppliers to improve

access to new and improved agri-inputs Event 1 0 0 Could not conduct due to COVID-19.

2.1.1.8 Re-evaluation of lentil opportunities and technologies Report 1 1 100 KISAN II provided comments on draft report submitted

by consultant, and consultant is revising the report.

2.1.2 Build capacity of farmer groups and cooperatives

2.1.2.1 For BOD and/or manager (organization level) of cooperatives

(up to 3 days) Person 60 60 100 30 cooperatives (two staff per cooperative)

2.1.2.2 Technical training to extension workers of coops integrating

behavior change communications (BCC) and GESI (5 days) Person 50 71 142

2.1.2.3 Refresher technical training for previously trained extension

workers of cooperatives integrating BCC and GESI (3 days) Person 175 33 18 Could not achieve target due to COVID-19.

2.1.3 Empower and link vulnerable and marginalized groups


AID-367-C-17-00001

Activit

y

No.



Y3

Target

Y3


2.1.3.1 Train vulnerable households Person 140,000 96,723 69

Of 154,084 trained, 96,723 were vulnerable based on

ethnicity (15,383 Dalit, 70,369 Janjati, 1,688 Muslim, 9,283

Others)

2.1.3.2 Develop GESI tools (checklist) and training materials Report 1 1 100

2.1.3.3 Form or strengthen group collection points in coordination with

grantee. No. 2 4 200

In Sindhupalchowk, Kavrepalanchowk, Makwanpur and

Gulmi.

2.1.4 Strengthen horizontal linkages

2.1.4.1 Launch “Buy Nepal, Buy Fresh” campaign Event 1 0 0 Dropped this activity.

2.1.4.2 Conduct industry-wide learning events Event 3 0 0 Could not conduct due to COVID-19.

2.1.4.3 Prepare/complete marketing strategy for Jorayal basmati rice Report 1 0 0 Could not conduct due to COVID-19.

2.1.5 Include an additional commodity for commercialization

2.1.5.1 Establish partnerships with private companies and/or

cooperatives. No. 5 17 340 14 grants and 3 MOUs

2.1.5.3 Produce community video Event 2 2 100

2.1.5.4 Train agrovets on AI No. 30 31 103

2.2 Sub-objective 2.2: Strengthen the organization and

coordination of selected market systems

2.2.1 Strengthen lead firms and other SMEs to support

selected market systems

2.2.1.1 For owner/manager (organization level) of processor, trader, and

SME partner firms Person 25 0 0

TOR to hire consultant was drafted to develop training

module and conduct TOT and trainings. Could not

conduct due to COVID 19.

2.2.1.2 Technical training to extension workers of processor, trader,

and SME partner firms integrating BCC and GESI (5 days) Person 30 3 10

2.2.1.3

Refresher technical training to previously trained extension

workers of processor, trader, and SME partner firms integrating

BCC and GESI (3 days)

Person 30 10 33

2.3 Sub-objective 2.3: Enhance financial services markets

that serve selected market systems

2.3.1 Expand SME agribusiness lending and investment

2.3.1.1 Ensure 5 wholesale loans No. 5 6 120

2.3.1.2 Establish 1 MOU with a bank or MFI to expand agricultural

lending Event 1 0 0

2.3.1.3 Conduct digital finance event Event 1 0 0

2.3.1.4 Pilot agency banking with 5 new agrovets No. 1 5 500


AID-367-C-17-00001

Activit

y

No.



Y3

Target

Y3


2.3.1.5 Pilot crop insurance with partners No. 1 0 0 Of 13 cooperatives trained, 8 are in process to get

corporate agency and provide insurance services.

2.3.2 Expand access to rural credit

2.3.2.1 Train cooperatives Person 40 41 102

Conducted 4-day financial management training for 19

persons from 19 cooperatives; conducted 1.5-day micro

insurance for cooperative agency training for 22 persons

from 11 coops (2 persons per coop).

2.3.2.2 Conduct exposure visit of coops (3 days) Person 20 21 105

2.3.3 Promote group savings and credit activities and link to

microfinance institutions and SACCOs

2.3.3.1 Individual/farmer begin or increase savings Event 60,000 13,865 23

2.4 Sub-objective 2.4: Enhance market infrastructure and

other services to support selected market systems

2.4.1 Expand access to safe and cost-effective storage and

warehousing

2.4.1.1 Prepare cost benefit and guidelines on cold storage Report 1 1 100

2.4.1.2 Conduct exposure visit for partners to understand operation of

a vegetable cold chamber (3 days) Person 15 27 180 15 from Kathmandu cluster and 12 from Kailali cluster

2.4.1.3 Pilot inventory credit scheme No. 1 0 0

2.4.1.4 Establish collection point/pack house investments No. 20 0 0

2.4.1.5 Pilot/demonstrate pre-force cooling system (zero energy cooling

chamber) 1 4 400 1 in Arghakhanchi, 1 in Nuwakot, and 2 in Baitadi

2.4.2 Increase access to mechanized services

2.4.2.1 Establish partnership with equipment/mechanization firm No. 2 1 50 With Krishi Tech

2.4.2.2 Establish partnership with TVET-type organization 1 0 0

2.4.2.3 Pilot cooperative-based custom hire business model No. 2 0 0 In process. Published an application for interested and

qualified KISAN II partners.

2.4.2.4 Piloting demo of rice drying technology No. 1 0 0

2.4.2.5 Piloting demo of maize drying technology No. 1 1 100

2.4.3 Improve grading, testing, and standards adherence

services

2.4.3.1 Ensure partners developed grading guidelines No. 10 0 0 Signed MOU with Safe Food Alliance Nepal. In process of

hiring consultant to develop guidelines.

2.4.4 Improve access to market information services


AID-367-C-17-00001

Activit

y

No.



Y3

Target

Y3


2.4.4.1 Pilot efforts on ICT solutions to market information No. 2 1 50

Initiated piloting of mass SMS in collaboration with Laxmi

agrovet (Surkhet). KISAN II also supported all partners by

sending mass SMS during COVID-19 crisis.

2.4.4.2 Conduct workshops at cluster level Event 2 0 0 Plan to disseminate learning from Laxmi Agrovet in T3

could not take place due to lockdown.

2.4.5 Expand availability and use of business and training

services

2.4.5.1 Coach firms through BDS procurement and assessment process Event 3 0 0 Received application from interested firms. In process of

shortlisting and selecting to provide BDS services.

2.4.5.2 Develop women’s cooperative leadership program Report 1 0 0 Could not conduct due to COVID 19. Planned for Y4T1.

2.4.5.3 Conduct ICT forum Event 1 0 0 Could not conduct due to COVID 19. Planned for Y4T1.

2.5

Sub-objective 2.5: Expand trade in domestic and

regional markets to support agricultural market systems

development

2.5.1 Identify opportunities for import substitution

2.5.1.1 Conduct assessment of wholesale markets Report 2 2 100 KISAN II provided comments on draft report submitted

by consultant, and consultant is revising the report.

Component 1: Improve Productivity of Selected Agricultural Marketing System

1.1

Sub-objective 1.1: Facilitate intensification and

diversification of male and female farmers and socially

excluded groups into higher-value commodities

1.1.1 Form farmer groups, inclusive of women, youth, and

marginalized groups Event 0 5,250

1.2

Sub-objective 1.2: Strengthen the capacity of input

supply systems to deliver timely and affordable

productivity-enhancing technologies

1.2.1 Strengthen capacity of agrovets to deliver quality inputs

and other services

12.1.1 Capacity building of agrovet

1.2.1.1.1 For owner/manager (organization level) of agrovet (up to 3 days) Person 110 0 0

TOR to hire consultant was drafted to develop training

module and conduct TOT and trainings. Could not

conduct due to COVID-19.

1.2.1.1.2 Technical training (TOT) for extension workers of agrovets

integrating BCC and GESI (5 days) Person 55 68 123

1.2.1.1.3 Refresher technical training (TOT) for previously trained

extension workers of agrovet integrating BCC and GESI (3 days) Person 220 210 95

1.2.1.1.4 Pesticide retailer training (agrovet and coop) (6 days) Person 25 36 144


AID-367-C-17-00001

Activit

y

No.



Y3

Target

Y3


1.2.1.2 Conduct study on input supply value chain analysis Report 1 0 0 Activity dropped. Similar study conducted during KISAN

will be referred.

1.2.2 Enhance input supply to farmers throughout grower

schemes and cooperative membership.

1.2.2.1

Train/coach agriculture or multipurpose to develop or

strengthen input management and delivery systems (2 days

residential)

Person 40 0 0

Combined with activity 1.2.1.1.1. TOR to hire consultant

was drafted to develop training module and conduct TOT

and trainings. Could not conduct due to COVID-19.

1.2.3 Expand development, dissemination, and adoption of

IPM

1.2.3.1 Train private sector extension agents in IPM (2 days residential) Person 150 122 81 Could not achieve target due to COVID-19.

1.3

Sub-objective 1.3: Increase adoption of profitable,

productivity-enhancing, and climate-smart technologies

by all groups, including youth, women, and

disadvantaged groups

1.3.1

Facilitate consultative meeting with donor projects and

GON catalogue training material, identify, and develop a

coordination strategy

1.3.1.1

Continue consultations and coordination with NSAF, iDE and

other donor and GON projects to catalogue and share training

material

1.3.1.2

Develop/revise safe and good agricultural practices training

materials s to align with the private sector demand, other

projects, and GON

Report 1 0 0 DFTQC was reviewing the contents before the lockdown.

Will continue in Y4T1.

1.3.1.3 Print safe and good agricultural practices training materials to

align with the private sector demand, other projects, and GON Copies 10,000 0

1.3.1.4 Print 20 safe and good agricultural practices training materials to

align with the private sector demand, other projects and GON. Copies 200,000 250,000 125

1.3.1.5 Print leaflet on safe use of pesticides Copies 10,000 10,000 100

1.3.1.6 Print manual for GAP Copies 10,000 0 Linked with 1.3.1.3

1.3.1.7 Compilation of 30 technologies and print in a book form Copies 5,000 0 Not required.

1.3.1.8 Revise and print existing training manual Copies 5,000 0 Could not conduct due to COVID-19.

1.3.2 Support to FAW management Event 6

Coordinated with NSAF, iDE, GON and conducted 2

province level TOTs and 4 district level TOTs on FAW

identification and management.

1.3.3 Training on video production; and video production and

dissemination

1.3.3.1 Conduct training on video production and dissemination


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Activit

y

No.



Y3

Target

Y3


1.3.3.1.1 Conduct training on video production (5 days) Person 30 34 113

1.3.3.1.2 Conduct training on video dissemination (2 days) Person 50 52 104

1.3.3.1.3 Refresher training on video production and dissemination Person 15 0 0 Could not conduct due to COVID-19.

1.3.3.2 Produce videos Event 51 55 107 To date, 86 videos have been produced.

1.3.3.3 Dissemination of produced videos to farmers No. 50,000 90,931 181 Disseminated through Business Literacy classes. Demand

for videos were high.

1.3.4 Conduct demonstrations, field days, and exposure visits

1.3.4.1 Prepare guidelines to conduct demonstration, field days and

exposure visits Report 3 3 100

1.3.4.2 Conduct demonstrations No. 2,000 4,425 221 Demand for demos were high.

1.3.4.3 Conduct field days No. 500 669 133

1.3.4.4 Conduct exposure visits No. 25 3 12 Could not achieve target due to COVID-19.

1.3.5 Expand access to irrigation

1.3.5.1 Installed irrigation through KISAN project No. 305 145 47 Could not achieve target due to COVID-19.

1.3.5.2 Training to irrigation groups (through project) on operation and

management Event 305 140 45

1.3.5.3 Installed irrigation schemes through partners

1.3.5.3.1 Shallow Tube-well No. 95 106 111

1.3.5.4 Training to irrigation groups (through partners) Event 95 106 111

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 Develop policy support agenda with GON

3.1.1.1 Draft food safety regulation (licensing and registration of food

business) Report 1 1 100

3.1.1.2 Draft food safety regulation (import-export inspection and

certification) Report 1 1 100

3.1.1.3 Draft Agribusiness rule Report 1 0 0 Bill has not been submitted in parliament and awaiting to

pass through to proceed for rule.

3.1.1.4 Draft one sub-sector development strategy documents (could be

support for ADS or organic ag. strategy) Report 1 0 0

3.1.1.5

Technical support to MOALD/DFTQC in the process of

implementation of the National Food Safety Policy and Food

Safety and Standard Act

Event 2


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Activit

y

No.



Y3

Target

Y3


3.1.1.6 Draft one national level guideline for PSE Report 1 0 0 In process. Received inception report. Situation analysis is

in progress.

3.1.1.7 Support MOALD through PPD to develop and draft goat

breeding strategy Event 1 1 100

3.1.1.8 Conduct meeting for goat development strategy in partnership

with other development partners Event 1 1 100 Draft goat breeding strategy is prepared.

3.1.1.9 PPD for food safety regulations (for two regulations) Event 4 0 0 Delayed due to COVID-19.

3.1.1.10 PPD for national level guidelines for PSE Event 1 0 0 Will be conducted once draft is prepared.

3.1.2 Engage private sector advocacy groups in policy

dialogue

3.1.2.1 Organize PPD Event

3.1.2.1.1 With ANROPI Event 1 0 0 Final draft is prepared. Will conduct PPD in Y4T1.

3.1.2.1.2 Study and PPD with FNCCI (tentative) No. 1 0 0

3.2 Sub-objective 3.2: Improve investments, management,

and governance (e.g. standardization) of infrastructure

3.2.1 Develop a menu of proven postharvest technologies and

infrastructure

3.2.1.1 Develop a menu of proven post-harvest technologies and

infrastructure Report 1 0 0 Delayed due to COVID-19. Will finalize in Y4T1.

3.2.1.2 Dissemination of case studies on cold storage (see Activity

2.4.1) Report

3.2.2 Assess enabling environment for public and private

sector investment in infrastructure

3.2.2.1

Pilot program to facilitate any cooperatives which agrees to

move forward with new and innovative approach (see activity

2.4.1)

Report

3.2.3 Support participatory administration of infrastructure

and planning

3.2.3.1 Train senior GON officials for policy analysis Person 10 13 130 In MANAGE, Hyderabaad, India.

3.2.3.2

Pilot a public sector extension program using agronomic

extension videos in 1-2 municipalities as a test of effectiveness in

filling technical gaps at the municipality level. (see Activity 1.3.3)

Event

3.2.3.3 Conduct training for municipalities on planning Person 40 0 0 Could not conduct due to COVID-19.

3.3 Sub-objective 3.3: Improve systems to increase the

quality of selected commodities

3.3.1 Development of industry-driven commodity norms and

standards


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Activit

y

No.



Y3

Target

Y3


3.3.1.1 Draft illustrated commodity norm and disseminate for two

vegetables Event 1 1 100 Commodity norms prepared. Will disseminate in Y4T1.

3.3.2 Promote safe food practices

3.3.2.1

Conduct information campaign

Event 1 0 0 Could not conduct due to COVID-19. Will be conducted

in Y4T1.

3.3.2.2 Support for witness audits of Nepali GAP auditors Person 1 0 0 DFTQC informed that witness audits will be done by

FAO support.

3.3.2.3 Exposure visits to Nepali auditors and GON officials to India to

observe GAP adoption and certification Person 4 0 0

Instead, supported two GON officials to participate in

regional training on GAP in India.

3.4

Sub-objective 3.4: Support local government agencies to

improve and rationalize spending in support of market

systems development

3.4.1 Increase understanding and adoption of market systems

development strategies

3.4.1.1 Conduct case studies with municipalities on private sector

/cooperative management in irrigation/market development Event 2 3 150

Two case studies (Narayan Municipality of Dailekh and

Bheri Municipality of Jajarkot) and one feasibility study

(Panauti Municipality) finalized and shared with respective

municipalities.

3.4.2

Build capacity of local government units to align

investment strategies to support increased market

access for farmers

3.4.2.1

Support on two tasks identified by Government in the process of

establishing effective, functional linkages among the three tiers of

government (federal, provincial, and municipality)

Report 2 0 0

Support was not required, but on the basis of

recommendation of three-tier study commissioned by

KISAN II, GON established two coordination

mechanisms, one at the minister level and another at the

secretary level.

3.4.3 Launch internship program

3.4.3.1 Recruit interns No. 5 15 300

Component 4: Increase vulnerable communities’ ability to act on business opportunities within selected market systems (Business Literacy and

Development)

4.1 Sub-objective 4.1: Enhancing literacy and business skills

4.1.1 Develop and adapt business literacy training materials

4.1.1.1 Conduct field test for Modules 3, 4, and 5 No. 3 3 100


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Activit

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No.



Y3

Target

Y3


4.1.1.2 Consult relevant stakeholders for their feedback on Modules 3,

4, and 5 No. 3 3 100

4.1.1.3 Finalize Modules 3, 4 and 5 No. 3 3 100

4.1.1.4 Print Modules 2, 3, 4, 5 and 6 Modul

e 5 3 60

Printing services were not available during lockdown. Will

print in Y4T1.

4.1.1.5 Translation of Modules 3, 4, and 5 to English Event 3 3 100

4.1.1.6 Develop and print facilitator's guide for Modules 2, 3, 4, and 5 Modul

e 4 4 100

Printing services were not available during lockdown. Will

print in Y4T1.

4.1.1.7 Encourage and/or support private sector/grantees to develop

low-cost videos covering some content of Module 6 Event 7 0 0 Will conduct in Y4T1.

4.1.1.8

Prepare/support low-cost video documentary for women

entrepreneurship, nutrition, and life skills in coordination with

GESI unit

No. 1 0 0

4.1.1.9

Disseminate videos on agri-technologies, women

entrepreneurship, nutrition, and life skills through BLT and other

activities.

Event 350 459 131

4.1.2 Recruit and train trainers

4.1.2.1 Select five new master trainers (MTs) and 200 CTs for short

course Person 205 156 76 Could not recruit for last batch of short course.

4.1.2.2 Conduct two master TOT refreshers for MTs for short course

(two times) Person 36 36 100 Conducted virtually in June.

4.1.2.3 Conduct 12 district level orientation meetings with existing CTs

for third batch short course Event 12 12 100

4.1.2.4 Conduct community TOTs for short course Person 7 4 57 Could not be organize community TOT for fifth batch

(short course).

4.1.2.5 Conduct orientation meetings with CTs for short course - fifth

batch (need based) Event 0 0 Could not organize.

4.1.2.6 Recruit nine new senior master trainers (SMTs) for long course Person 9 9 100

4.1.2.6 Recruit 90 new MTs for long course Person 90 59 65 Could not recruit 31 MTs for second batch of long

course.

4.1.2.7 Conduct master TOTs for SMTs and MTs for long course (5

days) for first batch Person 69 80 115 Few other staffs also attended this master TOT.

4.1.2.8 Conduct master TOTs for MTs for long course (5 days) for

second batch Person 30 0 Could not conduct due to COVID-19.

4.1.2.9 Conduct master TOT refreshers for SMTs and MTs for long

course (5 days) for first batch (6 days) Person 69 0 Could not conduct due to COVID-19.

4.1.2.10 Recruit new CTs for long course Person 868 493 56 493 were enough for first batch. Could not recruit CTs

for second batch.


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Activit

y

No.



Y3

Target

Y3


4.1.2.11 Conduct community TOTs for long course (5 days) Person 868 493 56 Could not organize for the rest due to COVID-19.

4.1.2.12 Conduct community TOT refreshers for long course (7 days) Person 567 0 Could not organize for the rest due to COVID-19.

4.1.3 Deliver business literacy training to poor, marginalized

communities

4.1.3.1 Graduate 17,367 households through short course BLT Event 805 480 59 Organized at 480 locations and 10,457 were graduated

4.1.3.2 Graduate 30,000 households through long course BLT. Event 1432 946 66 20,639 participants completed Module 1 and halfway of

Module 2

Component 5: Collaborate, Learn and Adapt (Objective: Apply CLA to Market Systems Development)

5 Learning Questions

5.0.1 Learning questions on competitiveness

5.0.1.1 LQ 1: Which implementation business models lead to the best

farmer outcomes in terms of yields and incomes? Report 1 1 100

5.0.1.2

LQ 2: How can adoption of post-harvest technologies and

practices make enterprises (farmers and firms) more

competitive?

Report 1 1 100

5.0.1.3 LQ 3: How can irrigation be promoted through a private

sector/commercial model? Report 1 1 100

5.0.2 Learning Questions on Inclusiveness

5.0.2.1

LQ4: Will simple-to-follow improved management practice

training materials and “leave behinds” increase adoption rates

among women and farmers from disadvantaged groups?

Report 1 1 100

5.0.2.2

LQ5: What adaptations to our approach—

coaching/training/TA/grants—lead to higher adoption and greater

income change among women, youth, and disadvantaged groups?

Report 1 1 100

5.0.2.3

LQ 6: Does business literacy training combined with agriculture

training increase the ability of vulnerable and DAG households

to act on right type of business opportunities?

Report 1 1 100

5.0.3 Learning Questions on Resilience

5.0.3.1

LQ 7: Do KISAN II private sector led activities buffer or better

equip farmers to cope from environmental, economic, and

political shocks?

Report 1 1 100

5.0.3.2

LQ 8: Does market led production planning lead to better

farmer incomes and are they better able to withstand market

price fluctuations?

Report 1 1 100

5.0.4 Learning Questions on policy development

5.0.4.1 LQ 9: How can KISAN II best build the capacity of local

government units to increase municipality level investment in Report 1 1 100


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Activit

y

No.



Y3

Target

Y3


agriculture sector that respond to market and local farmer

needs?

5.0.4.2 LQ 10: What are the grain storage options and modalities that

would benefit farmers and be financially viable (sustainable)? Report 1 1 100

5.1 Sub-objective 5.1: Apply CLA to advance the

competitiveness

5.1.1 Conduct workshop on market systems development, sector

level information, and interlinkages Event 2 2 100

5.1.2 Opportunity mapping

5.1.3 Conduct training/workshop on partnership modalities Event 1 1 100

5.1.4 Conduct cluster-level review, reflection, and learning workshops Event 7 6 85

5.2 Sub-objective 5.2: Apply CLA to advance inclusiveness

5.2.1 Conduct workshop on GESI mainstreaming in inclusive market

systems development (3 days) Event 2 0 0

Could not conduct due to COVID-19. Will conducting

Y4T1.

5.2.2

Conduct coordination meetings with other USAID projects on

what and how external collaboration among USAID projects is

determined

Event 2 2 100

5.2.3 Conduce cluster-level review, reflection, and learning workshops Event 7 7 100

5.3 5.3 Apply CLA to strengthen resilience

5.3.1 Conduct cluster-level pause-and-reflect workshops Event 7 0 0

5.3.2 Develop real-time feedback loop No. 1 1 100 Created a platform for feedback loop in WIKISAN.NET.

5.3.3 Conduct MEL data sharing workshops Event 1 1 100

5.4 Apply CLA to policy development

5.4.1 Prepare policy issue specific technical committee

meetings/dialogues No. 4 1 25

Prepared policy brief on factors limiting women’s access

in agribusiness; processing efficiency of rice millers and

two technical regulations on food safety are underway.

5.4.2

Conduct sensitization workshops for municipalities on planning

and governance skills and principles of USAID’s market system

approach

Event 10 Could not conduct due to COVID-19.

5.4.3 Identify technical evidence-based case studies/assessments No. 3 3 100 Two case-studies prepared, and one feasibility study

prepared and handed over to three municipalities.

5.4.4 Conduct central-level validation workshop on case studies and

assessments Event 1 0 Could not conduct due to COVID-19.

5.4.5 Conduct central-level pause-and-reflect workshop Event 2 0 Could not conduct due to COVID-19.

5.4.6 Conduct technical forums/network meetings Event 2 1 50 Conducted series of technical meetings to effectively

manage FAW.


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Activit

y

No.



Y3

Target

Y3


III Grants Under Contract (GUC)

GUC.1 Update Grants Under Contract Manual to support program

activities Report 1 1 100

GUC.2 Issue an Annual Program Statement and/or RFA to identify

potential grantees No. 1 1 100

GUC.3 Assess applications and award grants No. 25 32 128

GUC.4 Coach and monitor recipients No. 150 146 97

GUC.5 Market System Contribution

GUC.6 Conduct coordination meeting with CBMs, Cluster Accountant

and M&E Associates and Grants Accountants (2 days) No. 1 1 100

GUC.7 Conduct interaction meeting with CBMs, CAMEAs, and Grants

Accountants (1 day) No. 1 0 0 Could not conduct due to COVID-19.

IV Monitoring and Evaluation (M&E)

5.5 Sub-objective 5.5: Apply CLA to monitoring and

evaluation

5.5.1 Update and submit MEL plan to USAID/Nepal Report 1 1 100

5.5.2 Upgrade and operationalize WIKISAN 2.0 Event 1 1 100 Updated. New features added. Shorter version of PEF

added.

5.5.3 Customize DevResults Event 1 0 0 Discontinued from Year 3.

5.5.4 Training on theory of change (TOC) and performance indicators Event 2 1 50 Conducted virtually.

5.5.5 Train data entry field staff on data collection and regular checks

(1 day) Event 2 2 100

5.5.6 Conduct spot checks and internal DQA Event 1 1 100 USAID's DQA action point implemented.

5.5.7 Identify mapping priorities and produce maps No. 5 5 100

5.5.8 Design and conduct an annual farmers survey to measure

outcomes Event 1 1 100

Designed and conducted computer aided telephonic

interview (CATI).

5.5.9 Design and conduct an annual organizational census survey to

measure outcomes Event 1 1 100

5.5.10 Design and implement a baseline household panel survey to

measure changes in resilience capacities over the LOP Event 1 0

Information on resilience will be narrated using results of

household survey.

5.5.11 Submit project data to USAID and GON Report Submitted as required.

5.5.12 Update the KISAN II Environmental Management and Monitoring

Plan (EMMP) No. 1 1 100

V Operational, Financial and Communication Activities (OP)

OP.4.4 SBCC and GESI TOT to existing KISAN II staff Event 7 7 100 Conducted two in persons and five virtually.


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Activit

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No.



Y3

Target

Y3


OP.9 Orientation for local media/journalists to document/highlight

practices adopted by partner firms and farmers

OP.9.1 Conduct orientation program (1 day) Event 10 0 Dropped this activity.

OP.9.2 Conduct exposure visits for journalists to collect and present

KISAN II stories (3 days) Person 10 0 Dropped this activity.

OP.11.1 Conduct bi-annual review workshop Event 1 1 100

OP.11.2 Conduct annual review and Y4 planning workshop Event 1 1 100


AID-367-C-17-00001

Annex 6. Performance Indicator Tracking Table

Table 20. Performance Indicator Tracking Table

KISAN II

Code No.

Code No. in

M&E Plan

Indicator

(with disaggregated information as

mentioned in PIRS)

Baseline Y3 Percent

(%) Deviation Notes Target Actual

K1 EG. 3-1 Number of households benefiting directly

from USG assistance under Feed the

Future

Data not

available

(DNA)

180,000 166,022 92

K2 EG.3-2 Number of individuals participating in USG

food security programs [IM-level]

DNA 198,250 179,111 90

K3 EG.3.2-1 Number of individuals who have received

USG supported short-term agricultural

sector productivity or food security

training [IM-level]

DNA 191,200 154,084 81 K3 fell short by 19% due to nationwide

lockdown.

K4 EG.3.2-24 Number of individuals in the agriculture

system who have applied improved

management practices or technologies with

USG assistance [IM-level]

122,854 155,100 145,035 93

K5 EG.3.2-306-

CUST

Average number of improved management

practices or technologies applied per

household with USG assistance.

3.83

Type of Commodities: Rice 5.25 11 7.01 64 Denominator (8) was taken from Feed the

Future category classification, which brought

achievement down to 64%. Percentage on

total 8 categories is 88%.

Type of Commodities: Maize 2.94 6 6.18 103 Denominator (8). Revised achievement is

77%

Type of Commodities: Lentil 2.51 4 5.30 132 Denominator (8). Revised achievement is

67%

Type of Commodities: Vegetables 6.40 11 6.75 61 Denominator (8). Revised achievement is

68%

Type of Commodities: Goats 2.03 3 2.0 66 Denominator (3). Revised achievement is

67%

K6 GNDR-2 Percentage of female participants in USG-

assisted programs designed to increase

access to productive economic resources

(assets, credit, income, or employment)

73 70 82 118 Women accessing loans increased from 18%

in Y2 to 25% in Y3, which is reflected in 18%

achievement over target.

K7 YOUTH-3 Percentage of participants in USG-assisted

programs designed to increase access to

productive economic resources who are

youth (15-29) [IM-level]

2 15 15 99


AID-367-C-17-00001

KISAN II

Code No.

Code No. in

M&E Plan

Indicator


mentioned in PIRS)

Baseline Y3 Percent


K8 EG.3.2-25 Number of hectares under improved

management practices or technologies with


39,685 51,021 DNA DNA Not collected by phone survey due to

COVID-19 pandemic.

K9 EG. 3.2.-307-

CUST

Total farm-level volumes (metric tons)

produced of targeted agricultural

commodities with USG assistance (rice,

maize, lentil, vegetables, goats)

180,218 522,074 676,907 130 Increase in number of producers and yield

resulted in more production.

Producer: Smallholder

Agricultural commodities

Commodities: Rice 101,894 135,292 171,244 127 Yield increase of 6% is due to favorable

climatic conditions. 46% more farmers

cultivated rice on 19% more land than

targeted. This resulted in 27% more

production than targeted.

Commodities: Maize 22,885 18,244 28,491 156 26% more farmers grew more maize than

anticipated due to additional support from

agrovets and cooperatives. This resulted in

23% increase in production. These factors

resulted in 56% more production than

targeted.

Commodities: Lentil 2,753 2,046 4,568 223 Area increase of 107% and yield increase by

8% (due to use of improved varieties)

resulted in 123% increase over target.

Commodities: Vegetables 48,448 366,463 472,488 129 Area per producer increased by 78%

resulting in total area increase of 12%. 15%

yield increased due to use of hybrid varieties

(90% hybrids used) resulted in 29% increase

over target.

Commodities: Goats 4,239 30 116 386 KISAN II expedited grant activities on goat

sub-sector and increased the number of

goat farmers by 220%. The number of stock

per household increased by 41%, however,

the yield (offtake) was lower by 14%.

Overall, the total production exceeded the

target by 286%.

K10a EG.3-10 Yield of targeted agricultural commodities

among program participants with USG

assistance per hectare [IM-level]

Crops: Smallholder


AID-367-C-17-00001

KISAN II

Code No.

Code No. in

M&E Plan

Indicator


mentioned in PIRS)

Baseline Y3 Percent


Crops: Rice 3.49 4.97 5.28 106

# of households 36,764 53,803

# of male 39,872 24,734

# of female 21,262 29,069

Total Production (MT) 101,894 135,292 171,244

Unit of Production (ha) 29,173 27,205 32,452

Crops: Maize 1.96 3.27 4.04 123 26% more farmers grew maize than

anticipated due to additional support from

agrovets and cooperatives. This resulted in

an increase in production area of 23% and

yield increase of 23% above target.


# of male 34,479 10,309

# of female 23,472 22,521



Crops: Lentil 0.55 1.00 1.08 108


# of male 17,770 6,500

# of female 8,841 12,544



Crops: Vegetables (All Veg) 9.39 22.38 26.05 116 Area per producer increased by 78%,

resulting in total area increase of 12%. A

16% yield increase (above target) is due to

use of hybrid varieties (90% hybrids) and

adoption of improved management

practices. These factors resulted in

achievement 16% higher than target.

# of households 212,960 121,733

# of male DNA 34,323

# of female DNA 87,410

Total Production (MT) 48,448 389,263 472,487.7

Unit of Production (ha) 5,158 17,395 18,137.5

Crops: Tomato 14.37 33 37.85 115 11% increase in area per household and use

of hybrid varieties contributed to yield

increase of 15% above target. # of households 66,610 60,407

# of male 10,123 10,830

# of female 6,144 49,577


Unit of Production (ha) 658 2,609 2,290.9

Crops: Cauliflower 11.59 23 22.06 96


# of male 11,891 14,797


AID-367-C-17-00001

KISAN II

Code No.

Code No. in

M&E Plan

Indicator


mentioned in PIRS)

Baseline Y3 Percent


# of female 7,868 70,782



Crops: Cabbage 14.42 25 32.51 130 Cabbage farmers allocated more area per

household (154%) resulting in more cabbage

production per household (95%). This

resulted in an 30% increase above target.


# of male 9,946 10,830

# of female 7,691 56,747


Unit of Production (ha) 537 2,609 3,018

Crops: Cucumber 11.70 24 30.49 127 Farmers allocated more production area per

household (40%) and produced 70% more

cucumber, resulting in a 27% increase above

target.


# of male 4,951 7,474

# of female 5,083 37,069



Crops: Bitter gourd 12.87 17 24.45 144 Bitter gourd farmers allocated more area

per household (291%) and increased

production per household by 319% resulting

in a 44% increase above target.


# of male 4,111 7,474

# of female 3,846 32,645


Unit of Production (ha) 141 870 1,424.3

Crops: Bottle gourd 15.27 22 28.21 128 Bottle gourd farmers allocated more area

per household (331%) and increased

production per household by 453%,

resulting in a 28% yield increase above

target.


# of male 2,741 4,271

# of female 4,553 20,593

Total Production (MT) 905 7,654 20,543.2

Unit of Production (ha) 59 348 728.2

Crops: Eggplant 14.99 30 27.63 92


# of male 1,680 1,678

# of female 1,415 4,423




AID-367-C-17-00001

KISAN II

Code No.

Code No. in

M&E Plan

Indicator


mentioned in PIRS)

Baseline Y3 Percent


Crops: Chili pepper 2.06 10 17.58 176 Number of farmers producing chili pepper

increased by 24%. Farmers allocated more

area per household (567%) and production

per household increased by 898%, resulting

in a 76% yield increase above target.


# of male 4,288 7,169

# of female 2,475 32,340


Unit of Production (ha) 864 174 1,223.5

Crops: Onion 5.44 12 23.80 198 Farmers allocated more area (131%) per

household, thus production increased by

160% and resulted in a 98% yield increase

above target.


# of male 4,862 2,593

# of female 5,393 14,644


Unit of Production (ha) 157 1,044 382.3

Crops: Green bean (French Bean) 5.26 8 13.86 173 Farmers allocated more area (123%) per

household, thus production increased by

113% and resulted in a 73% yield increase

above target.


# of male 2,431 1,678

# of female 3,271 11,593



Crops: Other vegs 17 17.60 104

# of households 60,408

# of male 16,475

# of female 43,933

Total Production (MT) 99,815 49,746.46

Unit of Production (ha) 5,908 2,820.06

K10b EG.3-11 Yield of targeted agricultural commodities

among program participants with USG

assistance per animal [IM-level]

6.29 6.61 6.4 105

Live animals kg: Total 1,977,616 596,400 115,804

Unit of Production: Maximum number of

herds

90,219 18094

K11 EG.3.2-26

disaggregate

Value of annual sales of input suppliers

receiving USG assistance (IM-Level)

816,118 10,180,096 9,966,356.47 98

Firm: Microenterprise 816,118 5,876,959 7,369,175

Product: Inputs: seeds and planting material 415,116 3,020,638


AID-367-C-17-00001

KISAN II

Code No.

Code No. in

M&E Plan

Indicator


mentioned in PIRS)

Baseline Y3 Percent


Product: Inputs: other non-durable inputs,

such as fertilizer and pesticides

93,277 3,623,469

Product: Inputs: durable equipment and

machinery

119,253 725,068

Firm: Small and medium enterprise 0 4,303,137 2,597,182

Product: Inputs: seeds and planting material 819,255

Product: Inputs: other non-durable inputs,

such as fertilizer and pesticides

1,529,972

Product: Inputs: durable equipment and

machinery

247,955

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


22,670 20,888 DNA DNA Could not be collected due to COVID-19

lockdown.

K13 EG. 3.2-308-

CUST

Average number of climate-smart

technologies or practices applied per

household with USG assistance.

1.59 3 1 33 There is only one category for climate-smart

technologies out of 10 in Feed the Future

classification of improved management and

technologies. Target was estimated based on

KISAN II number of subcategories (number

of technologies – 3) and so % of

achievement was reduced to 33% as value

for denominator decreased. Revised

achievement is 100%.

K14 EG.3.2-4 Number of for-profit private enterprises,

producer organizations, water user

associations, women's groups, trade and

business associations, and community-

based organizations (CBOs) receiving USG

food security related organizational

development assistance

DNA 200 243 122

Type of organization: For-profit private

enterprise

227

Type of organization: Disaggregate not

available

16

Duration: New 41

Duration: Continuing 202


AID-367-C-17-00001

KISAN II

Code No.

Code No. in

M&E Plan

Indicator


mentioned in PIRS)

Baseline Y3 Percent


K15 CBLD-9 Percent of USG-assisted organizations with

increased performance improvement [IM-

level]

DNA 90 99 110

Numerator = number of organizations of

this type with improved performance

180 178

Denominator = number of USG-assisted

organizations of this type receiving

organizational capacity development

support

200 180

K16 EG.3.2-20 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

DNA 200 180 90

Type of organization: For-profit private

enterprise

176

K17 EG.3.2-26 Value of annual sales of producers and

firms receiving USG assistance (USD)

39,324,926 107,836,313 176,486,205 164

Producer: Smallholder 28,361,517 95,304,881 147,939,015 155

Agriculture commodities: Rice

Rice: Value of sales (USD) 6,789,764 11,719,871 17,216,944 147 Rice sales totaled USD17,216,944, which

was 47% higher than the target. Yield

increased by 6% due to favorable climatic

conditions, and 46% more farmers cultivated

rice on 19% more area than targeted. As a

result, 27% more rice was produced than

anticipated, and sellers increased by 65%,

resulting in 36% more rice sold. Price of rice

was 8% higher than projected. Therefore,

target was exceeded by 47%.

Volume of sales (metric tons) 26,872 56,822 77,258

Number of participants producers 61,134 36,764 53,803

Agriculture commodities: Maize


AID-367-C-17-00001

KISAN II

Code No.

Code No. in

M&E Plan

Indicator


mentioned in PIRS)

Baseline Y3 Percent


Maize: Value of sales (USD) 769,592 1,520,340 3,405,239 224 Maize sales totaled USD3,405,239, which

was 124% above the target. The major

factor contributing to this over-performance

is that 26% more farmers grew maize than

anticipated due to additional technical

support from agrovet and cooperatives. This

led to 23% more land area being planted and

a yield increase of 23% over the target,

resulting in total production increase of 52%

over target. In addition, a greater percentage

of producers (154%) sold more maize

(119%) than anticipated. Therefore, the

target was exceeded by 124%.

Volume of sales (MT) 3,340 5,473 12,340


Agriculture commodities: Lentil

Lentil: Value of sales (USD) 590,976 549,389 2,039,258 371 Lentil sales totaled USD 2,039,380, which

was 271% above the target. Lentils were

grown by 105% more producers than

targeted, as many private sector grantees

serviced the lentil growers and rice farmers.

This led to an increase in area of 107%, and

a yield increase of 8% (due to better

varieties), resulting in a total production

increase of 123% over the target. In

addition, a 26% price increase (especially in

the Hills), 194% increase in quantity sold,

and a greater number of sellers (190%) all

led to a sales increase by 271% above target.



Agriculture commodities: Vegetables


AID-367-C-17-00001

KISAN II

Code No.

Code No. in

M&E Plan

Indicator


mentioned in PIRS)

Baseline Y3 Percent


Vegetables: Value of sales (USD) 11,901,397 81,436,160 124,764,749 153 Vegetable sales totaled USD124,609,685,

53% more than the target. Given the

potential for farmers to earn more from

vegetable production and sales, farmers

were supported to increase their vegetable

production area. As a result, total growing

area increased by 12%. A 15% yield increase

due to hybrid varieties (90% hybrids were

used) resulted in total production increase

by 29%. Increased price (by 10%) and

quantity sold (by 39%) resulted in a sales

increase per household by143%. Due to the

national lockdown, vegetable supply chains

from India were disrupted and farmers took

advantage of this gap. Therefore, target was

exceeded by 53%.



Agriculture commodities: Goats

Goat: Value of sales (USD) 8,309,787 79,121 512825 648 KISAN II expedited grant activities in the

goat sub-sector and increased the number

of goat farmers by 220% and the number of

stock per household by 41%, although yield

(offtake) was lower by 14%. Total

production was 288% of the target. The

price of goat meat was 35% more than

anticipated (a lower estimated price was

used when targets were set) and the,

quantity sold increased by 243%, resulting in

a sales increase of 548% above target.

Volume of sales (MT) 1,969 30 116

Number of participants producers 58,968 500 1,603

Producer: Non-smallholder

Firm: Microenterprise 1,285,299 7,412,735.73 12,577,914 170 Of the 120 microenterprises targeted, 34

new additional microenterprises partnered

with KISAN II this year, thus the average

sales of microenterprise increased by 32%

(to USD 81,675 against the anticipated

average sales of USD 61,773). This led to an

increase in total firm sales of 70% above

target.


AID-367-C-17-00001

KISAN II

Code No.

Code No. in

M&E Plan

Indicator


mentioned in PIRS)

Baseline Y3 Percent


Firm: Small and medium enterprise 9,678,110 5,118,696 15,969,276 312 11 SMEs were targeted; 15 new additional

SMEs partnered with KISAN II this year,

thus the average sales of SMEs increased by

32% (to USD 614,203 against anticipated

average of USD 465,336). This led to an

increase in total sales of 212% above target.

K18 EG.3.2-2-

CUST

Volume of annual sales (MT) of farms

receiving USG assistance (rice, maize, lentil,

vegetables, goats)

70,675 356,518 500,671 140 Same as in EG. 3.2-26 smallholders.

K19 EG.3.2-24

disaggregate

Number of Individuals who have applied

improved management practices or

technologies with USG assistance – related

to marketing and distribution

32,094 89,900 142,870 159 Grantees focused more on improved

management practices and technologies this

year, which led to a greater number of

farmers applying at least one technology or

management practice.

K20 EG.3.2-309-

CUST

Percentage of USG-assisted Household

accessing information on improved

technologies and practices through

improved ICT channels or content

14.57 60 DNA DNA Could not be collected due to COVID- 19.

K21 EG.3.2-310-

CUST

Percentage change in the number of

municipalities (palikas) in the ZOI that have

access to markets

DNA 55 43 78 Number of palikas not having market access

increased by 9%, reducing the overall

achievement.

K22 EG.4.2-2 Number of financial intermediaries serving

poor households and microenterprises

supported by USG assistance

DNA 65 70 108

K23 EG.3.2-27 Value of agriculture-related financing

accessed as a result of USG assistance [IM-

level] (USD)

DNA 31,404,860 46,639,065 149

Size of recipient: Smallholders 6,808,306 28,569,600 30,728,777 108

Number of recipient Size, Sex and Age 11,152

Size of recipient:

Individuals/microenterprises

11,152 1,563,500 2,922,182 187 Number of microenterprises increased by

13% (70 versus 62 targeted) and the average

loan size also increased by 66% (from

targeted USD 25,218 to USD 41,745), which

increased the total loan amount by 87%

above target.

Size of recipient: Small and medium

enterprises

1,271,760 12,988,106 1021 18 new additional SME partners in Y3

resulted in increase of 550% against the

anticipated 4 SMEs (4 targeted, 22 joined).

The average loan size also increased by 86%


AID-367-C-17-00001

KISAN II

Code No.

Code No. in

M&E Plan

Indicator


mentioned in PIRS)

Baseline Y3 Percent


above target (from targeted USD 317,940 to

USD 590,368). Similarly, 32 cooperatives

out of total 92 organizations (35%) took

71% of the total loan amount, all of which

contributed to a 921% achievement over

target.

K24 EG.4.2-7 Number of individuals participating in USG-

assisted group-based savings, micro-finance

or lending programs [IM-level]

63,520.81 54,250 DNA DNA Could not be collected due to COVID-19.

K25 EG.3.2-311-

CUST

Value of household savings deposits of

USG-assisted smallholders

DNA 15,186,900 DNA DNA Could not be collected due to COVID-19.

K26 EG.3.2-312-

CUST

Value of the outstanding balance on

agriculture loans of USG-assisted

households

DNA 18,119,500 17,197,058 95

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]

DNA 2,192,581 1,648,802 75

K28 EG.3.1-12 Number of agricultural and nutritional

enabling environment policies analyzed,

consulted on, drafted or revised, approved

and implemented with USG assistance [IM-

level]

DNA 3 3 100

K29 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)

DNA 18 57 317% 39 additional firms applied improved


management practices, resulting in a higher

than anticipated achievement.

K30 EG.3.2-1

disaggregate

Number of individuals who have received

short-term training – on food grading or

safety

DNA 80,000 82,195 103

K31 EG.3.2-24

disaggregate

Number of farmers and others who applied

improved technologies or management

practices – on food grading or safety

DNA 60,000 130,964 218 Grantees’ focus on improving management

practices and technologies this year resulted

in a greater number of farmers applying at

least one technology or management

practice, including food grading and safety.


AID-367-C-17-00001

KISAN II

Code No.

Code No. in

M&E Plan

Indicator


mentioned in PIRS)

Baseline Y3 Percent


This resulted in higher than expected

numbers.

K32 EG.3.2-4

disaggregate


organizations receiving USG organizational

assistance – related to food grading or

safety

DNA 162 170 105

K33 EG.3.2-20

Disaggregate


organizations that applied improved


management practices with USG assistance

– related to food grading or safety

DNA 150 136 91

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

systems

DNA 5 5 100

K35 EG.3.2-1 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

DNA 200 225 113 15 additional participants from the public

sector were supported to participate in

training in India, resulting in higher than

targeted achievement.

K36 EG.3.2-305-

CUST

Number of people trained in

entrepreneurial skills through USG

supported programs

DNA 22,078 10,457 47 Business Literacy Training could not be

conducted due to COVID-19.

K37 4.5 ZOI

EG.3.2-301-

CUST

Number of people trained in life skills

through USG supported programs

DNA 20,146 DNA DNA Business Literacy Training could not be


K38 EG.3.2-303-

CUST

Number of people trained in access to

financial services through USG supported

programs

DNA - DNA DNA Business Literacy Training could not be


K39 EG.3.2-314-

CUST

Percentage of business literacy trainees

that pass a competency test

DNA 90 90 100

K40 EG.3.2 302-

CUST

Percentage of entrepreneurial literacy

trainees who initiate or expand sales of

good and services

DNA 90 86 96


AID-367-C-17-00001

KISAN II

Code No.

Code No. in

M&E Plan

Indicator


mentioned in PIRS)

Baseline Y3 Percent


K41 G.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 13,076 13,561 104

K42 EG.3.2-1

Number of individuals who have received

short-term training on adaptive

management

DNA 22,078 20,605 93

K43 EG.3.2-4

Disaggregate


organizations receiving USG organizational

assistance related to CLA or monitoring

shocks and stressors

DNA 80 76 95

K44 EG.3.2-20

Disaggregates


organizations that have applied CLA or

have a mechanism in place for monitoring

shocks and stressors

DNA 40 44 110

K45 EG.3.2-1 Number of people trained in climate

change adaptation supported by USG

assistance

DNA 55,448 51,516 93

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

DNA 37,200 37,092 100

K47 STIR - 10 Number of innovations supported through

USG assistance

DNA 5 5 100

K48 STIR - 11 Number of innovations supported through

USG assistance with demonstrated uptake

by the public and/or private sector

DNA 2 2 100

K49 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

57 53 49 92

K50 EG.5-3

Number of microenterprises supported by

USG assistance on agriculture and food

security related development

DNA 200 227 114

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