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Location: Nepal

For more information, contact CIMMYT’s Nepal office.

Finding the story behind weeds

Field technicians use their cameras during the Photovoice training. (Photo: CIMMYT)
Field technicians use their cameras during the Photovoice training. (Photo: CIMMYT)

The main focus of the Sustainable and Resilient Farming Systems Intensification (SRFSI) project is on conservation agriculture technologies. Since farmers may face an increase in weeds after adopting zero-till planters, however, more research is needed about how farmers are dealing with weed.

One of the research objectives of the project is to understand farmers’ knowledge, perception, and practices of conservation agriculture. To this end, researchers are using the Photovoice methodology in Cooch Behar (West Bengal, India), Rongpur (Bangladesh) and Sunsari (Nepal) to collect relevant data on weed management practices.

Photovoice is a visual qualitative research method that allows people to express their perspectives through photographs. Photography can be used for evaluation purposes, through storytelling exercises.

On December 6-7, 2019, field technicians in Bangladesh, India and Nepal participated in a training about this methodology. They learned the rationale of Photovoice, its technical and logistic aspects, as well as the ethical considerations and the need to collect consent forms.

Participants also learned how to take pictures of inter-row cultivation and weeds on the farm, and how to confirm the geolocation of the farm.

Worth a thousand words

Using the Photovoice method, 30 households will be explored, including their labor allocation and decision-making dynamics around the implementation of conservation agriculture practices.

The effectiveness of this approach will emerge as smallholder farmers present their perspectives through photographs accompanied by their narratives.

Activities will be monitored on weekly basis.

The SRFSI project, funded by the Australian Centre for International Agricultural Research (ACIAR) and led by the International Maize and Wheat Improvement Center, is set to improve the productivity, profitability and sustainability of smallholder agriculture in the Eastern Gangetic Plains of Bangladesh, India and Nepal, by promoting sustainable intensification based on conservation agriculture technologies.

Breaking Ground: Tek Sapkota finds ways to reduce emissions from agriculture without compromising food security

Breaking Ground Postcard TEK SAPKOTA

As the world population increases, so does the need for food. “We need to produce more to feed increasing populations and meet dietary demands,” says Tek Sapkota, agricultural systems and climate change scientist at the International Maize and Wheat Improvement Center (CIMMYT). In the case of agriculture, the area of land under cultivation is limited, so increased food production has to come through intensification, Sapkota explains. “Intensification means that you may be emitting more greenhouse gases if you’re applying more inputs, so we need to find a way to sustainable intensification: increase the resilience of production systems, but at the same time decrease greenhouse gas emissions, at least emission intensity.”

Sapkota is involved in a number of global climate change science and policy forums. He represents CIMMYT in India’s GHG platform, a multi-institution platform that regularly prepares greenhouse gas emission estimates at the national and state levels and undertakes relevant policy analyses. Nominated by the CGIAR Research Program on Climate Change, Agriculture and Food Security (CCAFS) and his country, Nepal, he is one of the lead authors of the “special report on climate change and land” of  the Intergovernmental Panel on Climate Change (IPCC).

He coordinates climate change mitigation work at CIMMYT. “I am mainly involved in quantification of greenhouse gas emissions and the environmental footprint from agricultural production systems, exploring mitigation options and quantifying their potential at different scales in different regions,” Sapkota says. In addition, he explores low-carbon development activities and the synergies between food production, adaptation and mitigation work within the different components of CIMMYT’s projects.

Agriculture is both a victim of as well as a contributor to climate change, Sapkota explains. “Climate change affects all aspects of food production, because of changes in temperature, changes in water availability, CO2 concentrations, etc.,” he says. “The other side of the coin is that agriculture in general is responsible for about 25 to 32 percent of total greenhouse gas emissions.”

Tek Sapkota (center) stands for a group photo with other scientists working on the IPCC’s special report on climate change and land, at the second lead author meeting in Christchurch, New Zealand, in March 2018.
Tek Sapkota (center) stands for a group photo with other scientists working on the IPCC’s special report on climate change and land, at the second lead author meeting in Christchurch, New Zealand, in March 2018.

Measuring emissions and examining mitigation options

A big part of Sapkota’s work is to find ways to mitigate the effects of climate change and the emissions from the agricultural sector. There are three types of mitigation measures, he explains. First, on the supply side, agriculture can “increase efficiency of the inputs used in any production practice.” Second, there’s mitigation from the demand side, “by changing the diet, eating less meat, for example.” Third, by reducing food loss and waste: “About 20 percent of the total food produced for human consumption is being lost, either before harvest or during harvest, transport, processing or during consumption.”

Sapkota and his team analyze different mitigation options, their potential and their associated costs. To that purpose, they have developed methodologies to quantify and estimate greenhouse gas emissions from agricultural products and systems, using field measurement techniques, models and extrapolation.

“You can quantify the emission savings a country can have by following a particular practice” and “help countries to identify the mitigation practices in agriculture that can contribute to their commitments under the Paris climate agreement.”

Their analysis looks at the biophysical mitigation potential of different practices, their national-level mitigation potential, their economic feasibility and scalability, and the country’s governance index and readiness for finance — while considering national food security, economic development and environmental sustainability goals.

Recently, Sapkota and his colleagues completed a study quantifying emissions from the agricultural sector in India and identifying the best mitigation options.

This type of research has a global impact. Since agriculture is a contributor to climate change “better management of agricultural systems can contribute to reducing climate change in the future,” Sapkota says. Being an important sector of the economy, “agriculture should contribute its share.”

CIMMYT scientist Tek Sapkota (second from left) explains greenhouse gas emissions measurement methods to a visiting group of scientists.
CIMMYT scientist Tek Sapkota (second from left) explains greenhouse gas emissions measurement methods to a visiting group of CCAFS and Indian scientists. (Photo: CCAFS)

Impact on farmers

Sapkota’s research is also helping farmers today. Inefficient use of products and inputs is not only responsible for higher greenhouse gas emissions, but it also costs farmers more. “For example, if farmers in the Indo-Gangetic Plain of India are applying 250 to 300 kg of nitrogen per hectare to produce wheat or rice, by following precision nutrient management technologies they can get similar yield by applying less nitrogen, let’s say 150 kg.” As farmers cut production costs without compromising yield, “their net revenue from their products will be increased.”

Farmers may also get immediate benefits from government policies based on the best mitigation options. “Governments can bring appropriate policy to incentivize farmers who are following those kinds of low-emission technologies, for example.”

Farmers could also get rewarded through payments for ecosystem services or for their contribution to carbon credits.

Sapkota is happy that his work is beneficial to farmers. He was born in a small village in the district of Kaski, in the mid-hills of Nepal, and agriculture was his family’s main livelihood. “I really enjoy working with farmers,” he says. “The most fascinating part of my work is going to the field: talking to farmers, listening to them, learning what kind of farming solutions they’re looking for, and so on. This helps refine our research questions to make them more strategic, because the way farmers look at a problem is sometimes entirely different from the way we look at it.”

When he was in Himalaya Secondary School, he studied agriculture as a vocational subject. “I was interested because we were doing farming at home.” This vocation got cemented in university, in the 1990s. When he heard about the agricultural industry and the future opportunities, he decided to pursue a career in science and focus on agriculture. He got his bachelor’s and master’s degree of science in agriculture from the Institute of Agriculture and Animal Science (IAAS), Tribhuvan University, in Nepal.

Tek Sapkota (second from left) and other scientists participate in a small group session during a meeting of lead authors of the Intergovernmental Panel on Climate Change (IPCC).
Tek Sapkota (second from left) and other scientists participate in a small group session during a meeting of lead authors of the Intergovernmental Panel on Climate Change (IPCC).

A global path

He first heard about CIMMYT when he was doing his master’s. “CIMMYT was doing research in maize- and wheat-based plots and systems in Nepal. A few of my friends were also doing their master theses with the financial support of CIMMYT.” After his master’s, he joined an organization called Local Initiatives for Biodiversity, Research and Development (LI-BIRD) which was collaborating with CIMMYT on a maize research program.

Sapkota got a PhD in Agriculture, Environment and Landscapes from the Sant’Anna School of Advanced Studies in Italy, including research in Aarhus University, Denmark.

After defending his thesis, in 2012, he was working on greenhouse gas measurement in the University of Manitoba, Canada, when he saw an opening at CIMMYT. He joined the organization as a post-doctoral fellow and has been a scientist since 2017. Sapkota considers himself a team player and enjoys working with people from different cultures.

His global experience has enriched his personal perspective and his research work. Through time, he has been able to see the evolution of agriculture and the “dramatic changes” in the way agriculture is practiced in least developed countries like Nepal. “When I was a kid agriculture was more manual 
 but now, a lot of technologies have been developed and farmers can use them to increase the efficiency of farming”.

Extension materials on best agronomic practices endorsed by government of Nepal

Agricultural extension materials on best management practices for rice (left) and cauliflower, developed by CIMMYT as part of the NSAF project.
Agricultural extension materials on best management practices for rice (left) and cauliflower, developed by CIMMYT as part of the NSAF project.

KATHMANDU, Nepal (CIMMYT) — Maintenance and enhancement of soil fertility are vital for food security and environmental sustainability. However, a baseline survey conducted through the Nepal Seed and Fertilizer (NSAF) project shows that 95 percent of farmers have poor agronomic literacy. Most of them have little or no knowledge of proper seed and soil management practices, and do not apply fertilizer appropriately. Many farmers are also unaware of micronutrients and their specific role in crop production, so they spray micronutrient solutions as advised by agrovets. While quality seed and mineral fertilizer use are necessary to improve crop yields, use alone is not sufficient to maximize efficiency — how to use these tools is equally, if not more, important.

All these challenges indicate a need to educate farmers and help them adopt good agronomic practices that will maximize crop production and productivity.

As part of the NSAF project, the International Maize and Wheat Improvement Center (CIMMYT) has developed locally appropriate agricultural extension materials to disseminate best management practices for maize, wheat and other crops. The government of Nepal has endorsed the project’s best management practices for rice, maize, wheat, tomato, cauliflower and onion.

These extension materials have information on integrated soil fertility management: a set of agricultural practices that integrates improved seed, mineral fertilizer use and soil organic matter management, all adapted to local conditions to improve agricultural productivity. They also serve to share information on the 4 Rs of fertilizer management stewardship: right source, right rate, right time and right placement.

CIMMYT and NSAF project partners are delivering these innovative extension materials to agrovets, cooperatives, extension agencies, development organizations and other intermediaries. They then use them to provide training to farmers in their working areas.

Training packages include pictorial aids, games, informative handouts, group activities, field guides, demonstrations, field visits and other physical learning tools. All the materials have been developed following an “active learning” framework. Training topics include the principles of integrated soil fertility management, soil pH and liming, crop-specific fertilizer application rates, planting methods, fertilizer splitting, methods of fertilizer placement, seed and fertilizer quality, handling considerations and postharvest practices.

“Training of extension workers and farmers on agricultural and plant nutrient related topics leads to an improvement in agronomic practices by farmers. Farmers that are trained and educated in best agronomic practices tend to realize high yields,” said Ramananda Gupta, Agronomist and Extension Specialist at the International Fertilizer Development Center (IFDC). CIMMYT is partnering with IFDC to implement the activities of the NSAF project related to fertilizer, including agricultural extension programs, policy support and market development.

All training materials have been field-tested with farmers, agro-dealers, government extension specialists and cooperatives. The training content has been reviewed by the Nepal Agricultural Research Center and Department of Agriculture. “The content of the best management practice materials are essential knowledge and skills farmers need to sustainably intensify production. Adoption of best management practices will significantly contribute in developing the rice sector as well as other related crops,” commented Ram Baran Yadaw, Rice Coordinator at the National Rice Research Program.

The NSAF project team is piloting the dissemination of improved technologies, skills and extension materials to farmers through local governments and private companies, using different tools and methods. The extension materials on best management practices will be publicly available, so improved seed and soil fertility technologies can be more accessible to farmers.

CIMMYT is also partnering with Viamo to adapt all the materials into an SMS and Interactive Voice Response (IVR) system to further scale up the program in the country, potentially reaching 12 million mobile phone subscribers.

The Nepal Seed and Fertilizer (NSAF) project promotes the use of improved seeds and integrated soil fertility management technologies along with effective and efficient extension programs across 21 “Zone of Influence” districts and in five earthquake-affected districts. The project is funded by the United States Agency for International Development (USAID), as part of the Feed the Future initiative. The project is led by International Maize and Wheat Improvement Center (CIMMYT), in collaboration with Nepal’s Ministry of Agricultural Development and partners including the International Fertilizer Development Center (IFDC) and the Center for Environment and Agricultural Research, Extension and Development (CEAPRED).

Gratitude for soil

If we take care of our soils, our soils will take care of us. (Photo: Shashish Maharjan/CIMMYT)
If we take care of our soils, our soils will take care of us. (Photo: Shashish Maharjan/CIMMYT)

On December 5, we celebrate World Soil Day. This year the theme is “Be the solution to soil pollution.” Most of you may not have been aware that such a day even existed or perhaps even question the reason why the world even dedicates an entire day to celebrate soil. The authors of this article are soil scientists; we have devoted our professional careers to studying soil. Perhaps we are biased, but we use this opportunity to enlighten readers with a greater appreciation for the importance of this thin layer of our planet we call soil.

Humankind has a conflicting relationship with soil. In English, “dirt” and “dirty” are synonyms for unclean, calling a man or a woman “dirty” is a terrible insult. A baby’s dirty diapers are said to be “soiled.” But if we dig deeper into human consciousness, we find a different story.

For Hindus, the Panchtatva defines the universal laws of life. Everything, including life, is composed of five basic elements: Akash, space or sky; Vayu, air; Jal, water; Agni, fire; and Prithvi, earth or soil. In the Judeo-Christian tradition, the first two human beings on the planet were Adam and Eve. In Hebrew, the original language of the Bible’s Old Testament, the name Adam means “earth” or “soil” and Eve means “life.” These images and symbols portray that human life originally derived from soil.

It gets even deeper: The English terms “human” and “humanity” are rooted in the Greek word “humus,” the fertile black topsoil.

When we use the words “soil” and “dirt” as derogatory terms, we literally define ourselves as soil. Soil is important and here are a few reasons why.

Soil is absolutely critical for the survival of our species and of all living life on the planet. Over 90 percent of all food produced in the world comes from soil and a greater percentage of the world’s freshwater passes through soil.

Arguably, climate change is the greatest threat to our species. Despite mitigation efforts by the global community, soil is frequently forgotten. However, soil holds roughly two and a half times the amount of carbon held in the atmosphere and in all of the plants and animals combined.

Soil is also the greatest reservoir of biodiversity on the planet. In one pinch of soil, there are over 1 billion individual organisms and 1 million unique species, most of which we know almost nothing about. In one handful of soil, there are more living organisms than the total number of human beings that have ever walked on the planet. As all of our antibiotics have been derived from soil microorganisms, the secrets to fighting all kinds of diseases are just under your feet.

In Nepal, soil is deeply interrelated with culture. From birth to death, Nepalese use soil in many rituals: naming ceremonies, birthday celebrations, soiling on Ashar 15, local healing and medicine, etc.

The government of Nepal has set ambitious targets for increasing the levels of organic matter in soil. This is essential to ensure that the soils that have sustained Nepali civilization for centuries will continue to sustain future generations. We need to encourage farmers and land managers in Nepal to maintain terracing on steeply sloped lands to protect against soil erosion. It is also important to appropriately use agrochemicals, such as pesticides and inorganic fertilizers, to improve soil health and crop productivity.

Soil has been polluted by heavy metals, effluents from chemical industries, indiscriminate use of agrochemicals, urbanization without proper planning, networking of roads without considering the carrying capacity of the soil and other factors. So let’s not overlook the importance of soil. We need to value the cleansing properties of soil, particularly riverine soils, and prevent these areas from continuing as the dumping grounds and sewers of Kathmandu and other cities.

On this day, the day when we celebrate soil, take a moment to look under your feet and marvel at the beauty and complexity of soil.

If we take care of our soils, our soils will take care of us.

New digital maps to support soil fertility management in Nepal

KATHMANDU, Nepal (CIMMYT) — The International Maize and Wheat Improvement Center (CIMMYT) is working with Nepal’s Soil Management Directorate and the Nepal Agricultural Research Council (NARC) to aggregate historic soil data and, for the first time in the country, produce digital soil maps. The maps include information on soil PH, organic matter, total nitrogen, clay content and boron content. Digital soil mapping gives farmers and natural resource managers easy access to location-specific information on soil properties and nutrients, so they can make efficient and localized management decisions.

As part of CIMMYT’s Nepal Seed and Fertilizer (NSAF) project, researchers used new satellite imagery that enabled the resolution of the maps to be increased from 1×1 km to 250×250 m. They have updated the web portal to make it more user friendly and interactive. When loaded onto a smartphone, the map can retrieve the soil properties information from the user’s exact location if the user is within areas with data coverage. The project team is planning to produce maps for the whole country by the end of 2019.

CIMMYT scientist David Guerena talks about the role of the new digital maps to combat soil fertility problems in Nepal.
CIMMYT scientist David Guerena talks about the role of the new digital maps to combat soil fertility problems in Nepal.

At a World Soil Day event in Nepal, CIMMYT soil scientist David Guerena presented the new digital soil maps to scientists, academics, policymakers and other attendees. Guerena explained the role this tool can play in combatting soil fertility problems in Nepal.

These interactive digital maps are not simply visualizations. They house the data and analytics which can be used to inform site-specific integrated soil fertility management recommendations.

The first high-resolution digital soil maps for the Terai region have been produced with support from the data assets from the National Land Use Project, developed by Nepal’s Ministry of Agriculture and Livestock Development. These maps will be used to guide field programming of the NSAF project, drive the development of market-led fertilizer products, and inform and update soil management recommendations. The government of Nepal can use the same information to align policy with the needs of farmers and the capacity of local private seed and fertilizer companies.

In 2017, 16 scientists from Nepal’s Soil Management Directorate, NARC and other institutions attended an advanced digital soil mapping workshop where they learned how to use different geostatistical methods for creating soil maps. This year, as part of the NSAF project, four NARC scientists attended a soil spectroscopy training workshop and learned about digitizing soil data management and using advanced spectral methods to convert soil information into fertilizer recommendations.

Soil data matters

Soil properties have a significant influence on crop growth and the yield response to management inputs. For farmers, having access to soil information can make a big difference in the adoption of integrated soil fertility management.

Farmer motivation and decision-making relies heavily on the perceived likeliness of obtaining a profitable return at minimized risk. This largely depends on the yield response to management inputs, such as improved seeds and fertilizers, which depends to a large extent on site-specific soil properties and variation in agro-ecological conditions. Therefore, quantitative estimates of the yield response to inputs at a given location are essential for estimating the risks associated with these investments.

The digital soil maps can be accessed at https://nsafmap.github.io/.

The Nepal Seed and Fertilizer project is funded by the United States Agency for International Development (USAID) and is a flagship project in Nepal. The objective of the NSAF is to build competitive and synergistic seed and fertilizer systems for inclusive and sustainable growth in agricultural productivity, business development and income generation in Nepal.

Let’s make hunger history

Samjhana Khanal surveys heat-tolerant maize varieties in Ludhiana, India, during a field day at the 13th Asian Maize Conference. (Photo: Manjit Singh/Punjab Agricultural University)
Samjhana Khanal surveys heat-tolerant maize varieties in Ludhiana, India, during a field day at the 13th Asian Maize Conference. (Photo: Manjit Singh/Punjab Agricultural University)

KATHMANDU, Nepal — I feel humbled and honored to have been chosen for the 2018 MAIZE-Asia Youth Innovators Award. I want to thank my father and brother for never clipping my wings and letting me fly high. I want to thank my mother, who despite having no education, not being able to read or write a single word, dreamed of having a scientist daughter. Everyone has a story and this is mine.

Due to my family’s poverty and the hardships faced during the civil war in Nepal, I had to leave school at grade 5 and was compelled to work as child labor in a local hotel to meet my family’s daily needs. I remember those difficult months where I used to cry every day, as the hotel was right across from the school and I wanted to study so badly but I was deprived from education due to my family’s condition. My life changed when a mountain climber staying at the hotel heard my story and generously decided to pay my school fees. I would go on to graduate top of my class.

Everyone has challenges. It is my dream to dedicate my life to fight the greatest challenge of all: hunger.

The amount of undernourished people in the world has been increasing. According to the Food and Agriculture Organization of the United Nations (FAO), over 820 million people face chronic food deprivation. Many of these people live in developing countries, including my home country, Nepal. About 6 million people, which is about 23% of Nepal’s population, are undernourished. Moreover, half of children under the age of five suffer from malnutrition in Nepal.

Increasing agricultural production, gender equity and awareness is crucial to meet sustainable development goals by 2030. As an agricultural student, I chose to focus on maize-based systems, as maize is a staple food crop and a major component of feed and fodder for farm animals. It is the second major crop in Nepal after rice — first in the hill region of Nepal — and can be a backbone for food security and a good source of income for resource-poor farmers.

Demand for maize is growing in Nepal, but production has remained stagnant. This is partly due to lack of knowledge on proper nutrient management and fertilizer use. In addition, due to the economic situation in Nepal, many men have been forced to migrate to find work and support their families, which has led to an increased “feminization” of agriculture. However, female farmers frequently have less access to information and resources that would help them to increase yields.

Since my undergraduate degree, I have carried out research on nutrient management in maize in the Eastern Terai region of Nepal, particularly focusing on women, to increase the maize production and income of smallholder farmers. My research involved the use of Nutrient Expert, a dynamic nutrient management tool based on site-specific nutrient management principles, to increase maize production and enhance soil quality without negatively affecting the environment. Regional fertilizer recommendations are often too broad and cannot take into account the soil quality of individual farmers’ field, as it varies greatly among fields, seasons and years. Applying the incorrect amount of fertilizer is costly to farmers and can negatively affect the environment and crop yields.

The Nutrient Expert app rapidly provides farm-specific fertilizer recommendations for nitrogen, phosphorus and potassium for crops in the presence or absence of soil testing results, contributing to dynamic nutrient management, increased productivity and net returns from crops for farmers. In the meantime, it helps to decrease the nitrogen and phosphorous leaching from the soil into rivers, which protects the water ecosystem both in wetlands and oceans. This technology is sustainable because it optimizes the use of nutrients in the soil for higher productivity and prevents the overuse of fertilizer. It decreases the farmer’s cost of production and is environmentally friendly. Further, my research showed that Nutrient Expert helped farmers to produce 86.6% more maize grain than their previous fertilizer practice.

Proper nutrient management is just one of the challenges facing agriculture today. To address these challenges and to create a world without hunger it is extremely important to work with and include young people. Effective extension tools to train and motivate young minds in research and create more interest in maize-based systems and farming is necessary for the overall adoption and proper utilization of improved varieties and technologies.

Samjhana Khanal was recently awarded the 2018 MAIZE-Asia Youth Innovators Award from the CGIAR Research Program on Maize (MAIZE) in the category of “Change Agent” for her research on the productivity and profitability of hybrid maize in Eastern Terai, Nepal. Using Nutrient Expert, a decision support tool, individual maize farmers can get specific soil nutrition and fertilizer recommendations, resulting in higher grain yield, productivity and profits.

An agricultural graduate, Khanal has founded and co-founded several local social organizations in Nepal to involve young minds in the development of innovative strategies to work towards sustainable agriculture and zero hunger. Her organizations support more than 285 households with community microfinance, help resource-poor farmers and assist women farmers.

The MAIZE-Asia Youth Innovators Awards aim to celebrate youth participation in maize-based agri-food systems and are sponsored by the CGIAR Research Program on Maize (MAIZE) in collaboration with Young Professionals for Agricultural Development (YPARD).

The Director General of CIMMYT, Martin Kropff (left), and the Chair of the MAIZE Independent Steering Committee, Michael Robinson (right), present Samjhana Khanal with the 2018 MAIZE-Asia Youth Innovator Award in the category of Change Agent. (Photo: Manjit Singh/Punjab Agricultural University)
The Director General of CIMMYT, Martin Kropff (left), and the Chair of the MAIZE Independent Steering Committee, Michael Robinson (right), present Samjhana Khanal with the 2018 MAIZE-Asia Youth Innovator Award in the category of Change Agent. (Photo: Manjit Singh/Punjab Agricultural University)

Q&A: Expanding CIMMYT’s research agenda on markets and business

TEXCOCO, Mexico (CIMMYT) — Food security is heavily dependent on seed security. Sustainable seed systems ensure that a variety of quality seeds are available to farming communities at affordable prices. In many developing countries, however, farmers still lack access to the right seeds at the right time.

In the past, governments played a major role in getting improved seed to poor farmers. These days, however, the private sector plays a leading role, often with strong support from governments and NGOs.

“Interventions in formal seed systems in maize have tended to focus on improving the capacity of seed producing companies, which are often locally owned small-scale operations, to produce and distribute quality germplasm,” says Jason Donovan, Senior Economist at International Maize and Wheat Improvement Center (CIMMYT). “These local seed companies are expected to maintain, reproduce and sell seed to underserved farmers. That’s a pretty tall order, especially because private seed businesses themselves are a fairly new thing in many countries.”

Prior to the early 2000s, Donovan explains, many seed businesses were partially or wholly state-owned. In Mexico, for example, the Instituto Nacional de Investigaciones Forestales, Agrícolas y Pecuarias (INIFAP) produced seed and supplied it to a market-oriented entity which was responsible for distribution. “What we’re seeing now is locally owned private seed businesses carving out their space in the maize seed market, sometimes in direct competition with multinational seed companies,” he says. In Mexico, around 80 locally owned maize seed producing businesses currently exist, most of which have been involved in CIMMYT’s MasAgro Maize project. These are mostly small businesses selling between 150,000 and 500,000 kg of hybrid maize per year.

In the following Q&A, Donovan discusses new directions in research on value chains, the challenges facing private seed companies, and how new studies could help understand their capacities and needs.

Seed storage warehouse at seed company Bidasem in Celaya, Guanajato state, México. (Photo: X. Fonseca/CIMMYT)
Seed storage warehouse at seed company Bidasem in Celaya, Guanajato state, México. (Photo: X. Fonseca/CIMMYT)

How does research on markets and value chains contribute to CIMMYT’s mission?

We’re interested in the people, businesses and organizations that influence improved maize and wheat seed adoption, production, and the availability and quality of maize and wheat-based foods. This focus perfectly complements the efforts of those in CIMMYT and elsewhere working to improve seed quality and increase maize and wheat productivity in the developing world.

We are also interested in the nutrition and diets of urban and rural consumers. Much of the work around improved diets has centered on understanding fruit and vegetable consumption and options to stimulate greater consumption of these foods. While there are good reasons to include those food groups, the reality is that those aren’t the segments of the food market that are immediately available to or able to feed the masses. Processed maize and wheat, however, are rapidly growing in popularity in both rural and urban areas because that’s what people want and need to eat first. So the question becomes, how can governments, NGOs and others promote the consumption of healthier processed wheat and maize products in places where incomes are growing and tastes are changing?

This year, CIMMYT started a new area of research in collaboration with A4NH, looking at the availability of processed maize and wheat products in Mexico City — one of the world’s largest cities. We’re working in collaboration with researchers form the National Institute of Public Health to find out what types of wheat- and maize-based products the food industry is selling, to whom, and at what cost. At the end of the day, we want to better understand the variation in access to healthier wheat- and maize-based foods across differences in purchasing power. Part of that involves looking at what processed products are available in different neighborhoods and thinking about the dietary implications of that.

Your team has also recently started looking at formal seed systems in various locations. What direction is the research taking so far?

Our team’s current priority is to advance learning around the private sector’s role in scaling improved maize varieties. We are engaged with three large projects: MasAgro Maize in Mexico, Stress Tolerant Maize for Africa (STMA) and the Nepal Seed and Fertilizer Project (NSFP). We are looking to shed light on the productive and marketing capacities of the privately owned seed producing businesses and their ability to get more seed to more farmers at a lower cost. This implies a better understanding of options to better link seed demand and supply, and the business models that link seed companies with agro-dealers, seed producing farmers, and seed consumers.

We are also looking at the role of agro-dealers — shops that sell agricultural inputs and services (including seed) to farmers — in scaling improved maize seed.

At the end of the day, we want to provide evidence-based recommendations for future interventions in seed sectors that achieve even more impact with fewer resources.

Farmers purchase seed from an agro-dealer in Machakos, Kenya. (Photo: Market Matters Inc.)
Farmers purchase seed from an agro-dealer in Machakos, Kenya. (Photo: Market Matters Inc.)

This research is still in its initial stages, but do you already have an idea of what some of the key limiting factors are?

I think one of the main challenges facing small-scale seed producing businesses is the considerable expense entailed in simultaneously building their productive capacities and their market share. Many businesses simply don’t have a lot of capital. There’s also a lack of access to specialized business support.

In Mexico, for example, a lot of people in the industry are actually ex-breeders from government agencies, so they’re very familiar with the seed production process, but less so with options for building viable businesses and growing markets for new varieties of seed.

This is a critical issue if we expect locally owned seed businesses to be the primary vehicle by which improved seeds are delivered to farmers at scale. We’re currently in the assessment phase, examining what the challenges and capacities are, and hopefully this information will feed into new approaches to designing our interventions.

Is the study being replicated in other regions as well?

Yes, in East Africa, under the Stress Tolerant Maize for Africa (STMA) project. We’re working with seed producing businesses and agro-dealers in Ethiopia, Kenya, Tanzania, and Uganda to understand their strategies, capacities, and needs in terms of providing improved seed to more farmers. We’re using the same basic research design in Mexico, and there is also ongoing work in the Nepal Seed and Fertilizer Project. Given that we are a fairly small team within CIMMYT, comparable cross-regional research is one way to punch above our weight.

Why is this research timely or important?

The research is critical as CIMMYT’s impact relies, in part, on partnerships. In the case of improved maize seed, that revolves around viable seed businesses.

Although critical, no one else is actually engaged in this type of seed sector research. There have been a number of studies on seed production, seed systems and the adoption of improved seed by poor farmers. A few have focused on the emergence of the private sector in formal seed systems and the implications for seed systems development, but most have been pretty broad, examining the overall business environment in which these companies operate but not much beyond that. We’re trying to deepen the discussion. While we don’t expect to have all the answers at the end of this study, we hope we can shift the conversation about options for better support to seed companies and agro-dealers.

Jason Donovan joined CIMMYT in 2017 and leads CIMMYT’s research team on markets and value chains, based in Mexico. He has some 15 years of experience working and living in Latin America. Prior to joining CIMMYT he worked at the Peru office of the World Agroforestry Center (ICRAF), where his research focused on business development, rural livelihoods, gender equity and certification. He has a PhD in development economics from the University of London’s School of Oriental and African Studies (SOAS).

Comparing apples with apples: Farm economic analysis in Kathmandu

KATHMANDU, Nepal (CIMMYT) — Clear and consistent communication is important in any work, and no less so when you are collaborating to improve farmer livelihoods. CIMMYT and partners in South Asia are therefore facilitating Farm Economic Analysis workshops to ensure that stakeholders from a variety of professions are on the same page when it comes to the terminology of agricultural economics. Fay Rola-Rubzen and Roy Murray-Prior from the University of Western Australia presented the first full day workshop at the National Agricultural Research Council (NARC) campus in Kathmandu on November 1, 2018. Deepak Bhandari and Yuga Nath Ghimire of NARC officiated the event. More than thirty participants from CIMMYT, the Department of Agriculture and NARC attended the training, which included agronomists, agricultural economists, extension officers and research associates.

The workshop series is part of CIMMYT’s Sustainable and Resilient Farming Systems Intensification (SRFSI) project, which aims to reduce poverty in the Eastern Gangetic Plains of Nepal, India and Bangladesh by making smallholder agriculture more productive, profitable and sustainable while safeguarding the environment and involving women.

Murray-Prior and Rola-Rubzen pose for a group photo with SRFSI training participants in Kathmandu, Nepal.
Murray-Prior and Rola-Rubzen pose for a group photo with SRFSI training participants in Kathmandu, Nepal.

“The main objective [of the workshops] is to make sure we have the same language and understanding of what we are measuring,” said Rola-Rubzen. “When we go to the field, usually, it may not be the economists gathering the data. It is critical for both economists and non-economists to understand what we are talking about so that we are comparing apples with apples, not apples with oranges.”

Rola-Rubzen and Murray-Prior facilitated a highly specific and tailored training, including engaging the participants in the practical analysis of data collected by SRFSI in the Sunsari district in the eastern Terai of Nepal. Topics covered in the training included gross margin, net revenue and sensitivity analyses, as well as matching analyses to data types.

The workshop was well-received by participants, and will also be conducted in India and Bangladesh to ensure further consistency in communication and to facilitate the cross-country analysis and comparison of data “When we work with economists, it will be easier to understand how they are analyzing their data and making their arguments,” said Sofina Maharjan, assistant research associate for the SRFSI project.

The Sustainable and Resilient Farming Systems Intensification project is funded by the Australian Centre for International Agricultural Research.

The feminizing face of wheat farming in South Asia

In wheat systems throughout South Asia, the gender myth that “wheat is a man’s crop” is still pervasive. To debunk this myth, the International Maize and Wheat Improvement Center (CIMMYT) is combatting stereotypical norms of women in agriculture through GENNOVATE, a project carried out by 11 CGIAR Research Programs. Led by CIMMYT, this global comparative research initiative strives to address the questions of how gender norms influence men, women and youth to adopt innovative practices and technologies in agriculture and natural resource management.

Surprisingly, there was little knowledge and little literature on the intersection of wheat farming and gender before 2013. What was peculiar about the narrative of women wheat farmers in South Asia was that they were described — by rural advisory services, research organizations and even farmers themselves — as if they had never set foot in a field. On the ground, however, the local reality has long been different. Women, typically from particular castes and income groups, are involved in field operations.

South Asia is experiencing a rise in innovative undertakings by women in agriculture. This change, fueled by strong male outmigration in some locations, has been promoted by equality narratives created through social and women’s movements, NGOs and education. They have all contributed to strengthen women’s desire to have a voice in decision-making. “The face of agriculture in South Asia, particularly wheat farming, is feminizing,” says Cathy Rozel Farnworth. She is a social inclusion, gender and agriculture expert working with CIMMYT’s Gender Research Unit to analyze interactions between changing gender norms and agricultural innovation.

This shift was one of the findings in a series of comparative studies conducted through GENNOVATE in three research hotspots in South Asia: Bangladesh, India and Nepal. Farnworth and co-authors from the region, CIMMYT and Glasgow Caledonian University analyzed the similarities and distinctions in each country.

In the village of Nalma, Lamjung District, Nepal, most of the adult male population has gone abroad for work, leaving only children, women and the elderly. (Photo: Mokhamad Edliadi/CIFOR)
In the village of Nalma, Lamjung District, Nepal, most of the adult male population has gone abroad for work. (Photo: Mokhamad Edliadi/CIFOR)

Shifting rules

In Nepal, women are traditionally seen as destitute and far from equals in the farming community. However, migration of men to urban areas and to other countries has given way to more opportunities in agriculture for women in rural communities. “This translates to a fundamental change in the social structure of communities and the roles of men and women, due to the absence of men,” says Farnworth. Women in the community are increasingly taking on the challenging managerial roles that men once occupied. While women in Nepal support themselves and their families, they rarely have institutional support from rural advisory services, for example, training on new wheat technologies. On occasion, support comes from individual male extension workers, and women report that NGOs have been critical to building their sense of empowerment and entitlement. Learning networks between women farmers are also important. Overall, the gender myth that “wheat is a man’s crop” is shifting in Nepal, but extension services, researchers, the private sector and others need to catch up quickly with this new reality to help provide women with adequate support.

Wheat is also increasingly becoming a women’s crop in India, despite limited institutional support and neglect. In some locations, women are responding to male outmigration not only by increasing their work in the field, but also taking key decisions, for example on hiring labor and machinery. Some women are also driving machinery themselves. In other locations, women, though not involved in fieldwork, are trying to strengthen their participation in decision-making around wheat technologies. They have an understandable interest in what happens on the farm and in how investments will impact family income. Overall, the GENNOVATE data shows that, “Women are limited by, working with and increasingly renegotiating gender and caste identities,” says Farnworth.

In Bangladesh, a women-only agricultural organization dominated by the Santal indigenous community is strongly innovating in wheat. Interestingly, the organization is drawing in and supporting low-income Muslim women innovators as well. This case study is particularly valuable in relation to achieving Sustainable Development Goals because it shows that even though Santal women are truly “left behind” in Bangladesh, very small institutional modifications have enabled them to take charge of the organization and inspire a whole community.

Taking decisions and innovating

Women use a mini-tiller for direct seeding in Ramghat, Surkhet, Nepal. (Photo: P. Lowe/CIMMYT)
Women use a mini-tiller for direct seeding in Ramghat, Surkhet, Nepal. (Photo: P. Lowe/CIMMYT)

The driving force surrounding these cases in South Asia is the gender equality narrative. The narrative is not driven by men or external partners; rather, it is being transformed by women from within. Women have been long working in the fields; they have always been part of the wheat story. Now many women are demonstrably taking more decisions about wheat, giving them more control over their own lives and households.

GENNOVATE researchers are now looking for ways to work with women themselves, with their partners, with rural advisory sectors, the private sector, community leaders and others to address the demand for technological advances to improve their wheat harvest, including machinery. The starting point is that women need to be seen as capable farmers. Partners need to get on board and start working the new realities of “who does what,” “who decides” and “who benefits,” rather than continue subscribing to old myths. Rural women farmers have critical interests in wheat, whether they farm in the field or not. Women want and are seeking inclusion. Women are collectively expressing, “We have the right to be interested, and participate in innovating around wheat,” Farnworth states.

The comparative studies are available for download:

CHALLENGING GENDER MYTHS: Promoting inclusive wheat and maize research for development in Nepal

LEAVING NO ONE BEHIND: Supporting women, poor people, and indigenous people in wheat-maize innovations in Bangladesh

STRENGTHENING WOMEN IN WHEAT FARMING IN INDIA: Old challenges, new realities, new opportunities

Cathy Rozel Farnworth is a social inclusion, gender and agriculture expert. She holds a PhD in Rural Development Studies from the Swedish University of Agricultural Sciences and an MA in Gender Analysis. Farnworth collaborates with CIMMYT on the CGIAR GENNOVATE global research project, among others. Farnworth trained and mentored the Ethiopian GENNOVATE research teams and has also supported CIMMYT’s gender research under the CGIAR research program on Climate Change, Agriculture and Food Security (CCAFS).

CIMMYT projects working to enhance business agility of South Asian seed companies

Participants of the international training. Photo: S.Thapa/CIMMYT-Nepal
Participants of the international training. Photo: S.Thapa/CIMMYT-Nepal

Improved seed with proper management practices is an important agricultural input which can boost crop productivity by more than 50 percent. This gain is necessary to achieve food security and alleviate poverty in many developing countries. However, it can be challenging for farmers to find high-quality seeds as availability, affordability and accessibility remain hurdles to improved seed distribution.  In Nepal, the majority of rural farmers use farm-saved seeds of inferior quality leading to low productivity and subsistence livelihood.

The seed industry in Nepal, as in most developing countries, is still emerging and largely untapped. Lack of availability of start-up working capital, business incentives in the sector, new technologies and required technical expertise limit the current seed value chain.

To address this, the Nepal Seed and Fertilizer (NSAF) project is engaging Nepalese seed companies in a business mentoring process to enhance their ability to test and deploy new products, develop business and marketing plans and sustain a viable, competitive seed business, particularly in hybrid seeds.

The NSAF project, in collaboration with the Nepal Agricultural Research Council (NARC) & the Seed Entrepreneurs Association of Nepal (SEAN) organized an “International Training Workshop on Seed Business Management” for senior-level seed company managers and business owners representing 15 private seed companies from Nepal and Pakistan. Held from April 23 to 25 in Kathmandu, the training aimed to develop market-oriented seed businesses that emphasize hybrid seed. The training focused on increasing the technical, financial and market management capacities of senior managers and conveying the requirements of a competitive seed business using case studies from Africa and Asia.

Navin Hada, AID project development specialist at the United States Agency for International Development (USAID)-Nepal highlighted the timeliness of the training and congratulated the NSAF team for bringing south Asian seed companies and international experts together for experience sharing and collaborations.

“SEAN has more than 2000 registered members in Nepal and business-oriented training like this help our members to enhance their efficiency,” said Laxmi Kant Dhakal, chairman of SEAN and president of the Unique Seed Co Plc.

Suma Karki from Seed Quality Control Center (SQCC) of Nepal receiving certification of participation Photo: E. Kohkar/CIMMYT-Pakistan.
Suma Karki from Seed Quality Control Center (SQCC) of Nepal receiving certification of participation Photo: E. Kohkar/CIMMYT-Pakistan.

The training was facilitated by John MacRobert, a consultant for business mentoring of Nepalese seed companies and former principal seed system specialist for CIMMYT with the support of the NSAF team. The training workshop included lectures, discussions and customized exercises to develop business plans; marketing, production and financial strategies; seed quality control; and research and development plans.

During the reflection session to close the training, Dyutiman Choudhary, NSAF project coordinator, appreciated the professional interaction and experience sharing among Nepalese and Pakistani seed companies and acknowledged the role of MacRobert in bringing diverse experiences from Africa and other regions.

At the closing ceremony, Yubak Dhoj G.C, secretary, Ministry of Agriculture, Land Management and Co-operative, emphasized the importance of hybrid seed self-sufficiency for Government of Nepal initiatives for attaining food security and alleviating poverty.

The Nepal Seed and Fertilizer project is funded by the United States Agency for International Development (USAID) and is a flagship project in Nepal. NSAF aims to build a competitive and synergistic seed and fertilizer systems for inclusive and sustainable growth in agricultural productivity, business development, and income generation in Nepal. The International Maize and Wheat Improvement Center (CIMMYT)-led, USAID-funded, Agricultural Innovation Program (AIP) for Pakistan supported the participation of Pakistani seed companies to the training. 

Peter Craufurd

Peter Craufurd is the leader of CIMMYT’s Cereal Systems Initiative for South Asia (CSISA) and the Country Representative for Nepal.

In his work, Craufurd seeks to improve the adoption and scaling of good agronomy through knowledge-sharing, including decision-support tools and assessment of different approaches while asking: What works where, and how can it be scaled up and institutionalized through or with partners?

At present he and his team are working on tools for variety choice, nutrient management, panting dates and seed rates. He also focuses on spatial and predictive agronomy, innovation in how agronomy data is collected, the analytics to make data spatially predictive, and how data is translated into useful knowledge that can drive decision-making.

Overcoming gender gaps in rural mechanization

A new publication suggests strategies to improve rural women's access to agricultural machinery. Photo: CIMMYT/ Martin Ranak
A new publication suggests strategies to improve rural women’s access to agricultural machinery. Photo: CIMMYT/ Martin Ranak

A new research note published for International Women’s Day, details current gender gaps in rural mechanization in Bangladesh, and outlines plans to overcome these challenges.

Using simple technologies, such as multi-crop reaper-harvesters can reduce the time farmers spend harvesting by up to 80 percent and can reduce the costs of hiring field labor by up to 60 percent. The problem is that women may face cultural constraints to working in the field, running machinery service provision businesses, and do not have equal access to financing, which is a huge barrier, as the technologies can cost $500-2000 up front.

The authors suggest a number of gender-balanced approaches to scaling-out technologies such as use of targeted, selective and smart subsidies and access to finance to women-headed households, methods to spread investment risks, and prioritizing joint learning, with husbands and wives attending field courses together and jointly developing business plans.

View the new research note here.

The research note is a result of joint efforts between the USAID/Washington and Bill and Melinda Gates Foundation supported Cereal Systems Initiative for South Asia (CSISA), the USAID/Bangladesh CSISA – Mechanization and Irrigation Project, and the the USAID/Washington funded USAID funded Gender, Climate Change, and Nutrition Integration Initiative (GCAN) project, all of which involve collaborations between the International Maize and Wheat Improvement Center, the International Food Policy Research Institute, International Development Enterprises, the International Rice Research Institute and the CGIAR Research Program on Climate Change, Agriculture and Food Security.

USAID’s Feed the Future Nepal Seed and Fertilizer Project supports NGLRP to foster lentil productivity and profitability

Nepal’s National Grain Legumes Research Program (NGLRP), in collaboration with USAID’s Feed the Future Nepal Seed and Fertilizer Project, led by The International Maize and Wheat Improvement Center (CIMMYT), began a two-day workshop to foster lentil productivity and profitability Tuesday. Engaging both public and private stakeholders involved in lentil research and development activities, the workshop will examine the intricate challenges and tap into potential opportunities for lentil interventions and innovations in Nepal. During the workshop, a newly formed lentil working committee will define a strategic roadmap which will be used to strengthen the lentil market system.

Speaking at the workshop, NGLRP national coordinator Rajendra Darai remarked, “there is high demand for the product globally, but we need to enhance competitiveness and reinforce the lentil value chain.” A lentil seed producer and farmer from Kapilvastu added that “improved variety of seeds, combined with best management practices and technology, will be the key to achieving higher yields.”

Lentils have emerged as an important agricultural export commodity for Nepal. The country is the second largest lentil producer in South Asia and the fifth in the world. However,  there is a huge yield gap of almost a ton per hectare between the national average and the achievable yield.

The major constraint to boosting output at the farm level is the limited availability of improved varieties and low quality of seeds and fertilizers. Farmers and lentil seed producers are also impacted by weak market linkages, limited access to new technologies and lack of access to finance. Low-profit margin and price fluctuation of lentil seed hinders companies from selling improved seeds in the market. Meanwhile, export growth is constrained by the lack of proper linkages with international buyers, compatible policies and quality standards.

To enhance Nepal’s lentil productivity and profitability, NGLRP is collaborating with the CGIAR Centers to develop improved varieties and production technologies to better suit different ecological regions. USAID’s Feed the Future Nepal Seed and Fertilizer Project, implemented by CIMMYT, supports the NGLRP by building linkages with private seed companies to develop new varieties of seeds best suited for Nepal’s geography.

CIMMYT’s AbduRahman Beshir, the seed system lead for USAID’s Feed the Future Nepal Seed and Fertilizer Project, said, “we are working with partners to enhance the lentil value chain in Nepal and to ensure that farmers have access to improved farming inputs and technologies. This will result in increased lentil productivity and reel in more earnings for the farmers and the suppliers.”

USAID’s Nepal Seed and Fertilizer Project is made possible thanks to the generous support of the American people through the United States Agency for International Development (USAID).

For further inquiries, please contact: AbduRahman Beshir, Seed System Lead – CIMMYT a.issa@cgiar.org

Local businesses boost farmer access to quality seed in Nepal

NSAF field research technician showing a demonstration variety of maize to farmers in Kailali, Nepal. Photo: D. Joshi/CIMMYT
NSAF field research technician showing a demonstration variety of maize to farmers in Kailali, Nepal. Photo: D. Joshi/CIMMYT

KHATMANDHU, Nepal (CIMMYT) — In Nepal, nearly 20 local seed companies are involved in producing and marketing seed, contributing to about 50 percent of the country’s formal seed supply system.

Maximizing crop yields requires quality seed production and the development of new varieties locally. Adopting improved quality seed alone has shown to increase crop production up to 30 percent.

However, seed production practices are currently not standardized in Nepal and seeds of inconsistent quality are produced by various sources. To ensure farmers adopt new varieties, the Nepal Seed and Fertilizer project (NSAF) is working with seed companies to build their capacity for both seed production and distribution by providing technical guidance and resources to strengthen local seed production, seed producers’ network and market linkages by adopting new technology and business approaches.

NSAF also helps seed companies hold seed production demonstrations for newly released crop varieties to test, analyze and promote the best agronomic practices for achieving high yield. As a result, several farmers have shown interest in adopting improved practices in seed production.

A NSAF seed partner company was recently presented an award from Nepal’s Ministry of Agricultural Development and the Food and Agriculture Organization of the United Nations for World Food Day 2017. Global Agri-Tech Nepal Private Limited (GATE Nepal), the awardee, was recognized for their excellent contribution in seed production and distribution network for seed supply.

“Over the span of seven years, the company’s yearly portfolio of seed trading has increased from 40 tons to 800 tons by 2017,” said Tikaram Rijal, Managing Director of GATE Nepal.

GATE Nepal has been engaged in the production, processing and marketing of government-registered high quality improved cereal, legume, oil and vegetable seeds. NSAF is supporting the company by training and providing newly released seed varieties to growers, which have resulted in 20 percent production growth by participating farmers.

Learn more about the Nepal Seed and Fertilizer project (NSAF) through this infographic and fact sheet from the U.S. government’s Feed the Future initiative.

How smarter financing can boost Nepal’s seed sector

Support from Nepal’s banking sector has the potential to benefit seed companies across the country. Photo: P. Lowe/CIMMYT
Support from Nepal’s banking sector has the potential to benefit seed companies across the country. Photo: P. Lowe/CIMMYT

KATHMANDU, Nepal (CIMMYT) – Nepal’s push to grow its seed sector is expanding to banking, with new financial measures expected to benefit seed companies across the country.

Nepal launched its National Seed Vision 2013-2025 to improve food security by increasing its domestic production of high quality seeds, and make them available and affordable to farmers. The seed replacement rate, or the percentage of area using certified quality seeds rather than the farm saved seed, is set to increase up to 30 percent for cereal crops and over 90 percent for vegetables.

However, there is a lack of financing from formal sources across agricultural value chains, which led the country to mandate that banks allocate 10 percent of their lending – around NPR 1.3 billion ($12.7 million) – to agriculture in 2017.

A value chain is the full set of activities businesses go through to bring a product or service from conception to delivery, in agriculture, this could involve everything from the development of plant genetic material to selling the final crop at market.

Value chain finance refers to financial products and services that flow to or through any point in a value chain that enables investments that increase actors’ returns, as well as the growth and competitiveness of the chain. This could dramatically improve Nepal’s seed sector by giving farmers, seed companies and banks access to more resources to grow.

In fact, if banks financed just 30 percent of seed company working capital, it would give an extra $2 million to invest in research and development activities, such as variety development, quality improvement, maintenance breeding and other vital functions that are currently not carried out by Nepali seed companies. These funds could also be invested in infrastructure development such as storage and seed processing facilities.

Participants concluded at a recent consultative meeting on financing seed business in Nepal that soft loans – loans that have lenient terms like low interest rates or extended grace periods – to seed companies that charge a government-mandated 5 percent interest rate are an ideal way to provide this extra working capital. The commercial banks offering these loans would benefit by reaching more farmers, thereby expanding their customer base and would reach the government-mandated agricultural financing target.

The Nepal Seed and Fertilizer (NSAF) project provided a platform to banks and seed companies to share information and identify business opportunities to support NSAF’s seed system development approach during the meeting. Nearly 40 participants from national banks, seed companies and other governmental and non-governmental organizations participated.

Dyutiman Choudhary, NSAF coordinator, shared the overall seed system development approach of NSAF and the role of finance in seed business. An overview of successful cases and models of bank-seed company partnerships adopted in Asia and Africa was also given.

Banks requested additional information about risks in the seed business and sought guidance to assess and reduce risks associated to their loans. It was agreed that value chain finance through three-party agreements between banks, farmers and seed companies could be a viable approach that could be initiated immediately.

“Through this sort of agreement, seed companies guarantee they will purchase seeds from farmers,” said the Seed Entrepreneurs Association of Nepal Chair. “This guarantees a market for seed, minimizing the risk of market failure for banks.”

Four national banks so far have shown interest in partnering with the NSAF seed companies to finance seed production with soft loans. A proposed working group comprised of banks, seed companies and the Government of Nepal will provide strategic direction to finance seed business. NSAF will lead the working group to guide strategic decisions on financing seed business by sharing evidence based information, providing a common platform and catalyzing innovations to ease access to finance by seed companies.

The Nepal Seed and Fertilizer project (NSAF) is funded by the United States Agency for International Development and led by the International Maize and Wheat Improvement Center in collaboration with Nepal’s Ministry of Agricultural Development and private sector. Learn more about NSAF through this infographic and fact sheet from the U.S. government’s Feed the Future initiative.