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Positioning Nepal as a future seed production hub in South Asia

MoU signing event between Nepal and Bangladesh seed companies (Photo: Sirish Shrestha/CIMMYT)

In August 2024, four Nepalese seed companies and six international seed companies from India, Bangladesh, Japan and Thailand signed a memorandum of understanding (MoU) for custom seed production of cereals and vegetables in Nepal, opening up game-changing economic opportunities in South Asia. This agreement will allow international seed companies to produce seed in a suitable agroecology in Nepal and export to international markets. To support this, the Government of Nepal has agreed to exempt variety registration for export-oriented custom seed production and expedite the process with added incentives to attract more international seed companies. This move aims to position Nepal as a future regional seed production hub. 

The signing of the MoU was the pinnacle of an international seed conference organized by CIMMYT in collaboration with Seed Quality Control Center (SQCC), the Nepal Agricultural Research Council (NARC), and Seed Entrepreneurs Association of Nepal (SEAN) in Kathmandu from August 22-24, 2024, focusing on innovation, partnership, and policy.  

The conference attracted over 150 participants from 11 countries, including Bangladesh, Ethiopia, India, Japan, Kenya, Nepal, Pakistan, Singapore, Switzerland, Thailand, and the USA, representing research centers, civil society organizations, private seed companies, and national agricultural research systems (NARS). The event was organized under the USAID’s Nepal Seed and Fertilizer (NSAF) project which aims to foster Nepal’s seed market systems through the enhancement of stakeholders’ capacity in seed research, quality seed production, as well as the creation of an enabling environment that links seed companies with input and output markets. 

Enhancing seed market systems in South Asia  

The MoU is expected to enhance the seed market system in the region, create new economic opportunities for Nepal, boost agricultural exports, and generate income for farmers. It will also facilitate the transfer of advanced seed technology and foster stronger partnerships between seed companies in the region and beyond. Mr. M Anis Ud Dowla, Board Chairman of Advanced Chemical Industries (ACI) Limited, one of the largest business conglomerates in Bangladesh, expressed optimism about the partnership, citing Nepal’s favorable conditions for producing seeds of cool-season crops and the potential benefits for farmers in Nepal and Bangladesh.  

In addition, ACI signed MoUs with Gorkha Seed Company and SEAN Seed Service Center, for the production of cereals and vegetable seeds, demonstrating growing confidence in Nepal’s seed sector where CIMMYT and its partners played a key role to enhance the capacity of the seed stakeholders for the past several years. “About 10 or 12 years ago, I had the opportunity to interact with the seed stakeholders in Nepal and at that time the seed sector was not viable, and the role of the private sector was insignificant. Now, I am impressed to see such seed sector transformation initiatives in Nepal,” says Manesh Patel, President of Asia and Pacific Seed Association (APSA) while acknowledging the effort made by CIMMYT and other seed stakeholders. He added that “it is time for Nepalese private seed companies to become a member of APSA to leverage regional opportunities.” 

Untapped potential 

Nepal’s diverse agroecology, encompassing tropical, subtropical, and temperate environments, provides an ideal condition for seed production of cereals, fruits, and vegetables. However, this potential remains largely untapped due to limitations within the country’s formal seed sector. The informal system dominates, leaving farmers with insufficient access to quality seeds. In 2023, the formal sector only met 25% of the total 180,000 metric ton requirement for cereal seeds. Consequently, Nepal heavily relies on imported seeds, particularly hybrid varieties of rice and maize, costing nearly half a billion dollars annually when accounting for both cereal seeds and grain imports. 

Several factors hinder the development of Nepal’s seed sector: limited availability of high-yielding varieties that are tolerant to major biotic and abiotic stresses; a lack of farmer awareness regarding quality certified seeds and modern technologies; inadequate infrastructure for improved storage and road access; vulnerability to climate change impacts; insufficient incentives for private sector investment; and limited human and institutional capacity across the seed value chain. 

To tackle these challenges and seize opportunities, the Government of Nepal has outlined key interventions through the National Seed Policy, National Seed Vision, and Agricultural Development Strategy (ADS). These policies aim to create seed roadmaps and foster an enabling environment to attract private sector participation. Recently, the government of Nepal approved the issuance of research and development licenses to private seed companies, allowing them to develop and deploy new seed varieties. Collaborative efforts by the Nepal Agricultural Research Council (NARC), Seed Quality Control Center (SQCC), and CIMMYT under the USAID-supported Nepal Seed and Fertilizer (NSAF) project are also leading to local seed companies producing hybrid seeds for rice, maize, and vegetables across various districts. However, this is at budding stage, and it needs to be scaled up further. 

The nexus of seed security and resilient agrifood systems  

The interplay between seed security and resilient agrifood systems is crucial for enhancing food security, particularly amidst climate change and global challenges. This relationship underscores the importance of robust seed systems that can adapt to various stresses while ensuring sustainable food production. “Seed systems are complex networks involving farmers, seed companies, service providers, and authorities, all working together to ensure high-yielding and resilient seeds reach farmers’ fields as quickly as possible,” said Bram Govaerts, Director General of CIMMYT, while addressing conference participants. He further emphasized that demand-oriented and effective seed systems help to harness the benefits of crop improvement.  

The conference brought together prominent figures from South Asia and beyond, who shared their insights. “A well-functioning seed system guarantees seed security for all farmers,” noted BM Prasanna, Director of the Global Maize Program at CIMMYT, during his keynote address. He highlighted the critical nexus between seed security and resilient agrifood systems, emphasizing the need for technical, organizational, and institutional innovations. Prasanna also called for continuous public-private-producer collaboration to develop and strengthen seed systems in the global south.  

Linking global and regional seed industry practices to fit into local conditions  

The Hon. Minister of Agriculture and Livestock Development of Nepal, Ram Nath Adhikari, inaugurated the conference, welcoming delegates and emphasizing the event’s significance to Nepal’s agricultural sector. Benu Prasad Prasai, Chief of SQCC, shared emerging trends in Nepal’s seed industry, highlighting efforts to engage the private sector and reduce seed import dependency. “We need to harmonize and link seed policies across South Asia and beyond to fully capture the benefits of plant breeding gains,” said Prasai, while emphasizing Nepal’s potential for seed business and investment. Dyutiman Choudhary, NSAF project lead, echoed these sentiments, emphasizing the importance of international and regional partnerships in developing a vibrant seed market. He highlighted the need for enabling seed policies and regulations that facilitate market system development.  

The discussions resulted in high-level recommendations to further augment Nepal’s seed sector: strengthening public-private partnerships in research and development to transform Nepal’s seed industry into a viable, resilient, and sustainable seed system; collaboration with foreign counterparts for joint research and technology exchange is vital to strengthening Nepal’s seed R&D and promoting custom seed production; legal frameworks must be developed and executed to create an enabling environment that strengthens public and private sector seed R&D efforts. 

Panel discussion on creating an enabling environment for private sector engagement in seed and varietal R&D (Photo: Sirish Shrestha/CIMMYT)
Official opening session of the International Seed Conference in Nepal (Photo: Deepa Woli/CIMMYT).

Nane Nane fair in Tanzania showcases agricultural innovation and collaboration

Partners at the AID-I exhibition booth (Photo: CIMMYT)

In Tanzania, the first week of August is all about agriculture. From August 1 to 8, agricultural fairs, also known as Nane Nane fairs, are held all over the country to recognize the contribution of farmers to the national economy. ‘Nane Nane’ in the local language means ‘eight eight,’ referring to August 8, which is celebrated as Farmers Day in the country.

Organized by the Agricultural Society of Tanzania, these fairs serve as a landmark event for agricultural stakeholders across the region. This year, the 31st edition of the fair was organized at the Nzuguni grounds in Dodoma. It saw 500 exhibitors, including smallholder farmers, agricultural enterprises, public and private sector entities, and government officials.

Themed ‘Embrace Visionary Leadership for Agricultural Transformation,’ the event emphasized the need for leadership commitment to sustainable agriculture, while highlighting the critical role of agriculture in Tanzania’s economic growth and food security.

The Southern Africa Accelerated Innovation Delivery Initiative (AID-I), funded by United States Agency for International Development (USAID) and implemented by CIMMYT, along with several partners, played a prominent role at this year’s fair. In addition to raising awareness of the innovative work being done, the fair provided a platform for AID-I and its partners to showcase a range of innovative agricultural technologies designed to address the specific needs of Tanzanian farmers. The event also enabled AID-I and its partners to interact directly with farmers and entrepreneurs, resulting in valuable feedback. 

Celebrating the Success of AID-I Beneficiaries at Nane Nane

 

The Nane Nane fair was more than just a display of agricultural technologies. It was also a celebration of the successes of local entrepreneurs who had benefited from AID-I’s support.

Among them was Sarah Mashauri, an entrepreneur from the Tabora region, who ventured into the business world by producing and selling maize flour, both wholesale and retail. Starting with only one sack of maize and a loan of 100,000 Tanzanian shillings (approximately US$36), Sarah faced numerous obstacles, including regulatory challenges that resulted in the Tanzania Food and Drugs Authority confiscating her items. The AID-I project recognized her potential and resilience. She was equipped with a milling and dehulling machine, which significantly improved her business. “Before the AID-I project came into my life, I was struggling on my own,” she said. “The support, coupled with the extensive training they provided, enabled me to scale up my operations. I went from employing seven people to 35, and my business expanded significantly. I am now able to source raw materials easily from small-scale farmers, thanks to the networks and training provided by AID-I.”

Agatha Laiza, managing director of Seasoning Palate, a food products company operating under the brand name Tobi Product in Dar es Salaam, is another entrepreneur who benefited from AID-I’s support. Agatha specializes in peanut butter, crunchy nuts, and peanut oil. Her journey began in 1996 with a focus on food product processing. She later realized the potential in peanut production and shifted to adding value to peanuts, while also addressing the critical issue of aflatoxin contamination. With support from AID-I, Agatha was able to build solar dryers for farmers and provide them with high-quality seeds, significantly reducing the risk of aflatoxin in their crops. “The support from USAID, CIMMYT, and AID-I has been invaluable,” Agatha said. “They have helped us build confidence among our farmers, reducing ground nut loss and ensuring safe, quality produce. Our factory, which can process up to three tons of peanuts daily, now operates more efficiently and our products are safer and more reliable.”

Aithan Chaula, executive director of the Dodoma Agriculture Seed Production Association (DASPA), also benefited from the AID-I project’s support. Since beginning pigeon pea production in 2022, DASPA saw substantial growth in demand for pigeon pea seeds, partnering with ALSSEM, a local seed production company.

DASPA expanded its operations to produce quality declared seeds (QDS) and certified seeds, catering to a growing market. Aithan attributed their success to the strategic support from AID-I and partnerships with organizations such as CIMMYT and ALSSEM. “The collaboration allowed us to expand our production capabilities and reach more farmers across various regions,” he said. DASPA is currently working with approximately 20,000 farmers and plans to increase this number by distributing small seed packs and conducting field demonstrations.

“This year at Nane Nane, we were able to distribute small packs of pigeon pea seeds to approximately 1,200 farmers to plant and farm,” said Aithan. “This effort, supported by AID-I, ensures that pigeon pea cultivation becomes well-known and widely adopted by farmers, contributing to both food security and income generation.”

The U.SA Ambassador to Tanzania interacting with exhibitors at the AID-I exhibition booth (Photo: CIMMYT)

Dr. Michael A. Battle Sr., the United States Ambassador to Tanzania, paid a visit to the AID-I exhibition booth. He engaged with AID-I representatives and the exhibitors, praising their innovative efforts to advance climate-smart agriculture and enhance food security. “It’s a joy to be participating in Nane Nane, particularly because USAID is interested in assisting Tanzania not only to become food secure but also to help with East Africa’s food security and ultimately the continent’s food security,” said Ambassador Battle Sr. He added that it was fulfilling to see the entire value chain of agriculture and agribusiness involving young people and old people engaged in the process of making Tanzania wealthier and more food secure.

For AID-I and its partners, the fair was a crucial opportunity to highlight ongoing initiatives and foster new partnerships. Peter Setimela, the Legume Seed Systems lead for AID-I, emphasized the importance of such events. “Our work in accelerating innovative technologies and ensuring they reach the farmers is reliant on strong partnerships. We bring these technologies to farmers by strengthening local seed systems, connecting farmers to financial services and products, and providing advisory services,” he said.

Enhancing partnerships for agricultural development

Annual AID-I meeting participants gather for a group photo. (Photo:Christabel Chabwela)

Implementing partners of the Southern Africa Accelerated Innovation Delivery Initiative (AID-I) project, or MasAgro Africa, converged in Arusha, Tanzania, for the project’s first annual review and planning meeting. The event, which brought together 58 participants from 28 allied organizations coordinating and implementing activities as part of the flagship USAID-funded initiative, provided an opportunity to review progress towards targets set at the project launch in September 2022. During the event, partners also took time to collaboratively plan for stronger implementation in the project’s second year, while discussing challenges faced in the previous year and coming up with practical solutions for these. Similar planning meetings took place in Malawi and Zambia during the same month.

Speaking during the meeting’s opening session, USAID Tanzania Mission Feed the Future Coordinator Melanie Edwards expressed excitement about the achievements of in-country partners in the past year. “The Tanzania component of the project was performing very well,” she said, “and it was exciting to see the proposals coming, meaning that the number of partners was expanding.” Edwards noted that there is still a lot more to be done by the AID-I project and a call for new partner proposals was going to be issued soon to augment ongoing work. She also emphasized the importance of expanding the number of partners and was eager to see planned activities for the second year of the project.

Speaking on behalf of the Government of Tanzania—a key partner in the AID-I initiative—Abel Mtembenji outlined the government’s priorities: increasing productivity, creating decent jobs, enhancing extension services, improving resilience for food security, and expanding market and credit access. Mtembenji was pleased that AID-I interventions aligned with these and encouraged stakeholders to coordinate their efforts with the Tanzanian government to enhance the sustainability of project activities. He further encouraged stakeholders to notify the government of their initiatives to foster collaboration during implementation. Mtembenji recognized the support from USAID, through CIMMYT and thanked all partners for their participation and contribution to agricultural development in Tanzania.

Showcasing early successes

The AID-I initiative provides targeted assistance to up to three million African smallholder farmers by improving soil health and fertilizer management; strengthening local seed systems; connecting to financial products and services; and delivering extension and advisory services. An update presentation made by SAS Program Manager Grace Mwai revealed that through its 42 partners across Malawi, Tanzania, and Zambia, AID-I had in the past 12 months set up 125 mega-demonstrations for the 2022-2023 season. Forty-two of these were managed by farmer groups themselves, with 60% managed by women.

Across all three project countries, AID-I also reached approximately 5.3 million farmers with various agronomic advisory messages through radio and television, 160,000 listeners through interactive voice response (IVR) messages. Over 9,000 farmers were linked to inputs and outputs markets, of which 40% were women. Mwai added that the project had also conducted 5,143 seed company demonstrations—of which 2,400 took place in Tanzania—and had harvested and processed 13,000 metric tons of certified maize and legume seed, which was expected to directly benefit around one million smallholder farmers across the hub.

Partners demonstrate seed packages to meeting participants. (Photo: Christabel Chabwela)

To highlight achievements from the first project year, partners showcased their products through posters and display items like seed packets during a structured session based on the World Café method. This activity allowed participants to interact and ask questions about various innovations being scaled under AID-I. More than ten partners displayed their products, and all participants at the meeting were given 15 minutes to visit other tables and share how many tons of seed they had produced and how many farmers they could reach during the season.

On the second day of the meeting, partners organized themselves into three small groups based on the three AID-I pillars—Seed Systems, Agriculture Advisories, and Market Linkages—to discuss forthcoming activities and what they hoped to do better in the coming season. The meeting concluded with discussions on issues including financial reporting, establishing and nurturing collaborations, and leveraging technology for improved project outcomes. During his closing remarks, Legume and Seed Systems Specialist under AID-I, Peter Setimela, emphasized the importance of timely proposal submission for the second year.

Afriseed: How improved legume seed can help transform Zambia’s agrifood systems

Certified soyabean seed from Afriseed. (Photo: AFRI archives)

In Zambia, smallholder farmers obtain their seed from a variety of sources. Over 75 percent of farmers in Zambia have adopted certified maize seed and about 30 percent in southern Africa, overall. The private sector has been instrumental in creating demand for certified and timely delivery of seed to remote areas, and the Government of Zambia’s Farmer Input Support Programme (FISP) has largely contributed to better accessibility to certified seed for farmers. In 2022–2023, of the three million registered smallholder farmers in Zambia, more than one million accessed certified seed through FISP.

Afriseed is a seed company in Zambia that has been gaining ground in local seed markets. It has emerged as a catalyst for helping smallholder farmers transition to new, high-yielding legume varieties. Afriseed provides solutions to help smallholders increase their agricultural productivity with improved seed varieties of cereals and legumes and assist them with technology transfer. The company aims to increase the food security and incomes of Zambia’s smallholder farming community, which accounts for 90 percent of agricultural output in the country. During the 2022–2023 farming season, a critical turning point was reached when Afriseed became a partner in the Southern Africa Accelerated Innovation Delivery Initiative (AID-I) Rapid Delivery Hub, or MasAgro Africa, a two-year project under CIMMYT, with the aim of scaling-up production of certified seed varieties of soybean and common bean.

Under the partnership, Afriseed promotes the cultivation of improved legume seed through a smallholder farmer seed multiplication approach. By engaging with practicing smallholder farmers and signing grower contracts, basic seeds are multiplied into certified seed for soybean and common bean. Certified seed is a known variety produced under strict seed certification standards to support varietal purity. In collaboration with the Seed Control and Certification Institute (SCCI), the country’s national seed authority, contracted farmers received training on climate-smart agricultural techniques and seed production guidelines. Through extension services to seed growers, smallholder farmers can adhere to the seed production guidelines set out in the National Seed Act to ensure the quality of certified seed produced.

Smallholder farmers hold improved, certified seed. (Photo: AFRI archives)

Afriseed has invested more than USD 335,000 toward supporting the production, aggregation, and processing of 317 t of certified climate-smart legume seeds—265 metric tonnes (MT) for soybean and 52 MT for common bean. Data have shown that the seeds were aggregated from 313 smallholder seed growers, 40 percent of whom were women, in Zambia’s Eastern Muchinga, Copperbelt and the Northern provinces. Seed aggregation improves access to quality seed varieties, increases crop yields and incomes, enhances integration into value chains, and creates market links for smallholder farmers.

Notable progress has been made with the contracted farmers, who have applied improved crop management practices and technologies on more than 600 ha of land to produce the seed. With this encouraging progress, Afriseed intends to scale up its last-mile seed distribution strategy to reach and directly help an estimated 35,000 underserved rural smallholder farming households with improved legume seeds in the 2023–2024 cropping season.

AID-I is one of the ways in which Feed the Future, the U.S. Government’s global food security and hunger initiative led by USAID, is taking immediate action to help cushion the blow of high fuel and fertilizer prices on farmers. One of the project’s initial actions is to strengthen local seed systems so that agribusinesses can reach smallholder farmers with a diversity of improved seeds varieties, including climate-resilient and more nutritious varieties for maize and legumes.