It is good to note that many innovative programs have been introduced to involve youth in agriculture in the recent times. Examples of such programs are competitive grant programs for wider participation, agricultural insurance for minimizing risks and distribution of subsidized inputs including agricultural credit. Not only are programs diversified and innovative, but the budget allocation has also increased. For instance, budget allocation for agriculture was about Rs 3 billion in 2004/2005, whereas it is now Rs 26 billion. But the implementation capacity of the Ministry of Agriculture Development (MOAD) and departments under it is still weak.This year, the ministry is mobilizing a large amount of grant for targeted group of farmers. Currently, the total grant in agriculture sector stands at more than Rs 15 billion, including all grants to be distributed through different projects. In order to deliver the grant effectively to target groups of farmers, the Department of Agriculture (DoA) was planning to distribute Kisan Card (identity card for farmers) from last fiscal year in five select districts: Dadeldhura, Banke, Baglung, Bara and Dhankuta. But this could not happen.
According to the Kisan Card Distribution Guidelines 2015, farmers are classified as 'general' or 'commercial' farmers, with different sub-groups within them. The general category includes farmers classified according to their ownership of land and livestock, and incorporates landless farmers. The commercial category, on the other hand, also looks into the investment capacity of farmers.
In a country like Nepal where 3,831,000 households are farming households, the majority of them small and resource constrained, the task of classifying farmers is complicated. It may need thousands of trained and politically unbiased field staff, which the departments under the ministry currently lack.
Besides, the National Agricultural Research and Development Fund (NARDF), as well as many projects implemented after 2007, are implementing their programs in the Competitive Grant System (CGS) approach. The CGS approach has been effective only in countries where there is effective monitoring and evaluation (M&E). But the capacity of the existing M&E of the ministry and departments under it is, again, very weak.
The government is planning to implement ADS from this fiscal (2015/16). Several new approaches, such as evaluating the role of governance in agriculture development; involving cooperatives and private sector in planning, decision making, and monitoring of the ADS; addressing land issues; establishment and operation of community-based service centers; integration of smallholders with dynamic value chains; promotion of agro-entrepreneurship and competitiveness; emphasis on trade promotion and net exports; among other things, have been included in the programs this year.
The implementation of these programs calls for concerted effort of the state, civil society, and development partners. It cannot be implemented through existing structures and manpower. Hence, prompt steps will have to be taken to strengthen existing structures to meet multi-agency requirements of the program, which the finance minister promised to do in his budget speech. Specifically, ADS will have to rely on combination of existing structures and new organizations. The ADS therefore proposes new mechanisms to improve its implementation. However, the new mechanisms should build upon and complement existing mechanisms.
Good coordination is the basis for effective planning, policy formulation and monitoring. A separate policymaking and analysis unit will, thus, contribute to bridging the gap between policy and implementation. The unit needs to be established at the ministry and it will support the ADS implementation and capacity building of related stakeholders. Subunits will need to be established at National Planning Commission, Ministry of Finance, Ministry of Irrigation, Ministry of Federal Affairs and Local Development, Federation of Nepal Chambers of Commerce and Industries, as well as at the University of Agriculture and Forestry.
The MoAD should be the lead institution and play a pivotal role for national-level coordination. Relevant agencies will network through it. The main departments under it will be the key implementers, in coordination with the relevant non-government/private sector stakeholders. The guiding principle of reorganizing MoAD and related departments, again, is to improve implementation. The restructuring should take into account the division of responsibility between different agencies. The MoAD will be responsible for policy formulation, overall coordination and planning, development of legislative frameworks, and budgetary allocation. The departments will be responsible for implementation and technical backstopping of related sub-sectoral programs.
For agricultural education, there should be agricultural colleges in each federal state. The National Agriculture Research System (NARS) will need to be decentralized and made more responsive to research needs of different clients. Its functions will include formulating agricultural research policies, maintaining international relations and linkages, setting national standards, and coordinating with national and international research institutes and educational organizations. NARC should thus act as the apex institution in national agriculture research.
Agriculture development will entail engagement with a wide range of public, private and civil society stakeholders that include farmers, NGOs, academic and research institutions, businesses, training centers, and media partners. Improving agro-input distribution system and enhancing capacity of local organizations to sustainably plan, implement, and manage agriculture development programs should get top priority. Unfortunately, this is not the case right now.
The author is former Director General at the Department of Agriculture
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