Mainstreaming PRISM Model in IDE Nepal Projects:

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Mainstreaming PRISM Model in IDE Nepal Projects: Advancement from Conceptualization to Action Radhe Shyam Bista IDE International PRISM Workshop Koh Sumui,, Thailand

Introduction Year 2001 when IDE Nepal embarked on a process of delineating, testing and validating the PRISM smallholder market intervention model IDE Nepal is currently implementing ten Projects that incorporate PRISM components such as environment-friendly micro-irrigation, natural resource management, Gender/Socio-cultural strategy, partnership and market access. IDE Nepal is using PRISM as a systematic method for linking smallholders to integrated and expanding agricultural markets.

PRISM Projects IDE Nepal has followed the PRISM model in the ICCCO/Misereor supported MDS project in Eastern and Central Terai districts of Nepal since 2002 and the US AID funded BDS Project in Western Nepal since 2001 With funding of the Dutch government from 2003 IDE Nepal has focused on promoting PRISM approach through Application of innovative methodologies and technologies, New Sub-sector Studies( Coffee, citrus) and M & E System Development IDE Nepal is in the process of developing a comprehensive M & E System and using the analysis and evaluation of on-going projects to revise and refine the design and implementation of the PRISM model.

CAPACITY BUILDING IDE NEPAL has had to build its capacity to implement PRISM projects through three means Recruiting staff with new sets of skills Training existing staff in new skills Teaming with partners who have complementary skills The additional skills needed by IDE are: Agriculture technology Social mobilization Output market development Agro processing Sub-sector analysis/bds market assessment Micro-credit mobilization

PRISM Projects IDE Nepal has teamed up with Winrock International, Agro Enterprise Center, and two national NGOs (CEAPRED and SAPPROS) in implementing a threeyear USAID funded $1.3 million project, the Smallholder Irrigation Market Initiative (SIMI in a seven western and mid western districts within the PRISM framework. Also, IDE Nepal is leading another consortium of five partners including ANSAB, Lotus Holdings, Winrock and WWF in undertaking a three year US AID funded $2.5 million project, Business Development Services for Nepalese High value Commodities and Non-timber Forest products in five terai and hill districts.

Two-Pronged Strategy IDE Nepal is following a two- pronged approach while testing the current model for implementing PRISM according to the primary constraints faced by smallholders in Project areas. One implementation track uses a Water/Land Entry approach, and is based on the familiar IDE focus on the promotion of micro irrigation that has already proven to be successful. The other track is called Opportunistic Entry, and describes situations in which water/irrigation is known to not be a constraint at all. This key limitation varies from situation to situation, and in any one case might be an institutional issue such as lack of market access or credit, or the lack of some other bit of technology or inputs such as seeds or soil nutrients, or just a lack of knowledge of improved agriculture methods on the part of project smallholders.

PRISM Methodology in the project Cycle IDE Nepal has applied PRISM Methods in planning, implementation and monitoring and evaluation cycles of its projects. Sub-sector analysis and BDS market assessment tools and research methods are used in the process of program design and implementation. The focus is on vertical integration of production, inputs, and outputs and concentrating on high value crops where smallholders have an advantage.

Applying PRISM in Planning, Implementation and M& E

Areas of Program Interventions 1. Smallholder Market Development ( Development of Smallholder Production clusters) 2. Input & Output Service Providers Network Development 3. Action Research and Product Development 4.Monitoring, Evaluation and Reporting System Development

Working Areas Selection 1. IDE Nepal has been working with 66 groups in 101 VDCs of Eastern and central terai districts with the support of ICCO and Misereor. The VDCs were selected on the basis of the following criteria: vegetables production potential, water access, market access, high incidence of poverty, market growth potential and large number of smallholders that can benefit

Sub-Sector Approach Program design based on identification and assessment of constraints, business services and interventions for the Year 2003/ 2004 The basic tool used to identify constraints in the input-production-output chain is Sub- Sector Analysis. All IDE staffs were trained on a sub-sector approach to identify constraints and business services for designing and implementing facilitation interventions.

Constraints Analysis Using sub-sector analysis, IDE field staff gathered information on vegetable subsector structure, operation, constraints, opportunities. Process: informant interviews, focus groups, and validation workshops The field staff prepared sub-sector map of each Project district They Identified key constraints at input, onfarm, and output levels using checklist of constraint categories: technology, capacity, finance, policy and infrastructure.

Water Strategy The Treadle Pump and the Water Market Development with the promotion of the Chinese diesel pumps in the Terai. Drip & Micro sprinkler systems and Low-cost Water storage Tanks linked to micro irrigation of highvalue crops in the hills These technologies have met smallholders needs for low entry cost, rapid and high return on investment, low-cost manual operation, easy maintenance & suitability of small farms. Community-based and Community managed hybrid Water supply schemes that supply water for the household use and micro-irrigation of high value crops in the hills

Socio-Cultural Strategy 1. Targeting the women and the disadvantaged groups. In Nepal slightly more than 50% of the population are women and 20% are the so called Dalits. 2. IDE Nepal has developed a strategy to improve the condition of the women and other vulnerable groups through intervention in the following areas where IDE can be effective: a. Water Resources management and technology, b. Transfer of knowledge & skills, c. Market participation, d. access to micro-credit and e. some policy influence

Environment Friendly Approach Promotion of resource-conserving technologies and practices such as IPM, Integrated plant nutrition and soil and water conservation (conservation tillage, mulches, cover crops and plant residue, water conservation and water harvesting) has led to enhancement of the productivity of land and water. Environment friendly micro irrigation and cropping techniques taught and promoted by IDE and its partners have provided strong support for the efficient and sustainable use of natural resources by the local farmers.

Partnership Development IDE Nepal has been collaborating with the business sector, the NGO sector and government sectors at macro, meso and micro levels. IDE Nepal has focused on building collaborative partnership and linkage with governmental and non-governmental organizations and the private sector entrepreneurs in the integrated market development for poverty alleviation. It has been working with multiple institutions that are able to intervene and facilitate in a number of areas (technology, finance, market information, policy and so on) and at multiple levels (input, on-farm and output).

Results of the PRISM Approach in Easter and Central Terai 35 groups comprising 737 smallholder farmers in 26 project VDCs of five Eastern and Central Terai districts made the total net income of US$235377 as against their base line income of US$97013 over the period of 2003-2004. The average farmer made US $ 319 as against base line income of US$ 131. 231 women members from different groups of farmers made a total net income of US $71766 from sale of vegetables during 2003/2004. Average net annual income was US $310 as shown in the following table. Source: Information collected by IDE field staffs on the basis of a random sampling.

Net Income by women members of different groups 231 women members from different groups of farmers made a total net income of US $71766 from sale of vegetables during 2003/2004. Average net annual income was US $310.

PRISM as applied in the BDS/IGP The BDS/IGP project has been implemented in three Terai districts (Rupandehi, Kapilvastu and Nawalparasi) and the two hill districts of Western Nepal In two and half years, the project has reached 7,097 smallhold farmers, and built a value chain of 839 BDS providers. The value chain providers trained and supported by the project thus far include 333 leader farmers, 91 agro-vets, 163 vegetable traders, 224 installers/masons, one treadle pump manufacturer, one drip irrigation assembler, and 25 drip/pump traders.

PRISM Methods in the Western Nepal BDS Project Using methodologies in the PRISM model of subsector analysis and BDS market assessment, IDE Nepal field staffs identified major constraints to high value horticultural production and appropriate services to overcome these constraints. IDE Nepal has facilitated the establishment of a network of private sector entrepreneurs for providing these services to the farmers (i.e. reliable access to quality micro irrigation technologies and agricultural inputs), and sustained access to downstream markets for their products. The cost of providing this access is covered by commercial mark-ups paid for in full by the MSEs.

Impact on Production and Income MSEs sampled in the first two years of project have been monitored since initial project start up. A recent study by HURDEC showed substantial increases in total crop production and sales and average net income among those farmers participating in the project for their first and second years. Total crop sales quantity and volume have increased among this group by well over 100 percent. Net average income among farmers in their first year has risen nearly 50 percent, from $210 to $315. For the more experienced farmers in their second year, gains are even more significant, rising 250 percent from $77 to $269. Crop productivity has risen, in part, due to a change in cropping intensity and cropping practices. Farmers have begun to grow high value vegetables throughout the entire year, from winter to spring and summer seasons.