Enhancing SPS capacity of ginger exports through a Public-Private Partnership in Nepal

Start Date 
07/06/2012
End Date 
06/09/2015

Enhancing SPS capacity of ginger exports through a Public-Private Partnership in Nepal

The project aims to raise incomes of ginger-producing households in Eastern Nepal by improving the quality of ginger, increasing capacity to comply with SPS requirements and enhancing market access. The project encompasses a series of interventions, based on a value chain approach, involving stakeholders from ginger farmers, collectors, traders, cooperatives and ginger producer/trader associations, as well as local government departments responsible for extension and training, and central government departments responsible for demonstrating compliance with the SPS requirements of trading partners.

Background 

The 2010 Nepal Trade Integration Strategy identified the ginger value chain as a priority for trade and poverty reduction. Ginger is widely cultivated by a large number of poor small-scale farmers including many women-headed households and people with few, if any, other income opportunities.

The project was developed through an STDF Project Preparation Grant (STDF/PPG/329) and public and private sector participants attending an STDF/EIF project design training workshop in Kathmandu in March 2011 contributed to the development of the project's logical framework. It is co-funded by the STDF and Enhanced Integrated Framework (EIF). The STDF component focuses on SPS capacity building, analysis of SPS requirements in existing and potential markets, and support on SPS regulatory aspects. The EIF component focuses on the construction and operation of a ginger washing/processing facility, and provision of processing equipment, high-quality ginger rhizomes and agricultural inputs.

This project is a good example of a public-private sector approach to value chain development. The Nepal Ginger Producers and Traders Association (NGTPA) provided the land on which the ginger washing/processing facilities are being built. Stakeholders from both the public and private sector – notably the Department of Food Technology and Quality Control (DFTQC) and National Plant Protection Organization in the Ministry of Agricultural Development, the Agro-Enterprise Centre (AEC) of the Nepalese Federation of Chambers of Commerce and Industry (NFCCI) and the Ministry of Commerce and Supplies – are actively involved in implementation.

Expected Results 

This project aims to increase incomes of small-scale farmers in the ginger value chain by building SPS capacity and adding value to ginger exports. Some 2,000 small farmers are expected to be involved in, and to directly benefit from the project. Projected benefits include increased gross margin income (of between 25 and 30%) on ginger sales for beneficiaries, some two thirds of whom will be women, and increased market access. The following outputs are expected from the project:

Ginger washing/processing facility is constructed and operational

A ginger washing/processing facility is being constructed – following an open and competitive tender process – in Jhapa on land provided by the NGTPA. Related support is being provided to develop a business plan for the facility to ensure its effective operation and management. The new facility is expected to serve up to 4,000 households in the districts covered by the project in Eastern Nepal.

Enhanced safety and quality of ginger for export through improved knowledge and skills on Good Agricultural Practices (GAPs) and post-harvest handling, and access to better quality ginger rhizomes

Under the project a number of training materials are being developed addressing GAPs, post-harvesting handling and other techniques to improve safety and quality. Master trainers from both the private sector and government authorities are being trained to disseminate new knowledge and skills to some 2,000 farmers based on FAO's farmer field school approach. The trained farmers will in turn deliver follow-up field training to other farmers in their districts. Demonstration ginger plots are being established to enable participating farmers to learn about and see the results of good practices in ginger cultivation. Women are expected to account for some 60% of trainees. Better quality ginger rhizomes are also being procured to improve the quality and marketability of the ginger produced.

Study on regional and international markets for fresh and processed Nepalese ginger, and SPS market requirements

A market study is being carried out to identify and analyse SPS requirements in existing and potential export markets (e.g. India, Bangladesh, Iran, Middle East, EU, and USA, etc.) for fresh and processed Nepalese ginger.

Improved capacity of Nepalese government to negotiate and demonstrate compliance with SPS import requirements of trading partners

Bilateral meetings and contacts between Nepalese government authorities and their Indian government counterparts are planned to discuss and agree on SPS requirements for fresh ginger exports to India.

Recommendations 

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Reference Number 
STDF/PG/329
Status 
Completed
Project Value (US$) 
1,262,144
STDF Contribution (US$)  
462,144
Beneficiaries 
Nepal
Implementing Entities 
Food and Agriculture Organization of the United Nations (FAO)
Partners 
Agro-Enterprise Centre, Nepal
Federation of Nepalese Chamber of Commerce and Industry, Nepal
Ministry of Agricultural Development, Nepal
Ministry of Commerce and Supplies, Nepal