CONCEPT NOTE SUPPORT FOR THE MECHANISATION OF RICE PRODUCTION

INTRODUCTION MoFA policies, (FASDEP II & METASIP) Strategies to modernise agricultural sector through – mechanisation – income diversification Targets - poor and risk prone and risk- averse producers.

INTRODUCTION CON’TD  Rice - one of the selected commodities.  Targets ◦ 80 % small scale rice farmers and ◦ 20% emergent commercial rice farmers (METASIP & NRDS).

INTRODUCTION CON’TD Rice sector specific objectives: – Improving the capacity of local rice industry to compete with imported rice in terms of price and quality. – Increasing the market share of local rice as against imported rice – Establish strategic stocks in rice.

INTRODUCTION CON’TD Interventions Proposed (METASIP) Assist Private Sector to set-up commercially viable Agricultural Mechanization Services Enterprise Centres (AMSECs) at strategic locations. Purpose: enhancing farmers and agro- processors accessibility to mechanise services at affordable cost

JUSTIFICATION Raise the self-sufficiency – 35% to about 75% by 2015 – agricultural mechanisation seen as one of the vehicles. average age of tractors in use - 15 years. Most farming districts and communities do not have access to agricultural machinery for all stages of crop production.

JUSTIFICATION CON’TD  The current high level of farm losses of produce(30%) - partly attributable to limited and untimely availability of agricultural machines  farm power relies overwhelmingly on human muscle power (hoe and other hand tools).  Hence ◦ Serious limitations on amount of land cultivated per family ◦ Reduces and limits the effectiveness of essential farm operations thereby reducing crop yields.

JUSTIFICATION CON’TD large scale investment in agricultural mechanisation services medium to large commercial farmers. Few tractor hire schemes meant for small scale farmers not effectively utilised The way forward – ensure availability of appropriate equipment through private distributors and service providers

JUSTIFICATION CON’TD – Ministry’s Accelerated Agricultural Mechanisation policy - 5,000 tractors ( 30-50kW) made available to farmers and other private sector operators. – Use of KR2 (Japanese grant) to support underprivileged rice farmers’ – This Concept Note seeks to offer options for a large scale replication of the Scheme.

POTENTIAL INTERVENTION ZONES AND TARGET GROUPS Zones  By growing systems ◦ irrigated, rainfed-lowland and upland,  Potentially high rice producing districts Targeted groups  farmers, machine fabricators and repairers, processors and millers, traders, transporters (haulers), local researches  Beneficiaries with high willingness and commitment

OBJECTIVES - Main Objective To accelerate modernisation and commercialisation of rice production through expanded use of mechanisation services

Specific Objectives 1.To enhance the use of agricultural machinery to improve the timeliness and efficiency of farm operations to commercialise rice production. 2.To provide support for private sector led entrepreneurship and investment in agricultural machinery management, maintenance, and service provision. 3.Build capacity of experts and technicians for improved operations and maintenance of agricultural machinery.

COMPONENTS & OUTPUTS COMPONENTSOUTPUTS 1. Enhancing Agricultural Machinery Usage 1.1Private sector to own agricultural machinery plant pools collaborated with. 1.2 Mechanism for the 20% large scale actors along the value chain to acquire or lease agricultural machinery subsidies and credit facilitated.

COMPONENTS & OUTPUTS COMPONENTSOUTPUTS 2. Equipment Maintenance and Management 2.1 Maintenance cycles for sets of equipment drawn and operated 2.2 Capacity of specialised garages to maintain the machinery identified and built.

COMPONENTS & OUTPUTS COMPONENTSOUTPUTS 3. Capacity Building and Farm Power R & D 3.1. Academic and research institutions to run short courses in agricultural machinery (assembling, fabrication and maintenance) supported Capacity of RTIU of AESD to develop extension dissemination modules of R & D findings strengthened.

COMPONENTS & OUTPUTS COMPONENTSOUTPUTS 4. Artisanal Development and Fabrication of Machinery and Parts 4.1. Capacity of local artisans and entrepreneurs to manage the assembling/fabrication plants built 4.2 Experts to collaborate with relevant manufacturers to develop machinery prototypes in joint efforts trained. 4.3 Design modifications in machinery prototypes to reduce the local manufacturing and production costs incorporated

ACTIVITIES Facilitate fabricators' access to credit to establish/expand machinery pools Ensuring that assembling/fabrication centres are appropriated sited Generate commercial demand for the locally produced prototypes through promotional activities and demonstrations through Fairs and exhibitions.

ACTIVITIES CON’TD Build capacity of fabricators in the manufacture of appropriate machinery and equipment for the rice sector Identify rice machinery operators and mechanics for training Conduct training-needs assessment and develop training modules

ACTIVITIES CON’TD Train selected mechanics on maintenance of machinery like tractor, power tillers, pumps, mills, threshers, par-boilers, cleaners etc. Set up a collaborative mechanism with the engineering faculties of relevant institutions for research and training. Organise scheduled in-service training for MoFA staff on the use of agricultural machinery.

COSTING AND FINANCING Estimated Amount needed - $100m

IMPLEMENTATION STRATEGY OF THE PROJECT  Typical PPP arrangement  Government initiates & facilitates importation of the machines  Private sector entrepreneurs acquire and operate as business enterprise.  Oversight committee set up to ensure commitment of repayment  Committee composition - representatives of MoFA, Financial Institution, Mechanised Services Centres, Farmer Representatives and District Assembly.

PROJECT ORGANISATION AND MANAGEMENT Execution led by MoFA through – steering committee national level. District level. Committees co-chaired by – Ministry Rep and – Private sector Rep.

MONITORING AND EVALUATION  M & E system designed for the project. ◦ data required to be collected defined ◦ Indicators outlined  logical framework

RISKS  Inflation and lending rate  Effects of Climate change & disasters  Lack of factors such as ◦ improved seeds, rainfall, GAP  Inability to fabricate or stock back up parts  Government inability to source enough funds

THANK YOU AMEN & AMEN