1 Nepal CFSAM Mission 2007 The information contained in here are only fresh observations by the mission. The mission has no intention to present any official findings and recommendations at this stage. Analysis is ongoing and the final report will be issued in a few weeks time. WFP analysis is ongoing and not covered in this presentation. Objectives Methodology Appraise the Crop and Food supply for 2006/07 crop year Assess the food security and agriculture situation Recommendations on recovery and rehabilitation Consultations with relevant stakeholders Secondary data collection and review First hand information collection. The mission is in country between March 19 and April 7 and visited all 5 development regions and the 3 ecological zones Economic and statistical analysis Disclaimer

2 Nepal CFSAM Mission 2007 CFSAM Mission Itinerary

3 Production Crop Year 2006/07 Fresh Observations Confirmed crop losses due to drought and flood reported on rice, maize and millet by MoAC in 2006 Prospect of winter wheat and spring rice is good due to adequate rainfall. However, pockets in west and far-west, in particular Bajura, Dailekh and Jajarkot districts identified as having lower than average production on wheat Pests and diseases generally remained low Use of fertilizer was average compared to previous years for cereal crops, particularly in the Terai

Response to Flood and Drought Fresh Observations Response to drought-affected population, particularly in the Mid-West, Far-West and Eastern regions have been insufficient. Increased migration to India was reported in worst affected areas of Saptari and Siraha in the Eastern region Food insecurity in Mid-west, Far-west and some districts in Eastern regions remains of high concern The mission is concerned about the malnutrition in some pocket areas in Mid-west and Far-west

5 Agriculture Input Fresh Observations Some farmers have planted their own wheat seeds this winter due to a shortfall in quality seed supply Quantity of the cereal seed supply in general (farmer to farmer exchange) is considered to be sufficient for 2007/08 crop years Fertilizer use remains very low even by South Asian standards, due inter alia to insecure access to water, poor irrigation and flood management infrastructures and limited rural credit

6 Five Years Production Trends Fresh Observations Cereal and pulse production growth has remained frustratingly below population growth over the past 5 years. Cereal yields are low by regional standards If this trend continues, serious incidence on the overall food security of Nepal is to be anticipated. Reasons are: Low investment in the agriculture sector in the past years Limited access by agricultural professionals to rural areas due to the conflict Lack of progress in irrigation and flood management infrastructures Cash crops have increased significantly and well above population growth over the past 5 years. Highest growth is reported in vegetable, potato and fruits sectors. Yet, cash crops still represent a small proportion of the total cultivated land Urgency in the Agriculture Sector

7 POSSIBLE INTERVENTIONS No Emergency but Urgency POSSIBLE INTERVENTIONS FOR QUICK IMPACT: Rehabilitate farmers’ managed irrigation systems: to reduce vulnerability to drought and flood and low productivity Improve emergency preparedness including micro-irrigation equipments: to increase resilience to floods, hailstorms, landslides and droughts Promote adequate wheat seeds storage at household level: to increase household capacity to store wheat seeds during monsoon storage Support cash crop development through marketing/value chain approaches: to increase poor household income

8 POSSIBLE INTERVENTIONS No Emergency but Urgency POSSIBLE MID TERM INTERVENTIONS: Increase investment in the agriculture sector: to prevent Nepal experiencing nationwide food insecurity Strengthen the coordination mechanism among relevant stakeholders: to boost necessary support to the agriculture sector Upgrade community seed producers to “village seed enterprises”: to insure supply and distribution of quality seeds based Upgrade wholesale agriculture market infrastructures: to remove constraints on cash crops marketing Upgrade in-country research and seed multiplication for maize, soybean and vegetables: to stimulate growth

9 POSSIBLE INTERVENTIONS No Emergency but Urgency POSSIBLE LONG TERM INTERVENTIONS: Agriculture development strategies should exploit Nepal broad range of agro- ecological zones and proximity to vast regional markets : The Terai: tropical fruits, vegetables, oilseeds and cereals The Hills : off-season vegetables, fruits (citrus), tea, coffee, spices, medicinal plants/herbs and seed production The Mountains animal production, livestock products, temperate fruits, nuts and medicinal plants/herbs South-North road corridors to create outlet for cash crops: improve road and market connectivity of various agro-ecological zones Irrigation and flood management infrastructures: reduce vulnerability, increase crop intensity, diversity and yield and ultimately reduce poverty