Nepal Launches $120M IFAD-Backed Farming Programme for 250,000 Farmers

In a major step toward transforming Nepal’s agriculture sector, Deputy Prime Minister Bishnu Prasad Poudel officially launched the Resilient High-Value Agricultural Programme (R-HVAP), a bold new initiative co-financed by the International Fund for Agricultural Development (IFAD) and the Government of Nepal. The eight-year, US$120 million programme is set to benefit over 250,000 individuals from 60,000 small-scale farming families across the provinces of Lumbini, Karnali, and Sudurpashchim.

R-HVAP aims to transition smallholder farms from subsistence agriculture to commercial and agroecological farming, addressing food security, climate resilience, and rural income generation in Nepal’s underserved farming communities.

A Programme with National Vision

Launched at a high-profile inception workshop in Kathmandu, the event drew senior government figures, development partners, civil society leaders, private sector stakeholders, and media. Alongside Deputy Prime Minister Poudel, speakers included:

• Jay Bahadur Tandan, Member of the National Planning Commission

• Krishna Timisina, Executive Director of the Nepal Agriculture Research Council

• Ram Nath Adhikari, Minister of Agriculture and Livestock Development

• Roshan Cooke, IFAD Country Director for Nepal

• Govinda Prasad Sharma, Secretary, Ministry of Agriculture and Livestock Development

“The programme’s focus on establishing a regional agriculture wholesale market in Butwal is commendable,” said DPM Poudel. “It will be pivotal in the conservation, production, processing, and marketing of authentic Nepali agricultural products.”

Objectives and Impact

R-HVAP is designed to strengthen climate resilience, biodiversity, and market integration of Nepal’s agriculture sector. Its central objectives include:

• Supporting commercial agroecological farming models

• Increasing access to markets, finance, and infrastructure

• Improving productivity and sustainability of high-value crops

• Establishing regional hubs, including the wholesale market in Butwal

• Promoting the processing and export of Nepali agricultural products

This project directly responds to rising domestic and global demand for healthy, organic, and climate-resilient food systems.

“R-HVAP seeks to systematically transition the smallholder agriculture sector towards commercially oriented agroecological farming that is inclusive, resilient, and profitable,” said Roshan Cooke, IFAD Country Director.

Building on a 45-Year Partnership

IFAD’s collaboration with Nepal began in 1978, making it one of the agency’s earliest partners. Since then, IFAD has supported 20 rural development projects in the country worth US$904 million, contributing US$393 million and reaching nearly 1.1 million rural families.

The organization has played a central role in supporting poverty alleviation, promoting social inclusion, and improving access to markets and services—especially in Nepal’s remote hill and mountain regions, where infrastructure remains limited.

“IFAD has been instrumental in empowering our small-scale farmers and rural communities,” said Minister Ram Nath Adhikari. “We believe R-HVAP will be a milestone in achieving our agricultural development goals.”

Ensuring Long-Term Success

The programme is being implemented under the leadership of the Ministry of Agriculture and Livestock Development, with a strong emphasis on public-private partnerships, decentralized governance, and community ownership.

“The government is fully committed to ensuring R-HVAP’s success,” said Govinda Prasad Sharma, Secretary of the Ministry. “We will make sure it benefits the farmers who need it the most.”

With food systems facing increasing pressure from climate change, biodiversity loss, and market volatility, R-HVAP represents a timely and transformative investment. By supporting smallholder farmers in building sustainable, resilient, and profitable agricultural enterprises, the programme is expected to help lift thousands out of poverty and secure long-term food and economic security in Nepal.