Turmeric Farming

Management Summary

The turmeric project is proposed by a group from Ward No. 7 Baiteshwor Rural Municipality (RM). Turmeric is a compulsive spice in every Nepali kitchen but it is produced in the lower belt of the country. Nowadays, the proposed project area is covered with vegetation which is a welcoming environment for wild animals that destroy crops but turmeric is not impacted by the wild animals. This is a cause why the people from 100 households (mostly brahmin and Chhetri with 10% cast wise discriminate people) are eager to produce turmeric in their 100,000 sq. meter land in initial years out of 407,000 sq. meter) fallow land to increase their monthly income from NRs. 20,000 to NRs. 40,000 from current household income is NRs. 10,000 by the investment of NRs.1,155,000. The group has requested external support from NRs. 520,000.00 (45%) for equipment whereas the  Ward office is contributing NRs.235,000 (20%). The group is investing a total of NRs. 400,000 (35%) for operational cost. The sustainability of the project is envisioned as the project is implemented in a group forming an executive body that will be responsible to raise maintenance funds and develop the project strategy themselves for continuation.  

  1. Introduction

Turmeric has a high market value in Nepal as it is taken as a compulsive spice in Nepali cuisine. Turmeric is not grown at high altitudes but people use it everywhere in Nepal. It is an underground agricultural product, which does not need extra care. It is not harmed by wild animals like monkeys and deer.  Harvesting and Processing cost and packaging are easy and less costly. Turmeric can be sold against NRs. 620.00 per kg has a local and external market in Nepal.

Ward office has requested Samundra Nepal (SN) to support Turmeric farming in 800 Ropani of land (equivalent to 407,000 Sq. Metre), out of which this proposal covers 200 Ropanies (100,000 sq. meter) in the first stage, hoping to expand in future looking at the outcome in coming days. The ward chairperson of Ward No. 7  has forwarded their plan to Samundra Nepal to introduce turmeric farming in fallow land in Baiteshwor RM, Ward No. 7, Marbu. Ward office also has a cost share planning for the project. Turmeric farming will be managed by a group registered in the ward office as per government rules and regulations.

 

  1. Relevancy of the project

The greenery is increased in Nepal as a result of people leaving their agricultural land fallow. Also, community forest has helped to increase the forest coverage in the area. The canopy coverage has increased the food and habitat for wild animals to grow their population. The overpopulation of wild animals has magnified the cases of wild animal-people conflict. For example, monkeys destroy maize, vegetable and fruits, and other crops. Deer and other animals destroy wheat, millet, and paddy.

The unwanted attack of wild animals necessitated people to develop ‘resilience’ by opting for alternative farming. Turmeric is produced for household use which can be produced commercially and sent to market. For this purpose, fallow land also comes into use. Farming turmeric will help to revitalize the land and also contribute to improving the living standards of the farmers. Production, storage, and transportation of turmeric can be done without hassle compared to other agricultural works.

The project is generated by local people and committed to investing 35% from agricultural farms recommended by the ward office. The project is linked to generating income through their initiatives of themselves. In the first phase, turmeric will be produced in 100,000 sq. meter land out of available land. Turmeric requires less intensive care from farmers so farmers can be involved in other types of work in different seasons. Currently, many farmers have planted turmeric but they have not harvested it due to a lack of processing equipment.  

 

Table-1

The expected change after project implementation

 

 

SN

 

Indicators

 

Situation before project

Outcome ( after the project)
Worst case Scenario Best case
  1.  
Households with youth migration (%) 80 % 50% 20%
  1. U
Fallow land ( Sq. M.) 100000 40000
  1.  
Youth employment (No.)   100 persons Additional 200 persons
  1. 4.
Household income per month (NRs) 10,000 20,000 40,000
  1. 5.
Type of agricultural products Traditional cropping like Maize, Rice, Wheat Traditional cropping Turmeric for self-consumption Traditional crops for subsistence + Turmeric for commercial purpose
  1. .
Turmeric production(kg/house) Around 3 kg. Farmers have not harvested Turmeric in many instances due to a lack of gridding and packaging facilities. 200kg 600kg

 Beneficiaries/Target

Ward No 7 of Baiteshwor Rural Municipality has around 4500 people from around 750 households.  Among these, a total of 100 households will be covered by the project. They are basically from the Brahmin and Chhetri communities.  However, around 10 households are Dalit households. Dalits are the most deprived people in Nepali society.

  1. Requested Support

Ward No. 7 requested SN on August 4, 2022, with an official letter for support. The ward office requested the following items to be given to the farmers. Mainly, the ward office requests SN for equipment. 

The project owner will be the community which will form an executive body consisting of 11 persons. The executive body will represent the members of the group. The executive body will operate the bank account, maintain the project-related documentation, and collect the maintenance fund. It will be liable to formulate strategy, policy, and rules to maximize the project outcomes and also implement sustainability measures. The mentioned equipment will be the property of the group registered under the rule and regulations of the government. No individual will be allowed to use the equipment for personal benefit rather than community consent.

Table-2

Procurement of Fixed Assets (Equipment)

SN. Type of Support No of item Estimated amount

NRs.

Responsible stakeholders
1. Packing Machine 1 100,000 External donor
2. Grinder Machine 1 70,000 External donor
3. Installation of equipment 1 100,000 External donor
4. Tractor 2 100,000 External donor
5. Transportation, training, exposure, etc Lumpsum 100,000 External donor
6. Packing Plastic and labeling Lumpsum 50,000 External donor
Total NRs. 520,000  

Above is the cost of the equipment. The above-mentioned equipment is requested support from external donors. External donors will not invest in operation costs as mentioned below. This is because tracking operation costs is out of our scope. Supporting the operational cost will not help sustainability.

 Table-3

Operational cost for five years

SN Description Annual cost

(First year’s cost)

NRs.

Cost for additional 4 years (NRs) Responsible stakeholders
1. Insurance cost 25,000 100,000 Ward Office
2. Maintenance Cost 30,000 120,000 Group
3. Training cost 10,000 40,000 Group
4. Fuel/Electricity 20,000 80,000 Ward office
5. Baby plants/seed 40,000 160,000 Group
Total NRs. 125,000 500,000  
Total operational cost 625,000 In 5 years

 

  1. Cost sharing Scenario

Table-4

Cost contribution by the stakeholders

SN Description Stakeholders Contribution  in the First year (NRs) Expenses in additional four years (NRs.) % contribution
1. Cost of Fixed assets (Equipment from table-1) External donor 520,000 45%
2. Operation cost

(Maintenance, Training, and baby plants/seed)

Group 80,000 320,000 35%
3. Operation cost ( Insurance, Fuel/Electricity) Ward Office 55,000 180,000 20%
Total 655,000 500,000 100%
Grand total 1,155,000  

 

The total project cost is NRs. 1,155,000. The fixed cost will be NRs. 520,000 and the operational cost is NRs. 625,000.  

 

  1. Group will contribute NRs. 80,000 in the first year. Then, it will invest a total of NRs. 320,000 as operational cost making a total of NRs. 400,000.
  2. The ward office will invest NRs. 55,000 in the first year. For the operation cost in another four years, the ward office will invest NRs. 180,000, making a total of NRs. 235,000 till five years.
  3. The external donor will invest a total of NRs. 520,000 in the first year in the procurement of fixed assets (equipment). The external support is not provisioned for the remaining four years.

 

  1. Transparency mechanism and our commitment

Samundra Nepal (SN) is established as per the rule and regulations of the government of Nepal. We are responsible to the Social Welfare Council (SWC), a government regulatory body so we are law-abiding to get the clearance of our investment in any project in Nepal from the SWC. We have a compulsion to present the audit report annually to get a tax clearance certificate while renewing our registration. All the requirements necessitate us to follow the financial policy of the government of Nepal. On top of that, our donors are welcome to question us, and we welcome them to make their field trip to observe the impact of their hard-earned money. 

 

SN works based on the working strategy so we guarantee that our support has gone to the needy people to address their relevant needs. Punctual support to the community mobilizing the received fund is assured by our qualified staff.

 

  1. Sustainability

The project is a group property that will also be monitored by the ward office. The executive committee shall manage the project with strategic input. A certain percentage of the fund shall be allocated to the reserve fund for equipment maintenance. The product shall be available to the sales stores in Kathmandu under the leadership of the ward office.

Projects Facts

Project Title: Turmeric Farming
Sector: Agricultural
Region: Dolakha
Country: Nepal
Executing Agency: Samundra Nepal
Sponsoring NGO:  
Calculated Budget: USD 10,000
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