Kathmandu, February 22:

Asian Development Bank (ADB) has decided to provide one million US dollar grant from its Japan Fund for Poverty Reduction (JFPR) fund for improving the livelihoods of poor farmers and disadvantaged groups in the Eastern Development Region.

In the region’s rural areas, the poorest have limited access to resources, with many poor farmers having landholdings of a-half-a-hectare or less. Women are mostly dependent on remittances, but irregular delivery often leaves them struggling for daily survival, states the Manila-headquartered bank in a statement.

“The rural areas of Nepal’s eastern hills face chronic poverty, with ethnic minorities, especially women, suffering among the worst,” says Susanne Nebel, an ADB Rural Development specialist. “Enabling the deprived to access opportunities and benefits from development efforts in the country is essential,” she adds.

The project will cover Dhankuta, Morang, Saptari, and Sunsari districts. It will help 6,000 people engage in micro-enterprises, such as off-season farming and high-value crop production, production of packaging materials, semi-processing of fruits and vegetables, adding value to farm products, fishpond culture, and livestock rearing.

A $350,000 livelihood support fund will be set up during the first year to finance household, food, health and education needs to help the poorest access economic opportunities. During the second year, $200,000 will be allotted for an income generation fund earmarked for graduates of the project’s skills training programme.

During the third year, groups that have successfully set up micro-enterprises can access the commercial agriculture fund under an ADB-backed Commercial Agriculture Development Project, adds the release.

For established farmer groups, the project will help set up micro-irrigation facilities on a subsidy basis. It will also provide training on skills needed in the agriculture value chain to prepare them for job opportunities. It will also carry out a social mobilisation programme that will create 600 self-help groups, improve adult literacy for another 6,000 people, develop their leadership skills and consequently, increase their confidence and self-esteem.

The government will contribute $3,14,000-equivalent toward the project’s total estimated cost of $1.314 million. The ministry of agriculture and cooperatives is the executing agency for the project.