Since its establishment, one of the major activities of AEC/FNCCI has been policy advocacy for creating favorable environment for agribusiness development. It marks the first ever initiative taken by HMG/N and donor communities towards institutionalizing the public-private partnership in agricultural development in Nepal. Some of the major achievements of AEC/FNCCI during 1990-2002 were an active contribution in the preparation of the 20 years Agricultural Perspective Plan (APP) and 9th Five Year Plan; advocated for pursuit of commodities that are high value products (like tea, vegetable seed, off season vegetables, fruits coffee, honey, floricultural products). It has pushed for bringing out national policies on tea, dairy, vegetable seeds, cold storage; improvements in the policies of industry, trade, value-added tax and custom tariff structure.

For an effective policy advocacy AEC/FNCCI/FNCCI can use the network of FNCCI having members like 86 Chambers of Commerce and Industries, 52 commodity associations (13 agro –commodities), 9 Bi-National Chambers, and 429 Associate Business Organizations. Further more, because of FNCCI’s expanded role as a partner with the government, AEC/FNCCI is formally and informally involved in most of the policy decision- making process of the Ministry of Agriculture and Cooperatives, Ministry of Industry, Commerce and Supplies and participates as an active member in different Boards, task force, committee, forum, etc.

Since 25th November 2003, AEC/FNCCI has been effectively implementing a program  "Improving the Policy Environment for Agricultural Trade, Production and Marketing in Nepal" with USAID's support.

Objectives
The project will support and assist the government, private sector, local chambers, commodity associations, farmers’ groups, cooperatives and other stakeholders in policy analysis and advocacy to resolve critical policy issues affecting agricultural trade, production and marketing. It will also impact on policy reform, specially to address policy and administrative constraints that are important to small farmers/ user groups, entrepreneurs in Western and Mid-Western Development Regions for high –value agricultural products and non traditional forest products.

Project Activities

From 25th November, 2003 to 30th September, 2006 major activities include: (1) Administration and Policy Constraints that Small Farmers face in the Target Area (2) Trade Competitiveness (3) Bilateral Trade Agreements (4) WTO Accession (5) Non-Timber Forest Product Trade (6) Water Source Development (7) Policy Advocacy Capacity Building (8) Policy Advocacy sustainability. AEC/FNCCI has prioritized commodities like vegetable seed, coffee, fruits, vegetables, floriculture, honey and Non-Timber Forest Products for carrying out study on competitiveness, policy related issues. During each study special focus is given in gathering data on gender equity and disadvantaged groups related issues. Based on the information gathered AEC/FNCCI advocates both at a local level as well as at a national level. AEC/FNCCI also possess pertinent information on agricultural trade especially with that of India and advocates strongly on Sanitary and Phytosanitary issues with India and China.

Key Achievements in Policy Advocacy
(2004- 2006)

• Provided inputs for National Agricultural Policy- 2061, Herbs and Non-Timber Products Development Policy- 2061, Coffee Policy, etc.
• Involved in draft versions of Agro Business Promotion Policy- 2062, Plant Quarantine Act- 2060, National Dairy Development Policy- 2060, Certification of Import procedure and Export procedure of agricultural products, etc.
• Advocated to solve issues of local taxes during movement of agricultural commodities on the national highway, and VAT on agricultural products.

Regional and District wise Advocacy on Administrative and Policy Constraints that small farmers face on following commodities:

• apples, carrot seed of Jumla
• honey, vegetable seed of Dang and Tulsipur
• coffee of Palpa
• fresh vegetables of Rupandehi, Surkhet, Banke
• ntfp of Jumla, Surkhet, Nepalgunj

Trade Aspects (WTO, SAFTA, BIMSTEC)

• Assisted the Government of Nepal during accession to WTO’s membership and technical negotiation of SAFTA and BIMSTEC.
• Launched a series of programs in many districts of Nepal to create awareness of implication of WTO (Agreement on Agriculture) on Nepalese agriculture and agribusiness.
• Organized a series of orientation programs (product focused) to address requirements of fulfilling Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT) Measures of Nepalese agricultural products importing countries.
• Advocacy about Competitiveness of Nepalese, Coffee, Honey, Ginger, Off-season vegetables, Floriculture

Trade Aspects (Bilateral with India)

• Facilitated the Government of Nepal (Ministry of Agriculture and Cooperatives, Ministry of Industry, Commerce and Supplies) in solving Plant Quarantine and Certification related issues with the Government of India.

• Reduction of Inspection fee by 50%
• Resuming Import of Nepalese Ginger, lentil and NTFPs
• Listing of NTFPs in the Plant Quarantine Order of 2003 of GOI
• Allowing transshipment during import to India
• Flexibility in certification system

• Facilitated in strengthening of plant quarantine program in Nepal, carrying out studies (Pest Free Area and Pest Risk Analysis) and in exchange visit program of high-level plant quarantine officials from India.

• Prepared and raised pertinent issues, case studies for the commercialization of agriculture sector and for an organized marketing of non-timber forest products (mandi in Nepalgunj).
• Pursuing for the development of an organized marketing channel for agricultural products and non-timber forest products in the Karnali Zone, especially in Jumla, Humla, & Dolpa.
• Playing a facilitating/advising role in strengthening different agricultural commodity associations in implementing their development programs.

Study Reports Prepared by FNCCI/AEC
(2004-2006)

Under Cooperative Grant Agreement Project Between USAID and FNCCI