CONCEPT NOTE

1. CONCEPT NOTE SUPPORT FOR THE MECHANISATION OF RICE PRODUCTION

2. INTRODUCTION • MoFA policies, (FASDEP II & METASIP) Strategies to modernise agricultural sector through • mechanisation • income diversification • Targets - poor and risk prone and risk-averse producers.

3. INTRODUCTION CON’TD • Rice - one of the selected commodities. • Targets • 80 % small scale rice farmers and • 20% emergent commercial rice farmers (METASIP & NRDS).

4. INTRODUCTION CON’TD • Rice sector specific objectives: • Improving the capacity of local rice industry to compete with imported rice in terms of price and quality. • Increasing the market share of local rice as against imported rice • Establish strategic stocks in rice.

5. INTRODUCTION CON’TD Interventions Proposed (METASIP) • Assist Private Sector to set-up commercially viable Agricultural Mechanization Services Enterprise Centres (AMSECs) at strategic locations. • Purpose: enhancing farmers and agro-processors accessibility to mechanise services at affordable cost

6. JUSTIFICATION • Raise the self-sufficiency • 35% to about 75% by 2015 • agricultural mechanisation seen as one of the vehicles. • average age of tractors in use - 15 years. • Most farming districts and communities do not have access to agricultural machinery for all stages of crop production.

7. JUSTIFICATION CON’TD • The current high level of farm losses of produce(30%) - partly attributable to limited and untimely availability of agricultural machines • farm power relies overwhelmingly on human muscle power (hoe and other hand tools). • Hence • Serious limitations on amount of land cultivated per family • Reduces and limits the effectiveness of essential farm operations thereby reducing crop yields.

8. JUSTIFICATION CON’TD • large scale investment in agricultural mechanisation services • medium to large commercial farmers. • Few tractor hire schemes meant for small scale farmers not effectively utilised • The way forward • ensure availability of appropriate equipment through private distributors and service providers

9. JUSTIFICATION CON’TD • Ministry’s Accelerated Agricultural Mechanisation policy - 5,000 tractors ( 30-50kW) made available to farmers and other private sector operators. • Use of KR2 (Japanese grant) to support underprivileged rice farmers’ • This Concept Note seeks to offer options for a large scale replication of the Scheme.

10. POTENTIAL INTERVENTION ZONES AND TARGET GROUPS Zones • By growing systems • irrigated, rainfed-lowland and upland, • Potentially high rice producing districts Targeted groups • farmers, machine fabricators and repairers, processors and millers, traders, transporters (haulers), local researches • Beneficiaries with high willingness and commitment

11. OBJECTIVES - Main Objective To accelerate modernisation and commercialisation of rice production through expanded use of mechanisation services

12. Specific Objectives • To enhance the use of agricultural machinery to improve the timeliness and efficiency of farm operations to commercialise rice production. • To provide support for private sector led entrepreneurship and investment in agricultural machinery management, maintenance, and service provision. • Build capacity of experts and technicians for improved operations and maintenance of agricultural machinery.

13. COMPONENTS & OUTPUTS

14. COMPONENTS & OUTPUTS

15. COMPONENTS & OUTPUTS

16. COMPONENTS & OUTPUTS

17. ACTIVITIES • Facilitate fabricators' access to credit to establish/expand machinery pools • Ensuring that assembling/fabrication centres are appropriated sited • Generate commercial demand for the locally produced prototypes through promotional activities and demonstrations through Fairs and exhibitions.

18. ACTIVITIES CON’TD • Build capacity of fabricators in the manufacture of appropriate machinery and equipment for the rice sector • Identify rice machinery operators and mechanics for training • Conduct training-needs assessment and develop training modules

19. ACTIVITIES CON’TD • Train selected mechanics on maintenance of machinery like tractor, power tillers, pumps, mills, threshers, par-boilers, cleaners etc. • Set up a collaborative mechanism with the engineering faculties of relevant institutions for research and training. • Organise scheduled in-service training for MoFA staff on the use of agricultural machinery.

20. COSTING AND FINANCING • Estimated Amount needed - $100m

21. IMPLEMENTATION STRATEGY OF THE PROJECT • Typical PPP arrangement • Government initiates & facilitates importation of the machines • Private sector entrepreneurs acquire and operate as business enterprise. • Oversight committee set up to ensure commitment of repayment • Committee composition - representatives of MoFA, Financial Institution, Mechanised Services Centres, Farmer Representatives and District Assembly.

22. PROJECT ORGANISATION AND MANAGEMENT • Execution led by MoFA through • steering committee • national level. • District level. • Committees co-chaired by • Ministry Rep and • Private sector Rep.

23. MONITORING AND EVALUATION • M & E system designed for the project. • data required to be collected defined • Indicators outlined • logical framework

24. RISKS • Inflation and lending rate • Effects of Climate change & disasters • Lack of factors such as • improved seeds, rainfall, GAP • Inability to fabricate or stock back up parts • Government inability to source enough funds

25. THANK YOU AMEN & AMEN