Introduction

Nuts and Fruits in Hilly Areas Project (NAFHA) is funded by the Asian Development Bank (ADB) through a loan and grant agreement with the Government of Nepal (GoN). The agreement was signed in 2022, with a total project budget of approximately USD 58.6 million. The Ministry of Agriculture and Livestock Development (MoALD) is the executing agency for the project, while the Central Project Management Unit (CPMU) under the National Centre for Fruit Development (NCFD) is responsible for implementation, in close coordination with provincial governments and local bodies through Project Implementation Units (PIUs). 

NAFHA aims to increase climate-resilient horticulture production, improve nutrition, and raise household incomes of rural communities across 100 municipalities in 5 provinces: Koshi, Bagmati, Gandaki, Karnali, and Sudurpaschim. The project targets over 40,000 smallholder farmers and supports the establishment of 10,000 hectares of fruit and nut orchards, nursery development, and sustainable vegetable production. It focuses on value chain enhancement, gender and social inclusion, and resilience to climate change. Special emphasis is placed on the participation of women, marginalized groups, and climate-vulnerable farmers.

NAFHA contributes directly to Nepal’s Agriculture Development Strategy (ADS) and supports the Government of Nepal’s broader commitment to inclusive economic growth, food and nutrition security, and the Sustainable Development Goals (SDGs). The project serves as a flagship initiative for promoting climate-smart, commercially viable horticulture in hilly regions of Nepal.