One Village One Product in Nepal

Introduction

Nepal is an agrarian society with agriculture representing the major share of GDP (38%) and the majority of the population living in rural areas and depending mostly on agriculture for their livelihood. Many small and medium enterprises are depending on local agricultural and forest resources and are generating self-employment opportunities and raising the income of rural populace. Nepalese agricultural products need to increase value addition that will help realize better market and prices for the poor farmers for which a program like “One Village One Product” movement can bring positive impact.
The success of “One Village One Product” (OVOP) movement in Oita Prefecture of Japan from where it started in 1979 as a local campaign and similar programs in many other countries in involving local community and utilizing local resources towards attaining a prosperous economic development has inspired the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) to initiate OVOP program in a form of a national prioritised program jointly with the Government of Nepal.

FNCCI feels that OVOP program will encourage local people to become more motivated, to feel greater pride in their communities, and to become more involved in the activation of their local community through their own efforts to produce local specialties. It strongly believes that economic development programs linked with rural communities particularly focusing on the agriculture and potential employment generating economic activities have got to be the major program thrust areas for Nepal

Development of OVOP program in Nepal

Since last two years FNCCI has been engaged in planning to initiate OVOP program in Nepal. Some officials of FNCCI and members of different chambers of commerce and industries had participated in a study tour of “ One Tambon One Product” programs in Thailand. For a good initiation and effective implementation of this program, FNCCI had proposed the Government of Nepal for its support on a partnership basis. Recently, Ministry of Agriculture and Cooperatives has formed two committees at the central level: one for policy support under the Chairmanship of Hon’ble Minister of Agriculture and Cooperatives and another implementation committee under the Coordinator ship of the President of FNCCI. Recognizing the role of the FNCCI in the promotion of agribusiness in Nepal and its capacity to play a facilitative/coordination role, the secretariat for the OVOP program is entrusted to the Agro Enterprise Center, a technical agricultural wing, of the FNCCI.

The Government of Nepal has formally incorporated OVOP concept in the National Program and Budget for the fiscal year 2006/07 and has approved the working procedures for the implementation of OVOP program in Nepal. Sweet oranges, lapsi (unique fruit of Nepal), Rainbow trout fish, and Bel (unique fruit of Nepal) are the products under OVOP Program selected this year. Initial programs have already started in some districts.

Although four agriculture products have been selected to initiate as pilot projects of OVOP program in Nepal, many other agricultural and non –agricultural products (handmade paper, bamboo products, ceramic, pottery, textile, non-timber forest products, etc) will be considered under this program in later stages. And although most of the programs are targeted at the Central and the Eastern Regions, OVOP program can be carried out for some potential local products of the Mid-Western and the Far –Western Regions, for example: vegetable seed production, honey, non-timber forest products, etc. This program will not only include local communities in market led commercial program but will also assist in their capacity building in coping with this kind of program. In the changing paradigm of the political situation of Nepal, OVOP program, a community focused public-private partnership program, can assist in poverty alleviation of conflict-affected population of the Mid- and the Far- Western Regions of Nepal.

Hence, Nepal’s initiation of One Village One Product movement shows its policy in enhancing local capacity by promoting local products, which can be competitive both in the national as well as in the international market. To make this movement successful Nepal’s endeavour needs continuous support from donors for implementing following activities, which will facilitate OVOP program: