Strengthening food systems and farmer resilience in Nepal

In Nepal, smallholder farmers face growing climate-related pressures – from erratic rainfall and soil degradation, to rising temperatures. These challenges threaten food security and livelihoods, underscoring the urgent need for climate-smart agriculture. Muktinath Krishi Company Ltd. (MKCL), a leading agribusiness in Nepal, is working to address these challenges by supporting farmers to adopt sustainable practices and gain better access to markets.

With support from SNV through the DFCD Origination Facility, MKCL is scaling its innovative business model. By growing its network of local “one-stop-shops,” extending last-mile delivery, and improving processing and distribution infrastructure, MKCL aims to create new economic opportunities for smallholders while bolstering Nepal’s food system.

Farmer-led innovation

The partnership between SNV and MKCL will drive several strategic initiatives: expansion of MKCL’s Agricultural Resource Centre (ARC) network, enhancement of its mobile platform for farmer engagement, and development of processing and marketing centres to improve value chains. The project also includes strengthening MKCL’s Environmental and Social Management System (ESMS) and implementing a Gender Equality and Social Inclusion (GESI) framework to ensure inclusive growth.

What the partnership will deliver

Under a €501,500 agreement (€376,125 grant from DFCD and €125,375 co-investment by MKCL), SNV is providing financial and technical support to help MKCL further develop its business model. Together, the following outcomes are expected:

• Expanded ARC network to serve more farmers across Nepal

• Strengthened ESMS and inclusive business practices

• Development of sustainable, climate-resilient agricultural products

• Improved digital tools for farmer training and support

This initiative is set to benefit smallholder farmers, strengthen cooperatives, and promote resilient farming practices that improve livelihoods and adapt to climate change.

Key outcomes of the fully funded investment are expected to include:

• 500,000 farmers reached nationwide

• 275,000 hectares under climate-smart practices

• Improved livelihoods and economic prospects for smallholder communities.

• Localized food systems that support national food security.

Mr. Bharat Raj Dhakal, Managing Director of MKCL, said, "MKCL is committed to scaling our impact across Nepal. This partnership helps us build our research infrastructure, expand our institutional network and business services, and develop innovative products that directly address the challenges faced by farmers and consumers alike."

Alex Downs, SNV-DFCD Investment Officer, said, "SNV’s support to MKCL marks a step forward in strengthening the future of Nepal’s agriculture. By enhancing market access and farmer services, we aim to support a more inclusive and resilient food system that can thrive despite growing climate risks."

About the DFCD

The Dutch Fund for Climate and Development (DFCD) is a climate resilience fund, dedicated to supporting climate adaptation and mitigation projects which benefit vulnerable communities and landscapes. It is funded by the Dutch government and managed by a pioneering consortium of Climate Fund Managers (CFM), Worldwide Fund for Nature Netherlands (WWF-NL) and SNV, led by the Dutch Entrepreneurial Development Bank, FMO. For more information, please visit the DFCD website.

About SNV

SNV is a global development partner deeply rooted in the African and Asian countries where we operate. With 60 years of experience and a team of approximately 1,600 people, we strengthen capacities and catalyse partnerships that transform agri-food, energy and water systems. Working on the core themes of gender equality and social inclusion, climate adaptation and mitigation, and strong institutions and effective governance, we tailor our approaches to different contexts to achieve large-scale impact and create sustainable and more equitable lives for all.

About Muktinath Krishi Company Ltd.

Muktinath Krishi Company Ltd. (MKCL) is a pioneering stock exchange listed agribusiness firm in Nepal dedicated to fostering sustainable agricultural economies. Through its network of Agricultural Resource Center’s (ARCs), Agriculture Processing Center’s (APC), Agriculture Market Center’s (AMC) and Agribusiness Consultation Center (ABC), MKCL provides high-quality inputs, market access, and climate-smart solutions to over 400,000 farmers. The company is committed to transforming Nepal’s agricultural sector through innovation, inclusion, and long-term sustainability.

You can read the full disclosure document here.

For more information and if you want to share any confidential information you may have regarding the intended project or company, please contact:

SNV - Dutch Fund for Climate and Development: dfcd@snv.org