Contract Signed with Apple Processing Company
Published By: HVAP        on: 2014-07-14

A contract agreement to establish an Apple Processing company in Jumla district was signed between the Shree R.K. Apple Processing and Fruits Distillery and High Value Agriculture Project in Hill and Mountain Areas (HVAP) on 10 July 2015 at HVAP, Programme Management Office, Surkhet. As per the approved Business Plan, the total investment for the enterprise is NRs. 10,000,000.00 (in words: Ten Million Nepalese Rupees) where HVAP & private sector shares 50% each.

Jumla is one of the major apple producing districts of Nepal.  Jumli apple mainly A and B grade commands top price in major markets (Kathmandu, Nepalgunj, Surkhet and Pokhara). However, farmers are facing problem to find market for rest C and D grade apples due to quality constraints. Hence, the purpose of the HVAP co-investment on this business plan is to empower private sector to invest on apple processing enterprise targeting to C and D grade apples.

Along with the sourcing of those apples from the producer groups, the company will also provide training to the producer groups such as apple grading, slicing & packaging. For the long run, the company has committed to create an apple value chain development fund which will be used by the producer groups in the apple value chain development activities.

Henceforth, the sub-project will not only provide economic benefit to the apple producers through commercializing C and D grade apple but also increase apple production, diversify product and promote culture of entrepreneurship at the community level.

At last, both parties were agreed on the contact agreement and assured on each of roles and responsibilities (Programme and Entrepreneur), payment process, and other necessary clauses.

 The resource will be mobilized through the Window 1, Value Chain Fund effective from 10 July 2014 to 14 July 2016.