PRISM Approach and Its Impact on Poverty Reduction in Nepal

This study examines the impact of Prosperity Realization through Irrigation and Smallholder Market (PRISM) approach on farmers' income and poverty reduction in Kaski and Kapilvastu districts of Nepal. The study was purposively based on the selection of different vegetable farmers groups from IDE projects implemented and completed using PRISM approach. The sample consisted of 105 household heads from 15 farmers groups in Kaski and 168 household heads from 24 farmers group in Kapilvastu in vegetable farming of the project area. They were randomly selected using random table number. Using semi-structured questionnaire information was collected and situation compared before the project intervention and after the project period of ten years. The data collected were tabulated, processed and analyzed using Statistical Package for Social Science (SPSS). The project mainly intervened in networking of agricultural supplies to facilitate the small farmers to enhance production and productivity and marketing. After the project intervention, number of input suppliers increased with their services availability in time showing a positive impact in the area of input supply after the project. More than 92% of vegetable growing small farmers responded positively in the improvement of input supply situation.

More than 86% of the respondents replied that the technical capacity of the farmers was improved, farmers were organized in groups and the forward and backward linkages with input suppliers and output traders were strengthen. More than 94% of sample populations indicated that the vegetable growers were able to sell their farm produce on time. It helped them to become commercially successful entrepreneur, with employment opportunity and income generation that greatly impacted on the alleviation of poverty. Living standard of the small vegetable growers was improved as indicated by increased food security, consumption of more vegetables and other protein containing foods, facilities like TV, radio and mobile phones at present owned by 80-90% farmers. Gender equity and female participation in decision making also was improved by 75 to 95%. Vegetable growers were health conscious as indicated by the consumption patterns and use of health facilities for the improvement of health and hygiene of infants, children and adults. Disease incidence decreased, which was indicated by the less visit of the family to the health facilities. In Kaski, net return was increased by 22 times, and in Kapilvastu 5 times than before the project. All the indicators used to measure the impact on input supply, farm production and produce marketing has been found improved as compared to ten years ago showing the positive impact of the PRISM Project. The increase in mean area of vegetable cultivation was highly significant after the project in Kaski and Kapilvastu as compared to before the project intervention. Increase in area under vegetables cultivation during winter and summer was also highly significant in Kaski but was non-significant in Kapilvastu. The multiple regressed F-value pooled of both districts was highly significant explaining nearly 2/3rd of the vegetable production contributed by the seasonal vegetable growing farm plus hired labors (R2 = 64.55) working on the farm. Therefore, it is imperative that the Government of Nepal should develop a policy to implement PRISM approach as a Program Planning tools for sustainable development.