ToR for Assessing Domestic Trade Costs and the Role of Agri-Food Enterprises in Nepal’s Agricultural Transformation

Background

The Agricultural Transformation and Market Integration (ATMI-II) project aims to strengthen government capacity, integrate environmental and climate considerations into policy processes, and assess the impacts of market integration on agri-food systems across ASEAN and BIMSTEC countries. Nepal is one of the project’s priority countries, where agricultural transformation is central to livelihoods and food security. Despite its importance, Nepal’s agri-food system faces persistent structural challenges. Limited connectivity between production zones and domestic or border markets leads to high domestic trade costs, reducing competitiveness and restricting the smooth movement of agricultural commodities. At the same time, as part of agri-food system transformation agri-food enterprises, ranging from processors and traders to midstream logistics and retail actors, are playing an increasingly significant role in transforming Nepal’s food system. However, their evolution, contribution to agricultural transformation, and the extent of women’s participation remain inadequately understood.

To address these evidence gaps, IFPRI, under ATMI-II, is commissioning a comprehensive study to generate robust insights on:

1. The time and cost associated with agricultural trade flows within Nepal, and
2. The dynamics of agri-food enterprises, including their role in employment, agricultural transformation, and gender inclusion.

The findings will support evidence-based decision-making for the Government of Nepal and contribute to regional dialogue and coordination within the BIMSTEC Secretariat, helping to advance a more efficient, inclusive, and market-responsive agri-food system.

Objective of the Assignment

Overall Objective

The overall objective is to diagnose key constraints in Nepal's agricultural trade logistics and analyze the role of agri-food enterprise in driving agriculture transformation in Nepal.

Specific Objectives

• To calculate the estimated domestic trade time and distances from key agricultural production zones to major ports/markets using Open-Source Routing Machine (OSRM).
• To estimate the domestic trade cost by combining OSRM-based outputs with secondary data on transport tariffs, fuel prices, and other logistical overheads.
• To map and analyze the market spread and distance relationship between production centers and ports/major trade hubs, identifying areas with the highest logistical barriers.
• To understand the transformation of food enterprises and the retail sector by comparing data across different rounds of the Nepal Living Standard Survey (NLSS) and the Nepal Industrial Survey.
• To analyze the role of women in the management, employment, and ownership of food enterprises using disaggregated data from NLSS and NIS.
• Provide actionable recommendations for improving market access, value chain upgrading, and inclusive agricultural transformation.

Institutional Qualifications

Institutions/Firms applying for this assignment must demonstrate the following:

• Minimum 15 years of experience conducting economic, agricultural, spatial, or value-chain research.
• Proven work in trade, logistics, agriculture, or rural enterprise analysis.
• Experience working with national statistical datasets (NLSS, NIS or similar).
• Experience in GIS and routing/mobility analysis preferred.
• Demonstrated experience collaborating with CGIAR centers or similar international research organizations.
• Proven experience working with government stakeholders in Nepal.
• The institution/firm must be based in Nepal and legally registered with the relevant government authorities.

Proposal Submission Requirements

Interested institutions must submit:

A.     Technical Proposal

• Understanding of assignment
• Detailed methodology
• Work plan & team structure
• Relevant past experience

B.     Financial Proposal

• Detailed budget in USD
• Inclusive of all taxes, overheads, and other costs

C.    Legal Documents

• Institution/firm registration
• PAN/VAT registration
• Any relevant certifications

For more information, please check the Link: ToR for Assessing Domestic Trade Costs and the Role of Agri-Food Enterprises in Nepal’s Agricultural Transformation

Tags Food, Agriculture and Nutrition Others