30-day notice: Muktinath Krishi Company Ltd and DFCD
DFCD approved support for MKCL to strengthen its supply chain, capabilities, and distribution networks to improve food security, climate resilience, and economic opportunities for Nepalese farmers.
Abstract
This ex‑ante disclosure outlines planned support from the Dutch Fund for Climate and Development (DFCD) Origination Facility for Muktinath Krishi Company Ltd (MKCL), a publicly listed Nepali agribusiness that has been operating since 2018. The company provides inputs, advisory services, and marketing to over 300,000 smallholder farmers through more than 100 Agricultural Resource Centres (ARCs), serving as local hubs for seeds, fertilisers, guidance, and access to finance.
MKCL’s strategy includes creating Agricultural Processing Centres (APCs), an Agricultural Marketing Centre (AMC), and Agribusiness Consulting Centres (ABCs) to enhance value chain integration. Over the past three years, the company has achieved annual revenue growth of nearly 90 per cent and targets revenue of USD 11 million by 2027 through diversified operations and improved efficiency.
The DFCD grant of €376,125 will support supply chain improvements, enhanced processing capabilities, and distribution networks. Key activities include building cold storage infrastructure at ARCs and AMCs, refining a mobile app for climate‑smart agriculture, conducting R&D on agri‑inputs, preparing product and market feasibility studies, and developing Environmental and Social Management Systems (ESMS) and Gender Equality and Social Inclusion (GESI) plans.
This intervention aims to bolster food security, increase climate resilience, and enhance economic opportunity for smallholder farmers in Nepal. By strengthening centralised hubs, digital tools, and value‑added services, MKCL is positioned to drive inclusive and sustainable agricultural growth in the region.