Apple Sector Reform in Karnali Province 

Nepal’s economic trajectory continues to be constrained by politically influenced decision-making, lack of strategic planning, and fragmented implementation at both the federal and provincial levels. These governance challenges are particularly evident in provinces like Karnali, where ad hoc budgeting and weak coordination hinder effective policy delivery and limit the potential for inclusive, sustained economic growth.

To address these structural issues, Hriti Foundation launched the Shine Karnali project in collaboration with the Subnational Governance Program (SNGP). The initiative began with a comprehensive market systems analysis that identified high-potential sectors for private sector–driven development. Among these, apple farming in Jumla and tourism linked to Rara Lake stood out. Apple production, in particular, emerged as a strategic priority, prompting sustained advocacy for its integration into provincial development plans. 

To generate public discourse and political traction, Hriti Foundation leveraged civic platforms, notably the sixth edition of ‘Karnali Utsav: Kuda Karnalika’, a flagship public policy dialogue platform. A thematic session on the apple market engaged journalists, civil society actors, and local policymakers, effectively elevating apple farming within the regional development narrative. Within a single quarter, these efforts led to two key outcomes: 

1. The formal establishment of the Karnali Apple Caucus, and 
2. An informal high-level political commitment via the Karnali Leaders Circle. 

 The Karnali Apple Caucus: Institutionalizing Political Commitment

A central proposal that emerged from early consultations was the need for a unified institutional mechanism to lead the development of the apple sector. Responding to this, Hriti Foundation convened a caucus-forming event on March 18, 2025, bringing together ten Members of the Provincial Assembly (MPAs) from apple-producing districts—Jumla, Humla, Dolpa, Mugu, and Kalikot. This gathering marked the formation of the Karnali Apple Caucus—an informal coalition of lawmakers committed to coordinated policy reform, consistent budgetary support, and improved sectoral governance. 

The caucus now plays a pivotal role in embedding apple sector priorities into Karnali’s broader economic agenda. It ensures continuity across changing political leadership and fosters cross-party collaboration. One of its key objectives is to establish a dedicated Apple Development Board, consolidating fragmented and inefficient government programs under one institution. 

Tangible impacts are already emerging. MPA Devendra Bahadur Shahi raised apple sector priorities in a formal session of the Provincial Assembly and held discussions with the Minister of Land Management, Agriculture, and Cooperatives, Hon. Binod Kumar Shah, to advocate for budgetary integration of sectoral reforms. The caucus has committed to regular meetings, sustained engagement with line ministries, and targeted advocacy focused on infrastructure development, value chain enhancement, and climate-resilient practices. 

These efforts are beginning to shift behavior across both public and private sectors. Farmers, previously disillusioned by post-harvest losses and market failures, are regaining confidence. Renewed emphasis on investment, technical extension services, and branding—such as “Organic Apples of Karnali”—has reframed apple farming as a commercially viable livelihood. 

The Karnali Apple Caucus is more than a political platform—it is an emerging mechanism for legislative oversight, policy continuity, and systemic reform. It addresses long-standing governance gaps and offers a replicable model for evidence-based provincial policymaking. 

Karnali Leaders Circle: Convening Strategic Stakeholders

To further amplify political momentum, Hriti Foundation convened the Karnali Leaders Circle (KLC) on March 27, 2025, in Surkhet. The event served as a high-level forum to present findings from a vision paper on the Jumla apple value chain and mobilize coordinated action. It brought together 33 key stakeholders, including 13 Provincial Assembly Members, the Speaker, the former Chief Minister, the Leader of the Opposition, the Vice Chairperson of the Planning Commission, local party leaders, private sector actors, and academics. 

The dialogue identified critical bottlenecks: inadequate cold storage near farms, poor road connectivity, insufficient irrigation, erratic electricity, and weak extension services. These issues undermine production capacity, increase post-harvest losses, and discourage investment. 

A core recommendation was the establishment of a dedicated Apple Board to coordinate functions such as research, varietal development, quality control, processing, and marketing. Stakeholders also called for promoting a regional brand – either “Jumla Apple” or the wider “Karnali Apple” – to position the province in domestic and international markets. Additionally, participants advocated for policy incentives to attract private investment, including interest subsidies, tax waivers, and energy concessions. 

The KLC concluded with a unified commitment from provincial lawmakers to increase budgetary support for the apple sector and pursue collaborative policy reforms in partnership with Hriti Foundation. The forum reinforced the value of strategic convening and evidence-based dialogue in creating cross-sectoral alignment for stronger economic governance. 

Conclusion 

This case demonstrates how focused policy engagement, civic convening, and coalition-building can catalyze institutional reform in fragile governance environments. Karnali is reimagining its development pathway through the lens of a single high-potential commodity—the apple. The Karnali Apple Caucus and Karnali Leaders Circle offer promising models for legislative accountability and inclusive, market-driven growth. These efforts strengthen provincial governance and provide a replicable approach for other provinces aiming to align economic potential with political commitment.