Manisha Balami

May 30: The government has allocated Rs 45.09 billion for the agriculture sector for the upcoming fiscal year (FY 2021/22), which is Rs 3.69 billion more than the budget allocated for the current fiscal year. The government had allocated Rs 41.40 billion for the agriculture sector for the current fiscal year.

Presenting the budget for the upcoming fiscal year on Saturday, Finance Minister Bishnu Poudel said that the agriculture sector would be developed as the main basis of a prosperous economy. For this, the government plans to modernise and commercialise the agriculture sector. He said that the Prime Minister’s Agriculture Modernisation Project will be made more effective and an additional 71 zones to promote agriculture, fisheries and livestock production would be brought into operation.

Tax exemption will be given for the imports of agricultural tools, equipment and spare parts. Likewise, the government has given continuity to 50 percent subsidy in farm insurance premium.

Grants will be provided to the local level for purchasing agricultural equipment such as combine harvester, power teller, cultivator, rotavator, and harrow in the pocket areas. Minister Poudel announced that in order to provide technical assistance to the farmers in the project area, 300 students studying at the undergraduate level in agriculture will be assigned as interns.

According to Poudel, Rs 7.60 billion has been allocated for providing concessional loan to the farmers. The government has also made an arrangement to provide subsidy of up to 50 percent to the farmers who purchase improved seeds from licensed sellers. Moreover, five million fruit seedlings will be produced by establishing medium and high-technology multi-purpose nursery. In addition, 50 percent subsidy will be provided for purchasing plants to promote apple farming in Manang, Mustang, Jumla and other Himalayan districts.

Minister Poudel said that sugarcane farmers will  now onward get their subsidy within 15 days of sale of sugarcane to sugar mills. He informed that Rs 840 million has been allocated for this purpose.

The existing agricultural subsidy system will be reviewed and production-based incentive grants will be provided to the farmers, agri-entrepreneurs, farmers’ group and cooperatives.

Likewise, the government has planned to provide the unused government farms and barren lands to the private sector on lease for commercial farming. Poudel informed that the budget has been allocated to encourage the private sector for commercial animal husbandry in Manang, Mustang, Myagdi, Dolpa and other districts of Himalayan region and floriculture in districts like Bhojpur, Nuwakot, and Baitadi.

Announcing the budget, Minister Poudel said that adequate supply of chemical fertilisers would be ensured prior to the time of plantation. He informed that the budget has been allocated to set up a chemical fertiliser plant within three years. Rs 12 billion will be allocated for the establishment of a chemical fertiliser plant in the country.

The government has made arrangements to buy agricultural products of farmers in order to encourage them for farming and make the supply management easy and regular. He said that 200 food storage centers and 89 cold storages will be established throughout the local levels.  

Budget has been allocated for irrigation so that the irrigation facility is easily available to the farmers.