ADB to invest over Rs 10 billion in nuts and fruits farming

The Asian Development Bank (ADB) is investing over Rs 10 billion for cultivation of nuts and fruits in the hilly area project.

The ADB will be providing grants of Rs 1.30 billion, while Rs 7.39 billion will be provided in concessional loans, according to the agreement signed by ADB country director Arnaud Cauchois and finance secretary Krishna Hari Pushkar today at the Finance Ministry, according to a press note issued by the Finance Ministry.

Likewise, the ADB will be funding Rs 1.17 billion from the Global Agriculture and Food Security Programme, it reads, adding that the government will invest Rs 1.88 billion, and the programme is expected to benefit 30,000 households from Province 1, Bagmati Province, Karnali Province and Sudurpaschim Province, mainly through the development of around 10,000 hectares of climate-resilient fruit and nut orchard.

The annual demand for walnuts and fruits that has been increasing in the past years in the country is met by the imports as the domestic production has been low. 

The commercial farming of fruits and nuts in Nepal remains marginal and the abandonment of cultivable land in hilly areas is increasing as people are switching to other off-farm employment and relying on external remittances. “In this context, the project will help to take an advantage of the country's favourable agro-climatic conditions to product quality horticulture crops and will support the government the government's declaration of the 2016-2026 Fruit Decade," said finance secretary Pushkar, after signing the agreement.

The agreement is a key part of the ADB's overall efforts to address potential risks on food, ADB country director Cauchois said adding that the ADB will support improving the livelihood and climate resilience of horticulture farmers in the hilly areas of the five provinces of Nepal through the project.