Nepal, UAE sign labour agreement

Nepal and the United Arab Emirates (UAE) today signed labour agreement. Labour Minister Gokarna Bista and Human Resource Minister of UAE Nasser Thani Al Hamli signed the agreement – during the centenary celebration of the International Labor Organisation (ILO) being held in Geneva in Switzerland – on behalf of their respective governments.
According to the new deal, the employers will have to bear all the expenses for selection and recruitment of workers as per the agreement. “The workers can look for alternative jobs, if they become unemployed due to weaknesses on the part of employers,” it reads, adding that there will be no discrimination against workers on wage, overtime, work environment and access to justice, apart from equal treatment for migrant workers coming from all the countries. “Workers will be able to keep all the documents of individual identity including passports.”
The UAE is the fourth preferred destination for Nepali workers. The two countries have felt the need to revise the agreement according to the changed context.

World Bank to help promote agribusiness

The World Bank (WB) has agreed to provide a total assistance of $40 million — comprising of $22 million loan assistance and $18 million grant assistance equivalent to Rs 3,480 million — to the government as additional financing to implement the Project for Agriculture Commercialisation and Trade (PACT).

Finance secretary Shanta Raj Subedi and World Bank's country manager for Nepal Tasheen Sayed signed the agreement here today on behalf of the government and the bank, respectively.

The government has expressed its sincere appreciation to the World Bank for the assistance and also for its continued support in the socio-economic development of the country.

The objective of the project is to improve the competitiveness of smallholder farmers and the agribusiness sector in selected commodity value chains in the project districts by helping farmer groups and cooperatives engaged in profitable market oriented production. It also aims to improve access to markets, create and strengthen industry-wise partnerships along with the value chain, and reduce existing obstacles to agriculture and food trade.

The additional financing also removes the restriction of 25 districts, and now the project will be implemented in all the 75 districts, according to the World Bank. "The project will have a meaningful impact in developing a few commercially valuable chains," it said, adding that it will support with forms of matching grants to agribusiness proposals from farmer groups, cooperatives, traders and exporters.

It aims at reducing existing obstacles to agriculture and food trade, thereby increasing the ability of farmers and agribusiness to respond to food quality standards to meet domestic and international market requirements.

"The impact of the project will be an increase in productivity of the selected commodity value chains as it will be increased by 25 per cent. The volume of marketable agriculture products passing through the value chains will increase by 30 per cent, and market and sales of commodities in the value chains supported by the project will increase by 25 per cent."

The Ministry of Agriculture Development is the lead executing agency of the project that will be implemented in partnership with government agencies, private entities, cooperatives and farmer groups. With the additional financing, the project period has been extended to June 30, 2018.

Government should adopt two-pronged strategy to boost agribusiness

Nepal should adopt a two-pronged strategy to boost trade in agriculture products, according to experts.
The country should work for the removal of the remaining market barriers through trade negotiations, and overcome supply-side constraints through improved governance, increased attention to economic issues, resource mobilisation, public sector like budgetary allocation and fiscal incentives, donor community with the help of Aid for Trade and private sector through Public Private Partnership modality, said chief executive director of South Asia Watch on Trade, Economics and Environment (SAWTEE) Dr Ratnakar Adhikari presenting his paper on 'Nepal’s agricultural trade: Opportunities and challenges' at the International Workshop on Agribusiness Promotion here in the valley today.
More than two-thirds of Nepalis depend on agriculture for their livelihood and agriculture also continues to represent a significant portion in Nepal's trade basket, he said, adding that the National Trade Integration Strategy 2010 has listed seven agricultural and forest-based products — out of 12 products identified — as having export potential.
There should be structural transformation to promote trade in manufacturing agriculture products as transport infrastructure is critical for the trade of perishable goods like agricultural products, added Adhikari. "Nepal’s transport infrastructure is the worst in the region adding to supply side constraints."There is no significant barrier to agriculture import in the country and it also has export potential due to very low tariff barriers for Nepali exports because of the country's membership of the global trade regime World Trade Organisation (WTO), regional agreement on trade — South Asian Free Trade Area — and Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation (BIMSTEC) free trade agreement and also bilateral trade agreement with India that has ensured zero tariff access virtually for all agriculture exports from Nepal.
"However, the country has failed to take advantages due to para-tariff barriers and non-tariff barriers that are still prevalent in neighbouring countries including India and China," he added.
High tariff barriers on certain agricultural products in the markets of developed countries coupled with India and Bangladesh imposing several 'other duties and charges' on Nepali agriculture products have limited export potential, he said, adding that India’s application of quarantine in a non-transparent and discriminatory manner, its requirement regarding 'wooden packaging', Norway’s refusal to import honey from Nepal due to absence of pesticide control programme, difficult customs procedures in India, subsidies on agricultural products provided by several OECD countries and India have made Nepali agriculture products less competitive.
Organised by Project for Agriculture Commercialisation and Trade (PACT) under the Ministry of Agriculture and Cooperatives, Federation of Nepalese Chambers of Commerce and Industry (FNCCI), and World Bank Group, the three-day international seminar that saw participation from seven countries brainstormed on three key issues; removing trade barriers to facilitate regional and international trade, identifying critical elements in accelerating Public Private Partnership in agribusiness, and creating markets for Nepal's niche green products.

Agriculture to receive top priority: PM

Prime Minister Dr Baburam Bhattarai has said that the government will accord top priority to the agriculture sector.
"The government will double the investment for the agriculture sector in the next fiscal year to transform it from a substantial one to a commercial one, he said while addressing the International Workshop on Agribusiness Promotion today.
"The government is planning to develop the agriculture sector for the economic progress and prosperity of the country," he said, adding that commercialisation of agriculture also focuses on mass employment and poverty alleviation. According to him, the government wants to completely transform the substantial form of agriculture in the country where 70 per cent farmers own less than one hectare land. "Commercialisation of agriculture will attract youth towards it and create mass employment. It will ultimately help the economy," he said, "The government has envisioned agriculture-based industrialisation in the country for a balanced form of development."
According to him, the government is laying emphasis on agriculture to ensure food security in the country. The interim constitution of the country has guaranteed 'food for all' but more than seven million people living in the far-west and mid-west hills are suffering from food shortages. Prime Minister Bhattarai also said that the government needed to massively intervene in the agriculture sector to transform it. "The government needs to adopt land reforms, provide subsidised loans, and research and develop improved seeds and technology for commercialisation of the traditional agriculture system," he said.
The government has already announced to double the budget for the agriculture sector in fiscal year 2012-13.
Though, the prime minister is claiming about according top priority to agriculture and doubling its budget, the National Planning Commission (NPC) has given a ceiling of Rs 14 billion to the Agriculture Ministry from the total ceiling of a Rs 429-billion budget for the next fiscal year. In the current fiscal year, the ministry received Rs 12.43 billion out of the total budget outlay of Rs 384.90 billion.
The conference was jointly organised by Project for Agriculture Commercialisation and Trade (PACT), Federation of Nepalese Chambers of Commerce and Industry and World Bank Group to promote the agriculture sector for the growth and sustainability of agribusiness. PACT has started the commercialisation process in 25 districts in the country. About 200 agriculture commercialisation experts from Nepal, India, Bhutan, Indonesia, the Netherlands, Indonesia and US and stakeholders of Nepal are participating in the international workshop.