Agriculture is Nepal's potential and strength. It contributes approximately 40 per cent to our total GDP but since its growth is stifled this contribution is eroding every year. There is consensus that commercialisation of farming is a must to revive agricultural sectors. The 2065-66 budget can take the following steps for commercialisation of agricultural sectors:* Allocate substantially for irrigation* Provide electricity to farmers at night at half the current rate.* Instal exclusive electrical distribution hubs for agricultural purposes.
* Subsidise for installing 'deep tube-wells' and community ponds for irrigation.
* Set up modern warehousing and marketing facilities for wholesale cash crops.
* Incentives for private investments in setting up modern warehouses and marketing facilities and the lending by banks against the depositary slips issued by recognised warehouses.
* Government should create buffer stocks of grains and fertilizers at different locations.
* Agriculture development surcharge be reduced to five per cent and ultimately phased out over the next two years. It should not be levied if the agricultural product is imported by industry for its own use as raw materials.
* Announce minimum support price for selected food grains.
Government should set up an institutional platform where all stakeholders, farmers, entrepreneurs and government personnel can work together. The symbiotic relationship among stakeholders has to be protected by a suitable Act.
Food crisis is going to aggravate. Prices of fertilizers will skyrocket and supply will get limited. Government has to focus not only on alternative fertilizers but also efficient use of fertilizers and fertilizer production domestically.Areas under tea plantation need to be doubled and extended to other hilly regions in the next five years. Reforms needed are modernisation, consolidation and identity of Nepali tea in the international market.
Government should set up an institutional platform where all stakeholders, farmers, entrepreneurs and government personnel can work together. The symbiotic relationship among stakeholders has to be protected by a suitable Act.
Food crisis is going to aggravate. Prices of fertilizers will skyrocket and supply will get limited. Government has to focus not only on alternative fertilizers but also efficient use of fertilizers and fertilizer production domestically.Areas under tea plantation need to be doubled and extended to other hilly regions in the next five years. Reforms needed are modernisation, consolidation and identity of Nepali tea in the international market.
Government can declare tea plantation areas as SEZs and provide incentive packages as per SEZ for their modernisation and consolidation.Subsidy can be given for developing international packaging and FDI allowed in promoting, selling and distributing Nepali tea in the international market.
Similarly, private sector can provide the following in agricultural development:
* Appropriate technology - pre and post-harvest.
* Market linkage to industrial production.
* Improved seeds.
* Fertilizer at affordable prices.
* Technology for efficient use of water.
* Financial support.
* Market information
Jagdish Agrawal,
Managing Director,
Pro-Biotech Industries
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