World Bank approves $257 million to improve electricity and irrigation services

The World Bank’s Board of Executive Directors approved two projects for Nepal on May 29 totaling $257 million aimed at enhancing electricity distribution services and improving irrigation services to boost agricultural productivity.

The Electricity Supply Reliability Improvement Project ($120 million) will strengthen the electricity distribution network and enhance electricity supply to users in Koshi, Bagmati, Karnali, and Sudurpashchim provinces. The project, led by Nepal Electricity Authority (NEA), will focus on constructing new distribution substations, upgrading existing networks, and implementing an automated system for real-time monitoring of distribution networks to enhance operational efficiency, a press note issued by the multilateral lending institution reads.

The Modernisation of Rani Jamara Kulariya Irrigation Project - Phase 3 ($137 million) aims to improve irrigation services and agricultural productivity by expanding access to year-round irrigation services, increasing farm productivity, and enhancing climate resilience in Kailali district, Sudurpaschim Province, it reads, adding "Jointly implemented by Department of Water Resources and Irrigation and Department of Agriculture, this project will scale year-round irrigation to an additional 17,500 hectares benefiting 160,000 people."

“An uninterrupted electricity supply and adequate, year-round irrigation services are fundamental inputs for Nepal’s sustainable development,” said Country Division Director for Maldives, Nepal, and Sri Lanka David Sislen. “The projects emphasise improved connectivity and the promotion of clean electricity generated from hydropower, alongside integrated agricultural support services to farmers to help build resilience against climate and disaster risks.”

The projects also include capacity-building initiatives for the Nepal Electricity Authority and the Water Users Association to promote innovative solutions and strengthen institutional systems for the effective management and sustainability of infrastructure.

Nepal marks 20 years in WTO: Experts highlight trade deficit and lack of competitive edge

Experts today said that Nepal has not been able to reap the expected benefits after becoming a member of the World Trade Organisation (WTO).

Registrar of Kathmandu University Prof Dr Achyut Wagle, on the occasion, highlighted the increasing trade deficit every year and Nepal's inability to compete in trade as the main problems. He emphasised that such issues should be discussed continuously and that every policy and rule should be based on research and data.

Likewise, former vice chair of the National Planning Commission (NPC) and economist Prof Dr Biswo Poudel, speaking at a discussion '20 Years of Nepal's Accession to WTO' organised jointly by Kathmandu University School of Management (KUSOM) and the WTO Chairs Programme (WCP) today, echoed the sentiments, stating that world trade has not yielded the desired benefits for Nepal.

"Despite adopting open market policies, these have not contributed positively to Nepal's trade," he said, adding that the agriculture and energy sectors have particularly suffered from huge trade deficits.

Poudel also noted the significant role of India and China in Nepal's international trade and suggested that bilateral trade should gradually evolve into regional trade. Stressing the need to prioritise the industrial sector, as the service sector's share is increasing while both agriculture and industry sectors' contributions are decreasing, he said, that currently, agriculture and petroleum products account for 40 per cent of Nepal's total trade deficit.

Member Secretary of the NPC Dr Toya Narayan Gyawali, on the occasion, acknowledged some benefits from WTO membership but pointed out Nepal's failure to produce competitive goods, resulting in a high trade deficit.

He recounted Nepal's 34-year journey to WTO membership, which was achieved in 2004 as the 147th country. Despite being a least developed country, Nepal has struggled to leverage some benefits of WTO membership.

Gyawali mentioned that while trade policies were previously unpredictable and non-transparent, there has been progress with technical support and expanded market access. He also referred to a report prepared by the commission on the impact of Nepal's upgradation from a least developed country (LDC) and strategies for smooth transition.

Purbanchal University vice-chancellor Prof Dr Biju Kumar Thapaliya emphasised the importance of the supply chain in foreign trade. Highlighting Nepal's significant role in reaching the international market through auction market management and identifying buyers, Thapaliya noted that auction market management is a common issue for landlocked countries. He also suggested that Nepal needs to address it through geo-political discussions.

Executive Director of South Asia Watch on Trade and Environment (SAWTEE) Dr Paras Kharel, discussed the work done for trade facilitation since Nepal became a WTO member. He noted that both imports and exports have been encouraged due to trade liberalisation.

However, Nepal could not impose import duties due to various agreements, including bilateral treaties that exempted 50 per cent customs duty on rice. Kharel stressed that Nepal's exports cannot be competitive unless the domestic market improves, attributing the problem to a lack of production capacity.

Agriculture expert Dr Yamuna Ghale, on the occasion, stated that government agencies have not sufficiently discussed the pros and cons of WTO membership in international forums. Pointing out that poor institutional memory capacity has hampered negotiations and that Nepal's food security is weakening due to lack of production capacity, Ghale warned of potential crises if Nepal's food production remains under external control and highlighted the need for competitive export industries.

Immediate Past President (IPP) of the Confederation of Nepalese Industries (CNI) Vishnu Kumar Agrawal also noted that Nepal now has easier access to a large global market. However, he criticised the government for not fulfilling promises on export promotion and facilitation. 

According to Agrawal, production and productivity have been adversely affected as export promotion programs are frequently included in the budget but fail to deliver results.

Under Secretary at the Ministry of Industry, Commerce and Supplies Liladhar Adhikari, stated that Nepal has failed to effectively promote Nepali products. He emphasised that being a WTO member implies consistent customs levels and suggested that priority should be given to domestic industry to expand trade by ensuring no higher tariffs are levied.

Adhikari concluded that Nepali products need to become competitive in the domestic market to succeed globally.

Kathmandu University School of Management (KUSOM) organises such discussions as part of its media and outreach programs under the WTO Chairs Programme (WCP). 

Prof Dr Bijay KC, Dean of KUSOM, extended his heartfelt thanks to the organising committee, panel members, and participants, pledging to continue these discussions in the future.

Japan and UNDP collaborate to advance Climate Smart Agriculture and build Resilient Communities in Jajarkot

Two types of polyhouses – a naturally ventilated and a nursery polyhouse with misting – were inaugurated by the Government of Japan and the United Nations Development Programme (UNDP), in Ward 7 of Nalgad Municipality, Karnali Province.

This area was among those affected by the earthquake in November 2023.

The multi-purpose nursery with misting will grow saplings of high value crops such as vegetables, fruit, forage, and fodder for community members. These polyhouses employ drip irrigation and mist irrigation which make optimum use of water, conserve water usage, decrease labour and increase agricultural productivity. The nursery will directly benefit 25 members of the farmers’ group and other local farmers in the community.

The naturally ventilated polyhouse demonstrates the benefits of climate smart agriculture interventions, enabling off-seasonal high value vegetable production.

In addition to this, the first five, out of 900, metallic improved cooking stoves and 6 orchard management tools were handed over to the local farmers, who are impacted by the earthquakes, to support their livelihood. Through ‘Enhancing Human Security Through Local Climate Action’ project 48 polyhouses have been supported, which will benefit over 40 households.

Addressing the handover event, deputy chief of mission of the Embassy of Japan Takahiro Tamura said, "I expect that the agricultural and energy equipment handed over today will be used for a long time by the people in this region, and I believe that this project will contribute to strengthening human security through a comprehensive approach that includes gender equality, disability, and social inclusion.”

Also expressing his condolences to all those affected by the earthquake, he elaborated, “I am heartened to hear that the capacity built through this project was very helpful during the Jajarkot earthquake response, as the trained volunteers were mobilised and helped to provide first aid, search and rescue and shelter support. Also, I am glad to know that the energy and agriculture support through this project is helping the communities to bounce back for better.”

He added that the project will further strengthen the relationship between Japan and Nepal as well as the friendship between people of the two countries.

Meanwhile, deputy resident representative of UNDP, Julien Chevillard, on the occasion,  said that considering the high vulnerability, Karnali is a priority province of UNDP, and a number of projects ranging from governance to earthquake preparedness and response are being implemented based on the Leave No One Behind principle. 

Thanking the Government of Japan, he added, "Through this partnership, we contribute to Nepal's ongoing efforts to mitigate the impact of climate change, rehabilitate post-earthquake, and enhance the livelihoods of the affected community."

Thanking the Government of Japan and UNDP, Mayor of Nalgad Municipality Dambar Bahadur Rawat, emphasised that agriculture is the primary livelihood for Nalgad residents, and the provision of agricultural equipment support has assisted the affected community in sustaining their livelihoods post-earthquake. "We seek further assistance in the second phase of this programme, which can offer technical and financial support for recovery and livelihood restoration.”

Chair of Barekot Rural Municipality, Bir Bahadur Giri, on the occasion, emphasised that climate change is a global concern, and here in Karnali Province, "we are among the first to feel its effects," he said, adding that it is crucial to empower community and raise awareness about the impacts of climate change, prompting local initiatives to mitigate these effects. "We deeply appreciate the support from the Government of Japan and UNDP during these challenging times and hope for continued collaboration in the future."

In Nepal, Karnali province is among the most remote provinces in Nepal. The Human Development Index (HDI) for Jajarkot District, in Karnali Province, stands at 0.393, falling below the national average of 0.587.

Compounding these issues is the district’s vulnerability to natural hazard induced disasters, particularly floods and landslides induced by rainfall and earthquake posing additional threats to the well-being of its residents.

In October 2022, Karnali Province experienced a severe flood and landslide, resulting in numerous casualties. The impact of climate change is exacerbating the already challenging situation in Jajarkot after the earthquake. Disasters and poverty are mutually reinforcing, thus creating a cycle of vulnerability and disaster.

The joint field visit reaffirms the commitment of the Embassy of Japan and UNDP to fulfilling the Climate Promise, a shared commitment to accelerate climate action and achieve the goals of the Paris Agreement.

By investing in projects like this one, Japan and UNDP are working together to build climate-resilient communities and mitigate the adverse impacts of climate change.

The ‘Enhancing Human Security through Local Climate Action (EHSLCA)’ project, funded by the Government of Japan, aims to improve human security through local climate action. The project, from

March 2023 till December 2024, includes key components on energy solutions, adaptive agriculture, infrastructure for risk reduction, instrumentation for improving early warning and capacity building.

Through the project, over 40 community members were trained in search and rescue in the months of September/October 2023 in Nalgad Municipality and Barekot Rural Municipality, right before the earthquake of November 3. 

These trained volunteers provided crucial support in immediate response during the earthquake. Furthermore, the project is leveraged support to the earthquake affected communities – those affected by the Western Nepal Earthquake of November 3, 2023 - through energy solutions for early recovery in Jajarkot and West Rukum Districts.

Climate Promise supports 120 countries – including 40 least developed countries, 28 small island developing states, and 14 high emitters – to enhance their Nationally Determined Contributions under the global Paris Agreement. Delivered in collaboration with a wide variety of partners, it is the world’s largest offer of support for the enhancement of climate pledges.

Around 42,000 MT of chemical fertiliser in stock, claims government

The government claimed that there is adequate chemical fertilizer for crop plantations for this season. 

According to the Ministry of Agriculture and Livestock Development (MoALD), there is around 42,000 metric tonnes (MT) of chemical fertiliser in depots of the state-owned organisations across the country. 

The spokesperson of ministry Prakash Kumar Sanjel today confirmed that there is enough availability of fertiliser at present. Some 86,246 MT of chemical fertiliser has been sold and distributed in four months – from mid-July to mid-November – of the current fiscal year and some 42,981 MT of fertiliser is still available, he said, adding that of the total stock, some 21,763 MT urea, some 19,286 MT are di-ammonium phosphate (DAP) and remaining around 1,932 MT potassium is in the stock.

Krishi Samagri Company (Agriculture Inputs Company Ltd) has some 35,499 MT and Salt Trading Corporation (STC) has some 7,534 MT of fertiliser in stock. “Krishi Samagri Company has 15,179 MT of urea, some 18,432 MT of DAP and some 1,837 MT potash. Likewise, STC has some 6,584 MT urea, some 854 MT DAP and some 95 MT potash in its stock.”

However, farmers face shortage of fertilizers every year during the plantation season, also due to mismanagement of the stocks and delay in imports. Due to lack of timely fertilizer, the 'agriculture country' Nepal has been cursed to import billions of agriculture produces every year to feed its population.

National Food Laboratory at Raxaul facilitates testing of Nepali products

The National Food Laboratory (NFL) inaugurated today in Raxaul of Bihar state of India on the Nepal-India border is expected to facilitate testing of Nepali foods products.

Minister of Health and Family Welfare, Government of India Dr Mansukh Mandaviya inaugurated the lab, in the presence of minister for Agriculture and Livestock Development Mahendra Rai Yadav, confirmed a press note issued by the Indian Embassy.

The lab at Raxaul, established by Food Safety and Standards Authority of India (FSSAI), is a modern facility equipped with advanced facilities and infrastructure for testing of food samples entering India, the press note reads, adding that it will support enhanced bilateral trade between India and Nepal by reducing the time taken for testing samples of food and agricultural exports of Nepal which currently need to be sent to Delhi or Kolkata for testing. “The creation of an upgraded laboratory at Raxaul was a longstanding request of Nepal’s exporters which now stands fulfilled.”

The NFL is yet another reflection of India’s commitment to improve connectivity, trade and border infrastructure with Nepal as part of its ‘Neighbourhood First’ policy, the press note adds.

Electricity consumed for irrigation use will be free: Minister Bhusal

Minister for Energy, Water Resources and Irrigation Pampha Bhusal today announced to make the electricity consumed for irrigation free of cost.

Stressing the need for making the agriculture sector independent and supporting the country’s economy, she decided to make the use of electricity free of cost for irrigation purposes.

The government had reduced the cost of electricity used for irrigation by 50 per cent on November 9 last year, she said, adding that the cost has been made free for irrigation purpose.

She also emphasised on increasing the export of handicrafts to strengthen economy.

Speaking at the 41st Annual General Meeting of the Nepal Handicraft Federation, in Kathmandu today, she also urged the business people not to import goods that are produced in Nepal.

JICA to support strengthening of seed production, supply and quality control system

JICA signed Record of Discussions with the government for the technical cooperation project 'Strengthening Seed Production, Supply and Quality Control System Project'.

The implementation period of the project is for 5 years (starting from March 2022 to March 2027) and the executing agency is Seed Quality Control Center (SQCC), Ministry of Agriculture and Livestock Development (MOALD), Nepal Agricultural Research Council (NARC), and Ministry of Land Management, Agriculture and Cooperatives (MoLMAC) of province No 1, according to a press note issued by the JICA.

The project shall be implemented in Province 1, mainly Jhapa, Morang, Sunasari and Udayapur districts, it reads, adding that the purpose of the project is 'to strengthen Rice seed production, supply and quality control system' to improve productivity of rice by means of dissemination of quality improved seeds in Province No 1 and to strengthen the implementation of the rice seed production, supply and quality control system in Nepal. 

Rice is fundamental crop of Nepali agriculture. Everyone eats it, and farmers gain income out of it. In order to make crop tasty, nutritious, and productive, the most important factor remains the quality of rice seeds.

Even though rice farming contributes around 15 per cent to the gross domestic production (GDP) of Nepal, there is still possibility to increase its yield therefore usage of improved seed and increasing the replacement rate of seed are the key.

According to the statistic, seed replacement rate of rice in Nepal is around 20 per cent now, therefore, the government has the strategy to raise the percentage to 25 per cent. And it is estimated that the use of improved seeds with good quality will increase its yield by 15 per cent. However, there are several processes before farmers can use the improved seeds with good quality, it is necessary to improve of the quality of the system and capacity to produce the quality seed in Nepal. In this context, holistic support for improving seed production was requested to JICA.

The project is expected to contribute for sustainable social and economic development of Nepal during and after the implementation period of the project.

Floods damage ready-to-harvest paddy worth Rs 8.21 billion

Farmers lost an estimated Rs 8.21 billion worth paddy due to floods triggered by the torrential rain after monsoon last week.

A preliminary study report of the Ministry of Agriculture and Livestock Development (MoALD) has estimated some 269,842 tonnes of paddy across the country. According to the ministry, the 19 districts of six provinces lost their produce.

According to the ministry, Lumbini Province suffered the largest amount of loss by the disaster as it lost 161,223 tonnes of ready to harvest paddy that is worth Rs 4.51 billion. Likewise, Kailali and Kanchanpur districts of the Sudurpaschim Province also lost an estimated Rs 1.91 billion worth paddy. "The flood damaged 68,400 tonnes of paddy in the province," according to the ministry.

Province 1 also suffered a damage of some 28,469 tonnes of the paddy as the farmers in Morang, Jhapa and Sunsari districts of the province were hit hard by the disaster. "These three districts lost an estimated Rs 800 million worth paddy crop," the ministry confirmed, adding that the Province 2 lost Rs 560 million worth paddy, whereas Gandagi and Karnali province each lost Rs 130 million worth paddy crop.

Rainfall damages paddy crops

The incessant rainfall since Sunday destroyed the harvest-ready paddy crops in several districts across the country.

As the paddy contributes largest chunk in the agriculture gross domestic production (AGDP), the damage is also going to hit the economic growth, apart from the food shortage looming large due to unseasonal rainfall. It was predicted to have a good paddy harvest this season due to adequate monsoon rainfall but the recent rains is going to hit rice output.

Some farmers have just recently cut the paddy crops and was planning to thresh them before the rainfall damaged the crops, while others were planning to harvest, and the crops are submerged in rainwaters, damaging the crops. 

Districts in Sudurpaschim, Lumbini, Karnali and Gandaki provinces are hit hard by the unseasonal rainfall. The rainfall also damaged paddy crops in Baitadi, Kapilvastu, Banke, Bardiya, Rupandehi, Dang, Jumla, Surkhet, Kaski, Nawalparasi (East), Syangja, Parbat and Tanahun, whereas many districts in province 2 also have been flooded, displacing the locals.

Transforming agriculture key to Asia and Pacific’s future and survival

Governments in Asia and the Pacific must transform agriculture to make it more modern, climate-proof, and inclusive as the region recovers from the coronavirus disease (Covid-19) pandemic, according to a new report by the Asian Development Bank (ADB).

With 76 per cent of Asia’s poor living in rural areas, raising agricultural productivity and income is key to fighting poverty, according to the theme chapter of Asian Development Outlook 2021 Update released today. The latest edition of ADB’s flagship economic publication urges governments to enact policies that integrate technology, infrastructure investments, innovation, and regulatory reforms to ensure food security and continued economic development.

According to the report, the Covid-19 pandemic has pushed an additional 75 million to 80 million people in developing Asia into extreme poverty. This in turn is causing greater food insecurity. Worldwide, hunger will surge by about a third this year, according to an assessment by the US Department of Agriculture. Of the 291 million additional people suffering from food insecurity globally, 72 per cent are in Asia, particularly in Bangladesh, India, Indonesia, and Pakistan.

"Agriculture has supported Asia and the Pacific’s rapid economic growth in recent decades, but multiple challenges are driving the need to modernise and transform the sector, from Covid-19 to climate change and urbanisation," ADB acting chief economist Joseph Zveglich, Jr, said, adding that policies that support this transformation are crucial in order to put food on the table and protect the region’s recovery and sustainable development.

Beyond the pandemic, climate change is the biggest challenge facing agriculture in Asia. Increases in extreme weather are threatening crop production and overall sustainability. From 2008 to 2018, Asia suffered $207 billion in crop and livestock production losses to disasters, or 74 per cent of the global total, according to the Food and Agriculture Organisation of the United Nations. To address this, government policies can promote a range of solutions like early warning systems for extreme weather, climate-resilient agricultural infrastructure and production practices, and affordable crop insurance.

Other challenges include the adverse effect of rapid urbanisation on farm labour productivity; changing food preferences, such as increasing demand for meat; outdated infrastructure, particularly in terms of water and irrigation management; and obsolete government support measures, the report reads, adding that developments in areas like aquaculture and digital technology have the potential to help transform agriculture in Asia and the Pacific. "Aquaculture now accounts for about half of the world’s fishery production and is growing fast."

About 90 per cent of aquaculture production is in Asia. Meanwhile, digital technologies, including mobile phones and applications, can increase technical knowledge among the region’s 350 million smallholder farmers, helping them adopt innovative practices and get up-to-date market information.

Government policies should transition away from traditional production support, the report reads. "They should focus more on investing in research and development, encouraging innovation, and pursuing market-oriented development," it adds, "At the same time, governments must protect the rights of farm workers, including migrants and women, to ensure everyone benefits from the sector’s transformation."

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members, 49 from the region.

Despite lack of fertilizer, paddy production increases

 Compared to last year, paddy production has increased by 70,000 metric tonnes due to favourable weather and timely plantation this year, though the government failed to provide chemical fertilizer on time for paddy plantation. Despite increased paddy production, Nepal has imported Rs 18 billion worth rice in the five months of the current fiscal year.

According to the Ministry of Agriculture and Livestock Development (MoALD), some 5.6 million metric tonnes of paddy has been produced in the current fiscal year 2020-21. A fiscal year ago, in 2019/20, some 5.51 million metric tonnes of paddy was produced, the ministry claimed, adding that the plantation area of paddy has also increased to about 1.5 million hectares.

Agriculture contributes to about 27 per cent to the country’s Gross Domestic Product (GDP), whereas paddy contributes about seven per cent to that. “Paddy production has increased due to timely rain and plantation,” the ministry assumed, adding that farmers were able to plant paddy on time due to timely rains since May. “Had the government been able to provide fertilizers, the production would have been increased even more.”

The year that witness timely rain automatically sees increased agriculture production as almost all agriculture largely depends on rain water due to the lack of an efficient irrigation system in the country. But paddy is cultivated in Kachankawal in Jhapa at an altitude of 60 meters to Chumchaur in Jumla at an altitude of 3,050 meters, in Nepal.

The government has been running a fine and fragrant paddy production promotion programme to increase production since years. Likewise, the government has set up paddy pockets zones and super zones in different districts under the Prime Minister Agriculture Modernisation Project (PMAMP).

Paddy production could be increased by even 15 per cent to 25 per cent, if government ensures high quality seeds, chemical fertilizers and adequate irrigation in time, according to the farmers.

World Bank approves $80 million to boost Nepal’s agriculture sector

 The World Bank approved a $80 million project today to bolster Nepal’s agriculture sector by strengthening rural market linkages and promoting entrepreneurship while creating jobs to support post-Covid-19 recovery.

The Rural Enterprise and Economic Development (REED) Project will promote market linkages to support the growth of rural enterprises, especially those that are women-led. A key focus is on productive partnerships that will help add value, create jobs and foster sustainable linkages between small-holder producers and institutional buyers. The project will facilitate improvements in quality and meeting requirements of new destination markets to boost exports, according to a press note issued by the multilateral development partner.

“The project is an opportunity for the government and the private sector to work together in building the ‘Nepal’ brand in the agriculture sector and leverage the country’s global recognition,” World Bank country director for Maldives, Nepal and Sri Lanka, Faris Hadad-Zervos said. “In doing so, the project can stimulate many niche sectors such as coffee, tea, fruit and medicinal products, among others, to help them grow and to support post-Covid-19 recovery.”

The project focuses on five economic corridors covering Provinces 1, 2, Bagmati, Gandaki, Lumbini and Sudurpashchim that offer opportunities for successful linkage activities of the rural entrepreneurs to be supported by the project, the press note reads, adding that REED will work with provincial and local governments, intermediary organizations and small and medium enterprises to build capacity in the agriculture sector and strengthen the entrepreneurship ecosystem.

The project will also help improve production through investments in municipal agriculture centers and value chain infrastructures to ensure the availability of inputs for farming as recovery actions from Covid-19. The project will use labor-intensive Cash for Work mechanism, to the extent possible, in short-term public works.

“In the context of Nepal’s agriculture sector transformation and Covid-19, improving agribusiness competitiveness and creating rural jobs are critical to accelerate recovery of the sector and the economy from the pandemic’s impacts,” World Bank practice manager for the Agriculture Global Practice Loraine Ronchi.

The project supports the Nepal’s Agriculture Development Strategy 2015–2035 that aims to create a sustainable, competitive, inclusive and resilient agricultural sector that drives economic growth with private sector participation. 

The World Bank is supporting Nepal’s development through a portfolio of 24 projects with net commitments of over $3 billion. The World Bank-supported projects aim at strengthening public institutions for economic management, service delivery and public investment; generating more and better jobs through private sector-driven growth; and building inclusion for the poor, vulnerable and marginalized groups, with increased resilience against climate change, natural disasters and other exogenous shocks.

Government pledges to ensure food security

 The government has pledged to ensure food security.

Addressing a programme organised on the occasion of the 40th World Food Day today, agriculture minister Ghanashyam Bhusal claimed to ensure food security as his ministry is preparing new policies and regulations to regulate the food production and distribution sector. “The Food Act has been prepared as per the spirit of the constitution,” he said, adding that the regulations are also being drafted. “The issue of right to food and healthy food for everyone has been addressed constitutionally and politically, but a lot of work still remains to be done.”

“Farmers alone cannot sort out their problems,” he said, adding that at least one agricultural technician in every ward is the need of the day to develop the agricultural sector.

Speaking in the occasion, chairperson of Alliance of Agriculture for Food campaign Uddhav Adhikari stressed on increasing production to discourage the import of agricultural products. “The government is adopting sustainable development of agriculture through organic agriculture,” he said, adding that a task force formed by the ministry for the promotion of organic agriculture has already submitted its report but there has been no response so far. “The government needs to be serious and bring result oriented policies.”

Likewise agriculture secretary Rajendra Prasad Bhari said that the ministry is working on the classification of farmers to ensure access to food for all. “We are now planning to categorise farmers and provide facilities through a voucher system,” he said, adding that the ministry has also asked all the provinces to provide farmers’ data. “The ministry also has a plan to reduce chemical farming and promote organic farming.”

The private sector and local governments have decided to buy and sell the agricultural produce from the farmers as the products cannot be bought only by the food management and trade companies, he added.

Government cancels contract with fertiliser importers

 Agriculture Inputs Company Ltd (AICL) has scrapped the contract and blacklisted them as the non-perfroming importers failed to import the fertilisers on time.

The AICL had awarded a tender to import fertilisers to Shailung Enterprises and Hobiko Multiple, informed the agriculture minister Ghanashyam Bhusal, organising a press meet at the Ministry of Agriculture and Livestock Development (MoALD) today. “AICL has decided to cancel their contracts and also seize the money they had deposited as collateral,” he said, adding that AICL had signed an agreement with Shailung Enterprises and Hobiko Multiple, on April 24 and 27, respectively with a target of importing fertilisers by May 12. They have kept guarantees worth Rs 48 million each while signing the contracts. The government has also sought to recover the compensation amount from the contractor companies.

According to the agreement, the first shipment was supposed to have arrived within 42 days from the date the agreement was signed and the second shipment within 72 days from the day the agreement was inked. But they both failed to bring fertilisers on time even after AICL extended the deadline by 25 days on their request. “The extended deadline terminated on Saturday but both the companies have not yet provided any update regarding shipment nor submitted any documents,” the minister informed, adding that both the companies will also be blacklisted.

Both Shailung Enterprises and Hobiko Multiple had signed agreements to import 25,000 tonnes of urea, one of the important fertilizers used for paddy production. While Shailung was supposed to import fertilizer from Russia or Oman, Honiko had informed the government that it planned to import the fertilizer from China. The two companies on May 12 opened the letter of credit accounts in Nepal Investment Bank and Siddhartha Bank, respectively.

Bhusal, on the occasion, also expressed his distress in the delay in the import of fertilisers due to the negligence of the non-performing importers of chemical fertilizers. “Despite allocating the budget and awarding the tender on time, the negligence of the contractors has forced farmers to suffer this year too,” he said, adding that the contractors are solely responsible for the delay in fertiliser import and distribution, though there has been some few hurdles created by the Covid-19 pandemic.

The failure of the contractors to import chemical fertilizers on time is feared to bring huge reduction in the production of overall paddy production this year.

Claiming that the action will be an example to the wrongdoers in the future too, he said that the ministry will be vigilant and regulate the agriculture sector wrongdoers. 

There has been two aspects concerning shortage of fertilisers – supply and distribution – but the government has sorted the issues of distribution, he claimed, adding that the supply side used to be a big hindrance for a long time but the ministry has started it out. “In the coming years farmers will not have to face any issues related to fertilisers.”

Another swarm of locust from India enters Nepal

Yet again a swarm of locusts from India has entered Nepal today.
A swarm of locusts that were in Sitapur of Bahraich area in Indian state of Uttar Pradesh has entered Gadhawa Rural Municipality ward number 2 and 3 of Dang district today morning, confirmed Plant Quarantine and Pesticide Management Centre (PQPMC).
The swarm was later spotted in Lalmatiya of Rapti Municipality but locals chased the swarm, the centre said, adding that the swarm then headed northeast.
Warning the stakeholders, the centre asked them to stay prepared and adopt all precautionary measures to combat the attack of the swarm entering Pyuthan, Arghakhanchi and other districts.
The centre has also requested Province 1, Province 2 and Province 5 along with mid-hilly areas to take measure precautions as there are chances of more locusts entering Nepal from India, where they had been ravaging crops. Locusts are known for devouring a huge amount of crops within a short span of time.
Earlier, on June 27, the swarms of locusts that had entered Nepal had damaged, albeit little, crops in Makwanpur, Dang, Pyuthan, Arghakhanchi and Palpa. Although eight million locusts had entered Nepal and were spotted in many districts across the country, the centre reported that their mobility has been affected due to rainfall.

Paddy output drops by 1 per cent

Against the government’s projection of 6 million tones output in the current fiscal year 2019-20, paddy production dropped by 1.1 percentage point – some 59,133 tonnes – to 5.55 million tonnes compared to the record high production of 5.61 million metric tonnes last fiscal year.
Releasing an initial estimate of paddy harvest, the Ministry of Agriculture and Livestock Development confirmed that the paddy output declined by 59,000 tonnes in the current fiscal year from the record high production of 5.61 million tonnes in the last fiscal year 2018-19.
The ministry attributed barren land due to low plantation coverage, delay in monsoon arrival, damage wrought by insects to the major cereal crops and problem related to seeds to the lower output of the paddy, a press note of the ministry reads, adding that the paddy productivity has, however, gone up by 1.17 per cent to 3,804 kg per hectare from 3,760 kg per hectare in the last fiscal year. “Though, the production figure is less compared to the last fiscal year, the current fiscal year has recorded the second highest paddy output, and also the record high in terms of productivity despite a series of misfortunes ranging from a delayed monsoon, fertiliser shortage and supply of fake seeds to an armyworm invasion, apart from supply of faulty Garima brand paddy.
The faulty Garima brand paddy did not yield rice grains across the country including in Chitwan, Rautahat, Nawalparasi, Nuwakot, Lamjung, Gorkha and Tanahun districts. The Garima brand paddy was planted across 1,500 hectares of land, affecting production of almost 8,500 tonnes of paddy.
Compared to the last fiscal year, paddy production has dropped in Province 2, Province 3, Gandaki Province and Lumbini Province, while the output has increased slightly in other provinces. Paddy production has increased by 0.6 per cent each in Province 1 and Karnali Province to 1.24 million tonnes and 134,407 metric tonnes, respectively. Similarly, paddy output has increased by 6.7 per cent compared to last year’s production in Sudurpaschim Province to 646,059 metric tonnes. “Paddy production this year dropped by five per cent to 1.42 million tonnes in Province 2, some 2.2 per cent to 510,210 metric tonnes in Province 3, some 4.4 per cent to 408,737 tonnes in Gandaki Province and 0.3 per cent to 1.18 million tonnes in Lumbini Province,” the press note reads.
The lower paddy production is going to hit the economic growth as the agriculture contributes to around 28 per cent in the gross domestic production (GDP), and paddy contributes highest to the agriculture gross domestic production (AGDP). The agro experts thus blamed government for manipulating the data to show that its ambitious growth target of 8.5 per cent or something close was achievable.
Likewise, the experts are also surprised by this year's production data as they have also estimated the paddy crop could drop by at least 8 per cent and the ministry had also initially estimated that production could drop by 7 per cent to 8 per cent in the current fiscal year.

Paddy Outout (metric tonnes)
Provinces Last FY         This FY 
Province 1 1,237,952 1,245,545
Province 2 1,495,044 1,420,436
Province 3 521,446         510,201
Gandaki         427,689         408,737
Lumbini 1,188,675 1,185,493
Karnali 133,579         134,407
Sudurpaschim 605,626         646,059
Total 5,610,011 5,550,878
Source: MoALD

Industry minister vows to solve sugarcane farmers’ problem

Minister for Industry, Commerce and Supplies Lekhraj Bhatta vowed to solve problems of sugar mills and sugarcane farmers by the third week of January.
Taking time in the meeting of the National Assembly today, he informed that the sugar mills have been directed to clear their dues. “The government has formed a task force that will submit its report to the government within 15 days,” he said, adding that the discussions have also been held between the representatives of sugar mills and sugarcane farmers. “The mills have been instructed to immediately pay the dues they owe to the farmers.”
He also said that the government is serious regarding the 11-point demands of the sugarcane farmers, whereas it is also facilitating in the purchase and sale of sugar that the mill owners have in their store.
Bhatta also informed the National Assembly that customs levied on import of sugar has been increased by 40 per cent and importation of this commodity has been prohibited to help mill owners sell their stock of sugar.
The lawmakers, on the occasion, also suggested him to seek a long-term solution as the problem between the farmers and mill owners have been recurring every year. Earlier this week, the sugarcane farmers from various parts of Tarai districts assembled and started a stage sit-in at the Maitighar Mandala in Kathmandu to pressurise the government.
The communist government with a comfortable majority is steering the nation, and the farmers are staging the protest against the government that claims to be championing for the cause farmers and labourers.
Agitating farmers claim that Annapurna Sugar Mills needs to pay a total of Rs 500 million, while Mahalaxmi Sugar Mills owes them Rs 210 million. The government has fixed minimum support price for a quintal of sugarcane at Rs 536.56. Of the total amount, sugar mills should pay Rs 471.28 per quintal, while Rs 65.28 is to be paid by the government as subsidy.
Earlier yesterday, during a meeting with sugarcane farmers held at the Industry Ministry, deputy prime minister Ishwar Pokharel, industry minister Lekhraj Bhatta and agriculture minister Ghanshyam Bhusal vowed to clear all the outstanding payment of the sugarcane farmers by January 21. But the sugarcane farmers have demanded to clear 80 per cent outstanding payment by January 10 and the remaining 20 per cent payment by January third week.
According to sugarcane farmers, the mills are yet to clear outstanding payments for the past five years amounting to Rs 1.33 billion. The farmers have yet to recover Rs 420 million from Shree Ram Sugar Mills, Rs 400 million from Annapurna Sugar Mills, Rs 200 million from Mahalaxmi Sugar Mills, Rs 110 million from Bagmati Sugar Mills and Rs 100 million each from Indira Sugar Mills and Lumbini Sugar Mills, the farmers claimed.

BFIs float Rs 41 billion in concessional loans

Though there is a lot of complaint of bank and financial institutions (BFIs) not floating concessional loans, they have floated a total of Rs 41.05 billion concessional loans to 20,869 individuals till mid-November under seven different categories.
Though, concessional commercial agriculture and livestock loan was introduced few years ago, the government has added the other six categories for concessional loans in the budget for the last fiscal year 2018-19. “The applicants for concessional loans need to meet the criteria set by the government to qualify for the scheme,” according to the fiscal policy. “The government subsidises seven per cent interest rates for loans to woman entrepreneurs and five per cent for loans under other six categories.”
The central bank data reveals that some 18,743 individuals received commercial agriculture and livestock loans – the highest among all categories – as of mid-November. “A total of Rs 39.8 billion was disbursed as loans under the agriculture and livestock category,” the central bank data reveals, adding that under educated youth self-employment loan, some 38 individuals received loans totaling Rs 20.01 million. “Likewise, some 87 youth returnee migrant workers received Rs 58.40 million in loans.”
The women entrepreneur loan with some 1,675 women entrepreneurs receiving loans totaling Rs 1 billion stands second.
Likewise, some 117 beneficiaries borrowed Rs 64.78 million from BFIs under dalit community business development loan, whereas some 70 beneficiaries received higher technical and professional education loans of Rs 16.93 million. “A total of Rs 36.66 million was disbursed to 139 earthquake survivors to rebuild their houses damaged by the 2015 earthquake,” the central bank data reveals, adding that some Rs 700,000 was disbursed in loans for educated self-employment youth, Rs 1 million for business projects promoted by returnee migrant workers, Rs 1.5 million for women-run enterprises, and Rs 1 million for business promoted by members of Dalit community. “Earthquake survivors (up to Rs 300,000 to rebuild their houses) and youths – up to Rs 500,000 for higher, technical or entrepreneurship education – can also borrow from the BFIs at subsidised interest rates.”
The scheme was introduced to encourage youths to take up various occupations and create employment opportunities within the country. Under the scheme, the government subsidy goes to loans for commercial agriculture and livestock, self-employment of educated youth, projects of youth returnee migrant workers, woman entrepreneurs, dalit community business development, higher technical and professional education, and housing for earthquake victims.
According to the central bank, the scheme requires commercial banks to disburse loans to at least 500 borrowers by mid-July 2020, whereas 'B' class development banks must float loans to minimum 200 borrowers, and 'C' class financial companies require floating loans to 100 borrowers. “BFIs that do not meet the new requirement by the given deadline will be fined by the central bank.”

Government to reduce subsidy for farmers under PMAMP

The government is going to reduce subsidy to farmers under the Prime Minister Agriculture Modernisation Project (PMAMP) also due to its ineffectiveness.
The Ministry of Agriculture and Livestock Development (MoALD) that is in the process of revising the framework of PMAMP – after the direction of Finance Ministry – has formed a committee to conduct studies of the PMAMP framework. The Finance Ministry has asked Ministry of Agriculture and Livestock Development to reduce farmer subsidy to 50 per cent from 80 per cent.
The ministry is planning to reduce subsidy for farmers involved in fruits, vegetables, flowers and livestock farming,” according to the ministry. “The current framework has a provision to provide up to 80 per cent subsidy to farmers for their agriculture businesses.”
The study committee submits its report which will help prepare the new draft of Prime Minister Agriculture Modernisation Project framework, which will be sent to the cabinet for approval.
The Prime Minister Agriculture Modernisation Project – a 10-year project of the Agriculture Ministry – was first introduced in the fiscal year 2016- 17 to transform agricultural sector from subsistence farming to commercial farming.
Though, the country has been transformed into federal system, the Prime Minister Agriculture Modernisation Project depends on the central government. Thus, the ministry is planning to distribute the responsibility to the province.

Japan to help Nepal in agri research

Japan is helping Nepal conduct research in plant breeding, seed production and gerplasm.
Nepal Agriculture Research Council (NARC) and Japan International Research Center for Agricultural Sciences (JIRCAS) signed a Memorandum of understanding (MoU) in Kathmandu today to collaborate in the agri research. Japan has also agreed to help in Nepal in agriculture, trade and investment through its research.
Acting executive director of NARC Tek Bahadur Gurung and president of JIRCAS Masaru Iwanaga signed the MoU on behalf of their respective institutions.
Earlier in January, researchers from Japan visited Nepal for their research and preparing ground work for MoU signing between the two institutions. According to the MoU, Japanese scientists will come to Nepal to conduct research on different crops.
“JIRCAS and NARC are collaborating with each other for agri research in Nepal,” Iwanaga said at the signing ceremony. “Japanese food scientists have already done research on gerplasm and field derivation in Kathmandu Valley,” he said, adding that findings of the study will help to enhance phosphate nutrients in soil which will help to increase rice production. “Both Nepal and Japan have common culture in fermented food.”
 A study of this tradition could also be a promising research area,” he added.
On the occasion, Japanese government officials assured to help explore the probability of research in various fields. They said Japan could accept foreign workers in agriculture sector in the near future.
Gurung of NARC, on the occasion, said that the collaboration with JIRCAS will help agriculture sector. “We will hold discussions with the Ministry of Agriculture and Livestock Development to finalise priority of the government and conduct research accordingly," Gurung said, adding that plant breeding could be one of the areas in collaborative research work. “Promotion of underutilised crop, which can withstand impacts of climate change, will benefit us in the future.”
According to NARC, Japan is interested to help Nepal in increasing production of rice. “The researchers are focusing on hybrid rice, which gives high yields,” NARC said, adding that Japan is also interested to conduct research on buckwheat farming.