The Ministry of Agriculture Development is preparing to introduce the ‘Interest Subvention Scheme’ under which it will provide three percent discount to farmers on interest on loans taken from state-owned banks. The scheme will, however, be applicable only to loans that are taken after the scheme’s implemention.
The ministry has prepared guidelines in this regard based on the provision of the recently introduced ‘Adjusted Full Budget’ by the government. The budget has talked about providing interest subsidy to commercial agriculture too, which is currently being provided to commercial animal farming only. “We have sent the guidelines to the Finance Ministry for approval,” said Prabhakar Pathak, spokesperson of the ministry.
The agriculture sector received 7.98 percent of the total lending made by banks and financial institutions (BFIs) during the first eight months of the current fiscal year, according to Nepal Rastra Bank. The BFIs lent Rs 8.89 billion out of the total lending of Rs 111.38 billion. A total of Rs 28.79 billion was lent to the agriculture sector in the last fiscal year 2011-12.
Meanwhile, the ministry has enacted two other guidelines to promote farm mechanisation and farm insurance in a bid to boost farm production and encourage youths’ participation in the sector. “All three guidelines have been sent to the finance ministry,” Pathak said, adding, “after we receive the go-ahead, these guidelines will be sent to the Cabinet for final approval.” The ministry has proposed blanket VAT waiver on import of farm machineries.
Likewise, to encourage farmers to opt for crop insurance, the agriculture ministry has proposed 50 percent discount on insurance premium as announced through the budget. The budget has promised subsidising 50 percent premium amount that the farmers have to pay to the insurers. The government had introduced ‘Fisheries, Poultry and Agriculture Insurance Scheme’ on January 14, 2013.
“The budget has allocated Rs 20 million for this purpose,” said Pathak. The scheme aims to minimise the risk in commercialisation of agriculture sector investment and ensure the investment by farmers and ensure security in the investment made by the farmers.
Meanwhile, Minister for Agriculture Development Tek Bahadur Thapa Gharti said on Saturday that the government is mulling setting up an ‘Agriculture Departmental Store’ which will make agriculture goods available to consumers, while farmers will be able to sell their produce to it.
He also said the government is doing homework to take the ownership of the Agriculture Development Strategy (ADS) that will be completed by this April. According to Gharti, they will make arrangements for a farm scheme and subsidy to ensure better farm productivity as recommended by the ADS.
The ministry has prepared guidelines in this regard based on the provision of the recently introduced ‘Adjusted Full Budget’ by the government. The budget has talked about providing interest subsidy to commercial agriculture too, which is currently being provided to commercial animal farming only. “We have sent the guidelines to the Finance Ministry for approval,” said Prabhakar Pathak, spokesperson of the ministry.
The agriculture sector received 7.98 percent of the total lending made by banks and financial institutions (BFIs) during the first eight months of the current fiscal year, according to Nepal Rastra Bank. The BFIs lent Rs 8.89 billion out of the total lending of Rs 111.38 billion. A total of Rs 28.79 billion was lent to the agriculture sector in the last fiscal year 2011-12.
Meanwhile, the ministry has enacted two other guidelines to promote farm mechanisation and farm insurance in a bid to boost farm production and encourage youths’ participation in the sector. “All three guidelines have been sent to the finance ministry,” Pathak said, adding, “after we receive the go-ahead, these guidelines will be sent to the Cabinet for final approval.” The ministry has proposed blanket VAT waiver on import of farm machineries.
Likewise, to encourage farmers to opt for crop insurance, the agriculture ministry has proposed 50 percent discount on insurance premium as announced through the budget. The budget has promised subsidising 50 percent premium amount that the farmers have to pay to the insurers. The government had introduced ‘Fisheries, Poultry and Agriculture Insurance Scheme’ on January 14, 2013.
“The budget has allocated Rs 20 million for this purpose,” said Pathak. The scheme aims to minimise the risk in commercialisation of agriculture sector investment and ensure the investment by farmers and ensure security in the investment made by the farmers.
Meanwhile, Minister for Agriculture Development Tek Bahadur Thapa Gharti said on Saturday that the government is mulling setting up an ‘Agriculture Departmental Store’ which will make agriculture goods available to consumers, while farmers will be able to sell their produce to it.
He also said the government is doing homework to take the ownership of the Agriculture Development Strategy (ADS) that will be completed by this April. According to Gharti, they will make arrangements for a farm scheme and subsidy to ensure better farm productivity as recommended by the ADS.
Source: The Kathmandu Post
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