Agricultural experts have been demanding incentives including state subsidies for farmers to boost their competitiveness. Apart from continuing the existing subsidy in chemical fertilizers, the Ministry of Agriculture and Cooperatives (MoAC) has proposed subsidies in seeds and agriculture tools as well. Currently, the government distributes up to 100,000 tons of fertilizers in subsidized rates.
"The subsidies have been proposed to boost the competitiveness of Nepali farmers, who are competing with the Indian farmers who enjoy heavily subsidized agriculture inputs," Dr Hari Dahal, spokesperson for the ministry, told myrepublica.com.
The ministry has also pushed for introduction of subsidies in small irrigation projects and cold storages, besides subsidy in production and transportation of organic fertilizers. It has also proposed programs to discourage land fragmentation, which is blamed for negative impact on productivity of the land.
In a bid to expand farmers´ access to market, the government is set to open agriculture wholesale markets in four places in the valley, including at Satdobato, Balaju and Koteshwar. A modern wholesale market will also be opened in Butwal.
Dahal also said food security, commercialization and promotion of agro-products, bio-diversity conservation and environment-friendly agriculture are among the major policy priorities set for the agriculture sector in the budget.
Similarly, inclusive agriculture for poverty reduction and agro-tourism have also been included among the priority programs.
The ministry has also made a proposal to strengthen agricultural cooperatives and encourage setting up of consumer cooperatives fair price outlets.
The ministry has also proposed programs for food and nutrition security and minimizing food adulteration.
To implement the programs, the ministry has sought a budget of Rs 7.66 billion for the coming year, which far exceeds the appropriation ceiling (Rs 5.68 billion) set for the ministry by the National Planning Commission.
Besides these programs, the ministry has also proposed a three-year ´New Nepal Agriculture Campaign´ with a proposed budget of Rs 29 billion. The campaign aims to boost production of paddy and wheat, launch milk production campaign as well as improve fertilizer, irrigation and soil management for agriculture. The special campaign proposes Rs 8.41 billion for subsidy in agriculture.
The breakdown of budget demand of the ministry includes Rs 3.71 billion for the Department of Agriculture, Rs 2.08 billion for Department of Livestock Services, Rs 600 million for Department of Cooperatives and about Rs 1 billion for Nepal Agriculture Research Council.
prabhakar@myrepublica.com
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