$20m ADB grant to raise income of farmers

KATHMANDU, March 16: Asian Development Bank (ADB) has pledged a grant assistance of US$ 20.1 million (about Rs 1.44 billion) to Nepal for implementing a project that aims to raise incomes of small and medium farmers in 10 mid- and far-western districts.



Finance Secretary Rameshore Prasad Khanal and ADB Country Director for Nepal Barry J Hitchcock signed an agreement to this connection on Wednesday.[break]



According to Ministry of Finance (MoF), the grant will be used to implement programs that will increase production of high value commodities by small and medium farmers and support agriculture processing based on value chain concept.



“The project will cover districts like Banke, Bardiya, Dang, Dailekh, Baitadi, Dadeldhura, Darchula, Doti, Kailali and Surkhet, benefiting 18,700 households there,” said Hitchcock.



Since the production of high value commodities in those regions falls mainly into the domain of women, the project is expected to increase women´s cash income level.



Khanal, on the other hand, expressed happiness over the grant assistance, which is the second major intervention of ADB in the agricultural sector. “Beauty of this support is it targets the least developed regions of the country,” said he.



Khanal also stressed on the need to intensify commercialization of agriculture to cut imports of agro produces and improve balance of payment situation.

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