What's in the budget for farmers?

The government has allocated a budget of Rs 46.92 billion for the agriculture sector alone. The budget includes plans to provide direct relief to farmers, commercialize farming, and prevent misuse of subsidies.

Jestha 15, 2083

Suraj Kunwer

What's in the budget for farmers?

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Finance Minister Swarnim Wagle has prioritized agriculture, animal husbandry, farmer assistance, fertilizer, insurance, land management and digital service expansion in the budget for the coming fiscal year. The government has allocated a budget of Rs 46.92 billion for the agriculture sector alone. The budget includes plans to provide direct relief to farmers, make farming commercial, and prevent misuse of subsidies. The government has introduced a new scheme to encourage farmers to start new agricultural or animal husbandry businesses. Farmers who start their businesses by investing at least Rs 20 million will receive a government subsidy of up to 40 percent. This amount will be paid back in installments over four years. The government has allocated Rs 32.46 billion to provide chemical fertilizers to farmers on time. The government plans to create a 'fertilizer supply calendar' to prevent fertilizer shortages during the planting of main crops including rice and wheat.

To reduce losses in farming and animal husbandry, the government will bear up to 80 percent of the fees paid by farmers in agriculture and animal insurance. Rs 2.19 billion has been allocated for this.

The plan to produce chemical fertilizers in Nepal has also been re-included in the budget. A 'Green Urea' industry will be established in collaboration with the Nepal Electricity Authority and the private sector. The government has announced a guarantee to purchase the produced fertilizers and provide cheap electricity.

Now farmers will get technical services in their villages. Agricultural technicians will be deployed at each local level and farmers will be provided with farming information through digital means. The government has set a goal to start distributing 'Farmer Identity Cards' within the coming year.

A 'Land Bank' will be established at the local level to bring uncultivated wasteland and riverbank land into use. The private sector will be encouraged to collect more land in one place and do commercial farming. Arrangements will also be made to give wasteland to agricultural companies and get shares for it.

The budget has also given priority to the expansion of the fruit and vegetable processing industry. Mango and sour fruit processing centers will be established in Siraha and Saptari and a pumpkin processing center in Sarlahi. A special 'zone' will be created for apple and walnut farming in Karnali and a cold store will be built.

The government has also put forward a system to provide cheap loans to farmers and ensure fair prices for agricultural produce. It has been announced that a new 'Agriculture Bill' will be taken to Parliament to legalize contract farming between farmers and traders. Arrangements will also be made to take loans from banks by showing documents of agricultural produce kept in the warehouse.

Vaccines will be produced in Nepal to control animal diseases. Rs 240 million has been allocated for controlling diseases including Khoret, and an animal quarantine center will be established in Hilsa, Humla.

Similarly, a plan to digitize real estate transactions has also been included in the budget. Land administration services will be started online from 35 municipalities. Now, arrangements will be made to make land freeze, release, purchase and sale, and payment of revenue online.

The government has also set a goal to complete the management of landless Dalits, squatters, and unorganized settlements within the next fiscal year.

Suraj

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