Rs 140 billion project prepared for second phase of agricultural modernization

A Rs 140 billion project has been prepared to run the second phase of the National Agricultural Modernization Program, Nepal News reported. It covers commercial production in farming and livestock, infrastructure, training for farmers, higher output and the distribution of subsidies. Lokaantar and Kathmandupati reported the same figure.

The second phase is to be carried out in the next fiscal year, which begins in July 2027. Jitbahadur Chand, information officer at the program's management unit, said the project had been reviewed with a range of stakeholders and draws on the experience of the first phase.

What the first phase did

The first phase, which the government ran for about a decade, created 2.383 million jobs, according to Nepal News. Launched in fiscal year 2073/74 BS with an allocation of Rs 56.35 billion, it ended in fiscal year 2082/83 BS, by which time Rs 39.58 billion had been spent, Chand said.

Under it, 21 superzones, 300 zones, 1,500 blocks and 1,500 pockets of commercial farming were set up across the country. The block programs were run through district agriculture and livestock offices, and the pocket programs through the 753 local governments. The program began as the Prime Minister Agriculture Modernization Project and was later renamed.

Questions over subsidies

The new phase comes as questions persist over how farm subsidies are handed out. Halo Khabar reported that weaknesses in how beneficiaries are selected and how spending is monitored have raised doubts about whether the money reaches genuine farmers.

In an opinion piece in Annapurna Post, a livestock farmer argued that Nepal's dependence on imports, from fertilizer to food grains, shows how far the country remains from self-reliance in farming.

Insurance subsidy

The Ministry of Agriculture and Livestock Development says it will provide about Rs 2.19 billion in subsidies for crop and livestock insurance premiums in the current fiscal year, 2083/84 BS, Nagarik reported. The government pays 80 percent of the premium and the farmer the remaining 20 percent: on a Rs 10,000 premium, the government pays Rs 8,000 and the farmer Rs 2,000.

Gita Chaudhary, identified by Nagarik as Minister for Agriculture, Forest and Environment, said the government has been subsidising crop, livestock and fish insurance premiums to reduce the risks farmers face. Farmers who want cover should contact a non-life insurer or its authorised agent, according to the report.