Agriculture gets Rs 21.40 billion

THE government has raised the annual budget for the agriculture sector by 81.39 percent to Rs 21.40 billion for the fiscal year 2012-13, aiming to commercialise the farm sector, increase production and productivity. The allocation is 4.13 percent of the country’s total annual budget of Rs 517.24 billion announced by Finance Minister Shankar Prasad Koirala on Sunday. Considering that the agriculture continues to be the largest employer and major contributor to the gross domestic product, it has been given the top priority along with the hydropower sector. The budget has laid emphasis on retaining youth population in the farm sector by launching youthfocused programmes. The government has announced implementing the Agriculture Development Strategy (ADS), a 20-year strategy paper for the agriculture sector, and a 10-year food and nutrition security project from the next fiscal year. In the field of agriculture, the budget has adopted the following strategies: For farm mechanization, technology and organic and chemical fertiliser, the budget has earmarked Rs 6.07 billion subsidy. The government has announced 50 percent cash incentives for those establishing organic manure factories and has allocated funds to conduct detailed feasibility study of a chemical fertiliser plant. The government has continued transport subsidy on fertiliser and seeds in 26 food insecure districts. “This will ensure timely availability of fertiliser,” Koirala said presenting the budget. For the agricultural research programme, the government has allocated Rs 1.75 billion. In an effort to boost maize production, the maize mission programme will be expanded in 16 Tarai districts. The maize mission programme will also be launched in mid hill regions. For this, Koirala said farmers’ groups and cooperatives will be provided 50 percent discount on the price of 300 power-tillers. “Necessary budget has been allocated for this programme,” he said. The government has announced 50 percent cash incentives for private sector and cooperatives for the construction of ventilated store for onions in Pathliya, Butwal and Nepalgunj. To boost orange production, the government will launch “orange orchard” improvement programmes in eight districts of the western region. Programmes will be launched to make Nepal self reliant on apple, pomegranate, lemon and banana, the finance minister said. To attract farmers towards apple farming, the government has announced providing Rs 100 cash incentive for each apple tree. The programme has been targeted at Kalikot, Mugu, Humla, Dolpa, Manang and Mustang. The animal breeding programme will be expanded in 40 districts, and for artificial breeding of animals, the government has announced setting up liquid nitrogen plant under the public-cooperative-private partnership programme. The one-villageone- product will be expanded to 32 districts from the existing 21 districts. Likewise, one-district-one-product will be expended to 15 districts. The Finance Ministry said small and cooperative irrigation programme will be expanded to 75 districts. An additional 7,842 hectares of land will be irrigated through this scheme. To boost fish production, farmers will be provided subsidy to build 3,000 ponds in additional 470 hectares. The government will distribute 180 million fingerlings. The budget has allocated Rs 1.45 billion for the Project for Agriculture Commercialisation and Trade. • Implementation of ADS and food and nutrition security project • Rs 6.07 billion subsidy on farm mechanisation and fertiliser • Rs 1.75 billion for agricultural research programme • Maize mission programme to be expanded to 16 Tarai districts • 50 percent discount on price of 300 power-tillers • 50 percent cash incentive for ventilated onion store • Orange mission programme in eight districts • Rs 100 cash incentive for each apple tree • One-village-one-product in 32 districts • One-district-one-product in 15 districts • Subsidy to build 3,000 ponds in additional 470 hectares