Agricultural Revival a Top Government Priority, Up to 40% Grant for Farmers

Kathmandu — The revival of the agriculture sector is among the government's top priorities, Finance Minister Dr. Swarnim Wagle announced through the budget.

Wagle said the entire ecosystem of agricultural production, processing, distribution, and marketing will be improved. He said the government has adopted a policy of attracting commercial farmers and encouraging productivity growth, with the aim of transforming agriculture into a dignified and profitable enterprise.

The Finance Minister said the government has prepared a pilot programme under which farmers investing initial capital of up to a minimum of Rs 20 million in agricultural and livestock production will receive an incentive grant of up to 40 percent. Such a grant will be reimbursed at an annual rate of 10 percent for four consecutive years from the date production begins. He said the government will provide genuine farmers with support for improved seeds, fertiliser, irrigation, electricity, and agricultural insurance, while curbing the misuse of agricultural subsidies. A premium subsidy of up to 80 percent will be provided on agricultural and livestock insurance, while other subsidies will gradually be phased out, he added.

Wagle said resources have been arranged to complete large and ongoing irrigation projects within this fiscal year. To expand small and medium irrigation projects across the country, he said a challenge fund will be established with the Government of Nepal's investment, allowing local governments to compete.

The Finance Minister said the government has adopted a policy of providing concessions such as subsidised loans and interest subsidies for the direct purchase of agricultural produce from farmers. Support for production and branding will be provided to industries set up in remote areas that process organic, high-value, and geographically indicated (GI) goods.

Wagle said the agricultural service system will be restructured and transformed into a "farmer-centric service system." To expand farmers' access to agricultural services at their doorstep — through year-round agricultural technical services, digital agricultural information, and private service providers — the necessary technical workforce will be mobilised in every local government.

He said research focused on improved seed development, varieties suited to local climates, agricultural biotechnology, and productivity growth will be prioritised by reviving agricultural research and development centres across the country.

Finally, the Finance Minister said an agriculture bill will be presented in Parliament soon to make legal provisions for ensuring fair prices for agricultural produce, contracts between farmers and buyers, subsidies, and regulation.