Budget: Govt prioritises agriculture, declares 'Agricultural Investment Decade'

KATHMANDU: The budget for the fiscal year 2024/25, revealed on Tuesday, has given priority to the agricultural sectors, ensuring ample funds for its progression.

To stimulate investment in the agricultural sector, the government has declared the period from 2024 to 2034 as the 'Agricultural Investment Decade'.

Finance Minister Barsha Man Pun, while delivering the budget statement in the joint session of the Federal Parliament, announced the 'Agricultural Investment Decade'. This initiative is designed to boost investment in the agricultural sector from the government, private entities, cooperatives, and development partners. The budget for the commercialisation and modernisation of agriculture is expected to increase production and productivity.

The government has launched a programme to encourage contract farming, which involves the government, farmers, and businesspersons. This is aimed at ensuring fair prices and markets for agricultural products. Support will be provided to farms that collect, process, and export agricultural produce, supply fertilisers, seeds, and other materials required by local farmers, and guarantee the purchase of agricultural products, fertilisers, seeds, agricultural extension services, and loan interest subsidies.

According to Minister Pun, provisions will be made to offer interest subsidies, technical assistance, and tax exemptions on the import of equipment for agro-products. Priority will be given to individuals, farms, and cooperatives who professionally engage in collective farming, animal husbandry, and herb cultivation by consolidating more than 50 ropani land in the mountains and hills and 10 bigha in the plains/Tarai. To promote the production of agricultural crops such as fine and lustrous rice, sugarcane, corn, milk, fish, meat, coffee, tea, ginger, turmeric, red chillies, onions, potatoes, etc., the market for these products will be secured by providing subsidies for advanced seeds and irrigation.

A budget of Rs 2.98 billion has been allocated for the Prime Minister's Agriculture Modernisation Project. Fruit cultivation will be extended on 2,000 hectares of land in hilly and high mountain areas. In the next fiscal year, the capacity of 14 government farms will be increased to produce at least 700,000 quality fruit plants. A cutting-edge laboratory will be established to produce plants using tissue culture technology.

For the advancement of the fruit farming sector, Rs 1.44 billion has been allocated. A special programme will be implemented to promote the production and export of the national fruit orange in the central mountains, apples in the Himalayas and high mountains, and mangoes and bananas in Tarai-Madhesh in collaboration with the federal, provincial, and local levels.

For the commercialisation of agriculture, the government will provide initial capital to 300 highway-focused production businesses and ensure the market for the produced goods. A total of Rs 1.12 billion has been allocated for this. To motivate farmers to promote sugarcane cultivation, Rs 2.25 billion has been allocated. A total of Rs 1.65 billion has been set aside to provide a subsidy on crop and livestock insurance premiums for small farmers. The government has also initiated a programme to enhance the capacity of agencies involved in agricultural research, including the National Agricultural Research Council.

Similarly, 75 additional agricultural technologies will be developed in the next fiscal year. Likewise, Rs 3,052 million has been allocated for agricultural research and development.

Meanwhile, the necessary legal provision for the commercial production of marijuana for medicinal purposes will be established.

(With inputs from RSS)