Production-based subsidy system in the offing-PM Dahal

In a significant address marking the completion of a year in office, Prime Minister Pushpa Kamal Dahal ‘Prachanda,’ announced a major shift in agricultural policies, emphasizing the implementation of a production-based subsidy system. The Prime Minister highlighted the need for targeted support, stating that subsidies and fertilizer distribution will be tailored to different classifications of farmers, ensuring that genuine farmers benefit from subsidized agricultural loans starting from the next fiscal year.

Acknowledging the existing challenges in the agricultural sector, PM Prachanda expressed concerns about stagnant productivity despite consistent state investments. He assured the public that the government would focus on key foods and vegetables, introducing the production-based subsidy system to invigorate agricultural growth.

One of the immediate commitments outlined by the Prime Minister was the timely payment to milk farmers, pledging to settle all dues by the end of April. However, he cautioned that such reforms alone might not be sufficient for a significant leap forward in the agro sector.

In his address, PM Prachanda shared encouraging statistics, stating that 401,000 metric tons of chemical fertilizers had been ensured for farmers on time. Furthermore, irrigation facilities were expanded, covering an additional 21,168 hectares of land through both surface and underground projects. The installation of 296 dip tube wells and 3,244 shallow tube well irrigation systems was also highlighted.

Looking ahead, the Prime Minister declared the upcoming decade (2081-91) as the “Decade of Investment in Agriculture.” This initiative aims to encourage investments from the government, private sector, development partners, and cooperatives to transform the agricultural landscape in Nepal.

PM Prachanda announced ambitious plans for the construction of integrated agriculture and livestock centers, complete with 30 labs, with a target completion date set for mid-July 2024. Additionally, measures will be introduced to mitigate the impacts of rising imports and climate change on the agricultural sector.

In a final commitment, the Prime Minister expressed the government’s dedication to initiating a canal development system to enhance agriculture productivity in the country.