Agricultural ministry to introduce grant distribution guideline soon
Agricultural ministry to introduce grant distribution guideline soon
Published: 07:48 am Apr 14, 2016
Kathmandu, April 13 The Ministry of Agricultural Development (MoAD) has been framing the grant distribution guideline, which will cap the grant amount under different headings. The proposed guideline is also expected to bring uniformity in grant distribution through various projects. The MoAD has been preparing to bring the guideline into implementation from next fiscal. There is a huge disparity in grant being distributed through different projects, which are running under the banner of MoAD, said Shankar Prasad Sapkota, joint spokesperson for the ministry. Once it comes into effect, the guideline will bar grant distribution of more than 50 per cent against the cost, except for technological support and small irrigation infrastructure. Based on the need and capacity of farmers to purchase technological support and develop irrigation facility, MoAD has tried to consolidate grant from other headings in the aforementioned two critical areas to boost agriculture production. The proposed guideline has provisioned 100 per cent grant to the farmers under technological support and up to 85 per cent for small irrigation projects. “If any small irrigation infrastructure is going to be built under grant assistance, farmers will also have to contribute 15 per cent for completion of the project,” said Sapkota. “We have prioritised the grant based on need. Farmers will benefit from technological support, for which they can get cent per cent grant if they do not have the purchasing capacity. But for sectors like developing irrigation, they will have to contribute 15 per cent in terms of labour and other means.” Reportedly, projects have been distributing grants in a haphazard manner due to lack of government policy for priority sectors in agriculture. But from next fiscal, grants will be mobilised in an effective manner under priority headings, Sapkota explained. The guideline will allow only up to 50 per cent grant in sectors in which farmers themselves can contribute, like agricultural inputs — seeds, seedlings, saplings and hatches. Similarly, up to 50 per cent grant will be allowed in laboratory services, agricultural machineries and agri-business support activities, like processing and marketing of the products. Though a large chunk of MoAD’s budget goes towards providing subsidy for chemical fertilisers, market development for agro products, insurance premium and interest rate subsidy for commercial agriculture, a substantial amount of grant is distributed through various projects funded by donors under MoAD banner. As MoAD is going to implement the Agriculture Development Strategy (ADS) from next fiscal, initiative taken in grant distribution is expected to help support achieve the targets set by ADS. ADS has envisioned mobilising Rs 50 billion every year in agriculture collectively from the government, private sector, farmers and from development partners.