Kathmandu, May 31 :

Japan has agreed to provide a grant assistance of Rs 178.47 million to Nepal for food aid (KR) during the Japanese fiscal year 2005.

Tsutomo Hiraoka, Japanese ambassador to Nepal and Dr Bhoj Raj Ghimire, secretary at the ministry of finance, signed an agreement and exchanged notes today on behalf of their respective governments.

The assistance has been provided with the basic objective of enabling the Nepali government to procure rice and supply it to the needy population living in food deficit districts of Nepal. On the occasion, Japanese envoy Hiraoka said that food aid would be of assistance to the government of Nepal and ease the difficulties faced by people in affected areas. He stated, “It is the intention and wish of the government of Japan that today’s food aid will support the endeavour of Nepal towards the consolidation of democracy.”

The food aid programme is one of the oldest schemes of the government of Japan that has been providing food supply to Nepal since 1970. As of Japan’s fiscal year 2004, the Japanese government has extended food aid to Nepal 17 times, worth of 6.65 billion yen.

Two days back, Japan handed over 8,282 metric tonnes of rice to Nepal under the same scheme for Japan’s fiscal year 2004. According to Nepal Food Corporation, the rice will be distributed in 17 districts.