Karnali Province has announced the provision of subsidies on interest rates for loans invested in the agricultural sector by financial institutions to promote rural business development, expansion, and commercialization. In the upcoming fiscal year 2080-081, the Minister of Economic Affairs and Planning, Vedraj Singh, has allocated NPR 11 crores 97 lakhs to enhance the effectiveness of the interest subsidy program and implement it in various sectors.
Under the program, a budget has been allocated to establish and operate commercial agricultural production programs focused on road corridors, facilitating connectivity between road networks and agriculture, livestock production, and marketing. Additionally, 75% subsidies will be provided based on the quantity of agricultural production and marketing for fruits, vegetable crops, milk, and fishery products.
Furthermore, measures have been taken to establish programs that promote self-employment and create employment opportunities by utilizing agricultural resources in rural areas connected through road networks. This includes establishing fruit and flower-based industries, dairy collection centers, and marketing centers in Dolpa, Mugu, Humla, Jumla, and Kalikot districts.
A budget allocation of NPR 48 crores and 45 lakhs has been made to construct ponds for irrigation, pond irrigation, water storage, and dam construction. Moreover, a continuous focus is on strengthening agricultural and livestock resource centers for improved seed varieties, fish breeding, quality beekeeping, and livestock genetics to increase farm productivity and product quality.
Farmers in Dolpa, Mugu, Humla, Jumla, and Kalikot districts will receive an NPR 10 per liter incentive to encourage dairy farming. In contrast, farmers in Rukum West, Salyan, Jajarkot, Dailekh, and Surkhet districts will receive NPR 5 per liter as a subsidy based on milk production and distribution.
The budget also highlights the development of essential infrastructure for agricultural development, such as seed processing centers, marketplaces, solar stores, rural stores, cold chambers, and dairy collection and processing centers. A 50% subsidy for agricultural machinery and equipment has been made, amounting to NPR 1 crore 22 lakhs.
In Karnali Province, NPR 5 crores 32 lakhs have been allocated for establishing and operating organic and commercial fertilizer industries to support organic and traditional agriculture. Additionally, NPR 3 crores 13 lakhs have been earmarked for developing yam and buckwheat as distinctive products with export potential.
The Karnali Province has allocated NPR 11 crore 97 lakh for agricultural loan interest subsidy. This move aims to support farmers in the region and promote agriculture in the province.