Do not use term 'subsidy’ in agriculture: FM Sharma

BY A STAFF REPORTER

Kathmandu, Apr. 24: Finance Minister Janardan Sharma has suggested not providing subsidies for the agriculture sector in the budget of the coming fiscal year 2022/23.

In a discussion with the Ministry of Agriculture and Livestock Development on Friday for the forthcoming policy, programme and budget Friday, Finance Minister Sharma suggested not to keep grants as the agriculture sector needs incentives.

"Do not use the word 'subsidy in agriculture' when making the budget for the next year, remove it," he said.

He said that it was important to reward the farmers on the basis of increase in production, availability of improved varieties of seeds, timely availability of chemical and organic fertilisers, and encouragement of farmers through technology and technical assistance.

Minister Sharma had given such instructions after Prakash Sanjel, Joint Secretary and Spokesperson of the Ministry of Agriculture, raised the issue of agricultural subsidy in the proposed programme for the coming fiscal year, said the Ministry of Finance.

The Ministry of Agriculture, which has received a ceiling of Rs. 42.73 billion for the coming fiscal year, has said that it will propose agricultural programmes within the budget limit.

According to the Ministry of Agriculture, only 2.5 per cent of the total budget has been allocated for agriculture in the current fiscal year and the average growth rate of the agriculture and livestock sector has been 3 per cent in the last ten years.

During the discussion, Finance Minister Sharma had complained that there was a delay in setting up quarantine at the border despite repeated instructions. "In the previous meetings, we had said that we would release the budget immediately to set up quarantine at the border. But so far no preparations have been made. Do not delay further," he said.

Minister Sharma has instructed to carry out quarantine tests on the quality of imported agricultural produce and food items, quantity of pesticides used, quantity of food or non-food, condition of labeling and so on.

He has instructed to increase the production by distributing improved varieties of seeds to the farmers who are preparing to plant paddy in June-July.

"Distribute seeds of high yielding varieties of paddy to the farmers immediately. If some budget is needed for this, we will provide it," he said, adding, "Imports should be reduced gradually by increasing paddy production as soon as possible."

Saying that agricultural commodities worth Rs. 325 billion have been imported in the first nine months of the current fiscal year, he said that there was no alternative to substitute imports by increasing agricultural production.

During the discussion, Minister for Agriculture and Livestock Development Mahindra Ray Yadav said that adequate budget should be allocated for agriculture in the coming year as low budget is being allocated in the agriculture sector every year.

"Low budget does not increase agricultural production and export conditions. Therefore, the budget should be increased," said Minister Yadav.

He said that there was a need to manage the Prime Minister Agriculture Modernisation Project and proper use of the investment allocated for this project. During the discussion, Agriculture Secretary Dr. Govinda Sharma informed that the productivity of summer paddy is more than 3 tonnes per hectare and that of Chaite paddy is more than 7 tonnes per hectare.

Finance Secretary Madhu Kumar Marasini had directed to bring effective policies and programmes to ensure good returns in the agricultural sector.

During the discussion, it was agreed to prepare a programme to increase the production of potato, onion, mushroom and vegetables.