Minister Adhikari urges for simplification of agro loans

By A Staff Reporter,Kathmandu, July 8: Minister for Agriculture and Livestock Development Ramnath Adhikari has called on Nepal Rastra Bank (NRB) to facilitate the simplification of agricultural loans.

In a discussion with Governor of Nepal Rastra Bank Dr. Biswo Nath Poudel at the ministry in Singha Durbar on Monday, Minister Adhikari highlighted the need for a provision to enable small farmers to obtain loans in a simple and easy manner, as the role of banks and financial institutions is important in alleviating poverty through agriculture.

"It has also been heard that those who have taken large loans for agriculture have mobilised the amount elsewhere; if that is the case, then the goals and expectations we have taken in agriculture cannot be achieved," he said.

"I request Nepal Rastra Bank to effectively monitor whether agricultural loans are being used properly or not," Minister Adhikari said.

The minister emphasised that the situation of no one getting loans for agriculture and those who get loans use in other sectors should be prevented.

Minister Adhikari said that government-owned banks should also increase agricultural credit and that they should follow the provisions made by the central bank regarding agricultural credit. On the occasion, Governor Dr. Poudel said that it is also a matter of his interest in the context of the current lack of proper utilisation of investment in agriculture, so it is necessary to work in a way that yields results.

Stating that returns on investment in agriculture cannot be achieved without making farmers entrepreneurs, he stressed the need for investment in a way that yields returns.

Stating that he had recently visited various districts and heard complaints that those who play with soil do not get agricultural loans, while those who play with paper get them, Governor Dr. Poudel emphasised that all agencies should play an effective role in guiding farmers on the right path rather than just giving loans to farmers.

Secretaries of the Ministry of Agriculture and Livestock Development Dr. Govinda Prasad Sharma and Dr. Deepak Kumar Kharal, Director General of the Department of Animal Services Dr. Ram Nandan Tiwari and Director of NRB Sharan Kumar Adhikari, and others were present at the meeting.