Govt to provide 50 percent subsidy to agricultural cooperatives

Govt to provide 50 percent subsidy to agricultural cooperatives

The government has proposed 50 percent subsidy to the agriculture cooperatives in their total investment.

Speaking at the closing ceremony of International Year of Family Farming (IYFF) 2014 and Declaration of Family Farming Decade (2015-2024) in Nepal in Kathmandu on Thursday, January 1, 2015, Minister for Agriculture Hari Prasad Parajuli said the government will provide subsidy up to Rs 10 million to the agriculture cooperatives investing up to Rs 20 million.

“The programme will commence from July this year.”

As the amendment of Cooperatives Act 2048 is a must to resolve the issues witnessed in the sector, the government along Central Bank is working for the same, said Parajuli.

Of the total Rs 2.33 billion budget allocatied for the agriculture sector, the government has targeted to provide Rs 1.3 billion directly to the farmers’ home, said Parajuli.

On the same occasion, Nepal Rastra Bank (NRB) Governor Yuvaraj Khatiwada stressed on need of agriculture insurance. “Such insurance policy should reach each every village in the country.”

Minister said the agricultural cooperatives has proposed a program to donate 50 percent of the total cost said. Those who have invested two million by the agricultural cooperative sector, the grant of a million Minister Parajuli said.

The grant program will be initiated next July, he also made clear.

Closing of International Year of Family Farming (IYFF) 2014 and Declaration of Family Farming Decade (2015-2024) in Nepal

Source: Nepalnews