By A Staff Reporter, Kathmandu, May 31: The government has increased budget in agriculture and livestock sector for the next fiscal year 2021/22.

The government has allocated a budget of Rs. 45.09 billion for the overall development of agriculture and livestock sector for the next fiscal year while it was Rs. 41.40 billion for the current fiscal year.

Finance Minister Bishnu Prasad Paudel unveiled the budget for the fiscal year 2021/22 on Saturday. A total of Rs. 12 billion has been allocated for the purchase of chemical fertilizers. The government had allocated around Rs. 11 billion for the purchase of chemical fertiliser for the current fiscal year.

The government has presented budget with a plan to establish chemical fertiliser in Nepal within three years to ensure the supply of chemical fertiliser. The budget has also been allocated for the study of factory establishment. The use of organic manure and organic pesticides will be encouraged to promote organic farming.

“I have made an arrangement to provide up to 50 per cent capital grant to the private sector for the establishment of organic pesticide factory,” said Finance Minister Paudel. Arrangement will be made to purchase agricultural products, including paddy, wheat and maize with minimum support price through Food Management and Trading Company and agricultural cooperatives to improve supply management.

The budget has proposed to establish 200 food storage centres, 89 cold storages through local level. The government has made an arrangement to provide 25 per cent subsidy on the transportation fare of perishable consumer goods, including milk, vegetables, fruits, fish, meat from the place of production to the nearest market centre.

About 50 per cent subsidy will be provided through local level for the purchase of paddy seeds for small farmers.Rs. 7.98 billion for Prime Minister Agriculture Modernisation Project The government has allocated Rs. 7.89 billion for the Prime Minister's Agriculture Modernisation Project. FM Paudel said that the effectiveness of the PMAM will be enhanced.

An additional 71 zones, including agricultural crops, fisheries and livestock production will be brought into operation. A rubber zone will be brought into operation to promote rubber farming. Conditional grant will be provided to the local level for the purchase of combined harvester, power tiller and cultivator and other equipment in the pocket area.

The government has set a target to make the country self-sufficient in milk and vegetables within two years, wheat, maize, millet and buckwheat within three years and rice within five years.

By reviewing the existing agricultural subsidy system, production-based incentive grants will be provided to farmers, agri-entrepreneurs, farmers' groups and cooperatives.

“I have made an arrangement to provide subsidy of up to 50 per cent of the price to the farmers who purchase improved seeds from the licensed sellers,” he said.

About 5 million fruit saplings will be produced by establishing medium and high technology multi-purpose nursery. The government has allocated Rs. 7.60 billion to provide concessional credit for the development of agro-based enterprises and value chains.

In order to increase the consumption of domestically produced milk and milk products, the government has made an arrangement to provide up to 35 per cent capital subsidy for the establishment of high temperature milk processing and powdered milk factory with the investment of private and cooperative organisations.