Agriculture sector in the upcoming budget: ceiling of 51 billion, more than half of expenditure on fertilizers, lack of new programs

Stakeholders have expressed special interest in the budget of the agricultural sector for the upcoming financial year 2083/084. According to the preamble prepared by the Department of Agriculture of the Ministry of Agriculture, Forestry and Environment, the next year's agricultural budget will focus mainly on production and productivity growth, professional modernization and concessions provided to farmers. Budget size and allocation towards priorities Compared to the current financial year, the total ceiling of the agricultural budget for the next financial year is proposed to be 51 billion 1493 million rupees, which is less by 4 billion 76 million rupees. Despite some cuts in the size of the budget, the ministry has aimed to make available resources production-oriented and farmer-centric.

The largest chunk of the proposed budget, ie Rs 28 billion, is earmarked for subsidy on chemical fertilisers. This is 54.74 percent of the total agricultural budget, which makes it clear that the government's main priority is still fertilizer supply. Other major events Agricultural Research: An allocation of Rs 2.80 billion has been proposed for the Nepal Agricultural Research Council (NARC). Agricultural insurance: 1.54 billion rupees have been allocated for agricultural insurance premium subsidy for risk reduction. Sugarcane Farmers Incentive: A budget proposal of Rs 1.55 crore is proposed for sugarcane farmers. National Agricultural Modernization Project: 2.55 billion rupees will be allocated to continue the transformation of the agricultural sector. Fruit Cultivation in Central Hill Region: A target of Rs 1.54 billion has been earmarked for this. Promotion of Organic Farming: 2.21 billion rupees will be allocated for the project. Financial Management: A budget of 1 billion 36 crore rupees has been allocated. Livestock disease control: Rs 80 crore will be allocated for vaccination management. Technical services and manpower: Rs 59 crore will be allocated for technical services and manpower management at the local level. Food Technology and Hygiene: The government plans to allocate Rs 64 crore for this programme.

Lack and priority of new programs According to the ministry, there is not much homework for new programs in the upcoming budget. Special emphasis has been placed on coordination and cooperation between the three levels of government. Among the major priorities of the budget are easy supply of chemical fertilizers, extension of agricultural insurance, promotion of chaite paddy and Raithane crops and food security mission (paddy, maize, wheat). The government has also taken forward the ambitious plan of 'Ek Palika Ek Chisyan Kendra' and construction of cold stores in every district. Apart from this, strengthening of agricultural statistics system, farmer registration program and climate friendly agriculture programs have been given high priority in the budget. Programs like agri entrepreneurship, start-up and business incubation are also included in the budget to attract the youth in the agriculture sector.

Agriculture sector, which is the backbone of Nepal's economy, contributes 25.16 percent to the Gross Domestic Product (GDP). 50.1 percent of skilled manpower and 19.4 million population are dependent on this sector. However, the total cultivated land has decreased by 12.2 percent to 22.2 lakh hectares while about 10.3 lakh hectares of cultivable land is still barren. Although the production of food crops is satisfactory, there are challenges such as non-agricultural use of fertile agricultural land, high cost of production and non-effective implementation of subsidized agricultural credit.

To reduce the increasing use of chemical fertilizers and their negative impact on the soil, the Ministry has launched the promotion of 'Green Manner' as a new strategy. There is a plan to increase the fertility of the soil and reduce the production cost of farmers by using plants of species like 'Dhaincha' as green manure. The ministry claims that the farmers will save about 45 thousand rupees and the subsidy burden of chemical fertilizers on the government will also be reduced.

Expectations of experts and farmers Agricultural entrepreneur and market economist Avinash Silwal said that the budget should include provisions that can be implemented. He has suggested that agricultural insurance should be made hassle-free, foreign investment should be opened in agriculture and special packages should be given to youths who have learned skills. Farmer leader Badri Kandel expressed his disappointment that the budget is not practical for farmers and said that there should be a farmer-targeted arrangement in the budget to compete with Indian products. Manoj Chaulagai, a young farmer, has said that the state should bring a budget so that farmers' investments are protected and emphasis should be placed on building labs and markets for organic farming farmers.