Govt spent Rs 107.66 billion on agriculture subsidies in past five years

KATHMANDU: The Ministry of Agriculture and Livestock Development spent Rs 107.66 billion on agricultural subsidies over the past five years.

The ministry disbursed direct and indirect subsidies over the past five years. While direct subsidies were disbursed to agricultural cooperatives and agricultural groups, indirect subsidies were disbursed mainly to subsidized procurement of chemical fertilizers.

According to data unveiled by the ministry on Sunday, Rs 20.3 billion was disbursed to different agricultural cooperatives, agricultural groups and agricultural firms between fiscal years 2019/20 and 2023/24. Likewise, Rs 87.35 billion went to subsidize the procurement of chemical fertilizers.

The subsidy amount does not include grants and subsidies distributed by the province and local government.

Speaking at a press conference at the ministry on Sunday, Minister of Agriculture and Livestock Development, Ram Nath Adhikari, expressed concerns over the potential misuse of subsidies distributed by the ministry. “We have formed a committee to investigate how the subsidies were utilized. If any individual or entity is found to have misused the funds provided by the state, appropriate action will be taken,” he said.”The names of the beneficiaries will be made public soon.”

Over the last five years, the government distributed Rs 10.58 billion to 141,670 cooperatives, groups and firms. Of this, Rs 6.61 billion was allocated under the Prime Minister’s Agriculture Modernization Project for 141,670 agriculture cooperatives, groups and firms. An additional Rs 18.48 million was disbursed to 21,450 entities through the Rani Jamara Kulariya Irrigation Program. Similarly, Rs 80.19 million was disbursed via the Agriculture Sector Development Program to 27,650 cooperatives, groups and agro firms.

According to Minister Adhikari, Rs 1.92 billion was provided via the Nepal Livestock Innovation Project to 11,150 entities. Likewise, another Rs 1.05 billion was allocated through the Food and Nutrition Security Improvement Project to support 46,226 groups.

Similarly, subsidies for sugarcane farmers amounted to Rs 4.07 billion during the five-year period. The ministry also distributed Rs 50.48 million and Rs 5.13 billion, respectively, for agricultural, and livestock and fishery insurance premiums.