Commercialization of Agriculture Sector

Anil kumar upadhyay

Introduction :

‘Agriculture roots of life’ carry the slogans, of our country. The poor not came to taking birth in poor, Nepal is a predominant agricultural country. Nepalese should be seek prosperity of country through the agriculture development strategy.

Although, along with depending on low income generation population are majority of rural.

To decrease the high rate of Poverty in Nepal should be focus on sustainable agriculture should be make ambitious goal of Nepal.

There is reciprocal relation various level between the each other from the ancestral epoch.

In the context rural habitat of the country’s population about 65 percent livelihood mainly sustaining from the agriculture action.

Massively poverty rate are treble urban than rural sector.

Urban than more rural population are in agriculture.

Growth of Country’s economics, poverty eradication and to raise the high level life style agriculture to extension play role of main issues.

Country’s (GDP) in gross of domestic product agriculture sector’s contribution are about 26 %

Since last 10 years data analysis agriculture contribution being decreased, but, comparing of other sectors are above and positive.

Looking the context of the agriculture in the world 12 % using arable land and 70 % water following around earth, 70 %  water using as a fresh water for cultivation.

As a 12 % from the land ‘Green House’ (GH) gas emission is emerging.

Cause of COVID-19, 2020 Pandemic hits the world.

For the world 1930’s was after the crisis of almost big terrible condition invites by COVID-19 Pandemic. Or also after the 1930 big crisis had faced from the world.

World Health Organization issued press release, International monetary fund, World Bank, Asian Development Bank. United Nations Guess the lost and its impact is not called to such kind of effect of condition.

In context of the Nepal’s Gross Domestic Product (GDP) Growth rate formalize by Asian Development Bank 5%. In concerning of Nepal gross domestic product rate, World Bank formalize between the 1.5 to 2.8 %. or American GDP 6 % Bellow fallen or World Gross Domestic Product was minus prediction.

Real picture we seem after the rest of corona. Even though all of the problems agriculture sector is not minus in our country.

Agriculture loan financial condition and challenges banking sector’s to see the latest agriculture financial observation perspective condition those of performance is important particulars in briefs.

-Fiscal year 2077/078 by the Nepal Rastra Bank forwarded the statement to commercial banks own in total investment, minimum 11 % investment provision formalized to the agriculture sector. Commercial banks 13.2 % or about 4 billion 26 million investment in managing agriculture sector.

-In Fiscal Year 2077/078  for the commercial banks totally of load’s 4.5 % subsidies loan provide the provision. Which maximum loan following up in agriculture loan.

-Nepal Rastra Bank ruled over 2078 last june/July 2021 provided the provision to the commercial bank about 1 million than bellow amount loan’s or 11% investment in micro finance, small and medium entrepreneur corridor to invest direction was provided, at the 2078 last june/july according to Nepal Rastra Bank direction 10.1 % have above reached. Also, Mead of those amount of investment was provide for agriculture sector.

-Fiscal last year through the Agriculture Development Bank to generalize the investment in agriculture. According to monitory policy of Nepal Rastra Bank provide the permission to financial institution about 24 million Agriculture Bond.

-Rural sector commercial banks presentation increased are thickness and as form of loan also providing. Youth attraction is increasing in the agriculture sector. which is the happiness massage for the country.

As though above status of agriculture financial present situation of banking sector seeing the progressive attraction in agriculture, although having the various challenges may will mitigate.

Small holder farmers along with price, market, technical knowledge and skill, lack of the access in the financial sector.

Store, value chain and transformation of technology having the challenges.

-Major commercial farmers doing the definitely market or production centered action, ‘Backward Linkage’ and in value chain’ seeming the difficulty.
Along with the investment in agriculture long lasting to make the profitable, need of technology physical infrastructure necessary major investment condition in agriculture sector.

Facing the agriculture financial challenges, by the banking sector through the subsidize loan provide able to success address to the small holder, middle level farmer and commercial entrepreneur.

Government Provide agriculture budget Seeming the present challenges in agriculture, Annual budget program in agriculture sector. Various international aid, management of banking sectors provided internal loan, encourage through the cooperative to investment.

Nepal Rastra Banks provide monetary policy to the financial sector reformation to investment and promotion in agriculture sector, direction was provide to the commercial banking sector.

And also according to the direction banking sector from the government Central Banks provision. Although, deed of action, also cause of agriculture based various challenges wishing hope still not being success.

-Having the agriculture sector of production agricultural arable land annually irrigation availability should be make physical infrastructural development.
Later constructing National proud irrigation project immediate should complete through these project to increase as a tools of National productivity system would be may bring positive change.
-Seeming the agriculture commodity’s marketization problems once side commercially involves farmer production cost will low price, another side consumers paid high price, and presser of permanently price stability.
-concerning with continue increasing agro-inputs imports along with agriculture commodity’s production change the feeding habit tendency of consumers consumption, necessary to agriculture commodity import should be ‘discaourage’ and add to export to promotion income generate through the high value production.

-Agriculture or livestock insurance program extend the rural sector to make the approachable access, and make sure distribution of economic viability to the rural farmer.

-Built the store for agriculture commodity collection center all of the local level.
-Hues level increasing chemical fertilizer using in the agriculture sector, using the chemical pesticide, make the farmer awareness, promote the healthy agro commodity to production and consumption, long lasting develop organic agriculture farming and enhance the production system, and emphasize the rural community.

-Energize to livestock farmer, Healthy production and growth of productivity, extend to livestock veterinarian service local level’s all of ward.

-Management of agriculture import in the border quarantine at the customs office. Agriculture commodity accessible market or road extension, and facilitate to agriculture loan,

Modernize the agriculture, fixed the management of the minimum support price, Control the Land fragmentation, make the competitive agro market attractive to the youth in the agriculture occupation.

Worldwide affect by corona pandemic, Back to migrated citizen in Nepal. Those who is also easy access in agriculture occupation. About 25% land has barren, increasing absent land so banking sector should be invest to extend the agriculture sector to rise the increase the national income.

According to Central Bank provide ‘economic activity study’ having the uncontrol land fragmentation, and desertification, decreasing the cultivation land.

Those of cause agriculture production and productivity is reducing.

Agriculture modernization and mechanization may provide the sufficient aid to progress. Increased the technical availability, increased access of Loan and government conducted agriculture program to make the effective. Implementation is a hinder form of still other challenge.

To promotion of financial service policy, government should provide priority, geographically far, lack of infrastructure, extend the commercial bank’s branches, Use collective financial tools in the country, promotion domestic and small cottage industry need to be use.

Along with tourism and agriculture ‘Home Stay’ home stay service, additional promotion bank and financial institutions should be make investment friendly, environment friendly. Promotion of Internal agro-tourism sector make effective.

Modern agriculture development or make consequences through the financial education and make to inclusive financial accessible in local level, under the province concern stakeholder step up coordination formalize the private and society level insurance facility.

Writer M Upadhay CEO Agricultural Development Bank, chairman of Nepal Bankers association)

References : from NAFIJ Journal, 25 December 2021