ADS envisages Rs 250b spending in 10 years
KATHMANDU, MAR 27:
Agriculture Development Strategy (ADS), a new blueprint on agricultural development, has envisaged a 10-year agriculture spending of Rs 250 billion. The ADS is expected to supersede the Agriculture Perspective Plan (APP) by 2015.
According to the ADS Action Plan and Roadmap, the government and donors will have to contribute Rs 200 billion and the private and community sectors will have to put in Rs 50 billion to effectively implement the programme.
There are two compositions of ADS costs — core and flagship programmes. The core programmes will represent 56.4 percent of the total cost, while the flagship programmes will represent the rest. Under the core programmes, major cost drivers are irrigation (23 percent), fertilizer Subsidy (14 percent) and infrastructure (10 percent).
The modes of implementation of the two programmes are different. “The core programmes basically reflect the government’s regular programmes and are implemented by government agencies,” said Surya Prasad Paudel, a member of the ADS formulation committee.
On the other hand, the flagship programmes require different structures depending on the multi-sector nature of the activities. Under the flagship programmes, the ADS has also envisaged some prioritised programmes that require sufficient resources mobilisation and effective management.
The flagship programmes include value chain development programmes, decentralised science, technology and education programmes and innovative and agro-entrepreneurship programmes.
Under this ambitious scheme, the ADS has targeted increasing agricultural growth to 5 percent per annum on an average in the medium term (10 years), and 6 percent in the long term. The sector is currently growing at the rate of 3 percent per annum.
The strategy has targeted to narrow agriculture trade deficit to $181 million in medium term, from the existing $350 million. It says Nepal can halve poverty in less than 10 years if the agriculture sector grows at the rate of 5 percent annually.
The proposed ADS has also sought attaining a food surplus of 5 percent by improving land and labour productivity.
The action plan talks about forming a high-level commission that reports to the Prime Minister. The plan is to ensure high visibility and effective implementation of ADS by promoting policy, administrative, and legislative changes in responsible institutions, and facilitating resources mobilisation.
The proposed five-member ADS Commission will have three professional commissioners, National Planning Commission Vice-chairman and Agriculture Secretary, according to the action plan.
The roadmap also talks about formulating an ADS implementation trust fund which will finance ADS programmes. The resources will be disbursed, managed and monitored on the basis of development results and reforms promoted by the Finance Ministry in public financial management, public procurement, human resource management and mutual accountability.
The ADS draft has put forth some conditions like the government’s commitment, policy and regulation for ADS implementation, consensus of key stakeholders and development partner support to implement ADS successfully.
The ADS formulation team has already finalised the assessment report, vision report and policy options report. The action plan and roadmap report will provide details about the activities required to achieve desired outcomes. The ADS formulation committee has planned to complete the report by mid-April.
The policy options report has recommended enactment of Land-Lease Act, Contract Farming Act and Secured Transaction Act to promote agri- business . It has also suggested introduction of voucher system to farmers to buy the best available extension and advisory services and merger of cooperatives.
Source: The Kathmandu Post
