Agriculture Development Strategy: Govt rejects demand for ban on FDI in farm

KATHMANDU, MAY 02 -

The government has turned down farmers’ demand for ban on foreign direct investment (FDI) in the farm sector and on the import of genetically-modified (GM) crops, in the upcoming Agriculture Development Strategy (ADS).

The government has also refused to form a Peasants’ Court, stating it was a matter of legislation and that the ADS draft cannot incorporate it.

The ADS document — a 20-year vision and a 10-year planning horizon for the country’s farm sector — is being prepared with the technical support of the Asian Development Bank (ADB).

Dissatisfied with some of the components of the ADS, the National Peasants’ Coalition — a loose group of seven farmers groups — had put forth a 22-point demand to be incorporated in the ADS, which is scheduled to be finalized by June 28. The coalition has representations from three major political parties.

The groups were then invited by the Ministry of Agriculture Development (MoAD) for talks, in which both sides agreed on 10 of the 22 demands. Farmers ’ representatives said apart from the three key demands, the government agreed to address almost all of their demands.

“As the ministry has assured to address a majority of our demands, we also agreed to conduct an extensive discussion on those key issues which we failed to plead the government officials,” said Prem Dangal, secretary general of the All Nepal Peasants’ Federation.

Government officials said the demand to ban FDI in the farm sector could not be addressed at a time when the country is in need of foreign investment. “We have been preparing the ADS in line with the existing Foreign Investment and Technology Transfer Act and that it cannot ban FDI under the provision,” said a senior MoAD official.

On the demand for a blanket ban on GM crops, an understanding has been reached to conduct an extensive discussion with experts. “As Nepal’s Seed Act stipulates mandatory registration of import and requires multi-location trials for all hybrids, it is not necessary to impose a blanket ban on its import at present,” said a ministry official, adding the issue has been planned to be discussed with experts in the near future.

“However, an important agreement reached between the government and the group was setting of the minimum support price for staple crops which will be included in the ADS,” Dangal said. The government has been struggling to announce the support price for farm produce although it was announced a year ago.

Other issues agreed by the government include formation of National Farmers Commission, which will be a high-level permanent body. Various programmes and activities to ensure farmers rights and addressing food sovereignty were other agendas pledged by the government. The group has also demanded that access and control of natural resources by farmers and allocation of sufficient budget in the farm sector. “The farm budget envisaged by the ADS is still not sufficient to address the sector’s problems and we have urged for its revision,” said Dangal.

The review of the seed vision, promoting rainwater harvesting and promoting sustainable agriculture instead of green farmers were other agendas agreed by both sides.

The ministry will recommend the agreed demands to the TA team to incorporate it in the ADS. “We will verify all our agendas whether they can be incorporated in the draft before it is finalized,” Dangal added.

Source: The Kathmandu Post