Governor stresses on productivity

KATHMANDU, APR 22:

The central bank governor has emphasised that low interest rates alone will not benefit farmers in the absence of productive capacity.

“Small loans tend to charge high interest rates so farmers have to try to increase production and productivity to make optimal use of loans,” said Nepal Rastra Bank (NRB) governor Dr Yubaraj Khatiwada during his visit to mid-western and far-western districts of Nepal.

“Farmers need to focus on increasing productivity, market access, ask for efficient market price and improve

the quality of their products to reap maximum benefit on their investment and efforts,” he added.

The central bank governor had visited districts in which Micro Enterprise Development Programme (MEDEP) has been running its projects. He observed and participated in an interaction session with the beneficiaries of MEDEP projects — small farmers and micro entrepreneurs in Rolpa, Salyan, Pyuthan, Siddharthanagar and Nepalgunj.

“To eradicate poverty and unemployment in rural areas, people have to be encouraged to move from traditional farming techniques to a modern one.”

Dr Khatiwada also urged the rural populace to be involved with cooperative societies that facilitate production, distribution, storage, marketing of agro and rural products and at the same time mobilise capital and investment.

MEDEP — a joint initiative of government and UNDP — is working in rural areas to promote off-farm employment for poverty alleviation since 1998.

“Economic activities and employment in rural areas can be promoted by creating linkages between projects such as MEDEP and financial institutions, as beneficiaries can obtain loans at competitive rates while financial institutions also get trained entrepreneurs,” the governor pointed out.

The rural beneficiaries expressed the need for financial institutions to provide credit specifically designed for projects promoted by MEDEP, increasing the credit limit of Rural Self Reliance Fund and to make Agriculture Development Bank more rural agriculture oriented.

Source: THT