Govt set to bring two policy documents
KATHMANDU, FEB 24 - The Ministry of Agriculture Development is all set to introduce two major policy documents to promote strong and sustainable farm growth as the sector reels under labour shortage and low investment.
The much-awaited drafts—Contract Farming Guideline under the Agricultural Business Promotion Act and Farm Mechanization Policy—have been finalised and are in the process of being sent to the Cabinet for approval.
According to government officials, the farm mechanisation policy aims at providing subsidies on the import of modern farming machinery, including discounts on VAT and other taxes.
“The draft of the farm mechanisation policy has been prepared and the government has collected necessary suggestion from stakeholders, including the private sector,” said Bijay Kumar Mallik, joint secretary at the ministry.
Government officials also visited Bangladesh to observe the country’s farm mechanisation model and subsidy scheme.
For farm mechanisation, the government, for the current fiscal year, has earmarked Rs 100 million for subsidies to encourage farmers to use farm machines like power tillers, harvesters, planters and seed drills in hill and Tarai regions.
Participation of youth in the farm sector has dropped sharply, mainly because the sector has become highly unattractive due to high production cost and labour-intensive nature.
According to the National Agriculture Census 2011-12 released by the Central Bureau of Statistics recently, the agriculture sector has made slight progress in terms of mechanisation. The census showed 22.04 percent farm households used tractor, while 20.96 percent used threshers.
A previous census carried out in 2001-02 had showed under farm mechanisation, the proportion of holdings using tractors and threshers was less than 10 percent. Around 14.30 percent holders used pump sets/motors. However, power tillers were not popular, as only 1.97 percent holders used them.
The 2011-12 census also showed there are less than 1 percent holdings using power tillers. And, 28.01 percent holders are using the most basic farm technology—the iron plough. In the 2001-02 senses, 26.1 percent of farm households used iron plough.
Meanwhile, to ensure market access to farmers and to attract private players in commercial agriculture, the government has prepared a draft of the Agricultural Business Promotion Act, which envisages contract farming provisions.
“The draft of the Contract Farming Guideline has been finalised and the ministry is in the process to send it to the Cabinet,” Mallik added.
Contract farming is a kind of supply chain adopted by buyers to secure access to agricultural products, raw materials and supplies to meet their desired quality and quantity in a stipulated time.
It also provides producers access to market and credit facilities. Buyers usually agree to buying products often at a price that is established in advance. “Currently, agreements between buyers and producers are made, but they do not hold any legal grounds,” Mallik said.
“After the implementation of the guideline, it will bind both buyers and producers legally and they can claim reparation if any of the parities breach the contract,” he said, adding the provision would largely support commercial agriculture.
Besides, it will also address problems related to land leasing for agriculture purpose. The existing law fails to address leasehold farming practices as land owners are reluctant to allow others cultivate their land, fearing the leasers might claim permanent tenancy.
The existing provision has been blamed to have left a large area of arable land unused. The proposed act is expected to increase land productivity through optimum utilisation.
The draft is aimed at improving agriculture productivity.
Farm mechanisation expo
CHITWAN: The Ministry of Agriculture Development, in association with the private sector, organised the “First National Farm Mechanisation Exhibition” in Narayanghat, Chitwan, on Friday. The expo aims at promoting modern machinery that can help reduce labour costs.
The four-day expo featured 130 stalls showcasing more than 500 modern farm machineries from 16 countries. The expo’s objective is to promote and explore the latest farm trends, technology and tools, according to the organisers.
“Farm mechanisation will help Nepal attain revolutionary agriculture development,” said Kalyan Joshi, president of Chitwan Chamber of Commerce and Industry.
Source: The Kathmandu Post
