May 25: Bagmati Province is preparing to allocate Rs 1.5 billion for the agricultural sector in the Fiscal Year 2078/79, which is almost 50 percent of the total budget. From a total budget of Rs 3.5 billion, the province is preparing to allocate nearly 50 percent of the budget for the agriculture sector.

In a virtual program organised by the Association of Nepali Agricultural Journalists (ANAJ), economist at the Planning and Monitoring Division of the Ministry of Agriculture Anup Adhikari said that 50 percent of the total budget would be spent on agriculture.

According to him, a fund called Concessional Loan for Production and Generating Employment will be set up from the amount allocated for agriculture. From the fund, loans of up to Rs 500,000 will be provided to poor farmers without any collateral and loans of up to Rs 1 million with collateral will be provided at three percent interest rate.

Speaking at the program, Minister for Land Management, Agriculture and Cooperatives of Bagmati Province, Dawa Dorje Lama,  said that the budget was being prepared to make the subsistence agriculture system export oriented and also for the commercialization of agriculture.

He shared his plan to increase agricultural production and move towards self-reliance. Stating that a milk factory and chocolate industry are being set up in the province, he informed that water is being supplied to the hills through lift irrigation.

The ministry said that special programmes are being conducted in Bhaktapur, Chitwan, Sindhuli and Kavre focusing on mechanization of vegetable and fruit production. Further, the ministry informed that a powder milk factory will be established in Makwanpur next year which is believed to solve most of the problems faced by dairy farmers.

Out of a total of 328,297 hectares of arable land in Bagmati Province, 289,662 hectares of land is cultivated at present. According to government data, the province, which contributes 17 percent to the country’s gross domestic product, produces 1.3 million metric tons of food.

In the current fiscal year, the state is constructing 12 cold stores out of which nine cold stores will be completed within this FY. The ministry said that the remaining three cold stores will be completed next year.