Farmers will now get subsidy to purchase improved seeds and organic fertilizer as well. Earlier, the subsidy was available only on the purchase of chemical fertilisers for the last three years. Two separate directives on providing subsidy on seeds and fertilizer were approved by the Ministry of Agriculture on December 11. This is in line with the promise made while the government budget for the current fiscal year was presented to the parliament.

The government is planning to provide subsidy on seeds of such crops as rice, maize, wheat, millet, lentil, gram, pigeon pea, green gram, pea and mustard. According to the government sources, the farmers will get the seeds 25 to 50 per cent cheaper with the subsidy on seeds implemented through state-owned National Seeds Company. For providing subsidy, the government has allocated a budget of Rs 100 million.

The subsidy will be available for four bighas of land in Terai or 40 ropanis in the hills per farmer. The budget is Rs. 100 million also for the subsidy on organic fertilisers to be implemented through state-owned Agriculture Inputs Company.