The government has prioritised the agriculture sector development by announcing a slew of programmes in the Federal Budget for FY2020/21. Presenting the budget in the House of Representatives, Dr Yuba Raj Khatiwada said that Rs 41 billion has been allocated for promoting agricultural products and Rs 27 billion for irrigation infrastructure development.

The programmes announced for agriculture sector development include facilitation of contract and land pooling, establishment of 78 wholesale markets for agriculture produce across covering all seven provinces, cash subsidy to farmers for improvised seed production, installation of weather radars, formation of land banks at 300 locations across the country, international promotion and branding of Nepali coffee, major herbs and other cash crops, launching of farmers credit card, setting up of standard food testing lab one each in Gandaki and Karnali provinces and setting up of well-facilitated animal quarantine labs at all major border customs across the country. Similarly, Rs 11 billion has been allocated in the budget for supply and distribution of chemical fertilisers, while Rs 950 million has been allocated for promotion of sugarcane cultivation. Likewise, Rs 3.22 billion has been allocated to run ‘One Local Level, One Pocket Product’ programme.

Meanwhile, the government has announced to promote shallow water irrigation system with a view to expand irrigation to additional 22,000 hectares of land across the country. Finance Minister Dr Khatiwada also said that the construction of the proposed Mahakali Irrigation Project will move ahead as a national pride project.