Agricultural land in Sudurpaschim Province is steadily shrinking. A study by Nepal Rastra Bank (NRB) reveals that the area used for major agricultural crops, including food crops, vegetables, fruits, and spices, has declined by 7.71%.
Despite this, agricultural production in the province has increased by 2.85%, according to the Provincial Economic Activity Study Report for Fiscal Year 2023/24 released by NRB. Among major crops, buckwheat and barley production recorded significant growth, rising by 65.71% and 25.03%, respectively. In contrast, oilseed production saw the sharpest decline, dropping by 18.53%.
Similarly, livestock production has seen a boost. Milk production grew by 4.58%, meat by 9.32%, and eggs by 6.4%.
Agriculture accounts for 10.81% of the total loans disbursed by banks and financial institutions in the province. However, as of mid-July 2024, loan disbursements in the agricultural sector decreased by 1.31%, amounting to Rs 16.52 billion, compared to July 15, 2023.
The average capacity utilization of industries in the study sample stood at 48.96%. While the production of rice and wheat increased, industries producing mustard oil, soap, bricks, sugar, and rosin experienced a decline in output.
Loans to the industrial sector accounted for 16.75% of total disbursements by banks and financial institutions in the province. By mid-July 2024, loans to the industrial sector had decreased by 4.79%, falling to Rs 25.60 billion compared to the previous year.
In the tourism sector, the number of tourist-level hotels and lodges dropped by 4.17%, and the total number of hotel beds declined by 1.47%.
The report also highlighted that 171 MW of electricity had been generated by various hydropower projects in the province as of February 2023. -- RSS
