An Annual Study Report on Economic Activities released by Nepal Rastra Bank (NRB) shows that a total of Rs 29.41 billion was disbursed by BFIs during the review year for farm sector, up from Rs 22.21 billion invested in the sector the year before.[break]
NRB had conducted the study in 42 districts of the country to assess the current economic situation in agriculture, industry and service sectors during the last fiscal year.
According to the report, investment in sugarcane farming has been recorded the highest among different sectors in agriculture sector.
Total investment in sugarcane production stood at Rs 1.83 billion, an increase of 75.73 percent compared to the earlier year.
Similarly, tobacco leaves production rose by 58.39 percent to reach at Rs 146.88 million during the review year compared to the previous year.
Tea, one of the emerging sectors for export and jute also saw rise in the investment by 4.93 percent and 27.91 percent to Rs 12.89 million and Rs 301.88 million respectively over the year.
BFIs´ loan investment in livestock sector also shot up by whopping 38.36 percent to Rs 6.18 billion whereas investment in slaughter houses has also went up by 31.46 percent to Rs 276.28 million. Likewise, credit flow to agriculture-related other services also saw 38.90 percent hike at Rs 14.75 billion during the review year.
However, the investment in forestry and fisheries combined dropped 34.04 percent to Rs 353.38 million over the year.
The report, however, has concluded that the full potentiality of the agriculture sector has not yet been exploited due to lack of simplified loan disbursement system, weak market network for agro produces and insufficient supply of farm workers.
The report also shows that the production of major cereals has increased by 3.2 percent to 13.15 million during the fiscal year 2011/12 compared to the volume recorded during the previous year.
Production of paddy, the key cereal product, increased by 6.02 percent to 4.88 million tons compared to the amount earlier year.
Similarly, production of maize, wheat and buckwheat also increased by 4.87 percent 0.24 percent and 5.74 percent to reach 1.61 million tons, 1.5 million tons and 0.51 million tons respectively over the review year.
However, the production of millet and barley went down by 0.05 percent and 2.87 percent to 0.16 million tons and 7,787 tons respectively during the year compared to the output the earlier year.
“Overall situation of agriculture in 42 districts incorporated in the study is satisfactory,” the study report says.
However, the report has also indentified insufficient supply of farm inputs such as chemical fertilizers and improved seeds, lack of sufficient irrigation facilities and limited use of modern technology as the major obstacles to farm productivity in the country.
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