The Ministry of Agriculture and Cooperatives (MoAC) has approved two guidelines for proper management of production and distribution of these crucial agriculture inputs that hold significant chunk in farm production cost.[break]
The government, through the budget for the current fiscal year, has announced to provide subsidy in organic fertilizers and improved seeds.
“Though we had been encouraging farmers to use improved seeds and switch to organic farming, this is the first time that we are providing them subsidy on these inputs,” said Dr Hari Dahal, spokesperson of the MoAC.
The government has set aside Rs 100 million to provide subsidy on organic fertilizers, Rs 60 million on equipment to produce chemical fertilizer and Rs 10 million for organic certification. It re-introduced subsidy on chemical fertilizers a couple of years ago after a gap of more than a decade.
Around 10 private companies are already involved in the production of organic fertilizer, mainly vermicompost that is priced between Rs 10 and Rs 25 per kg depending on quality.
The guideline on subsidy of organic fertilizers has designated Agriculture Inputs Company (AIC) to procure and arrange distribution of organic fertilizers which should be produced with the composition of standard quantity of nutrients. The state-owned company have to procure vermicompost fertilizer from producer companies and distribute it to farmers through its network and farmers´ cooperatives.
“The subsidy amount on fertilizers will be fixed by a high-level committee that will be led by agriculture secretary on the basis of procurement price. The committee will also be responsible for monitoring implementation of the subsidy,” added Dahal.
Similarly, the guideline makes state-owned Nation Seeds Company (NSC) responsible for arranging production and proper distribution of improved seeds to the farmers. The company will procure improved seeds from farmers´ groups, farmers´ cooperatives and private firms. The government has allocated Rs 100 million to provide subsidy on seeds in the current fiscal year.
“Farmers who own less than four bighas of land in Tarai and 40 ropanis in hilly districts are eligible for the subsidy. They will get 25-50 percent of the total cost depending on seed varieties as subsidy,” Dahal added.
A committee to be led by agriculture secretary will fix the subsidy amount on seeds. The MoAC, the Department of Agriculture as well as regional and district agriculture offices will monitor implementation of subsidy distribution.
The ministry is prioritizing cereal crops like paddy, wheat, maize and millet as well as cash crops like lentils, gram, pea and mustard for the subsidy.
According to MoAC, the demand for improved seeds hovers around 210,000 tons a year and farmers are getting only a fraction of it.
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