May 29, Kathmandu - The government has unveiled a comprehensive plan to overhaul agriculture production, processing, distribution, and marketing in the country. Announcing the reforms during the joint session of the Federal Parliament on Friday, Finance Minister Dr. Swarnim Wagle emphasized the importance of transforming agriculture into a respectable and profitable industry.

Highlighting key initiatives, Minister Wagle revealed that the government is preparing a pilot program to provide up to 40% incentive grants to farmers investing a minimum of NPR 200 million in agricultural and livestock production. He explained that this grant would be disbursed annually at a rate of 10% over four consecutive years from the start date of production.

The budget also aims to prevent misuse of agricultural subsidies by supporting genuine farmers with access to improved seeds, fertilizers, irrigation, electricity, and agricultural insurance. Major and ongoing irrigation projects are prioritized for completion within this fiscal year, with adequate resource arrangements.

In addition, policies are being introduced to offer preferential loans and interest subsidies for direct procurement of agricultural produce from farmers. The government plans to restructure the agricultural service system to be more farmer-centric, revitalize research and development centers nationwide, and promote the development of high-yielding seeds, climate-adapted crop varieties, organic farming technologies, and productivity-enhancement research.

Minister Wagle announced that the upcoming Agricultural Bill will soon be presented in Parliament to ensure fair prices for produce, facilitate contract farming, and establish legal frameworks for subsidies and regulations. Furthermore, the government aims to extend beyond traditional conservation, promoting green industries, employment generation, and import substitution.

The reforms also include the promotion of sustainable forest products, forest-based industries, herbal medicine, non-timber forest products, and green enterprises to foster environmental sustainability and economic growth.