107 billion rupees spent on agricultural subsidy in five fiscal years

Agriculture receives a substantial amount of subsidies. Despite this, complaints about small farmers not getting the promised subsidies and misuse of subsidies are growing. A major criticism is that people with political connections have siphoned the subsidies away from genuine farmers in need. Another issue is its use in non-agricultural projects.

In the light of such concerns, the Ministry of Agriculture and Livestock Development (MoALD) recently held a press conference and shared that the ministry has spent NRs 107 billion in a period of five fiscal years (FY 2019/20 to 2023/24) in the form of direct and indirect subsidies.

81% of the total subsidy amounting to NRs 87.35 billion was spent on chemical fertilizer subsidy over the period of five years.

The remaining 19% subsidy was spent through cooperatives, agricultural groups and firms under various government projects, which amounted to NRs 20.3 billion. Under this — the Prime Minister Agriculture Modernization Project (PMAMP) shared the largest portion with 6.62 billion which were spent through 141,670 agricultural cooperatives, groups and firms. The share of distribution is as follows: 

This fiscal year, the government has allocated NRs 57.29 billion budget for agriculture and livestock development — out of which 27.95 billion rupees, a staggering 49% of the total agricultural budget, for chemical fertilisers and Rs 2.98 billion for the PMAMP, which is 5% of the total agricultural budget.

Speaking at the press conference, the minister of agriculture announced that an internal team has been formed to investigate misuse of subsidy while acknowledging irregularities in subsidy distribution. He further assured that the gap between the ministry and agriculture stakeholders will be closed.