Tuesday, July 30, 2013

I am really inspired by Vision for the Nation given by Indian Ex-President APJ Abdul Kalam, in his book " INDIA 2020- A Vision for the New Millennium." This book is co-authored with YS Rajan. The vision as such goes like this....

" Nations are built by the imagination and untiring enthusiastic efforts of generations. One generation transfers the fruits of its toil to another which then takes forward the mission. As the coming generation also has its dreams and aspirations for the nation's future, it therefore adds something from its side to the national vision; which the next generation strives hard to achieve. This process goes on and the nation climbs steps of glory and gains higher strengths."

Monday, July 29, 2013


Saturday, July 27, 2013

Oh ! I was Wrong. I was agape and my heart was burning when I was passing Banke, Bardiya and Kailali district for Dhangadi. Those small hut were really paying much for their uncomfortable life. Whole the day was raining, some were busy shifting plastic sheets of their roof and some were busy fishing in Ghol ( water inundated land). I can't imagine how may days of such heavy rainfall has affected and will affect them this year and years to come.

I don't see any government support there. Off-course they are staying in Jungle, they are staying illegally, but what if they obey the rules?; nothing. Yes, I realized they are doing good just for living, oh god! its painful living.

I have seen them since last 10 years, I can't notice any changes since then except some new colored tent and plastic sheets on roof top. But surprisingly, the way I was looking them has changed. It was 2010 July when I saw these slums  last time. I had a biased mind then. I was totally in against of them. But now, I support them, they have paid much than value of  that piece of land they are covering; heavy rainfall, fear of wildlife, burning hot and much more. In return they are living a dark life without light, without safe drinking water and without basic human needs.

New Land utilization act has  recently been developed and endorsed by government  but the implementation is much more difficult. Thats' why land ownership and utilization are important to discuss. I remember those Dalit community in Mechinagar municipality in Jhapa district of Nepal. It was really shocking, just  5 KM away from center of Jhapa, Santhal Community were living without own land and home. They are working for their daily expenses, no saving, no future. Interestingly,  their demand was for ration card from government.  What a shame to us ( government) we even can't ensure food, a basic need of our national, then why we are proud of us, what we are doing for nation; nothing.

All these things are linked one or another way. A Nepalese has never been benefited for being citizen of Nepal. In this situation, nation doesn't have right to snatch the small hut people living in, small Jungle area people staying for because they have paid much for it, uncomfortable poor life.

Saturday, July 20, 2013


Prolouge
           The primary objective of private sector of nation is always get higher profit. Service comes later. The Public Investment are never rewarding ( or  not oriented to profit ) , therefore the role of Government  is vital. Do agriculture is public service or investment; no ? Then, why private sector ( or say large parties) and bank and financial sector are reluctant to invest in agriculture? Off course, Governments of any developing country like Nepal are not in position to invest high in agriculture sector as required. Therefore, the investment should be shared by private sector. But why this is not working in Nepal? Present budget in agriculture sector for new fiscal year 2013/14  has almost doubled, this is an add, but not sufficient for Nepalese Agriculture . So PPP model is relevant. Lets' invest for agriculture, lets' feed the people, lets' substitute agricultural import and lets' make our nation self dependent.

Content
In a background of nation’s two third population engaged in agriculture, Nepal’s socio-economic transformation is believed to be directly proportionate to agriculture transformation. But, agriculture transformation is not as easy as assumed and not simple as provoked. Probably, this may be the reason, many political leaders, time and again repeat the same mantra of “Agricultural Revolution” but, achievements are hardly noticeable.
Government of Nepal is presently working for long-term plan in agriculture; Agriculture Development Strategy (ADS) as a successor of Agriculture Prospective Plan (APP). APP was among the best plan in agriculture sector, but achievements are down to the mark. The main reason for not having intended success is said to be insufficient investment in Agriculture. Therefore, agriculture sector demands high investment, but in reality the amount of investment in agriculture sector shares very low in national expenditure.
The sociopolitical situation of nation is unstable since along. The economic hardship experienced by most people in rural region of the nation has destined immeasurable outflow of youth to other countries. This has resulted, more and more productive agricultural land has been virtually taken out of production. To cope this, spending high in agriculture would be one of the most pivotal government instruments. It would be helpful for accelerating economic growth to alleviate poverty in rural areas of Nepal. This is because; the majorities of poor people in Nepal live in rural areas and depend upon agriculture for their livelihood. Agriculture is therefore eminent both for economic development and poverty reduction. But present level of investment in agriculture sector cannot justify it's the importance.
Sufficiency of agriculture investment is always matter of discussion. Comprehensive amount of money have been invested in agricultural development initiative in Nepal, but unfortunately most of them have not been fruitful. Starting form 5th periodic plan to 9th periodic plan, agriculture was the first prioritized sector of the country. But, yet to be import large amount of cereals, meat, milk, pulses, oilseeds and fruits shows our investment on agriculture was either not enough or wasted. The record from trade and export promotion center (TEPC) shows agricultural product amounted  NRs 46,825 million have been imported in Nepal in FY 2010/11 from different parts of the world; major being India, while this figure for export is only NRs 13,580 million. This shows if we were self-sufficient in production, NRs 33,245 million could be stopped form departing; which was around nine percent of our national budget for that fiscal year.
Agriculture revolution demands huge investment in agriculture, which is obviously the great challenge for us.  Nepal's agriculture would be underprivileged and we will depend on foreign import for agricultural products if present agriculture system remains for long. Availability of only 26 percent of land cultivable and 21 percent cultivated, we do not have possibility to expand our cultivable land. Thanks to advancement in agricultural technologies, which made possible to shift from one crop a year to three crops a year from same piece of land and one liter per day to 10 liters per day from a single cattle.

Amratya Sen, a famous Economist has popularly explained about disguised unemployment in agriculture. He explains disguised unemployment in agriculture is so high in developing nation; if two third of those population are shifted in another business or industry; agriculture industry will grow without adverse effect in production. That’s why Labour availability is not problem (as this issue is raised now and again) for country like Nepal. The problem is of proper management.

Now, advance research and extension services in agriculture have developed new avenues of technologies and new techniques of profit maximization from limited resources. Nevertheless, it demands high initial cost.  Yes, providing loan with subsidized interest rate or loan without security is needed, but amount of loan provided are not enough to cover the capital required for modern agriculture. Most of the commercial banks in Nepal are providing very limited amount of loan per farmer. Obviously, it is not possible for large scale of production, or say commercialization. Subsistence agriculture is never rewarding, that's why huge investment as a loan is needed, so that everyone interested can commercialize his or her agriculture business.
A controversial approach (at least for me) in agriculture development is diversification by which, from same farm unit many agricultural products are produced at same time. Diversification is a good strategy for minimization of business risk, for a small scale of production. But diversification in investment is not rewarding. Our geographical situation and agro-microclimate has potentiality of diverse farming and livestock rearing, which does not mean we should commercially grow or rear all those. Now, government policies, programs and budget are mainly focusing on main staple food only. In a way, concentrated focus is good, but concern here is how wisely those commodities are chosen for investment. There exist mismatch between our focus and high value potential commodity. Instead of giving more attention to staple food, tapping the income from high value agriculture is needed. Our production should be trade oriented and agricultural commodity having high absolute and comparative advantage should be given priority of investment and funding.

Epilouge
In conclusion, agriculture sector can do much, provided with sufficient and need based investment. Government, private sector, all banks and financial institutions should invest more in agriculture. As a result of which, we will self- sufficient for own consumption and produce enough to export.




Thursday, July 18, 2013

Government of Nepal has announced budget for fiscal year 2013/14. This year total budget to Ministry of Agricultural Development has almost doubled reaching 21 Arb ( 2100 million NRs ). Some new programs are incorporated whereas most of the programs are continued from earlier years. Here under is budget speech for Agriculture and Irrigation Sector from Honorable Finance Minister Mr Shankar Prasad koirala, as such in his words.
Transformation of Agriculture

79. Marketing, modernization and commercialization of agriculture will be
emphasized in order to increase the production and productivity of this sector.
A 20 year Agricultural Development Strategy and a 10 year food and nutrition
plan will be implemented from the next fiscal year.

80. I  have appropriated Rs. 6.07 billion to provide subsidy for chemical and
organic fertilizer and also for improved seed, technology and mechanization
of agriculture. I have made a provision of 50 percent capital  subsidy  to 13
establish the organic fertilizer factory. I have made arrangement of funds for
the feasibility study of chemical fertilizer factory.

81. I have given continuation to the provision of transport subsidy in seed and
fertilizer to 26 remote food-deficit districts. I believe this provision will
enable the farmers to get fertilizer, seed and technology in time.

82. I  have allocated funds to build the agriculture infrastructure like irrigation,
agriculture roads, energy, processing centre, cold storage, etc., in order to
attract commercial investment in agriculture.

83. I have made provision of Rs. 1.75 billion for agriculture research programme
for coming fiscal year. The agriculture research is expected to directly
contribute to improve agriculture technology, mitigate the adverse effect of
climate change and the use of the local production potentiality.

84. The cattle-shed improvement programme will be expanded to 40 districts with
a view to increase soil fertility through the production and use of the compost
fertilizer.

85. I have expanded the maize production campaign to 16 districts that was being
implemented in the Terai-Madhesh. "Comprehensive Maize Production
Programme" will be commenced in mid-hill districts from next fiscal year.
Under this programme, I have made arrangement to provide 3 hundred power
tillers in 50 percent cost subsidy to the farmer groups and agriculture
cooperatives. I have allocated the necessary budget for this programme.

86. For safe storage of onion, I have made provision of 50 percent capital subsidy
to the private and cooperatives for constructing the ventilated cold storages in
Pathalaiya, Butwal and Nepalgunj.

87. Orange Garden Strengthening Campaign will be implemented in 8 districts of
Western Development Region for the increment of production and
productivity of  orange. Targeted programmes will be implemented for self
reliance in apple, pommegranate, lemon and banana production. I have made
provision of cash subsidy of one hundred to each apple plant per annum for
those farmers who plant and grow apple for 3 years in the districts namely 14
Kalikot, Mugu, Jumla, Dolpa, Manang and Mustang where 'Apple Self
reliance' programme is implemented.

88. I have made provision of budget to cure the disease appeared in cardamom
farming and substitute the garden in Ilam, Panchthar, Taplejung, Terhathum,
Sankhuwasabha and Dhankuta districts to suport the farmers.

89. 'Vegetable Production Pocket Programme' implemented in Terhathum,
Sankhuwasabha, Kavrepalanchowk, Dhankuta, Nuwakot, Sindhupalchowk,
Magdi, Gorkha, Lamjung, Surkhet, Baitadi, Dadeldhura, Dailekh, and Salyan
districts will be expanded.

90. Farmers producing honey will be provided training related to bees, beehives
and beekeeping. I have provisioned the budget for processing, marketing and
production of  CHIURI-honey recognised as the  traditional occupation of
Chepang community.

91. In order to fulfill the commitment of eradication of foot and mouth disease
from SAARC region by 2020, vaccination programme against foot and mouth
disease prevailing in cattles will be expanded.

92. A resource centre will be established and strengthened in order to increase the
commercial production of cows, buffalos, sheep, goats, and pigs. Initiation
will be taken to establish the hybrid cow breeding center in five development
regions in collaboration with the Public, cooperatives and private sectors.
National hybrid cattle campaign will be expanded in 40 districts. Liquid
Nitrogen plant will be established for artificial fertilization in Public
Cooperatives-Private Partnership modality.

93. Forage  Mission Program will be implemented in 25 districts in order to
produce non food based forage. Under this programme, winter, rainy and
multiyear grass will be produced in 7 thousands and 6 hundreds hectors of
land.

94. I have expanded "One Village One Product" program to 32 districts from
existing 21 districts. Similarly, "One District One Product" program, which is
being implemented in partnership of the Government and the private sector,
will be expanded to 15 districts in next FY.

95. Small and cooperative irrigation program will be implemented in all 75
districts. From this, additional 7,842 hectare land will be irrigated. In Mid
hills, 300 plastic ponds will be constructed and vegetable farming program
will be launched through drip irrigation.

96. Subsidy will be made available for fish farmers to construct 3000 fish ponds
in 470 hectares of land in Terai and mid hills. Under this, 180 million fish
fries will be produced and distributed.

97. To attract youth in agriculture commercialization, youth targeted program
including the provision of training, technology and seed money, will be
conducted.

98. Additional 100 agriculture collection centers and wholesale markets will be
established in assigned places for the systematic sales and distribution of
fruits, vegetables and livestock in partnership with cooperatives and
community organizations in the next FY.

99. "Extraordinary Farmers Presidential Award" will be established to give
incentive for extraordinary farmers.

100. To  provide  relief to farmers from the loss due to Bird Flu disease, I have
allocated Rs.50 million to establish Compensation Fund in partnership with
the government and the poultry farmers.

101. Agriculture and Food Security Program will be launched in 19 districts of mid
and far western development regions and Improved Seed Program in Rukum,
Rolpa, Salyan, Pyuthan, Arghakhachi and Gulmi districts for enhancing food
security in those areas.

102. I have allocated Rs. 1.45 billion for Commercialization of Agriculture and
Trade Project. To help in agriculture production, processing and marketing,
subsidy support, based on demand, will be made available for 500 projects.

103. To ensure the rights of consumers to have fresh and nutritious food products,
regular supervision and monitoring activities will be made effective to inspect
food industries, hotels, restaurants and markets.

Irrigation Sector Expansion and Improvement
104. A balanced large, medium and small irrigation programs, will be carried out
for speedy irrigation facility in those agriculture potential lands where
irrigation facility is not available.

105. I have allocated Rs. 200 million for the construction of canals and structures
under the Mahakali Irrigation Project III Phase.

106. I have allocated Rs. 50 million for irrigation sector development of Karnali
Region.

107. For equitable irrigation development, the focus will be  given to the
implementation of small and medium irrigation projects. I have allocated Rs.
880 million in next FY to complete the additional 35 medium projects.

108. Ground water based shallow and deep tube-wells will be constructed and
expanded in those areas of Terai Madhes, dry valleys and Tars where surface
irrigation facility does not exist in arable lands.

109. I have allocated Rs. 500 million for shallow and deep tube wells program. In
next FY, 12 thousands shallow tube wells and 26 deep tube wells system will
be constructed and about 30 thousands additional hectares of land will get
irrigation facility.

110. I have allocated Rs. 440 million for activities such as canal improvement,
operation, land acquisition of Bagmati Irrigation Project.

111. I have allocated Rs. 1.36 billion for Irrigation and Water Resources
Management project. Under this, irrigation management system of 23,100
hectares of land of Kankai, Sunsari-Morang, Narayani and Mahakali Irrigation
projects will be transferred to the Communities. Rest 28 irrigation projects
will completed in next FY.

112. I have allocated Rs. 460 million for rehabilitation of large irrigation projects
and regular maintenance of already constructed projects. I have given
continuity for rehabilitation work of Koshi Pump Canals, Chandra Canals,
Kamala, Narayani and Narayani Lift Irrgiation Projects.

113. I have allocated Rs. 1.77 billion for the river training, landslide management
and watershed conservation projects. By this, construction of 46 Kilometer
embankment of 14  rivers will be completed under people's embankment
program. Works will be continued for river training, landslide management,
watershed conservation of Mugling-Narayanghat and Sindhuli- Bardibas road
corridor and Tar settlement Protection works.

114. I have allocated sufficient budget for reconstruction works in various parts of
the country including Darchula district which are affected by river  erosion,
flooding and landslides.

Monday, July 15, 2013

My Published Article in The Journal of Agriculture and Environment Vol:14, Jun.2013 ( p 44-54)




Sunday, July 14, 2013




Monday, July 1, 2013

My comment Published in Kantipur National Daily ( 1 July 2013)


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Badri Khanal is An Agriculture Economist from Nepal
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