Biratnagar, Sept. 5
Nepal Livestock Sector Innovation Project (NLSIP)
implemented by the Ministry of Agriculture and Livestock Development (MoALD) is
all set to mobilise Rs. 1.42 billion to various cooperatives and private firms
in the agriculture sector in Koshi Province.
The
project has signed 146 agreements that require Rs. 1.42 billion – Rs 223.4
million in equity, Rs. 496.2 million bank loan and Rs. 709.7 million matching
grant to be provided by the NLSIP.
So far,
the project has distributed about Rs. 240 million to various 42 companies, said
Sudhir Kumar Singh, Project Coordination Chief of the NLSIP's Decentralised
Level Support Unit in Biratnagar, the provincial Capital of Koshi.
According
to him, the total budget of the project
has been divided into two areas: 50 groups/cooperatives and 96 private firms
with the share of Rs. 634 million and Rs. 795.3 million, respectively.
The budget has to be utilised
before June 30 next year. It is being implemented with the World Bank support
of US$ 80 million (Rs. 10.5 billion).
Only the firms willing to share 50 per cent of
the total cost of the business initiatives are eligible to enjoy the service. The eligible enterprises are selected through
competition and the selected ones should be ready to invest 20 per cent project
cost as equity and show bank assurance of mobilising 30 per cent of the project
cost in loan.
The project that is being
implemented in 289
local levels of 28 districts across the country, is active in Panchthar, Ilam,
Jhapa, Morang, Sunsari, Dhankuta and Udaypur districts of Koshi Province.
But due
to the limited budget, grant could not be provided to all the applicants, only the
best ones are selected for the grant facility.
Increasing
productivity, resilience
It aims
to increase productivity, enhance value addition and improve climate resilience
of smallholder farmers and agro-enterprises in the value-chains of meat, milk
and chyangra (mountain goat) husbandry with the application of technology
transfer and innovation.
Singh
informed that the project support till date has also helped farmers cultivate
fodder in 988 hectares of land. More than 57,000 kg of forage and fodder were produced
in the past five years since the implementation of the project in 2018/19.
To ensure
the sustainability of fodder production, nurseries are established in Ramdhuni
Municipality of Sunsari district, Udayapurgadhi Rural Municipality of Udayapur,
Pathari Municipality and Letang Municipality of Morang, Pakhribas Municipality
of Dhankuta.
Likewise,
5675 marginalised farmers of 77 local bodies are organised in various groups and
they are being educated on various
innovation in the sector and motivated to adopt them.
Meanwhile, about 454 sheds of
small farmers were improved with the support of Rs. 24,000 per shed with the total
budget of Rs. 10.6 million. It has resulted in healthy livestock development. The project has also supported in goad
breeding, establishmetn of fodder processing and grading unit, veterinary
equipment and animal service centre.
"Our
focus is supporting smallhoders and creating entrepreneurs," said Singh.
Hospitals
with modern facilities
Livestock
service centres or rural vet hospitals are established in five locations in
Ilam, Jhapa, Morang and Udayapur, and livestock markets are established in
Damak of Jhapa and Rangeli of Morang. The modern livestock service centres have
modern facilities including ultrasound and laboratory.
Speaking
at a discussion programme in Biratnagar last week, World Bank's Country Director
for the Maldives, Nepal and Sri Lanka, Faris Hadad-Zervos, said that the
multilateral donor was ready to support the government's initiative to
modernise agriculture. According to him, creating sustainable system will be
the WB's priority.
The
project that began in 2018 has three components - strengthening government's system,
policy and strategies, increasing the productivity of cattle with the
application of high value equipment, development of service centres and
technical support, and development of value chain and market.
Model
programme
NLSIP
has become a model for the sectorial development, said Umesh Dahal, Project
Director of NLSIP at the MoALD.
While
there is a mandatory insurance provision of livestock to obtain the grant and
technical support, farmers and entrepreneurs are inspired to apply climate
smart technologies.
Incorporation
of the banks and financial institutions has increased the business viability as
well as sustainability. When the entrepreneurs inject their equity and obtain
loan from the BFIs, they are more serious about running their enterprise and
there are high chances of success.
"We
have learned a lot through the process that we went through while applying for
and obtaining the grant money," said Sanjaya Chapagain of Banjara Agro
Pvt. Ltd in Biratnagar. Banjara is set to create example of sustainable
agriculture farm here.
Published in The Rising Nepal daily on 6 September 2023.
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