Kathmandu, July 7
Economic
Development Advisor to the Government of Nepal, Dr. Yuba Raj Khatiwada, has
emphasised the need for a specialised financial institution for the development
and transformation of the agricultural sector.
Speaking
at the 24th anniversary programme of Sana Kisan Bikas Laghubitta Bittiya Sanstha Ltd.
(SKBBL) in Kathmandu on Sunday, he said that a dedicated financial institution is
essential to carry out focused activities for the expansion and progress of
agriculture.
He
highlighted the important role played by the SKBBL in involving small farmers
in agriculture, livestock, and income-generating activities. He warned that
microfinance institutions would not be sustainable in the long term if they
failed to align their programmes with enhancing production among members.
"It
is not enough to just provide loans; institutions must also ensure that the
investments generate income for their members," he said while praising the
efforts of Sana Kisan as a model in this regard.
Dr.
Khatiwada, who had also served as the Finance Minister and Governor of the
Nepal Rastra Bank, said that due to effective utilisation of government
support, the SKBBL had gained the trust of international agencies as well.
Referring
to Nepal’s potential for enterprise and income generation through agriculture
and livestock, he stressed the need to shift from individual to group-based
production and earnings.
Likewise,
he noted that there is already a market in third countries for Nepal’s meat
products, including buff and pork, and that encouraging farmers to produce
healthy livestock with guaranteed market access could raise their income
levels.
“For
that, we need specialised programmes and financial institutions. Sana Kisan has
made progress in this direction and should continue to do so,” he said.
Dr.
Khatiwada also recommended that alongside linking members to production and
market access through agricultural cooperatives, more efforts should be made in
storage, processing, packaging, and branding to further boost income levels.
He
raised concerns over the increasing trend of mismanagement in savings
cooperatives and small financial groups due to their failure to operate
according to cooperative principles. However, he expressed confidence that the
problem will gradually be resolved.
As
opaque financial activities became more prevalent, the Bank and Financial
Institutions Regulation Department of the NRB introduced and enforced the 'Guidelines
and Standards for Savings and Credit Cooperatives, 2081', which went into
effect on April 3, 2025.
Speaking
on the occasion, Chairperson of the institution, Khem Bahadur Pathak, said that
poor institutional governance had bred challenges within the cooperative
sector.
According
to him, the SKBBL has been working with 1,710 partner organisations across all
77 districts, serving 8.8 million members from 2.2 million households. Its
focus areas include wholesale lending, capacity building, technology transfer,
and youth entrepreneurship.
Similarly,
SKBBL's CEO Dr. Shivaram Prasad Koirala, said that honest leadership in
cooperatives and microfinance institutions ensures operations run smoothly. He
claimed that even during challenging times, small farmer agricultural
cooperatives have demonstrated notable performance in terms of transparency, resilience,
and member benefit, including liquidity and profit distribution.
The
Small Farmers Development Programme began in Nepal in mid-1970s. From 2001, it is
being operated as a microfinance institution. Previously, it was registered as
the Small Farmers Development Bank.
The
institution currently has a paid-up capital of Rs. 4.31 billion including 38.9
per cent from the banks and financial institutions, 27.45 from small farmers
cooperatives, 2.36 per cent from international financial institutions, 30.06
per cent from general public and 1.23 per cent from others.
The
SKBBL is currently in partnership with 902 small farmer cooperatives and 808
other cooperatives and microfinance institutions.
Published in The Rising Nepal daily on 8 July 2025.
No comments:
Post a Comment