KATHMANDU: Minister for Agriculture, Forest and Environment Gita Chaudhary has said that along with expanding access to agricultural credit, awareness about financial and agriculture should be raised in the language understood by the farmers.

During a discussion on the present status of agricultural credit and the problems, challenges and ways to resolve the issues surfaced in course of the flow of subsidized agricultural loans, Minister Chaudhary said that it was necessary to explain the basic issues in the agriculture sector in a simple and farmer-friendly manner.

“Arrangements should be made to provide employment opportunities to the youths who have studied agriculture in banks and financial institutions,” she said, adding that it would help to make the agricultural loan flow more effective and systematic as it would help to connect the human resources in the agriculture sector with employment and to evaluate the real needs of the agriculture sector and the projects while issuing agricultural loan from the banks. ‘

Stating that complaints have been received that genuine farmers have not been able to get benefits in the process of registration of agricultural farms, loan availing and subsidized loans, she stressed the need of addressing such problems in the upcoming policy.

Minister Chaudhary said that banks and financial institutions should not only provide loans but also look at the market of the goods produced by the farmers, the potential production and the returns derived from it. He said that there is a need for a system of providing agricultural credit by connecting the post-production market management and value chain.

She underscored the need of working in multi-dimensional manner to address the lack of knowledge on the use of technology, value addition, climate change and project construction in agriculture sector.

Minister Chaudhary stressed the need to address the paper and collateral-related problems of small farmers in availing loans and expanded banking and financial literacy to the rural level to reach agricultural loans to the real farmers.

She also said that policy facilitation of banks and financial institutions is necessary to provide concessional loans to industries based on forest products. He said that the development of forest products-based industries and investment-friendly policies were necessary to take Nepali forest products to the international market.

Minister Chaudhary stressed the need for further consultation with the banks and financial institutions including Nepal Bankers’ Association to maintain policy facilitation in this regard.

Agriculture Development Bank, commercial banks, Nepal Rastra Bank and related stakeholders put forth their views on problems seen in the flow of agricultural loans, collateral valuation, insurance, project design, data status, access of small farmers and management of market and value chain