Thursday, February 23, 2012

Banks must invest in agriculture

POKHARA, FEB 23: 2012

Central bank governor Dr Yubaraj Khatiwada has urged farmers to be ready to take loans to boost agricultural production. Banks will come to your doorstep in the near future, he said at a programme today.

Nepal Rastra Bank (NRB)’s recent provision for banks to compulsorily invest five percent in the agriculture sector has increased the amount available for loans from Rs 21 billion to Rs 35 billion.

“Capital will not be a problem. Just think of new and better methods of cultivation to increase production,” he said to farmers affiliated to local cooperatives.

Governor Dr Khatiwada has been on a field visit to observe the problems faced by small farmers in Nawalparasi, Rupandehi, Syangja and Kaski districts.

He had visited Bangsing Deurali VDC of Syangja district before visiting the suburbs of Pokhara.

He had shown an interest in the investment strategy of cooperatives.

During discussions with officials from various cooperatives, he urged them not to invest on farmers who already have easy access to finance.

“Cooperatives should focus on small farmers. Two-thirds of our farmers are small farmers, so there will not be a problem in investment,” the central bank governor said.

Farmers have asked the governor to prioritise investment in livestock and milk. Similar requests were made by farmers of Nawalparasi, Rupandehi and Kaski.

Source: THT

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