Govt prepares to reduce subsidy for farmers under PM Agri Modernisation Project

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Kathmandu, December 9

The government is preparing to reduce the subsidy it provides to farmers under the Prime Minister Agriculture Modernisation Project (PMAMP). As per the direction of the Ministry of Finance, the government is preparing to reduce farmer’s subsidy on PMAMP.

The Ministry of Agriculture and Livestock Development (MoALD) is in the process of revising the framework of PMAMP, for which it has formed a committee to conduct necessary studies of the PMAMP framework.

“Among other provisions we are also thinking of reducing PMAMP subsidy for farmers involved in fruits, vegetables, flowers and livestock farming,” said Hari Bahadur KC, spokesperson for MoALD. As per him, the current framework of PMAMP has a provision to provide up to 80 per cent subsidy to farmers for their agriculture businesses. However, the Finance Ministry this year has asked MoALD to reduce farmer subsidy to 50 per cent from 80 per cent.

“Based on the direction of the Finance Ministry we have formed a committee to study the market on whether the reduction of subsidy from PMAMP is possible or not,” KC said.

“Soon after the study committee submits its report we will prepare a new draft of PMAMP framework that will be tabled at the Cabinet for approval.”

Hence, there is a possibility of reduction of subsidy on revised framework of PMAMP.

The PMAMP, a 10-year project of MoALD, was introduced in fiscal 2016- 17 aiming to transform the country’s agricultural sector from subsistence farming to commercial farming.

“Coming to the fourth year of the project, the necessity for a few changes in the project framework has been realised. To make the PMAMP modality more contextual, we are revising its framework,” KC added.

He further said that most of the PMAMP works depend on the central government. As the country’s structure has transformed into federal system, MoALD is also preparing to distribute work responsibility of PMAMP, he added. “The programmes under PMAMP are not being carried out as per our expectations. So, we are revising the framework of this project.”

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Written by Nishant Pokhrel
This news first appeared on https://thehimalayantimes.com/business/govt-prepares-to-reduce-subsidy-for-farmers-under-pm-agri-modernisation-project/ under the title “Govt prepares to reduce subsidy for farmers under PM Agri Modernisation Project”. Bolchha Nepal is not responsible or affiliated towards the opinion expressed in this news article.