Rs 8.99 billion concessional agriculture loan disbursed in Madhesh province

Dhanusha: A total of Rs 8.99 billion in concessional agricultural loans have been invested in Madhesh province in a year. A study report of the Nepal Rastra Bank reads that banks and financial institutions disbursed such an amount towards agricultural loans in the fiscal year 2082/83.

Out of eight districts of Madhesh Province, the highest Rs 1.2 billion or 16.54 per cent of loans under this heading was disbursed in Dhanusha and the lowest in Saptari, which is Rs 300 million (4.87 per cent). There is a remarkable contribution of the agriculture, forest and fishery sectors in the Madhesh Province’s economy, added the report.

It is estimated that this sector will contribute 34.97 per cent to the gross domestic product of the province in fiscal year 2082/83.

Similarly, the mining and quarrying sector is estimated to have the lowest contribution (0.14 per cent) in the Madhes Province’s GDP. The per capita GDP of Madhesh Province is estimated at 934 US dollars during the period. Towards agricultural production, area occupied by fruit cultivation has increased by 33.99 per cent and spice crops by 4.46 per cent in the province.

However, the area occupied by food and other crops has decreased by 4.47 per cent and vegetable and horticulture by 10.15 per cent, reads the report. Towards production, there has been an increase of 0.54 per cent in vegetables and horticulture and 4.44 per cent in fruits.

Likewise, food and other crop production has decreased by 5.69 per cent and spice crops by 4.44 per cent during the period. There has been an increase in meat and egg production by 10.19 per cent and 3.11 per cent, while dairy production has decreased by 2.67 per cent.

Similarly, fish production has increased by 5.05 per cent, and timber production and firewood production have increased by 60.58 per cent and 78.62 per cent, according to the NRB.

A significant amount of loans has also been provided in the agriculture, fish farming, and forestry sectors. By the end of Ashar 2083, banks and financial institutions in Madhesh Province had provided loans of Rs 59 billion 869 million to these sectors.

This accounts for 12.10 per cent of the total loans disbursed in the province. There has been a slight increase in bank and financial institution loans going to the industrial sector.

In the last fiscal year, loans disbursed into the industrial sector increased by 0.68%, reaching Rs 128.97 billion. In the previous fiscal year, such loans were Rs 128 billion 90 million. The report mentions that the production capacity utilisation of the major industries included in the study is 64.59 per cent on a weighted average.

Towards real estate transactions, 116 thousand 207 units of real estate transactions were registered in the Madhesh Province last fiscal year. Revenue of Rs 3.22 billion was collected from this heading. As of the end of Ashad 2083, banks and financial institutions in Madhesh Province have increased their deposits by 17.32%, reaching RS 478 billion 370 million.

During the same period, loan disbursement slightly decreased by 0.18%, remaining at Rs 494 billion 950 million. Key projects towards infrastructure development related to this province include the Nijgadh International Airport, the East-West Railway, the Hulaki Highway, the Kathmandu-Terai-Madhesh Expressway, and the President’s Chure-Terai-Madhesh Conservation Programme.

Among them, the report mentions that the construction of the Hulaki Highway is progressing relatively quickly. Meanwhile, a significant number of people from Madhesh Province have obtained labour approval for foreign employment.

In the fiscal year 2082/83, a total of 179 thousand 41 people from the province received labour approval for foreign employment.

This accounts for 22.60 percent of the total labor approvals nationwide. A study by the central bank has highlighted the high contribution of the agriculture sector to Madhesh Province’s economy, the state of banking loans and deposits, industrial activities, real estate transactions, and trends in foreign employment.

RSS