Saturday, April 17, 2010

Cash removed from farm relief package

SANGAM PRASAIN

KATHMANDU, APR 16 - The Ministry of Agriculture and Cooperatives has re-sent the proposal for a corn relief package to the cabinet after removing the cash distribution plan as it had been opposed by the Finance Ministry.

On March 30, the government had approved a relief package worth Rs. 200 million to compensate the farmers of five Tarai districts whose maize crops yielded no corns.

The Agriculture Ministry had proposed a relief package that included cash incentives, waiver of land tax and free packets of vegetable and crop seeds to the suffering farmers. However, the Finance Ministry did not agree to providing cash.

"We have sent the proposal to the cabinet again after amending it according to the Finance Ministry's request," said Bijaya Kumar Mallik, director general of the Agriculture Department.

As per the new proposal, Rs. 170 million has been allocated for nitrogen, phosphorus, potash, seeds and transportation.

Similarly, Rs. 25.6 million will be provided to distribute vegetable seeds to the farmers and Rs 1.9 million for waiver of land tax.

Hari Dahal, spokesperson of the Agriculture Ministry, said the compensation would be distributed after verifying the loss suffered by the farmers. The compensation will be distributed through the District Natural Disaster Rescue Fund under the chairmanship of the chief district officer, he said.

Farmers in Bara, Rautahat, Sarlahi, Parsa and Nawalparasi had been implementing a hybrid maize mission programme for the last three years under which genetically modified maize had been grown to produce higher yields. However, this year, the plants produced no kernels. Farmers had used different varieties of seeds produced by Pioneer Company, Pinnacle Com-pany, Seed Tech Com-pany, Sandhya Company and Tropical Company. These five Indian multinational companies had distributed the transgenic maize seeds to the farmers at government-subsidised rates.

Productivity had increased to 8.6 tons per hectare from 2.2 tons in the five districts for two years. However, output plunged by 53 percent

this year.

Production dropped by 80 percent in Bara, 55 percent in Rautahat, 40 percent in Sarlahi, 70 percent in Parsa and 20 percent in Nawalparasi.

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