KATHMANDU: Minister for Agriculture and Livestock Development, Ramnath Adhikari, has urged Nepal Rastra Bank to take necessary steps to simplify access to agricultural loans, particularly for small farmers.
During a meeting with Central Bank Governor Dr. Bishwanath Poudel, Minister Adhikari emphasized the critical role of banks and financial institutions in reducing poverty through agriculture.
“I request Nepal Rastra Bank to effectively monitor whether agricultural loans are being used for their intended purpose,” said Minister Adhikari.
He stressed the importance of ensuring that loans reach the intended beneficiaries and are not diverted for other uses. He also called on government-owned banks to increase the volume of agricultural lending and adhere to the central bank’s guidelines on agricultural financing.
In response, Governor Dr. Poudel acknowledged concerns about the misutilization of agricultural investments and noted that the issue is also a priority for the central bank.
He emphasized the need for agricultural investments to be productive and yield tangible results, especially in the context of commercial farming where returns have been limited.
Sharing observations from his recent visits to various districts, Governor Poudel pointed out a recurring complaint: “Those who work the soil are not getting loans, while those who work the paperwork are.”
He said this imbalance must be addressed to ensure that genuine farmers benefit from available financial resources.
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