Govt introduces 35pc subsidy on wheat seeds

KATHMANDU, NOV 08 -

 

The government has introduced a subsidy scheme on wheat seeds for the first time in its effort to boost production by promoting the use of improved seeds .

The scheme, which was implemented recently by the Ministry of Agriculture Development, will enable farmers to get 35 percent subsidy on the purchase of improved variety of wheat seeds through the National Seed Company Limited and its dealers across the country. 

Although the programme was introduced in the last fiscal year, it was not implemented due to the delay in approving the guidelines for the distribution of the subsidised seeds to farmers, ministry officials said. The government has earmarked around Rs 105 million for the scheme and aims to distribute 5,400 tonnes of improved variety of wheat seedsfor this winter plantation.

The subsidised seeds will be distributed from the company’s branches in Ithari, Hetauda and Janakpur, where the seeds will cost Rs 36,400 per tonne. At Bhairahawa branch, the seeds will cost Rs 33,800 per tonne, while farmers have to pay Rs 32,500 per tonne at Nepalgunj and Dhangadhi branches. “For the convenience of the farmers, the company will be selling seeds through its dealers too,” said Bhagwan Khatiwada, under-secretary at the ministry. “After wheat, the ministry is also planning to introduce subsidy on paddy and maize seeds.”

According to Khatiwada, using improved varieties of seeds could potentially boost wheat yields by about 30 percent in irrigated areas. The national wheat seed requirement stands at around 8,000 tonnes annually. Low productivity in the country is a result of farmers not being able to afford improved seeds .

Agro experts have been criticising the government for its failure to realise the agriculture potential as inputs in the sector have been considered very nominal. “Farmers are always conscious with the seed cost. As wheat seed is very expensive, smallholders tend to use low-quality seeds ,” said Khatiwada. “The government subsidy will be a huge relief for those farmers.” Wheat is the third largest cereal crop in Nepal after rice and maize. 

According to Nepal Agricultural Research Council (NARC), before the introduction of Mexican 

semi-dwarf wheat varieties, wheat cultivation in Nepal was limited to Mid- and Far-western hills only and it was considered as a minor cereal crop.

However, after the introduction of semi-dwarf varieties from Mexico, the area and production of wheat in Nepal increased dramatically and contributed significantly to the national food supply. 

In 1965-66, wheat area in the country was 100,000 hectares and production was 112,000 tonnes. The production jumped 1.88 million tonnes in the last fiscal year, while the area under wheat production increased to 759,843 hectares. 

However, wheat productivity still remains a major concern. According to NARC, per capita wheat consumption has increased from 17.4 kg in 1972 to 60 kg in 2007. 

Currently, there are more than 30 varieties of wheat released in Nepal and the seed replacement rate stands at 11 percent per annum. 

The national seed vision 2013-2025 has envisaged increasing wheat production to 2.36 million tonnes in 2025 from 1.88 million tonnes in 2013 and estimates requirement of 20,570 tonnes seeds by the time.