Enabling Transformational Change of Nepalese Agriculture Through Agribusiness Financing Restructuring in Nepal
摘要
The credit and financial accessibility to agribusiness and smallholder farmers are urgently required for rapid agricultural transformation, through which farming practices can be modernized, productivity can be increased, market access of the products can be improved, and sustainable livelihoods for rural communities can be ensured. This chapter aims to provide a comprehensive situational analysis of agribusiness in Nepal, focusing on the status and potential aspects within the banking sector, microfinance institutions (MFIs), and cooperatives. By examining various agribusiness-centered policies and initiatives, the chapter explores the financial implications of transformative change and offers strategic insights for fostering sustainable agribusiness growth in Nepal. The chapter provides an overview of the existing landscape of agribusiness, contribution of agriculture to the national economy, and key challenges of the agribusiness sector, and then discusses the existing agribusiness financial landscape of Nepal. The effectiveness and financial implications of agribusiness-centered policies and initiatives such as the Agriculture Development Strategy (ADS) (2015–2035), Specialized Investment Fund (SIF) 2019, Foreign Investment and Technology Transfer Act 2019, Agri-business Promotion Policy 2006, Agriculture, Livestock, and Medicinal Herb Insurance Directive 2022, National Land Use Policy 2015, Unified Directives to bank and financial institutions (BFIs) and MFIs, and Integrated Procedural for Interest Subsidy on Concessional Loan 2018 are appraised, and their specific provisions related with agribusiness financing are reviewed. Additionally, to achieve rapid agricultural transformation, the development of tailored financial products for smallholder farmers and agribusinesses, alongside strengthening digital financial infrastructure to enhance accessibility needs to be prioritized. Furthermore, emphasis on strengthening governance structures and institutional capacity within agricultural finance sectors needs to be provided for the financial producer/ service effectiveness and its better implementation.