Kathmandu, October 25
Agriculture, Forest and Environment Minister Gita Chaudhary has overseen a series of initiatives in agriculture, livestock management and policy reform during her first six months in office, according to a progress report prepared by the ministry.
The report covers work carried out since the Rastriya Swatantra Party (RSP) government was formed on March 27, 2026. It lists payments to farmers, reforms at the Dairy Development Corporation (DDC), measures to improve fertiliser distribution, agricultural insurance support, international assistance agreements and a policy report on marijuana cultivation.
However, while some initiatives have produced immediate results, several major programmes remain at the proposal, draft or agreement stage.
Sugarcane payments, paddy prices and fertiliser supplies
The ministry has reported progress in clearing outstanding payments to sugarcane farmers. Of the Rs 12.36 billion owed by 13 sugar mills to around 68,000 farmers who supplied sugarcane during the current fiscal year, 92.09 per cent has been paid, according to the report.
The ministry said the remaining amount would be paid in full within a few days after resolving problems with farmers’ bank accounts. The government has also paid Rs 1.51 billion in subsidies at the rate of Rs 70 per quintal.
To ensure farmers receive a fair price for their produce, the government has set the minimum support price for coarse paddy at Rs 3,660 per quintal and medium-grade paddy at Rs 3,860 per quintal for the current year.
The ministry has also decided to reserve 10 per cent of stalls in wholesale markets and 50 per cent in periodic markets for farmers through designated farmers’ sections, aiming to connect local producers with markets.
On chemical fertilisers, the ministry said it had upgraded the Fertiliser Management System to make subsidised fertiliser distribution more transparent. A QR-code system allows the public to check distribution by dealers and submit complaints.
The government allocated Rs 32.46 billion to procure 335,000 tonnes of fertiliser for the current fiscal year. The ministry said it had secured an additional Rs 10 billion in funding from the Finance Ministry to meet demand.
Under agricultural and livestock insurance programmes, the ministry has paid more than Rs 1.2427 billion in premium subsidies. It has also introduced an online payment system through provincial authorities to make subsidy distribution easier.
DDC reforms and plans to export ghee
The report highlights changes at the Dairy Development Corporation, which has faced financial difficulties and governance concerns in recent years.
The ministry said the waiting period for dairy farmers to receive payment for milk had been reduced from six months to three months. Between mid-April and late June, the corporation paid Rs 350 million to farmers, reducing outstanding dues from Rs 680 million to Rs 450 million.
Payments had been regularised through the end of Bhadra, according to the report. The price paid to farmers for milk was also increased by Rs 1 per litre to Rs 66.
The corporation has tightened fat and solids-not-fat (SNF) standards to improve milk quality. It has also discontinued employee benefits involving milk and ghee that the ministry described as contrary to the law, reducing annual expenditure by Rs 30 million.
The report says dairy product sales increased by 50 per cent, adding Rs 2 million to daily revenue.
The DDC has also signed an agreement to export 50 tonnes of ghee annually to Gulf countries, with an initial shipment of 450 litres already completed.
A cheese and paneer production centre in Nagarkot, which had been closed for a decade, has resumed operations. Work is also underway to establish a new cheese production facility in Pashupatinagar in Koshi Province. The corporation has opened 27 new outlets inside and outside the Kathmandu Valley.
Staff changes and digital services at NARC
The ministry said it had dismissed two employees of the Nepal Agricultural Research Council (NARC) who failed to return to work after their study leave ended.
Recruitment, halted since 2022, has resumed, with more than 250 scientists, technical personnel and administrative staff appointed and deployed to offices outside the Kathmandu Valley.
The ministry has also begun physically verifying NARC’s assets and attaching mandatory QR-code labels. Electronic attendance and performance-based management systems have been introduced.
In agricultural technology, a digital soil-mapping system now allows farmers to receive soil health certificates through WhatsApp, according to the report.
The ministry also said livestock disease laboratory reports could be accessed on mobile phones through QR codes. An automated alert system sends messages to all 753 local governments when disease outbreaks are detected. Veterinary offices under the Department of Livestock Services have also been instructed to provide services on public holidays.
Marijuana report completed, agricultural policies advanced
The ministry has prepared a detailed report containing legal provisions and policy recommendations on marijuana cultivation in Nepal. The report has not, however, been translated into law.
The National Agriculture Policy 2083 has been approved by the Cabinet, while the Agriculture Bill 2083 and the Infectious Animal Disease Control Bill have moved forward.
The ministry is also working on geographical indication (GI) protection for oranges from Banskharka in Parbat and cardamom from Phaklalung in Taplejung, with standards being developed to protect the identity of these products.
New rules require mangoes imported from India and third countries to undergo hot-water treatment at 48 degrees Celsius for 60 minutes before being allowed into Nepal. The ministry also says it has completely stopped illegal banana imports.
Around 10,000 samples of fresh vegetables and fruits were tested for pesticide residues during the period, with 40 samples deemed unfit for consumption destroyed, according to the report.
Farm mechanisation and seed development
Under the National Agriculture Modernisation Programme, the ministry has expanded fruit cultivation, spring paddy and food crops across thousands of hectares.
A total of 14,969 agricultural tools and machines of various sizes have been distributed to farmers through cost-sharing arrangements. The ministry has also supported the construction of 132 modern furnaces for cardamom processing.
The farmer registration system now includes 2.677 million farmers, while 80,000 farmers receive SMS updates on weather and agricultural technologies.
The ministry said 384 crop varieties had been notified or registered to support agricultural production. Four new wheat varieties — Saras, Bhairav, Badimalika and Gurans — have been released.
NARC has also signed an agreement with Big Agro Group to commercialise biofortified wheat, which is developed to contain enhanced nutritional value.
International assistance and agricultural exports
The ministry has pursued agreements and proposals with international development partners covering agriculture, livestock and climate adaptation.
According to the report, projects with the Global Environment Facility include US$1.37 million for the conservation of native fish in the Madhya Trishuli area and US$13 million for climate-resilient rice production.
Agreements with South Korea include US$12 million for rice production, US$10 million for fruit and vegetable value chains, and US$6.76 million for a dairy project.
A US$15 million grant proposal for the third phase of the Rani Jamara Kulariya Irrigation Project has been advanced in collaboration with the World Bank and the Food and Agriculture Organization.
The ministry has also proposed Rs 1.44 billion in assistance from China to restructure the DDC’s Balaju facility. Diplomatic efforts have been initiated with India on livestock disease control and monkey management.
An agreement has been reached with France to obtain master seed material for producing rabies and peste des petits ruminants (PPR) vaccines, the report says.
To facilitate agricultural exports, the ministry has established a dedicated Export Facilitation Focal Desk.
Implementation remains the key challenge
Despite the progress listed in the report, many initiatives have yet to reach full implementation.
Payments to sugarcane farmers, changes at the DDC and the introduction of digital services at NARC are among the more immediate results. But several longer-term initiatives remain at the proposal, draft or agreement stage.
The marijuana cultivation report, for example, still requires legal follow-up. The Agriculture Bill, amendments to the Veterinary Council Act and changes to the Fertiliser Control Order are awaiting agreement from the relevant finance and law authorities, according to the report.
Similarly, assistance proposals put forward to China, Brazil and the World Bank could take considerable time to secure approval and translate into projects on the ground.
A plan to control monkeys, a persistent problem for farmers in several parts of the country, also remains at the conceptual stage and requires further legal clarity.
The ministry’s efforts to lay the groundwork for policy reform and attract foreign assistance represent progress. But turning draft policies into enforceable laws, securing funding for proposed projects and ensuring that support reaches farmers will be the main challenges ahead.
Ultimately, the success of initiatives still under consideration will be crucial in determining the lasting impact of Chaudhary’s tenure.
