The Agriculture sector is considered as a backbone of economy in the country. About 60.4% of the total population of Nepal is dependent on agriculture contributing more than one third of GDP and employing two third of labor forces . Due to the global impact of the COVID-19, the sector has become a more significant and high priority segment like our country. Similarly, it has been assumed that a large number of returnee migrants and informal sectors employees will engage in agriculture sector. Hence, proper policies, budget allocation, subsidies on inputs, products, and assured markets are utmost to see a revolution in agriculture despite COVID-19 crisis in Nepal.
Being an agriculture dominant economy, the opportunities in this sector were ever present, however the recent agro-favorable policies have made this sector more attractive and prolific. Financial institution being a strong pillar for a nation’s economy can play a noteworthy role in the commercialization and development of Agriculture sector. Realizing this fact, the government has also more focused and internalized the agro sector as a key component for economic development and employment creation through its various policies mechanism like Fiscal policy, monetary policies etc. The Financial Institutions (A,B,C class) are now increased to lend 15 % from 10 % portion of loan portfolio to this sector by B.S.2080 and also already make their presence almost at all 753 local level areas where the most important economic activity is agriculture. Further, Microfinance institutions are required to lend 50% of their portfolio on agriculture sector.
In this context, it becomes important for the Bank’s staffs to be resourced and capable enough to lend in this sector for understanding the agriculture lending. Agriculture financing is a really complex, different and versatile sectors to most of the bankers. Therefore, it is necessary for the Bank personnel to be acquainted with various aspects of agro sectors. Hence, this training will provide the conceptual knowledge of agro lending and emerging terminologies of agricultural sector.
