KATHMANDU, Feb 13: The World Bank (WB) has agreed to extend assistance worth US$ 40 million (approximately Rs 3.48 billion) to promote agriculture commercialization in Nepal.
The agreement to this effect was signed and exchanged on Wednesday between Shanta Raj Subedi, secretary at the Ministry of Finance (MoF) and Tasheen Sayed, the WB´s country manager for Nepal.
Issuing a press statement on Wednesday, the finance ministry said the assistance includes $22 million as loan assistance and $18 million as grant for additional financing to implement the Project for Agriculture Commercialization and Trade (PACT) being launched by the government.
The project is expected to improve the competitiveness of the smallholder farmers and the agribusiness sector in selected commodity value chains in the targeted districts.
The project, which will be expanded to all 75 districts, will help farmers and cooperatives engaged in marketable productions, reduce obstacles to agriculture and food trade as well as establish commercially valuable market chains for local farm produces.