February 28: A study conducted by Nepal Rastra Bank (NRB) shows that there has been an investment of around Rs 54 billion in the agricultural sector of Madhesh Province.

According to the study on the economic activities of the province recently published by Janakpur-based office of NRB, the credit flow from banks and financial institutions to the agricultural sector of Madhesh Province stands at Rs 53.95 billion as of FY 2078/79. This amount is 12.55 percent of the total loan invested in Madhesh Province. The study shows that most of such loans went to Sarlahi district and the least to Saptari district.

The report also mentions that there has been a significant increase in subsidized loans flowing to Madhesh Province in the review period. According to the data of the central bank, such loans have reached Rs 22.30 billion. As of Fiscal Year 2077/78, the loan under this heading was only Rs 14.5 billion.

The study report mentions that the loans increased due to the mandatory policy arrangements made by NRB on subsidized loans. It seems that the most of the concessional loans have been invested in Sarlahi (Rs 4.48 billion) and the least in Saptari (Rs 1.8 billion).

More potential in agriculture

A study by NRB pointed out that there is more potential for agriculture in Madhesh Province due to its geographical accessibility and abundance of arable land. The contribution of agriculture to the gross domestic product of Madhesh Province is 34 percent. This is 10 percentage points higher than the national average.

The study also showed the possibility that fish production can be increased by using modern technology. The study found that almost all the districts of Madhesh Province fall among the top 10 districts in the country where fishery is done. The study concludes that since Madhesh Province has the highest population, labor supply will be easy and there is potential for commercial production of agricultural products such as vegetables, fruits, fish, meat as well as consumption market.

The study concluded that since the number of young people going for foreign employment from Madhesh Province is high, there is a possibility to increase productivity by attracting young people who have returned from abroad with capital, motivation, confidence and advanced technological knowledge in agricultural business.

NRB also pointed out that as there are more fertile lands in Madhesh province, there is a possibility that it can be developed as a pocket area for food and vegetable production by expanding the area of irrigation.