Kathmandu. Nepal Rastra Bank (NRB) has released a report showing 14.01 percent increase in agricultural credit in Karnali state in the first six months of the current fiscal year.
In the half-yearly economic review of Karnali Province released on Monday, the Rastra Bank released the last fiscal year 2080 BS. Compared to the half-year period of 1981, there has been an increase in agricultural credit this year. Agriculture insurance is shrinking in Karnali as agricultural credit has increased.
According to the data published in the monthly bulletin of the Nepal Insurance Authority, the current fiscal year 2081. As of May 19, karnali’s income from agriculture insurance has shrunk by 40.06 percent. Last fiscal year 2080. The collection of insurance fees has decreased as compared to mid-May 2018.
Earlier, income from agriculture insurance in Karnali had shrunk by 91 per cent by mid-April. The number of insurance policies has also decreased by 62 percent.
The Commission for the Investigation of Abuse of Authority (CIAA) is investigating against an insurance company for misappropriating the grant amount by submitting fake details for providing subsidy by the government for the welfare of the common farmers of Karnali. With the initiation of the CIAA investigation, both the sum assured and the amount of insurance premium for agriculture and livestock insurance in Karnali have been shrinking.
According to the NRB, banks and financial institutions have invested a total of Rs 5.15 billion in agriculture loans in Karnali till mid-December. Out of the total agricultural loans disbursed, the highest amount has reached 1.1 million under the title of seeds. There is no agricultural loan under the title of irrigation.
Surkhet district has received the highest amount of Rs 1.85 billion out of the total agricultural loan disbursed in Karnali State. The lowest amount of Rs 137.5 million has been disbursed to Mugu district.
According to the report, loans disbursed by banks and financial institutions to the agriculture sector of Karnali State accounted for 8.71 percent of the total loans in the first six months of the current fiscal year (mid-January).
