Ineffectiveness within the Agricultural Enterprise Promotion Program
Kalpana Bhattarai
29th Mansir, 2076
Agriculture grants from the Ministry of Land Management, Agriculture, and Cooperatives of Province 5 were received by a newly progressive agricultural group called Kapilvastu Shivraj Municipality-11 in the fiscal year 2075/76. The group received a grant of NPR 5,76,224 for cattle farming from the ministry.
However, on 13th Ashoj, 2076, the group did not attend the inspection by the Provincial Agriculture, Forest, and Environment Committee, nor did they meet with the committee’s chairman, Durga prasad Khanal. Committee president Bijay Yadav stated, “They only seem to have operated the cattle farm to receive the grant.” According to the agreement, the group needs to complete the work by Ashar, 2076 (June 2020). Still, Khanal has kept the grant amount without starting the cattle farm.
Similarly, Rajkumar Chaudhary, the operator of Kapilvastu Rajkrishi Farm, also received a grant of NPR 9,60,374 for buffalo farming. He used this money to build a three-room house for his family and insured 11 animals, but currently, there is no buffalo in the farm.
The Sirjansheel Krishi Mahila Sahakari, situated in Rolpa Municipality-4, received NPR 24,81,250 in grants. They had intended to construct buildings for storing crops and processing. However, construction work has not yet started despite receiving the grant. Cooperative president Heera Ghale claims that the building is under construction.
Similarly, the Tarakari Farm in Rupandehi received NPR 4,00,000 from the Ministry to engage in commercial vegetable farming. However, the land designated for vegetable farming is currently overrun with weeds.
The Ministry had distributed NPR 185 crores in agricultural grants to 1,200 farmers from 12 districts in the province. This grant covered various activities, including cattle and buffalo farming, as well as vegetable cultivation. However, mismanagement of the distributed funds is evident in many places, as demonstrated by the examples above.
The government aims to improve the livelihoods of farmers and livestock breeders by implementing various programs every year. Still, these funds appear to be misused or inaccessible to the actual beneficiaries, with middlemen and traders often being the ones to benefit.
Bijay Prasad Khanal, a trader in Kapilvastu, and Javed Alam Khan, have understood and received grants for agricultural farming. Khan has only planted 20 kgs of cauliflower and 1 kg of potatoes with the grant of NPR 6,00,000 for agriculture. Khan also received NPR 5,76,224 for buffalo farming but currently does not have any buffalo. Committee president Yadav mentioned, “After receiving the grant, he has sold all his buffalo.”
“For agricultural development, the government has allocated grants not only in the province but across the country, and it has been misused extensively. According to a report prepared by the ‘Impact Assessment Committee on Grants’ established by the Ministry of Agriculture and Livestock Development, last year, the government’s agricultural grant intended for the agricultural sector has gone down the drain.
With the support of the Asian Development Bank (ADB), the Ministry of Agriculture had initiated the High Mountain Agriculture Business and Livelihood Improvement (Himali) program with an investment of over 3 billion Nepalese Rupees. The project aimed to provide grants to nearly 600 commercial projects over seven years in the agricultural sector, focusing on improving agriculture business and livelihoods. However, only 54% of the budget has been spent in the six years since its inception.
The Business Agriculture and Livelihood Program (PYACt), also aimed at promoting agricultural commercialization, supported by the World Bank, has faced a similar sluggish pace. Out of the allocated budget of 9 billion Nepalese Rupees, only 61% of the financial progress has been achieved in eight years. The program had set the goal of distributing grants to 1,410 agricultural businesses, but only 1,410 projects have received funding.
According to the report, in the Business Agriculture and Livelihood Program, out of the allocated budget of NPR 2.35 billion, only 35% of the commercial farmers received payments. Some have even profited from one project and applied for grants in another.
In the Eastern region, where the Agricultural Development Directorate operates the Business Agriculture Network, there have been zero achievements despite the government collecting crores of rupees every year. The report also mentions that donor agencies have increasingly imposed unnecessary conditions while providing support for agricultural development, leading to greater dependence.
Yuwak Dhawaj Jisi, the secretary of the ministry, explains that a procedure has been approved by the Cabinet for the utilization of the grant amount in a way that doesn’t allow misuse. He states, “Previously, there was a practice of giving up to 100% of the grant amount, but now there is a system in place where a maximum of 50% of the grant amount is given.”
In the province, 70 percent misuse
The Agriculture, Forest, and Environment Committee of the province formed two sub-committees in 12 districts from Ashoj 11 to Kartik 7 and monitored more than 128 plans after calculating the misuse of grants. According to the assessment made by the committee, 70 percent of the grant amount has been misused in the fiscal year 076.
The group received a grant at a rate of 75 percent for collective farms and 50 percent for individuals, but more than 80 percent of their investment has not been returned, according to the committee’s president, Yadav.
In the distribution of grants meant for farmers, it has been observed that businessmen, teachers, government employees, and party workers have been included in the list, as per his statement. Yadav states, “Without proper monitoring, funds meant for farmers have been misused, making it easy to turn laborers and employees into commission agents.”
The ego of the influential
the Ministry’s Agricultural Grant Program, it has distributed 100 million rupees to 184 farmers for food and nutrition security, agribusiness and new technology programs. In the distributed amount, there is also a complaint from party activists and those who have influence, which is common.
Hariyali Pashupanchhi and Agricultural Farm in Pyuthan Municipality-2 received a grant of four lakhs rupees. Bikram Bisht, the operator of this farm, is the brother of Nepali Congress’s Deputy Chairman Bamdev Gautam’s private secretary Vijay Birat Bisht. Even though the farm had received the grant for buffalo farming, it was found operating chicken farming after monitoring. Despite not seeing the farm, Bangur Poultry, which was awarded the grant for poultry farming, recently started poultry farming in the open space.
Misuse of funds for agricultural and livestock purposes has been observed in many instances. Even though funds were allocated for specific purposes, the lack of proper monitoring has allowed some organizations to use the funds for different activities. Committee President Yadav mentions, “To obtain grants, the same person is associated with three to four different organizations, and families collaborate to open organizations.”
The Ministry had allocated 30 crores rupees for agricultural mechanization last year, under which various equipment such as milk tankers, pickups, chaff cutters, and pellet making machines, hatcheries, and mini-tractors were distributed. Rolpa Municipality has received a tanker for milk collection from the Ministry. Although Rolpa does not produce 200 liters of milk, the municipality has received a 35 lakh 55 thousand rupees tanker from the Ministry.
Means for the distribution of agricultural, livestock, and livestock-related materials have been used for commercial purposes. Nagar Municipality Mayor Puran Keshi says, “Even though milk is not produced in the district, it is being transported to increase production.” The municipality has planned a budget of 52 lakhs for purchasing 1000 cows this fiscal year.
According to sources, the Ministry allocated funds to Rolpa Municipality under pressure from the former and current chairman of the energy, water resources, and irrigation minister Krishna Bahadur Mahar for a tanker. Nagar Municipality Mayor Keshi’s sister-in-law and Deputy Mayor Man Kumari Gharti’s sister-in-law are members of that cooperative. The immediate former head of the Nepali Congress, Krishna Bahadur Mahar, had pressured the municipality to allocate the tanker grant to his cooperative.
A pickup truck worth 12 lakh rupees has been distributed for the purpose of providing milk to the Annapurna Farmers Cooperative, Arghakhachi-6, and it is currently being used for transporting people, commercial goods, and construction work.Even though there was a budget of 25 lakhs for constructing the Agriculture Production Storage Center building under the Prime Minister’s Agriculture Modernization Project in cooperation, the cooperative received only 11 lakh 99 thousand 668 rupees last year. Even though an agreement was reached to complete the program last fiscal year, the building is still incomplete.
In the hands of the influence
The owners of Malika Agriculture and Cooperative in Gulmi purchased a buffalo without making any decision, and then they requested payment from the ministry. The ministry provided a payment of 11 lakh 99 thousand 6 hundred 68 rupees. After receiving the payment, the cooperative officials purchased five buffalo from the homes of its members for a few days, enclosing them in a pen. When the inspection team from the ministry arrived in, they found the buffalo had been sent back. The chairman of Malika is a member of Ward 8 of Malika Rural Municipality and his wife, Laxmi, is also a member. The former CPN winning Ward Chairman said that the ministry had pressured him to transfer the grant to his cooperative.
However, this is not the only case. Under the Prime Minister’s Agriculture Modernization Project, the cooperative received 39 lakh rupees to build an agricultural produce storage center building at a cost of 25 lakh rupees. In the previous fiscal year, 25 lakh rupees were allocated. Even though the project was supposed to be completed last year after an agreement, the building is still unfinished.
While there is a procedure for providing grants to commercial farmers, it is practically impossible for real farmers to receive grants. The Ministry approved 7.5 lakh rupees in grant money for Bardia’s Shahi Buffalo Farm. However, Lokendra Dhami, who is identified as the farm manager, said that he received only 20% of the payment after contacting Ratan Bahadur Shahi, the farm’s director, on the phone. Shahi’s complaint is that he did not receive the money despite reaching an agreement as the commission agent. Ministry employees conducted an investigation, identifying the farm as an excellent one. He says, “Now, they don’t pay the money, citing that it’s an old farm.” They have been working in the business for a long time.
Even though the ministry sought time for agreements from time to time, they state that the agreement time has expired, so the amount cannot be paid. Shahi’s agreement has also been received by Bibek Buffalo Farm, which has received 7.5 lakh rupees in grant money.
government grant in rent
The provincial government has distributed millions in grants under the name of Bhakaro Sudhar to Haat Bazaar operations. In the audit conducted by the Agriculture, Forest, and Environment Committee of the province, it was found that cooperatives had misused the grants they had received.
The During Women Small Farmer Agriculture Cooperative in Rolpa had received a grant of NPR 21 lakh 26 Thousand, 83 rupee, and it had used a pickup truck that was purchased with the grant for rent. Similarly, the Women Small Farmer Agriculture Cooperative in Pyuthan had purchased a tractor with the NPR 16 lakh 26 thousand 70 rupee grant they received, which was supposed to be used for various agricultural purposes. As per the procedure, the tractor has been transferred to the name of Chairperson Geeta GM.
Unused Grants
After an increase in the misuse of grant funds, in the month of Bhadra, 2076 (August 2020), the then-Secretary of the ministry, Baikunth Adhikari, personally conducted an audit in districts such as Pyuthan, Rolpa, and Arghakhanchi.
According to his statement, there is no possibility of operating the milk tanker in Rolpa. Similarly, the cattle shed constructed in Arghakhanchi at a cost of 15 lakhs is also not in operation. He mentioned that the ministry is in the process of preparing criteria to make the grant distribution more effective and transparent. Even though the officer’s role has changed, the situation remains the same.
After the report on the misuse of agricultural grant funds became public, the Provincial Government of Province 5 has established unified guidelines for grant management. Agricultural expert Krishna Paudel believes that grants like these do not contribute to increasing agricultural and livestock production. He argues that programs based on production according to the level of production, local evaluation, business planning, capacity, and boundary survey need to be introduced. Paudel says, “Without effective utilization of grants and conducting various analyses such as local evaluation, business planning, capacity, and boundary survey, it is necessary to stop the grant program.
employee commission After receiving a deduction of 26 lakhs in the grant for Dang’s Keshi Meat Shop and Agro Farm Pvt. Ltd., Deepak Bhushal, the chief of the Pashupanchhi and Fisheries Development Directorate in Butwal, decided to allocate 20% commission in advance to the affected individuals when the grant manager Balaram Khatri could not give the commission amount. After that, Khatri reduced the grant to 18 lakhs 83 thousand rupees. Afterward, only a grant of 2 lakhs in the name of an employee, Siddhartha Bank Butwal, was cut off from a check. However, Khatri is accused of only receiving 7 lakh rupees. Although the Matshya Development Center’s employee who called Pushpa Nursery in Tulsipur-12 did not give the commission amount, it was reduced to 14 lakhs due to an on-site investigation committee. AnupSami member Kamal Prasad Shrestha said that during the grant payment, the employees demanded a commission of 5% to 20%. The agreement was reached. Rupandehi’s leading farmer and Austrian Nepal Pvt. Ltd. Director CP Sharma received a 5 crore grant, only 3 crore 86 lakh 10 thousand rupees were paid, and the remaining amount has not yet been paid. Accountant Laxman Paudel of the ministry said that after asking for a 5% (25 lakh rupees) commission in an indirect way, he was fired by Minister Aarti Poudel, Minister of Land Management, Agriculture, and Cooperatives in Province 5. Minister Aarti Poudel has been accused of bargaining for commission from the staff receiving the commission. The Minister has suspended the private secretary Surya Rokaya
https://nepalmag.com.np/contemporary/2019/12/15/20191215135919
