Kathmandu, Apr. 29

The Government of Japan has agreed to extend a grant assistance of 250,000,000 million Yen (approximately Rs. 259 million) to the Government of Nepal for the Increase of Food Production (KR2) programme, with special emphasis on underprivileged farmers.

Krishna Hari Baskota, Secretary at the Ministry of Finance, and Kunio Takahashi, Ambassador of Japan to Nepal, on Monday signed and exchanged notes amidst a function at the Ministry of Foreign Affairs on behalf of their respective governments.

Deputy Prime Minister and Foreign Minister Narayan Kaji Shrestha and Minister for Foreign Affairs of Japan Koichiro Gemba were present on the occasion.

The grant is extended for procuring the items necessary to increase food production in Nepal with special emphasis on the underprivileged farmers.

The assistance will be used for the procurement of fertilisers needed to boost agricultural production, thus enabling the country to meet its growing food demand, according to a press release issued by the Embassy of Japan based in Kathmandu.

Better quality fertiliser is an important component for the growth of the agricultural production. However, Nepal does not have domestic manufacturers of chemical fertilisers and is forced to depend on imports. The fertiliser procured under this grant will be utilised to cope with acute shortages and rising prices and will be supplied to farmers in remote regions where private market activities are inadequate.

The Government of Japan has been providing grant assistance for the Increase of Food Production (KR2) to Nepal since 1977; one of the oldest grant programmes from Japan to Nepal.

The last of such a grant (Yen (¥490,000,000) was extended in Japan’s Fiscal Year 2009.

Japan, being a close friend and development partner of Nepal, has been extending assistance to help Nepal in the country’s endeavor for socio-economic development.

The Government of Japan has hoped that the grant will contribute to increasing agricultural productivity benefiting the people of Nepal and creating an environment contributing to peace and prosperity in remote areas of the country.

Japan has also believed that this support will also help strengthen the existing friendly and cooperative relationship between the two countries.