Agriculture production up despite decrease in agricultural land in Sudurpaschim
KATHMANDU, JANUARY 24: The agricultural land in Sudurpaschim Province is gradually decreasing. A study conducted by Nepal Rastra Bank (NRB) reveals that the area covered by major agricultural crops—including food crops, vegetables, fruits, and spices—has declined by 7.71 percent in the province.
Despite the reduction in agricultural land, the production of these crops has increased by 2.85 percent. According to the Provincial Economic Activity Study Report for the last fiscal year 2023/24, released by the Central Bank, the production of buckwheat and barley among major food crops has surged by 65.71 percent and 25.03 percent, respectively. However, the production of oilseeds has seen the steepest decline, dropping by 18.53 percent.
The production of milk, meat, and eggs has also grown, with increases of 4.58 percent, 9.32 percent, and 6.4 percent, respectively.
Agriculture accounts for 10.81 percent of the total loans disbursed by banks and financial institutions in the province. As of mid-July 2024, loan disbursements in the agricultural sector have decreased by 1.31 percent, amounting to Rs. 16.52 billion, compared to July 15, 2023.
The average capacity utilization of industries sampled in the study is 48.96 percent. While the production of rice and wheat has increased, the output of industrial products such as mustard oil, soap, bricks, sugar, and rosin has declined.
By the end of the review period, banks and financial institutions in the province had allocated 16.75 percent of their total loans to the industrial sector. However, loans to this sector fell by 4.79 percent, amounting to Rs. 25.60 billion as of mid-July 2024, compared to mid-July 2023.
The number of tourist-grade hotels and lodges has decreased by 4.17 percent, and the total number of hotel beds has dropped by 1.47 percent.
The study also reports that, as of February 2023, a total of 171 MW of electricity has been generated from various hydropower projects within the province.
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