Agriculture investment subsidy, fertilizer budget, and irrigation expansion announced

A farmer working on his field | Photo by Mani Raj Tamang under Creative Commons

Farmers investing up to NRs 20 million in agriculture will be eligible for a 40% incentive subsidy under a pilot program

-the_farsight | May 29, 2026, 7:43 p.m.

The government has announced new measures to support the agriculture sector under the fiscal year 2025/26's budget.

Farmers investing up to NRs 20 million in agriculture will be eligible for a 40% incentive subsidy under a pilot program, said Finance Minister Wagle, emphasising agriculture and livestock production as a top priority for sectoral revival.

He added that eligible farmers will receive a 40% subsidy on initial investment, along with a 10% annual reimbursement for four years after production begins. The government has also announced an 80% premium subsidy for agriculture and livestock insurance, while gradually reducing other subsidy programs.

A total of NRs 32.46 billion has been allocated for chemical fertiliser procurement, with plans to introduce a supply calendar to ensure timely distribution during key planting seasons.

For irrigation, the government will expand underground systems in additional farmland across the Tarai-Madhes region. The project aims to bring irrigation to 3,900 hectares, with NRs 1.83 billion allocated for implementation.