April 21, 2003
 Grant Assistance for the Increase of Food Production
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The Government of Japan has agreed to extend grant assistance of five hundred million yen ( 500,000,000), approximately three hundred twenty-four million Nepalese rupees (NRs.324,000,000), to His Majesty's Government of Nepal, for execution of the project for Increase of Food Production in Japan's FY 2002.
His Excellency Mr. Zenji KAMINAGA, Ambassador of Japan to the Kingdom of Nepal, and Mr. Bhanu Prasad Acharya, Secretary of the Ministry of Finance, signed and exchanged the Notes today on behalf of their respective governments.
Under the agreement, His Majesty's Government of Nepal will deposit in the KRII counterpart fund, in Nepalese currency, an amount equivalent to one-half of the yen disbursement paid with respect to the purchase of fertilizers. The currency thus deposited shall be utilized for the purposes of economic and social development, including agricultural, forestry and/or fisheries development, and the increase of food production in Nepal.
As the expansion of arable land is no longer a viable means of increasing agricultural production in Nepal, fertilizer has become one of the essential ingredients for increasing production. The Agriculture Perspective Plan (APP) has therefore placed emphasis on fertilizers as one of the priority inputs necessary for raising agricultural production. In light of this, the grant assistance for the Increase of Food Production to Nepal becomes more significant to the production of crops in the country with a view to attaining self-sufficiency in food.
The Government of Japan had provided grant assistance of seven hundred million yen (700,000,000) for a similar purpose in JFY 2001.
On the occasion, HE Mr. KAMINAGA expressed sincere hopes that the continued support of the Government of Japan to His Majesty's Government of Nepal in its development efforts will certainly help socio-economic development of Nepal and improve the well-being of the Nepalese people and will also help cement the existing cordial and friendly relationship between the two nations.
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