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The Government of Japan has agreed to extend a grant assistance of two hundred and fifty million Yen (¥250,000,000), approximately two hundred fifty-nine million Nepalese Rupees (NRs.259,000,000), or approximately three million ninety thousand US dollars (US$3,090,000), to the Government of Nepal for the Increase of Food Production (KR2), with special emphasis on underprivileged farmers, in Japan’s Fiscal Year 2011.

His Excellency Mr. Kunio TAKAHASHI, Ambassador of Japan to Nepal, and Mr. Krishna Hari Baskota, Secretary of the Ministry of Finance, signed and exchanged Notes today on behalf of their respective Governments, with the graceful presence of His Excellency Mr. Koichiro GEMBA, Minister for Foreign Affairs of Japan and Honorable Mr. Narayan Kaji Shrestha, Deputy Prime Minister & Minister for Foreign Affairs of the Government of Nepal.

The grant is extended for procuring the items necessary to increase food production in Nepal with special emphasis on underprivileged farmers. The grant will be used for the procurement of fertilizers needed to boost agricultural production, thus enabling the country to meet its growing food demand. Good quality Fertilizer is an important component for the growth of agricultural production. However, Nepal does not have domestic manufacturers of chemical fertilizer and is forced to depend on imports. The fertilizer procured under this grant will be utilized 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 extending Grant Assistance for the Increase of Food Production (KR2) to Nepal since 1977; one of the oldest grant programs from Japan to Nepal.  The last such grant was extended in Japan’s Fiscal Year 2009, to the amount of four hundred and ninety million Yen (¥490,000,000).

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 hopes that the grant extended today will contribute to increase agricultural productivity benefiting the people of Nepal and creating an environment contributing to peace and prosperity in remote areas of the country. Japan believes that this support will also help strengthen the existing friendly and cooperative relationship between Japan and Nepal.