Guidelines for cash grants to flood-affected farmers have been approved.


After a one-and-a-half- break, the government has approved the guidelines for cash distribution to farmers across the country whose paddy fields were swamped by the unseasonal October severe rains and floods. The recommendations will be implemented immediately.



Following unseasonal torrential rains that began on October 17 and continued for several days, the country was ravaged by floods that claimed the lives of more than 100 people, devastated thousands of hectares of standing and harvested paddy crops, and submerged villages in numerous districts.

Heavily rainy conditions are uncommon in Nepal in October, which is usually considered to be beyond the monsoon season.

Following the publication of the notice in the Nepal Gazette, Prakash Kumar Sanjel, spokesperson for the Ministry of Agriculture and Livestock Development, stated that local levels will collect data on the impacted farmers or crops within two weeks of the notice being published.

“The names of the impacted farmers will be made public at the local level, and farmers who were not included in the original list will be given an extra three days to file claims,” he explained. “Once the claims have resolved, the names will be given to the district’s disaster assistance committee for additional review and consideration.”

According to Sanjel, the entire process will take another month to finish. “The compensation will be deposited directly into the bank accounts of all impacted farmers.”

According to the standards, the highest compensation sum would be Rs55,000 (Rs55,00).


Farmers who lost their paddy crops due to adverse weather conditions last month received a record Rs5.52 billion settlement during a Cabinet meeting on November 18, setting a new record. This is the largest farm-related aid package ever approved by the government.

When it released its revised estimates of losses in December 2013, it stated that the exceptional rainfall had resulted in losses totaling Rs11.87 billion. According to the ministry, an estimated 424,113 tonnes of paddy had destroyed on an area of 111,609 hectares.

According to the latest numbers, paddy crops on 90,996 hectares have completely destroyed. A similar number of paddy crops have been destroyed, with 62,155 hectares of them being partially damaged and 39,383 hectares of them being somewhat affected.

According to the judgment, the monetary compensation would be divided into four categories of value.

Small farmers with up to ten katthas will be reimbursed for 65 percent of their production costs, according to the government.

Additionally, the government will reimburse 30% of the production costs for medium-sized farmers with holdings ranging from 11 to 60 katthas, according to the Ministry of Agriculture.

The government would reimburse big farmers whose farms are larger than 61 katthas with a 20 percent discount on their output costs.


For farmers who have partially affected, the government has agreed to pay them with a flat 20 percent of their production costs, which will apply to all small, medium, and large farms.

Farmers who have insured their crops, on the other hand, will be ineligible for any financial recompense.

Following the standards, a sum equal to Rs2,304 per quintal [100 kg] and the agricultural productivity rate of the district has calculated to determine the compensation amount to be paid out.

Nepal’s economic well-being is inextricably related to the success of the country’s harvest season. Water from the skies is the lifeblood of Nepal’s Rs4.26 trillion economy, which is heavily reliant on agriculture due to the fact that over two-thirds of the country’s farmland is rain-fed. However, the unseasonably heavy rains that fell in October this year spelled tragedy.

Paddy is planted across the majority of Nepal in June and harvested in October, according to the USDA.

Nepal’s economy has suffered a significant setback as a result of the devastation of paddy. More over half of the population on paddy as their primary source of income, which accounts for approximately 7 percent of the national gross domestic product (GDP).

It was determined that there were three types of damage, according to the ministry:


Farmers who live in river basins or on the banks of rivers such as the Karnali, Babai, Koshi, and others who have lost their whole crops or whose ready-to-harvest paddy has washed away by floods come into the first of these categories.

It has noted that the second category of damage has occurred in the low lying southern plains, where rains has saturated the fields for more than two days and seedlings have begun to grow from harvested paddy that has been left out in the fields to dry.

The third type of damage occurred as a result of strong winds that flattened standing paddy crops.

Aside from the paddy losses, there is also a significant loss of stalks, which have a high monetary value and must be replaced.

According to the ministry’s estimates, paddy production may fall below 10 percent this year.

According to industry experts, the harm will be reflected in rice prices this year.

The import of cereals climbed by Rs22.71 billion during the previous fiscal year, which concluded in mid-July, surpassing Rs79 billion. Rice and paddy were the most often imported cereals, accounting for Rs27.62 billion and Rs20.54 billion, respectively, of the total cereal imports.


The sudden and intense rainfall that happened in Nepal almost a month after the monsoon season normally finishes has left scientists scratching their heads, wondering—and concerned—about the impact of climate change on the country’s economy and people’s livelihoods.

Economists believe that the destruction of human lives, property, and crops will have a negative impact on economic growth, which has already slowed by the Covid-19 outbreak in the first place.

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