Accra:Madhes A total of Rs 8.99 billion in concessional agricultural loans have been distributed in Madhes Province over the past year. This funding was allocated by banks and financial institutions for the fiscal year 2082/83, as outlined in a study by the Nepal Rastra Bank.
According to National News Agency RSS, the distribution of these loans varied across the eight districts of the province, with Dhanusha receiving the highest amount of Rs 1.2 billion, constituting 16.54 percent, and Saptari receiving the lowest, at Rs 300 million, accounting for 4.87 percent.
The agriculture, forest, and fishery sectors have significantly contributed to the economy of Madhes Province, expected to account for 34.97 percent of the province’s gross domestic product (GDP) in the fiscal year 2082/83. In contrast, the mining and quarrying sector is projected to have a minimal contribution of 0.14 percent. The per capita GDP of the province is estimated at 934 US dollars during this period.
In terms of agricultural production, fruit cultivation areas increased by 33.99 percent, and spice crop areas by 4.46 percent, while areas for food and other crops decreased by 4.47 percent, and vegetable and horticulture areas by 10.15 percent. Production rose by 0.54 percent in vegetables and horticulture and 4.44 percent in fruits, whereas food and other crop production fell by 5.69 percent and spice crops by 4.44 percent. Meat and egg production saw increases of 10.19 percent and 3.11 percent, respectively, while dairy production declined by 2.67 percent. Fish production grew by 5.05 percent, with timber and firewood production surging by 60.58 percent and 78.62 percent, respectively.
A significant portion of loans in Madhes Province also supported agriculture, fish farming, and forestry, amounting to Rs 59 billion 869 million by the end of Ashar 2083, representing 12.10 percent of total provincial loans. Industrial sector loans increased by 0.68 percent to Rs 128.97 billion. The production capacity utilization of major industries was reported to be 64.59 percent on a weighted average.
In the real estate sector, 116,207 transactions were registered in the last fiscal year, generating Rs 3.22 billion in revenue. Bank deposits in the province increased by 17.32 percent, reaching Rs 478 billion 370 million, while loan disbursement slightly dropped by 0.18 percent to Rs 494 billion 950 million.
Key infrastructure projects in the province include the Nijgadh International Airport, the East-West Railway, the Hulaki Highway, the Kathmandu-Tarai-Madhes Expressway, and the President’s Chure-Tarai-Madhes Conservation Programme, with the Hulaki Highway’s construction progressing rapidly.
Additionally, a substantial number of Madhes residents have sought foreign employment, with 179,041 obtaining labor approval in fiscal year 2082/83, accounting for 22.60 percent of nationwide approvals. A central bank study has emphasized the substantial role of agriculture in the province’s economy, along with insights on banking, industrial activities, real estate, and foreign employment trends.