March 29, Mahendranagar – At an official programme today, Kanchan Development Bank Limited (KDBL) and UKaid Sakchyam Access to Finance Programme (Sakchyam) signed a partnership which will work towards raising incomes of seed producing farmers through value chain financing. Team Leader of Sakchyam, Mr. Baljit Vohra, Deputy Director of Nepal Rastra Bank (NRB) Dhangadi, Mr. Binod Lekhak, District Agriculture Development Office Representative Mr. Yagya Raj Bhatt from Dhangadi and KDBL’s CEO, Mr. Biru Ram Jaishi, were on hand to launch this exciting partnership.
Sakchyam’s support will enable KDBL to offer tailor made financial products for seed farmers associated with Api Himalaya in Kailali, Kanchanpur and Dadeldhura districts. The support will also enable Api Himalaya to provide a range of value added services including capacity building for the farmers that will ultimately strengthen the seed value chain.
Highlighting the likely impact of the project, CEO KDBL, Mr. Biru Ram Jaishi said, “Our bank will provide loans and other financial services to 10,000 plus seed producing farmers of Kailali, Kanchanpur and Dadeldhura. Financial access and other value added services that the farmers will receive through Api Himalaya is also expected to enhance farmers’ income by more than 40%.”
Similarly, Mr. Baljit Vohra, Team Leader, Sakchyam said, “Lack of quality inputs including seed is a major challenge for farmers in Nepal. Further, there is lack of financial products tailor made to suit the needs of seed farmers – very few financial institutions offer financial products, especially loan products, for farmers in general. Therefore, through this joint effort to introduce inputs financing, we aim to address these issues faced by farmers. They will not only be able to receive tailored financial products, but also better technical skills and know-how on how they can strengthen the seed value chain. This will ultimately help in increasing their yield and income in the long run.”
Sakchyam is a UKaid-funded access to finance programme. It is being implemented by Louis Berger for DFID Nepal, in partnership with local and international institutions.