Site icon Fiscal Nepal

Proper study required before allowing FDI in agro sector: Private sector

KATHMANDU: Three private sector organizations, including the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), have urged the government to take decision on allowing foreign direct investment in the agricultural sector only after conducting a proper study.

The FNCCI, Nepal Chamber of Commerce (NCC) and Confederation of Nepalese Industries (CNI) have issued a joint statement on Monday stating that the decision on opening up to foreign investment in the agricultural sector should be based on the technology, raw materials and exports.

The joint statement reads, “In terms of opening up to foreign investment in the agricultural sector, it is necessary to make a decision based on the technology they will bring, they should use local raw materials and their plans of exports. Therefore, the private sector has demanded that the decision to open up to foreign investment in agriculture should be implemented only after a detailed study of the possibility of importing the latest technology, using indigenous raw materials and exporting the maximum products.”

The three organizations have said that it is necessary to fulfill the past commitments made by the government to promote foreign investment as it is essential for the country. They have demanded that discussions be held with the private sector while formulating policies, rules, directives, procedures or making any amendments.

After the Government of Nepal amended the Act on the same day and published the information in the Gazette, there has been a controversy over whether to open foreign investment in agriculture or not. Entrepreneurs have been protesting after the law was amended to allow foreign investment in large scale industries related to livestock, fisheries, beekeeping, fruits, vegetables, oilseeds, pulses, dairy business and primary agricultural products.

However, all the three private sector leaders have suggested the government to hold discussions with them and make a decision after conducting a study.

Exit mobile version