Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: In response to the severe drought currently affecting an estimated 1.2 million people across Nepal, the European Union (EU) has announced a humanitarian contribution of €200,000 (over NPR 32 million) to assist the most severely impacted populations, particularly in Madhesh Province.
According to an official statement, the EU funding will support the Nepal Red Cross Society (NRCS) — with operational support from the International Federation of Red Cross and Red Crescent Societies (IFRC) — in delivering urgent water, sanitation and hygiene (WASH) interventions. These include water trucking services, the installation of deep tube wells, and the promotion of health and hygiene awareness in drought-stricken communities.
The relief initiative is expected to directly benefit 60,000 people who are struggling with critical shortages of drinking water, deteriorating sanitation conditions, and increasing threats to food security.
Drought emergency deepens in Nepal’s main rice-growing belt
Nearly two and a half months after the official onset of the monsoon season, Madhesh Province — Nepal’s principal rice-producing region — continues to experience a prolonged lack of rainfall, causing widespread distress to farming communities. Authorities have declared all 136 municipalities in the province drought-affected, citing escalating impacts on agriculture, livelihoods, public health, and water access.
The drought has raised alarm among food security experts, as Madhesh plays a central role in national paddy production and staple food supply. With paddy transplantation delayed or canceled in many districts, rural households are now facing a dual crisis of crop failure and water scarcity.
EU aid channeled through IFRC’s Disaster Response Emergency Fund (DREF)
The newly announced EU support forms part of the Union’s broader contribution to the Disaster Response Emergency Fund (DREF) managed by the IFRC. The DREF enables rapid humanitarian financing to national Red Cross and Red Crescent Societies responding to “small-scale” disasters — those that may not trigger an international appeal but still require urgent attention.
The European Commission’s Civil Protection and Humanitarian Aid Operations department (ECHO) has signed a €12 million humanitarian delegation agreement with the IFRC to replenish DREF allocations for agreed operations that align with the EU’s humanitarian mandate.
Background: EU as a global humanitarian leader
The European Union and its Member States remain the world’s largest donor of humanitarian assistance, consistently supporting disaster-affected populations worldwide. EU humanitarian action is rooted in the principles of neutrality, impartiality, and independence, aiming to save lives, alleviate suffering, and protect human dignity.
With headquarters in Brussels and a global network of field offices, the EU provides aid to millions of people affected by natural disasters, armed conflicts, and complex emergencies each year. In Nepal, the EU has supported multiple relief and recovery operations — including after the 2015 Gorkha earthquake, during COVID-19, and in response to floods, landslides, and climate-related crises.
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