Announcement of Cash Crops to be Promoted in Nepal with Help of Six Million US Dollars IDA Credit on March 24, 1983

[j;E-~ "World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE N0.83/56 Contact: Hugh Blackman March 24, 1983 (202) 477-3573 CASH CROPS TO BE PROMOTED IN NEPAL WITH HELP OF $6 MILLION IDA CREDIT About 37,000 farm families in Nepal will increase their cash crop production through a project supported by an SDR 5.6 million ($6 million) credit from the International Development Association (IDA), the concessionary lending affiliate of the World Bank. Higher yields of sugarcane, tobacco, and oilseeds will lead to higher farm incomes and savings in foreign exchange, primarily through reduced imports. Over half of the families living in the project area located in , southern Nepal own less than one hectare of land. At full development in 1988, the area's production of sugarcane will increase by 72,700 tons, of tobacco by 1,600 tons, and of oilseeds by 1,200 tons a year. . Sugarcane production on 4,660 hectares will be increased through improved research and agricultural services. A seed production program will also make available a regular supply of improved seeds to cane growers. With higher sugarcane yields, the Birganj Sugar Factory can operate at greater • efficiency. By increasing yields and quality,tobacco imports will be cut by half. Tobacco redrying facilities will be relocated to new buildings and curing barns will be remodelled through medium-term loans to owners • • The IDA credit will support the pilot development of sericulture for silkworm production. Research and a marketing study for ginger will also be undertaken. Short-term credit will be provided to sugarcane and oilseed growers. The IDA credit is for 50 years, including 10 years of grace; it carries. no interest but has a small service charge ( 0. 5% on the undis bursed balances of the credit and 0.75% on the disbursed balances). NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The U.S. dollar • equivalent of the SDR amount of the IDA credit reflects the exchange rates existing at the time of the negotiation of the credit • • .I