Kathmandu – Ramu Paudel, Executive Director of Nepal Rastra Bank (NRB), has said that the key challenge facing Nepal’s agricultural sector is not the availability of credit but the lack of reliable markets and fair prices for farmers.

Speaking during the second session of the Fourth Banking Discourse 2026, titled “Expanding Investment in Agriculture: The Role of Banks, Government, and the Private Sector,” Paudel said that despite substantial lending to the agricultural sector, structural issues continue to hinder its growth.

“The question often raised is why agricultural lending is not sufficient despite the priority given by Nepal Rastra Bank,” he said. “But it is not that credit has not reached the sector. A significant amount of agricultural lending has been made through the efforts of the central bank.”

According to Paudel, farmers are more concerned about securing markets and receiving fair prices for their produce than obtaining additional loans.

“Farmers need markets and prices,” he said. “Ensuring policies and incentives is the responsibility of the government. This is not something Nepal Rastra Bank or banks and financial institutions can do on their own.”

Paudel noted that concessional loan programs and subsidized credit schemes have already been implemented under government initiatives, while the central bank has introduced numerous policy measures to support agricultural financing.

“The central bank has brought many policies to promote agricultural investment, and concessional loans have also been provided,” he said. “However, farmers are facing difficulties because they lack the necessary infrastructure.”

He emphasized that improving infrastructure, guaranteeing markets, and creating stable pricing mechanisms are essential for strengthening Nepal’s agricultural sector and making existing financial support more effective.