The Government of Japan, based on the request made by the Government of Nepal, has approved the utilisation of the Counterpart Fund under the Food Aid of Rs 50 million for the implementation of the Project for the Transportation of Food Grains to Remote Area.

The project was approved in order to counter the existing food deficit in Nepal, particularly in the remote hilly and mountain districts, due to the low productivity of agriculture, a statement issued by Japanese embassy said.

Under this project, Nepal Food Corporation (NFC) will deliver an additional 1,430 metric tons of rice to eighteen remote hilly and mountain districts in addition to NFC’s annual program of delivering about 7,500 metric tons of rice.

The Counterpart Fund was established through the financial assistance extended by the Government of Japan under the Food Aid (KR). The Government of Nepal has procured rice through this assistance and sold it in the domestic market. The amount collected from selling the rice was deposited as a Counterpart Fund, which can be utilised for implementing various social and economic development projects through consultation between the two governments. nepalnews.com mk Feb 06 08