ESP loan rejections impede livestock expansion in Norbugang

KP Sharma

Samtse — The growing number of industries in Dhamdhum and Norbugang Industrial Parks in Samtse, along with the establishment of other institutions, has driven up the demand for livestock products in the region.

Such demand has encouraged farmers in Norbugang and nearby gewogs to explore livestock farming as a source of income.

However, despite the market opportunities, many farmers are unable to expand due to the rejection of their Economic Stimulus Programme (ESP) loan applications.

According to sources, around 47 farmers from Norbugang applied for the ESP loan, but all their proposals were later rejected by the banks, leaving them without access to the fund.

The locals say that the expansion of industries has brought more workers and residents into the area, increasing the need for milk, curd, butter, cheese, eggs, and meat.

In response, several households have shown interest in scaling up their livestock production but farmers say that almost all ESP loan applications were rejected by the banks, citing strict eligibility criteria.

Farmers said they had high hopes for the ESP after the new government took office, expecting it to support agriculture and livestock production.

However, they now say the lengthy process and rejections have delayed or halted their plans.

Those farmers who intended to increase their herd size or poultry and piggery farms are facing setbacks due to the lack of funds.

Although the ESP offers loans at a four percent interest rate, many farmers claim that financial institutions are reluctant to lend to them.

As a substitute to the ESP, some have resorted to borrowing from private sources at higher interest rates to sustain or expand their operations.

The Chairman of the Norbugang dairy group, Dhan Bdr Gurung, said a nearby factory requested over 500 litres of milk per day, but the group currently produces only around 130 litres.

“We can meet the demand if farmers are supported. Many are willing to increase their cows, but they do not have the funds,” he said.

Dhan Bdr Gurung added that bank officials should visit farms in person to assess the potential of each project instead of making decisions without site visits.

Kamal Kumar Ghalley, a farmer involved in poultry and dairy, said the growing market has encouraged many to think about expanding.

He currently owns 1,200 layer chickens and sells 20 cartons of eggs twice a week, along with 10 litres of milk daily.

Kamal Kumar said he is willing to expand if financial support becomes available. Another farmer who supplies poultry products to the Gyalsung project questioned the fairness of loan approvals.

He said that support should not be limited to large businesses only. “If farmers are truly the backbone of the country, farmers must also be supported through ESP loans,” he said, adding that he plans to expand his farm if he can lease more land.

The farmers also feel that the government’s goal of self-sufficiency should include support for those contributing to it.

The lengthy process for loan approval and land lease discourages many. A farmer in Khandothang who operates a piggery on leased land said he could only purchase 12 piglets for his 50-pig capacity farm due to loan rejection.

He said the bank rejected his proposal on the grounds that his farm was located on wetland, even though the land had remained barren and he had received temporary approval from the gup.

The gewog livestock officer in Norbugang said he assisted the farmers in preparing project proposals and documents, but most were later rejected by banks.

He stated that Norbugang has strong potential for dairy, piggery, and poultry farming. Farmers also raised the issue of land shortage for expanding their farms.

While some have secured leased land, others are waiting for opportunities. They said that several plots remain unused in the area, and leasing them to interested farmers could help address the issue.