Japan has pledged a grant assistance of 180 million Nepali rupees (some 2.57 million US dollars) to the government of Nepal for the increase of food production in Japan's fiscal year 2006.

Japanese ambassador to Nepal Tsutomu Hiraoka and Nepal's officiating secretary at the Ministry of Finance Rameshore Rasa Khanal signed the deal on Monday.

A press release issued by the Japanese Embassy in Kathmandu said the grant has been extended for procuring necessary items to increase food production in Nepal with special emphasis on underprivileged farmers.

"The grant will be used for the procurement of fertilizers needed to boost agricultural production, thus enabling the country to meet its growing food demand," the release said.

The Japanese government has been providing grant assistance for increasing Nepal's food production since 1977.

Speaking at the signing ceremony, Japanese ambassador Hiraoka expressed hope that the grant will contribute to increasing Nepal's agricultural productivity and creating an environment conducive to peace in remote areas of Nepal.

Source: Xinhua