Status of Agriculture in Nepal: Krishi Update

Status of Agriculture in Nepal : Krishi Update

Cash crops, livestock, and food grains comprise the majority of Nepal's agricultural production. The livestock sector is also contributing significantly to the nation's agricultural output. 

Production of both vegetables and livestock products has increased significantly in recent years.

Due to the traditional farming system, low productivity is the main reason for the low living standard in agriculture. This has led to the migration of the labour force from the farm to urban centers and foreign countries.

The low profitability of small farms has restricted the export of agricultural products. This has led to the closure of many markets.

Due to their large volumes of transactions and shorter chain of marketing, they are more advantageous compared to their counterparts. As a result, they receive government support that helps boost their domestic production and exports.

The inadequacy of modern farm inputs, such as fertilizer and irrigation, has affected the growth of Nepal's agricultural production. Around 44% of the arable land is under irrigation.

The availability of underground water and surface sources for irrigation can provide up to 67 percent of arable land.

Use of fertilizer in Nepal is very low, at 35 kg per ha. It was widely believed that the high price and supply constraints have caused the low usage of fertilizer in the country.

The deregulatement of the fertilizer trade allowed more fertilizer to be transported into the country. However, the quality of the fertilizer became a concern after the entry of low-quality products into Nepal.

Liberalization of the agricultural sector has caused it to be vulnerable to external shocks. This has resulted in the decline of its agricultural products and the food security situation.

Like other sectors, the growth rate of the agricultural sector remained low. During the post-conflict years, however, it has started to improve. This shows that although the sector remains underdeveloped, its performance has improved.