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Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
Agricultural Performance and Food Security in Nepal: Constraints and Challenges
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Agricultural Performance and Food Security in Nepal: Constraints and Challenges

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“Agricultural Performance and Food Security in Nepal: Constraints and Challenges” presented by Bishnu Pant, IIDS, Nepal, at the ReSAKSS-Asia Conference, Nov 14-16, 2011, in Kathmandu, Nepal.

“Agricultural Performance and Food Security in Nepal: Constraints and Challenges” presented by Bishnu Pant, IIDS, Nepal, at the ReSAKSS-Asia Conference, Nov 14-16, 2011, in Kathmandu, Nepal.

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  • 1. Agricultural Performance and Food Security in Nepal: Constraints and Challenges Bishnu Dev Pant Aruna Palikhe Institute for Integrated Development Studies (IIDS) Mandikatar, Kathmandu, Nepal 14 November, 2011
  • 2. Mountain: 3000-8,848 masl, Cover 35 %land area, 2% of this land cultivable. Hill: 800-2,400 masl, Covers 43 % land area, One-tenth of it is cultivable. Terai: 60-300 masl, 23 % land area, Nearly half of it is cultivable. • Area: 14.7 million hectares (147,181 sq.km) 93rd in the world • Water: 2.8% • Population: 26.6 million 2011 Population growth rate; 1.4 (2011) • Density: 199.3/km2, 62nd • Population below poverty line: 25.16% (2011) •
  • 3. Labor force by occupation (2010) 0% 10% 20% 30% 40% 50% 60% 70% Agriculutre Industry Services 64% 7% 18%
  • 4. • A redistribution effect among the sectors as economy grows • Services today contributing over 50 percent to GDP • Industry stagnating after 1990—lack of electricity main cause
  • 5. Production Trend of Major Cereal Crops (mt.) 0 500000 1000000 1500000 2000000 2500000 3000000 3500000 4000000 4500000 5000000 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 PADDY MAIZE MILLET WHEAT BARLEY
  • 6. Edible Cereal Grain Production and Requirement of Nepal, 1989/90-2009/2010 -1000000 0 1000000 2000000 3000000 4000000 5000000 6000000 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10# Total Production Totla Requirement Totla Balance Productioninmt. Year
  • 7. Total of 37 districts are still food deficit
  • 8. First time in Nepal's history in 2010; • Terai districts namely: Sunsari, Saptari, Mahottari, Sarlahi, Rautahat, Siraha, Kailali and Dhanusha were unable to produce adequate food grains for themselves due to bad weather
  • 9. Edible Food Availability and Requirement according to Ecological and Development regions in 2009/10 Dev. Regions Total edible prod. (mt.) Requirement (mt) Balance (+,-) E.Region 1,258,495 1,187,845 70,650 C.Region 1,385,888 1,862,166 -476275 W.Region 1,251,382 1,047,589 203,793 MW.Region 678,418 692,947 -14529 FW.Region 393,286 506,897 -113611 Ecological Regions Mountain 279,765 376,982 -97217 Hill 2,040,441 2,451,345 -410904 Terai 2,647,263 2,469,117 178,149 Total 4,967,469 5,297,444 -329972 Source, Ministry of Agriculture, 2010
  • 10. Food Distribution System Nepal Food Corporation (NFC) is the main player which supplies food grains in the food deficit districts. FoodGrainDistributionbyNepalFoodCorporation Unit:Mt. FiscalYear AlloctedCelling Quantityreceived Quantityavailable Quantitysold 2004/05 3,152 2,352 3,111 273 2005/06 3,192 2,371 2,756 2,332 2006/07 3,932 3,617 3,912 3,591 2007/08 3,480 5,372 5,693 4,523 2008/09 3,671 5,469 6,711 5,943 2009/10 9,056 8,573 9,447 7,488 2010/11 8,708 8,494 10,472 7,944 Source:NepalFoodCorporation,2011
  • 11. Total Edible Food Availability , Requirement and Quantity Supplied by NFC in 2009/10 S.No. District Total edible production Requirement Balance (+,-) NFC Food supplying Districts Quantity available 1 Taplejung 32515 29677 2838 Taplejung 247 2 Sankhuwashava 34320 35076 -756 Shankhuwasabha 162 3 Solukhumbu 31507 23619 7888 Solukhumbu 220 4 Panchthar 33710 47310 -13600 Panchthar 0 5 Bhojpur 59733 45515 14218 Bhojpur 185 6 Khotand 65258 52772 12486 Khotang Dhiktel 419 7 Okhaldhunga 35341 36352 -1011 Okhaldhunga 151 8 Udyapur 60415 70299 -9884 0 9 Sundari 119323 139507 -20184 0 10 Saptari 112228 122847 -10619 0 11 Siraha 83242 123933 -40691 0 12 Dolakah 16721 45758 -29037 0 13 Rasuwa 5660 10138 -4478 0 14 Sindhuli 45819 67367 -21548 Sindhuli 0 15 Kavre 72704 91216 -18512 0 16 Bhaktapur 20279 55102 -34823 0 17 Lalitpur 30201 82786 -52585 0 18 Kathmanu 40645 284444 -243799 0 19 Dhading 45110 80783 -35673 Dhading 0 20 Makanwanpur 59943 94472 -34529 0 21 Dhanusa 140298 144931 -4633 0 22 Mahottari 75244 120259 -45015 0 23 Sarlahi 106898 139384 -32486 0 24 Rautahat 91049 120402 -29353 0 25 Chitwan 90694 104676 -13982 0 26 Manang 862 2490 -1628 Manang 278 27 Mustang 1438 3220 -1782 Mustang 150 28 Gorkha 71684 67185 4499 Gorkha 207 29 Kaski 88879 92919 -4040 0 30 Palpa 56778 62530 -5752 0 31 Gulmi 60870 68578 -7708 0 32 Dolpa 5607 6592 -985 Dolpa 842 33 Mugu 4890 9906 -5016 Mugu 592 34 Humla 1836 9056 -7220 Humla 613 35 Jumla 14509 19923 -5414 Jumla 943 36 Kalikot 15091 23628 -8537 Kalikot 591 37 Rukum 45649 44762 887 Rukkum 604 38 Rolpa 31109 49079 -17970 Rolpa 338 39 Pyuthan 29114 50639 -21525 Pyuthan Machhi 0 40 Jajarkot 31600 31697 -97 Jajarkot 403 41 Dailekh 51527 53298 -1771 Dailekh 493 42 Dang 101662 102314 -652 0 43 Bajura 7106 24383 -17277 Bajura 743 44 Bajhang 12085 37647 -25562 Bajhang 487 45 Darchula 16651 27489 -10838 Darchula 181 46 Achham 19358 54302 -34944 Achham 431 47 Doti 35370 49663 -14293 0 48 Baitadi 21139 55054 -33915 Baitadi 166 49 Dadeldhura 17889 29968 -12079 0 Source: Ministry of Agriculutre and Nepal Food Corporation, 2010
  • 12. Government's Agricultural Budget Allocation since 1999/2000 to 2010/11 Year Estimated expenditure Estimated expenditure in Agriculture Percent 1999/2000 77,238,226 3,015,713 3.9 2000/2001 91,621,335 3,501,040 3.8 2001/2002 99,792,219 4,018,455 4.02 2002/2003 96,124,796 2,285,176 2.37 2003/2004 102,400,000 2,355,916 2.3 2004/2005 111,689,900 2,682,819 2.4 2005/2006 126,885,100 3,807,995 3 2006/2007 143,912,300 3,955,231 2.75 2007/2008 168,995,600 5,824,568 3.45 2008/2009 236,015,897 5,908,113 2.5 2009/2010 285,930,000 8,064,437 2.82 2010/2011 337,900,000 10,225,403 3.03 Source: MoF/GON, Compilation of budget speeches different fiscal years
  • 13. Food and Agricultural Policies
  • 14. Agriculture perspective plan (1994/95-2014/15) Main Objectives : Poverty elevation & improve food security by accelerating agricultural growth Through factor productivity,  transforming the subsistence based agriculture into commercial Agriculture diversification promote private sectors in the development of agriculture, expanding opportunities for overall economic transformation  identify guidelines for preparing periodic plans and future program. increase per capita growth of agricultural GDP by six fold from the level of 0.5 percent to 3 percent per year
  • 15. Sixth five year plan (1980- 85) Seventh five year plan (1986–90) Eighth five year plan (1992–97) Ninth five year plan (1997– 2002) Tenth five year plan 2002- 2007 National Agriculture Policy (NAP, 2004) Three Year Interim Plan (2007-2010) Three year Interim plan ( 2008-2013) included as basic needs increase production at faster rate, and create productive employment opportunities allocated nearly 1/3rd of its total expenditure to agriculture and irrigation, budget allocated could not be fully utilized Objectives similar to sixth plan , 65% of total expenditure allocated however country became a net importer in this period adopted an open policy for foreign investment. emphasized investments, increase production and productivity of high value crops &protection and promotion of agricultural biodiversity and environment poverty reduction through agriculture development. protection and promotion of high value crops and agricultural biodiversity and environment. designed to ensure food security and poverty alleviation by transforming the subsistence based agriculture into a commercialized and competitive system The interim constitution 2006/7 recognized food sovereignty as the fundamental human right which was reflected in this interim plan as food security for all citizens food and nutrition security and millennium development goals by competitive commercialization and modernization. first time a separate section on food security, Recently a steering committee established to develop food security
  • 16. GDP growth rate of Nepal in different Plan Period Variable Sixth (1980-85) Seventh (1985-90) Eighth (1992-97) Ninth (1997-2002) Tenth (2002-07) Interim plan (2007-10) Agriculture 4.7 4.1 3 3.3 2.7 3.36 Non-Agriculture 4 5.5 6.3 3.9 3.8 5.13 PlanPeriod
  • 17. Constraints, Challenges and Recommendations
  • 18. Constraints and Challenges • Low productivity • Inadequate infrastructures • Commercialization of agriculture • Effective Food Distribution System • Climate change Impacts and Adaptations • Improve research capacity and extension services
  • 19. Low productivity • The agricultural inputs are the major role player in productivity. • Dependency on monsoon , low use of fertilizer, lack of production technology and agriculture extension services • Only 28 percent of total cultivated land is irrigated in the country. • Per capita use of chemical fertilizer is one of the lowest in South Asia. • GoN withdrawn subsidies on fertilizer sale. • This policy needs to be reviewed, since the Indian farmers are still enjoying subsidies and it will be impossible for Nepali farmers to compete with them because of the long open border.
  • 20. Inadequate infrastructures • Rural agricultural infrastructure, especially road connectivity is a key factor in raising agricultural production • 45 out of 75 districts of the country fall in hilly and mountainous regions. • There are still 9 hilly and mountain districts which are yet to be connected by roads. • lack of physical access hampered the delivery of agricultural inputs on a regular basis , creates difficulties on the supply of food, thereby deepening poverty level. • Hence, there is an urgent need to invest massively for developing the network of rural infrastructure so that most of the village development committees within a district will have access to agricultural roads.
  • 21. Commercialization of agriculture • Currently, the economy is largely remittance driven. • There is a challenge to get the remittance money invested in the productive sector which could escalate the much needed economic growth of Nepal. • In this context, agriculture commercialization is an important option in development agendas, both economic and social. • Even though share of (AGDP) has been declining over the years, it still contributes to one-third of the GDP. • As this sector not being able to grow as planned has hampered the picture of broader economic growth of Nepal. • Overall economic growth rate declined from 4.8 percent in the 1990s to 3.2 percent during 2001-2006. • Agriculture has virtually stagnated -- agriculture sector growth rate was 2.7 percent per annum in the 90s and 2.8 percent during 2001 to 2006. Hence, this stagnation in the agriculture sector has a huge part in impeding the economic growth of Nepal and fight against poverty. • Commercialization of Agriculture has been deemed necessary for a long time in the growth planning of Nepal. • It requires action along several factors that include policy support, capacity building, investment in research, human resources and agricultural infrastructure, market information for producers and associated stakeholders.
  • 22. Effective Food Distribution System • The Nepal Food Corporation (NFC) was established in 1974 with a number of objectives mainly to accumulate food stocks for distribution to deficit districts, maintain price stability of food products, and implement the government’s food policies. • It has been purchasing food grains from the market and selling them in various districts since its establishment. • NFC began accepting food grain from donors with 2003/04. • The demand for food grains in the deficit hilly and mountain districts of the country is significantly higher than what is distributed by NFC • Hence, NFC assistance is insufficient to protect poor people in deficit areas from rising food grain prices. • NFC does not have adequate capacity to be effective in delivering effective food distribution in the country. • There is an urgent need to review the present activities of NFC and significantly strengthen its capacity.
  • 23. Climate change Impacts and Adaptations • In recent years, significant changes have been observed in the climatic conditions in Nepal. • The monsoon rainfall has been increasingly erratic. • Increased landslides in the hilly and mountain districts. • The Terai districts increasingly experienced frequent and severe flooding causing heavy crop losses. • Such climatic changes are likely to have severe impact on agricultural production and food security in the country. • Finding cost effective, sustainable strategies for adapting to climate change must remain a priority for the government policy makers and researchers in the country.
  • 24. Improve research capacity and extension services • The Nepal Agricultural Research Council (NARC) is the principal agency undertaking research in Nepal. • NARC conducts research program either itself or in collaboration with other regional and international institutions. • However NARC’s ability to raise up to challenge of developing appropriate high quality seeds, improved livestock breeds, and technologies appropriate to agro-ecological conditions in Nepal have been questioned. • A DFID funded Review of Research Impact, Responsiveness and Future Priorities carried out in 2005 found that rice varieties developed by NARC did not generate much impact in terms of yield gains while impressive progress has been achieved in the case of vegetables (mainly off-season vegetables). • Research impacts have not been seen to such an extent, however, with respect to improved breeds of livestock (IFPRI/IIDS/USAID 2010).
  • 25. Conclusion • Nepal lagged far behind in both agricultural production and productivity comparing to its neighboring country • The country’s agricultural output has declined over the past several years. • Vast majority of Nepalese youths migrating to foreign countries in search of better jobs and livelihoods is creating laborers scarcity in agriculture • The government has not created job opportunities within the nation but rather relied on income generated by outsourced labor. • Agriculture sector must be revamped for achieving a sustainable economic development and poverty alleviation in the nation. • Thus, we need to attract youths in agriculture sector. To do so, there is a need to create greater awareness about the importance of agriculture. • The immense potentialities associated with agriculture need to be well imparted to the youths of Nepal. • Furthermore, it must be well incorporated in education sector of Nepal.
  • 26. • Most importantly, national-level policies aimed toward boosting agricultural production and productivity have not been effectively implemented. • Several food aid programs, in conjunction with the government, have been operating in Nepal for years. • Despite such efforts, the government of Nepal has been unable to solve the problem of food deficiency. The government has time and again failed to successfully implement various plans and policies, primarily due to lack of political commitment and social accountability.
  • 27. Thank you for your kind attention

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