This slide consists of the critical analysis of the 8th and 9th Five-year Plans of Nepal. This includes the targets, achievements, and limitations of the plans.

1. INSTITUTE OF AGRICULTURE AND ANIMAL SCIENCE
TRIBHUWAN UNIVERSITY
PAKLIHAWA CAMPUS
ASSIGNMENT ON
Analysis of Agriculture in 8th and 9th Five
Year Plans
SUBMITTED BY:
BINITA SUWAL
SUBMITTED TO:
KAMAL REGMI
(ASSISTANT PROFESSOR)
DEPARTMENT OF AGRICULTURE
ECONOMICS

2. • Before the restoration of the democracy, different three year and
five year plans were developed and implemented
• Progress were also made to certain extent in social and physical
infrastructure sectors, during the panchayat regime.
• But economic progress could not be upgraded to the desired level
due to the inability to establish interrelationship among goals and
objectives, priorities, strategies and programmes of plan.
• Low saving rate, low level of industrialization, weak agricultural
production, limited export trade, high population growth and
faulty planning process were the barriers to the development.
Introduction

3. The Eighth Five Year Plan
• Eighth five year plan was formulated and implemented
during 2049-2054 B.S after the restoration of democracy.
• It is the first plan after political change of 1990 (2047 B.S)
• The legacy of economic depravity by Panchayat regime was
left behind with it.
• During the 2 year interval between 7Th and 8Th plan (1990-
1992), the interim government was formed with two main
objectives: Formulation of Constitution and To held general
election.

4. Key Vision
• To give definite direction to the social and economic
upliftment of the citizens of the country by tackling the
challenges of economic stagnation, increasing poverty,
structural anomalies, environmental degradation and rapid
population growth

5. Goals/Objectives
1. Sustainable Economic Growth
2. Poverty alleviation
3. Reduction of Regional Imbalances

6. Priorities
1. Agricultural Intensification and Diversification
2. Energy Development
3. Development of Rural Infrastructure
4. Employment Generation and Human Resource
Development
5. Control of Population Growth
6. Industrial Development and Tourism Promotion
7. Export Promotion and Diversification
8. Macro-Economic Stabilization
9. Reforms in Development Administration
10. Monitoring and Evaluation

7. Focuses on Agriculture Sector
Objectives in agriculture sector
1. To contribute to the national economy through increased
agricultural production based on geographical specialization
2. To increase agricultural production and productivity to meet
the growing domestic food demand
3. To increase production and productivity of raw materials,
necessary for the expansion of agro-based industries.
4. To increase productive employment opportunities to the
majority of small and marginal farmers
5. To maintain a balance between agriculture development and
conservation

8. Programs implementedduring the plan in agriculture sector
 Production programs like food crops, cash crops, horticulture,
vegetable, animal based production, fish production.
 Programs on agriculture research, market and training
 Agricultural inputs and Technical Support Services (improves seed,
chemical fertilizer, pesticides, agricultural tools, agricultural credits)
 Vegetable Farming Development Programmes to meet the market led
demand of the urban and densely populated areas.
 Intensive Vegetable Development Programmes in areas which have
geographical comparative advantage, irrigation system, transport and
market facilities.

9.  Horticultural extension and training
 Livestock development and animal production programme
 Loan distribution
 Vaccination
 Sampling production
 Women development programs
 Other services and support programs
Programs implementedduring the plan in agriculture sector
(cont.)

10.  Only 3% growth in agriculture production was achieved as against the
set target of increasing the agriculture production by 3.7%
 Food production didn’t meet the target which was to achieve 400,000
mt on average per annum during the plan period.
 Some crops like millet, barley, pulses production was more than
expected
 Some crops like coffee and mushroom were below the target.
 The plan targeted to increase the paddy yield, which is the main food
crop, from average productivity of 2.346 mt. per. ha to 2.846 mt per. ha
within the period but it reached 2.46 mt. per ha.
Target and Achievement:
a. Agriculture

11. b. Forestry Resource Development
 In the community forestry sector, the plan targeted to transfer
252,000 hectares of community forest to 5,000 users’ groups.
The plan transferred 300,000 hectares of community forest to
7,072 users’ group by the end of the plan period.
 The plan had set target to distribute leasehold forestry to 25,000
families but was only distributed to 8,000 families.
 Afforestation in 26,456 hectare area was possible by the end of
the plan while the plan had set a target of afforestation in 67,119
hectares.
 The target of expanding soil- conservation service in 60 districts
was set and the service had been expanded in 55 districts.

12. c. Land Reform and Management
 Program was launched to abolish the dual ownership of land,
as the last amendment of Land Reform Act 1964 made the
provision for sharing equal ownership between landlord and
tenant. Existing land reform law has been reformed to
eliminate dual-ownership of land.
 The land reform act had also determined the maximum limit
of a land a family can hold: in Terai and Inner Terai 25 bighas,
in valley 50 ropanies and in the hilly region 80 ropanies. The
maximum limit for housing use per family: in Terai 3 bighas,
in Kathmandu valley 8 ropanies and in hilly region 16
ropanies had been determined

13. d. Irrigation
 It was targeted to provide irrigation facilities in 119,700 ha of land from the projects run
by Agriculture Development Bank and 13,063 ha from the projects under non-
government sector.
 The progress of the programmes implemented under Department of Irrigation was
85.5%, and that implemented under Agriculture Development Bank was 63.3%.
e. Poverty alleviation
• The plan has set to reduce the number of people living below the poverty line from 49%
to 42%
• For this the plan has made effort to formulate self- targeted programmes for the poor,
increase access of the poor to the resources, education and various skill development
training, social extension programme, employment generation programme, programme
for the backward community

14. Target Vs Achievement
Features Targets Achievements
GDP Growth Rate (%) 5.1% 4.9%
Agriculture sector
- Production growth
- Rice Productivity
3.7% per year
2.85 Mt/ha
3% per year
2.46 Mt/ha
Irrigation
- Dept. of Irrigation
- Agriculture Development Bank
1,61,132 ha land
1,19,700
85.8%
63.6%
Forest
- Community forest users’ group
formation
- Community soil conservation service
- Lease hold forest distribution
5004
60 districts
25000 families
5316
55 districts
8000 families
Afforestation Program 67,119 ha 26,456 ha

15. Limitations of Eighth Plan
 Lack of long term vision, the objective of each periodic plan vary
and consequently lack of continuity in strategies.
 During the first and third year of the plan flood and landslides
caused severe destruction in men and materials hence causing
adverse impact in agriculture sector.
 Failure of Arun third Project caused no progress in power sector,
and hence its contribution toward the GDP was quite low.
 Lack of effective implementation of acts, rules and regulation that
have been entacted after the restoration of democracy.

16.  Insufficient utilization of existing agricultural technology as well as
the use of location specific technology for comparative advantages.
 No necessary infrastructure have been built for the
commercialization of agriculture.
 Inability to formulate annual programmes according to the
objectives and targets of the plan
 Lack of legal and institutional infrastructure necessary for
competitive market economy.
 Inability to divert the foreign aid towards development priorities
and to use the aid in coordinated way.
Limitations of Eighth Plan cont.

17.  This plan as formulated and executed various poverty alleviation
programmes but the real poor people could not be identified and those
programmes could not reach areas with high poverty ratio
 The mountainous and hilly districts of the mid and far western region
and the mountainous districts of the central and eastern regions
remained underdeveloped due to lacking the development specific
programs in such areas
 Migration rate from the hilly to Terai and to urban areas continued.
Failure of implementation of programs in lagging areas, and
ineffectiveness of NGOs were the reason for existing regional
imbalances
 The plan couldn’t solve problem of fertilizer supply and agriculture
credit was not initiated according to the plan
Conclusion

18. Conclusion cont.
 During this plan period some progress has been made towards
socio-economic infrastructure that has supplemented national
development to a certain extent, but the achievements of this
plan was far below than expectation
 The first and third year of this plan was negatively affected by the
flood and landslide
 Political instability, lack of the infrastructure are the barriers of
this plan. Only a limited number of industries were established,
internal savings remained low, Poverty remained existing and the
plan was not successful as expected to reduce the problem of
unemployment and economic instability.

19.  The supplies of other production inputs were not adequate
 The programs were conducted in isolation i.e programs were
not integrated.
 Lack of resources to meet the targets, poor institutional
mechanism, lack of inter- ministerial coordination, lack of
adequate and skilled manpower were the reasons behind
failure of the Eighth five year plan to achieve targeted goal.
Conclusion cont.

20. The Ninth Five Year Plan
 Implemented for the period of 2054 - 2059 B.S (1997-2002)
with the main objective of accelerating the process of
national development and poverty alleviation.
 This plan established long-term target and development
indicators for all the sectors based an their potential for
alleviating poverty.
 It was intended to implement in such a way as recommended
by Agriculture Perspective Plan (APP).

21. Goals/ Objectives
 Poverty alleviation was the sole objective of 9th plan.
 To reduce the concentration of existing poverty in backward
and remote areas by developing physical, social and
economic infrastructure.
 To socially and economically empower the backward,
deprived and weak communities.
 To launch poverty-focused sectoral and targeted programmes
in a coordinated, integrated and effective way.
 The plan had the target to drop the proportion of population
living under absolute poverty to 32 % at the end of plan
period and had a 20 year objective to reduce the absolute
poverty to 10%.

22. Development Strategy
 Integrated development of agriculture and forestry sectors and high,
sustainable and poverty alleviation oriented economic growth with a focus on
these sectors.
 Expanding education and family planning programs through gradual
reduction in the population growth rate and promotion of social awareness.
 Enabling the local institution to take leadership in rural development through
decentralization
 Developing human resources for sustainable and high economic growth
 Reduction of economic and social inequality existing among various sectors
and communities especially through the means of agriculture and social sector
programmes.
 Placing special priority on the development of backward regions.

23. Priorities
1. Agriculture and Forestry
2. Water resources
3. Human resources and social development
4. Industrialization, tourism and international trade
5. Physical Infrastructure

24. Target and achievements
1. Poverty alleviation
 The mid-term evaluation of the Ninth Plan has also estimated
that the percentage of population living under poverty line has
fallen down to 38 percent against the target of 32 percent
 The HDI (Human Development Index) also could not be met
the target
 Altogether 3,077 families were included in the poverty
alleviation program. Altogether 12,600 poor farmers’ families
were involves under the income generation program in goat
rearing, poultry farming and pig rearing among which 26% of
the participants were females.

25. Agriculture Sector
Objectives
 To contribute to poverty alleviation by increasing productivity of
resources and inputs and by generating opportunities of
employment.
 To strengthen the foundation of agro-based industry and
industrialization through diversification and commercialization
of agriculture.
 To develop leadership of women in production program
 To improve the situation of nutrition of the people by increasing
production of food grains.

26. Strategy
 Green revolution based on improved technology
 Adequate utilization of available infrastructure
 Comparative advantage
 Large scale public participation
 Women involvement
 Programme implementation based on the selected
priority.

27.  The target for agriculture sector to raise the gross domestic
product was set to 4% whereas the actual growth has been
3.3% on an average
 852 thousand metric ton was achieved against the target of
incremental production of 1.847 million tons.
 Average area for the major food crops covered with the
improved seeds was found to be 75% according to the plan.
Progress on Agriculture sector

28. Physical Infrastructure
 The progress in road construction has gone up beyond the
target while extension of irrigation facilities remained far
behind the target.
 The plan had targeted to providing irrigation facilities to a
total of 249,400 hectares of land
 The excess progress in road construction is the result of
enthusiasm shown by VDCs and DDCs. There is, however
substandard quality of road constructed in spite of its
increased length.
 The withdrawal of subsidy, especially in underground
irrigation sector, had been the main constrain to fail the
target met.

29. Target V/S Achievement
Features Target Achievement
GDP growth rate (%) 6 3.6
Non-agriculture growth (%) 7.3 3.9
People using drinking
water (%)
100.0 71.6
Total length of road (Km) 13564 15905
Agriculture growth (%) 4.0 3.3
-Cereal crops (%) 5.2 2.5
-Cash crops (%) 6.5 5.3
-Other crops (%) 4.2 3.3
Population under poverty
(%)
32.0 38.0
Literacy above 15 years (%) 70.0 49.2

30. Policy Achievedduring the plan
 National Tea Policy; 2000
 National seed Policy; 2000
 National Fertilizer Policy; 2000
 Animal Health and Animal Service Act; 1999
 Animal Slaughter House and Checking Regulation; 2000
 Chemical Fertilizer Control Aadesh; 1999

31. Limitations
 Weaknesses on implementation side of Agricultural
Perspective Plan (APP)
 Loss of agricultural production during the first and last year
of the plan due to adverse monsoon
 Inadequate effort in attracting private sector investment in
the commercialization of agriculture.
 The existence of dual land ownership system, fragmentation
of agricultural land and the failure to effectively implement
the land utilization policy.
 Failure to implement innovative technologies, no access to
land for the economically marginalized communities.

32. Conclusion
 The Ninth five year plan was formulated with the sole motive
of poverty alleviation
 Although being the main objective, the plan was successful in
reducing the percentage of people living below the poverty
line to 38% while the targeted percentage was 32%.
 The programs related with the poor and small farmers and
the operation of the integrated agriculture development
programs in remote areas like Karnali was intended for the
implementation of national strategy for the targeted
programme. But still the size of the poor achieved was large
than that was targeted.

33. Conclusion contd.
 The fragmentation of land, fragility of land, diversity in
topography, use of marginal land for cultivation, low
adoption of the available technology, lack of appropriate
technology and limited access to the market are the primary
cause for the inability of the plan to achieve the targeted goal
in the agriculture sector.