The document provides an overview and evaluation of agriculture development in Nepal's Seventh and Eighth Five Year Plans. The Seventh Plan (1985-1990) prioritized agriculture, irrigation, and forestry with a budget of 13.7% for agriculture. The Eighth Plan (1992-1996) aimed to reduce poverty from 49% to 42% through agricultural intensification, rural development, and employment programs. Both plans struggled with issues like political instability, budget mismanagement, and failure to meet targets, especially for poverty reduction. Overall, the plans showed progress but faced challenges in fully implementing agricultural and poverty alleviation strategies.

1. A Critical Evaluation of Agriculture Development in Seventh
and Eight
Five Year Plan Period
Prepared By:
Roll numbers:
31-40
Presenter :
Gopi Chataut
Hemant Raj Awasthi
Submitted To:
Thaneshwar Bhandari
Assistant Professor of Agri
Economics at TU

2. Seventh Five Year Plan(1985-1990)
-The First plan that stated poverty in the objectives
Objectives
• To increase production at a higher rate
• To increase opportunities for productive employment
• To fulfill the minimum basic needs of the people
Priority
• First- Agriculture, irrigation, forestry
• Second- Industry, mining and power
• Third- Social services
• Fourth- Transportation and communication

3. Basic Development Strategies
• To accord overall priority to the development of agricultural sector
• To consolidate the foundations of national economic integration
through Agricultural, forest and land conservation, and tourism
development programmes
• To put stress on the development of forest resources and the soil
conservation
• To emphasize the development of industries, water resources ,tourism
• To improve management of the economy by decentralizing decision-
making and execution processes.

4. Basic Development Strategies
continued…
• To strengthen and consolidate development administration.
Financing
Total Budget Outlay = Rs. 29 billion
agriculture sector = Rs. 3930 million ( 13.7% of total budget)
Out of the total, 41% was expected to be fulfilled from foreign loan
and grant

5. Poverty Alleviation Programs
Main Programs Programs
Subsidies and transfer -food,
-fertilizer
-credit
-irrigation operation
Food and feeding program- -Nepal Food Corporation
-Food For Work
-Nutritious Food Program,
-School Feeding Program,
--Joint Nutrition Support Program
Targeted Credit Program- -Small Farmer Development Program,
-Production Credit for Rural Women,
-Intensive Banking Program
Employment program- -Food for Work,
-Youth Employment Program

6. Problems in Implementation
• No systematic order was introduced in the obligatory
utilization of existing processes
• maximum utilization of infrastructures was not emphasized
• Allocated budget mishandled by the Panchas.
• did not focused on preservation of indigenous knowledge and
value.
• Political instability and blockage

7. Eighth Five Year Plan ( 1992- 96)
- First plan after political change
Objectives:
Sustainable Economic Growth
Poverty alleviation ( from 49 to 42 percent)
Rural development and Regional balance
Priority:
Agricultural intensification and diversification
Energy development
Development of infrastructure

8. Priority(to be continued)
• Employment generation and HRD
• Control of population growth
• Industrial development and tourism promotion
• Export promotion and diversification
• Macro economic stabilization
• Reform in development administration
• Monitoring and evaluation

9. Basic development strategies
• Development programs through market oriented, open and
liberalized economy.
• Implementation of decentralized policy effectively.
• Involvement of public sector for rendering social services in
rural areas.
• Import and distribution of fertilizer
• Women’s participation in the implementation of agricultural
programmes

10. Financing
• Total Budget Outlay = Rs170,332 million
(35.9% was to be invested by government side and rest 64.1% by private
sector)
Agriculture Sector = Rs. 10, 947 million, (9.65% of total budget)
• The share of foreign aid in the sources of financing the development
expenditure estimated to remain at 60% at the then rate.

11. Programme run in 8th Five Year Plan
• Remote Area Development Programme
• Integrated Rural Development Programme
• Increasing the access of poor to productive resources- SFDP,
PCRW, Banking for poor
• Education and Training
• Social Extension Programme
• Population education Programme

12. Poverty Alleviation Programs
• To increase access of the poor to productive resources.
• To arrange towards contracts of technically simple civil works
to poor groups.
• To bring legislation to remove social malpractices and create
public awareness.
• To provide legal protection to the destitute and helpless against
exploitation to open dialogue and come to agreement with
foreign government for employment to workers who will work
abroad.

13. Target Vs. Achievement
Features Target Achievement
GDP Growth Rate
(%)
5.1 % 4.9 %
Industrial
Growth(%)
10.0 % 6.9 %
Agricultural Sector
• Production
growth
• Irrigation area
(additional area)
3.7 per year
293, 895 ha
3.0 per year
85.5%
Afforestation
Program
67, 119 ha 26, 456 ha
Population under
Poverty (%)
-7 ( 49 to 42) N/A
7th plan 8th plan
Features Target Achievement
GDP Growth Rate
(%)
4.5% per annum 5.56 %
Per Capita Income
(%)
1.9 % 2.9 %
Agricultural
Growth
• Food Grains
• Cash Crops
4.0 %
5.2%
5.6 %
6.5 %

14. Problems in implementation
• Political instability
• Drought
• Change in agricultural organizational structure
• Political interference in government mechanism
• Lack of government’s commitment

15. Summary And Conclusion
• The task of planning does not end in formulation, but in
successful implementation
• There has been tremendous increase in foreign debt during these
planning period
• Increase is the investment from RS 330 million to Rs 29 million is
a good progress