This presentation based on the critical analysis of third and twelve development plan of Nepal from agriculture development prospective and according to study all development plans unable to met their target .

1. [ THIRD AND TWELFTH YEAR PLAN ]
Prepared and presented by Bishnu Prasad Joshi , IAAS

2. Background
■ It is half a century that planned development began in Nepal.
■ Planned development in Nepal was initiated in the year 1956
■ Although progress has been made in some important areas, the expected
achievements could not be realized, mainly in ensuring stable macroeconomic growth
and overall welfare of the people by raising their living standard and taking the
country out of the category of ’least developed countries’ under international norms.
■ . Since then nine five-year plans and 3 three-year plan have been formulated. All plans
expired without meeting the basic objective of ushering an era of peace, justice,
stability and prosperity for all.
■ Poverty alleviation was taken as a main agenda only after 9th plan.
■ Agriculture development was emphasized from first plan but clear cut strategy for
agriculture development was maintained only after 6th plan

3. Introduction of Third Plan ( 1965-1970)
 Five years plan
■ Long term Planning Vision was initiated for the increase of national
income
■ Relative ineffectiveness of the previous plans were addressed
■ Quantitative targets were fixed
■ Targets set up at achievable level
■ GDP and per capita income were also set
■ Integration of Private, Panchayat and public groups increase the
effectiveness of the plan and also increased the outcome chances

4. Objectives of Third five year plan(1965-1970)
■ Broad Objectives
a. Develop prerequisites for broad economic growth
b. Meet program design to address immediate problems as well as those for the
future growth.
■ Specific Objectives
a. Agricultural production rise in order to achieve increase in output by 19%
b. Move labor into other activities for more income generation
c. Efforts in the development of Transportation and Power
d. Establish industries if there is suitable infrastructures.
e. Earn and spend foreign exchange particularly convertible currency
f. The Muluki Ain will be supported vigorously for equitable distinction

5. Priorities of the Third plan
Fields focused on the third plan are
 Transportation
 Power
 Industrial expansions
 Production Loans
 Cottage Industry Development
 Cooperative Credit
 Marketing societies
 Resettlement Programmes
 Land Reform
 Stabilize price at incentive level

6. Resource Allocation of the Third Plan
 Public sector expenditures ( 1740 million rupees )
 Develop Target Expenditures
 Commodity Assistance
 Equipment and supplies by aid giving nations
 Panchayat sector expenditures ( 240 million rupees)
 Development work of local importance with expanded resource
 Activities in Agriculture, Irrigation, Education , Building, Construction of roads
 Private sector expenditures ( 520 million rupees )
 Industrial and social services
 Transport, Communication and Power

7. 39%
26%
18%
17%
Resource allocation
Transporation and Power
Agriculture and irrigation
Industry
Social services
Miscellaneous

8. Targets and Increased Production in Third Plan
Areas
Previous
Production
( Metric tons)
Target Production
( Metric Tons)
Percentage
Increased
Paddy 2201270 2367670 7.5
Wheat 151892 424612 179.5
Maize 854968 917810 7.5
Sugarcane
Tobacco
Jute
126000
9330
38812
252000
23325
54336
100
150
40

10. Policies Undertaken
1. Industrial Policies
• Income tax Exemption
• Export duty Exemption
• Import duty Exemption
• Foreign Exchange
• Repatriation of profit
• Acquisition of Land and timber
2.Trade Policy
3. Agriculture Policy
4. Price Policy

11. Problems Related to Agriculture
1.LowAgricultural output
2.Lack of incentive to increase output.
 Limited irrigation facilities.
 Low Quality Seeds
 High Insect and pest attack
 Lack of proper Agricultural tools and implements.
 No crop protection measures.
3.Lack of proper Extension services
4.Lack of efficient use of Budget.
5.Mutual reinforcement between Projects and Government were absent.
6.Lack of Proper Marketing and storage Facilities.

12. Conclusion
■ Mainly the 3rd five year plan emphasized on the development of
Transportation and power, agriculture development was second in
priority list.
■ The achievement of agricultural sector targets of 3rd plan was
disappointing. Except for Millet.

13. 12th Three year Plan
INTRODUCTION
 12th interim plan was brought by GON(2010/11-2012/13) in order to continue
development planning, fulfill the millennium development goals(MDG) as
committed in 2000.
 Also it was brought into action to fulfill constitution making process of the
republic country Nepal.
 Focused to create employment opportunities, promote sustainable peace and
goodwill.

14. OBJECTIVES
 To ensure food and nutrition security.
 To make agriculture sector competitive and business-oriented, with increased
production and productivity.
 To reduce poverty by increasing employment and income generating opportunities in
agriculture sector.
 To minimize adverse effects of environment, climate variability and climate change in
the agriculture sector.
 To develop cooperatives for agriculture development.
 To develop human resources for the management of a sustainable agriculture
development process.

15. AGRICULTURE RELATED POLICIES:
 Commercialize and mechanize agricultural sector for food and nutrition security,
employment creation, poverty alleviation and contribute trade balance.
 Improve living standard of rural population by increasing production and productivity of
crops and livestock.
 To centralize crop and livestock products commercialization and rural infrastructures
development, for food and nutrient security.
 To promote effectiveness of quality control system of food, crop and livestock products.
 To increase competitiveness of livestock products by reducing production cost and
easy access of improved breeds.
 To develop and extend climate change- smart technologies by conserving and
promoting agricultural biodiversity.
 To promote organic agriculture.
 To conduct agriculture education, research and extention in a coordinated way.
 To promote contract and cooperative farming.
 To develop and extend agriculture and livestock marketing.

16. Problems related to agriculture
 Low production and soaring food prices.
 Uncertainty in monsoon rainfall
 growing pressure in marginal land for cultivation
 Less investment in agriculture sector.
 Fewer efforts to attract private sector investment.
 Problem of irregular and inadequate supply of chemical fertilizer in hilly remote
areas.
 Widening gap between research and extension in agriculture.
 Inadequate physical infrastructure for agriculture commercialization.

17. FINANCING
 During planned period, the plan envisaged Incremental Capital Output Ratio (ICOR)
5:1 because of investing infrastructure that grow low output.
 Capital investment was fixed to 102370.49 million where government investment
was allocated 35.55% and rest 64.45% from private sectors.
 Out of 35.55% of government investment, 13.55% i.e. 4937.26 million was allocated
at agriculture, forestry and fisheries.
 Rest 86.45% to the non-agriculture sector.
 Rs 565140 million was allocated as development expenditure of the total planning
period.
■ Agriculture: 12.79%
■ Social sector: 38.85%
■ Transport, communication & storage infrastructure & rest: 19.63%.
■ Foreign aid estimated 14066 million (24.44%).

18. TARGETS
 5.5% economic growth rate(agriculture 3.9%, non agriculture 6.4%)
 Reduction of poverty from 24.5% to 21%
 3.6% employment growth rate.

19. Quantitative targets and achievements
 Contribution of agriculture to GDP during the current fiscal year 2011/12 will be
35.68% against revised estimate of 37.47%.
 Agricultural production is estimated to increase marginally higher by 0.46%.
 Per capita food production was estimated:
320
1026
120
92
2.01 59
10
31
kg
cereals
pulses
fruits
vegetable
potato
fish
milk
meat
eggs

20. Targets and Achievements of major Agricultural Products
SN Agriculture &
livestock
commodities
unit Base year
status of
2010/11
Interim
plan
target
Achievem
ent
2011/12
Achievement
1. Food crops 000 Mt 7762 9.561 9,457 98.91
2. Pulses 000 Mt 262 277
3. Potato
Sugarcane
Oilseeds
000 Mt 2517
2592
150
2755
3238
190
2682
2869
181
97.35
88.60
95.26
4. Fruits
Cardamom
Garlic
Ginger
Turmeric
Chilli
Tea
000 Mt 706
5.23
39
210
38
26
18.75
775
8
57
228
49
31
25
885
7
51
215
45
29
114.19
87.5
89.47
94.29
91.83
93.54

21. 5. Vegetables 000 mt 3004 3601 3400 94.41
6. Coffee Mt 554 1200
7. Honey Mt 1100 1300
8. Silk Mt 40 60
9. Milk production
Meat production
Egg production
000 Mt
000 Mt
Million
1496
248
64
1774
287
93
1622
287
78
93.01
100
83.87
10. Fish 000 mt 50 56 54 96.42
11. Irrigation Ha 1311000 83,543 ha
additional
Source:TYIP 2010/11-2012/13 and Economic Survey 2012

22. Achievement ofTYP

23. Key Millennium Development Goal(MDG) Achievements
Indicator Year Achievement
till this date
Target in 2015
Average population growth rate 2011 1.35
Expected live date (year) 2012/13 69.1
Per capita gross national income ( US $) 2012/13 721
Gross domestic product growth rate 2012/13 3.6
Inflation rate 2012/13 9.1
Human Development Index rate 2011 0.46
% of population below poverty line 2012/13 23.8 21
Underweight children under five year age 2011 29 29
Literacy rate ( 15- 24 year age) % 2011 80 100

24. Critical Analysis
 Achievement has been obtained in the Fruit production by 114.19% and is the highest
among others.
 Again the 100% achievement has been obtained in meat production.
 Overall Agriculture sector had growth rate of 3.6% against target 3.9%. A resource
crunch, increasing land fragmentation, inadequate irrigation, limited access to agro-
credit, lack of agricultural labourers, increase in production costs, poor market
networking, and poor management were among the reasons for limited growth in the
agricultural sector.
 Economic growth rate was 4.4% against target 5.5% . The targeted rate of economic
growth was not attained due to various factors such as the lack of law and order,
impunity, the absence of people's representatives at the local level, a weak bureaucracy,
eroding industrial relations, an extreme power crisis, the slow-paced expansion of bank
loans, the prolonged political transition, and unfavourable climatic condition
 Poverty was reduced in the planned period was 23.8 (2069/70 base year).

25. POVERTY ALLEVIATION PROGRAM
POLICIES
 Inclusive oriented programs by targeting various groups and communities
who are excluded from mainstream of development in the current plan.
 These programs have benefited women, dalits, ethnic groups, janajati,
madheshi, minorities, people with different abilities and backward class,
small farmers and ultra-poor families in addition to the rural communities.

26. POVERTY ALLEVIATION ACTIONS/POLICIES IN INTERIM PLAN
 Institutionalize Poverty Monitoring Analysis System (PAMS) at the central level for measuring
the contribution made or to be made towards poverty alleviation by development program and
projects.
 Directorate policies on broad-based economic growth, create/promoting employment
opportunities by formal as well as informal sector production related opportunities.
 Focus on conduction of labor intensive production system to prioritize regional comparative
advantage.
 Focus on food and nutrition security of the poor section of the societies.
 Increase networks and coordination with line agencies, NGOs etc. for inter/national
investment, grant towards fund mobilization for poverty alleviation.
 Support on risk reduction on production and marketing related activities

27. REFERENCES:-
■ www.npc.gov.np
■ Bhandari,Thaneswar, Lecture notes on NADP
■ www.wikipedia.org
■ A note on Nepalese agriculture development & policy, made available by
Manish & Samir photocopy, Rampur Chitwan:CBS,1996

28. ThankYou