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NEPAL ECONOMIC FORUM
DOCKING NEPAL’S ECONOMIC ANALYSIS
AGRICULTURE AGRICULTURE AGRICULTURE
The role of agriculture in the post-pandemic recovery has been reiterated and justifiably so. However, the immense potential of the sector would not materialize until and unless agriculture mechanization is prioritized. On a different note, local farmers are experimenting with cultivation of new crops at higher altitudes where temperatures are rising. Efforts towards agricultural selfreliance: Lawmakers taking part
in the Committee of Industry, Commerce, Labour, and Consumer Welfare on April 4, 2021, demanded amplified effort to commercialize the agriculture sector given how the country is heavily dependent on agriculture imports. Some of the parliamentarians also expressed discontent at the government’s decision to open the sector for foreign investment citing that such investment at the moment was unnecessary and even counterproductive.29
National Food Bank opened: To
promote organic production, the Office of National Food Bank has been set up in New Baneshwor, Kathmandu. Operating under the slogan “Sustainable Agriculture for Nutrient-Rich Food”, this initiative has been endowed with the investment of NPR 1.2 billion (USD 16.6 million). Shankar Nath Upreti, the chairperson of the bank, has also mentioned the plan of issuing an initial public offer (IPO) soon. The bank has begun agricultural production in 13 districts, in the likes of Chitwan, Jhapa, and Kailali, while the other 23 districts are also preparing for the phasing in of the bank-led production within the current fiscal year.30
Nepal’s largest vegetable market opened in Bhaktapur: Suryabinayak
Green Agriculture Wholesale Market,
the largest vegetable market in the country, has begun its operation. With the investment of NPR 320.26 million (USD 2.66 million), the market covers an area of 35 ropanis and consists of 750 stalls in total.31 Cold storage facility built with funding from India: Rapti Cold
Storage facility with the capacity of 3200 metric tons in Lahami was built through the joint funding of NPR 42.54 million (USD 0.35 million) from the Government of India, the Government of Nepal, and Former’s User Group. This facility was constructed to increase farmers’ income by prolonging “the commercial value of their agroproduce”.32 Food insecurity amid the pandemic:
The COVID-19 pandemic has sparked a hunger wave across the country with a survey of 4416 households showing inadequate food consumption among 16.8% of households and shortage of food stocks among 2.7%. Similarly, 43% of the children population (6-23 months old) failed to intake the required level of nutrition. In terms of the province, the highest incidence of food insecurity was observed in Karnali Province (4.7% of households), Province 2 (3.8%), Gandaki Province (2.7%), and Sudurpaschim Province (2.5%).33 Bird flu found in Surkhet: There has
been a case of bird flu in Surkhet’s poultry farm in Birendranagar Municipality, which was confirmed at the central livestock disease laboratory. Necessary measures have been taken at federal, provincial, and local levels to contain the disease by precluding the supply of infected chickens. In this regard, a total of 279 chickens and 102 pigeons have been culled along with the destruction of 22 eggs and 31 kg feed.34 Fertilizer imported from Bangladesh under G2G model: 30,500 tons of
fertilizers have been imported into the country from Bangladesh under the government-to-government model hitherto. The bilateral agreement of importing 50,000 tons had been made between Bangladesh and Nepal back in December 2020. The remaining 19,500 tons under this agreement will be imported by the end of April 2021 as maintained by the Agriculture Inputs Company (AIC). This agreement materialized as a result of severe fertilizer shortages faced by the farmers at the onset of planting season in June 2020. At the moment, the annual demand for fertilizers exceeds 700,000 tons while the current stock stands at 17,000 tons.35 Drought affects winter crops: The
forecast of low precipitation until May has raised concerns over the possible ramifications on the cultivation of
