Despite its importance, Nepal’s agricultural sector faces a number of serious challenges. One of the key ones is low productivity and crop yields. This is largely due to the prevalence of small-scale farming – the average landholding size ranges from 0.5 to 5 hectares, making it difficult to apply modern technology and achieve economies of scale. Traditional farming methods are widespread, which are less efficient compared to modern agricultural technologies. An additional factor that aggravates the situation is the significant dependence on monsoon rains, which makes production vulnerable to weather fluctuations, as well as the shortage of labor in rural areas caused by the outflow of young people to cities and abroad in search of work. Land fragmentation, where farms consist of several small, scattered fields, also reduces the efficiency of agricultural production.
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By Alpha Business MediaDespite its importance, Nepal’s agricultural sector faces a number of serious challenges. One of the key ones is low productivity and crop yields. This is largely due to the prevalence of small-scale farming – the average landholding size ranges from 0.5 to 5 hectares, making it difficult to apply modern technology and achieve economies of scale. Traditional farming methods are widespread, which are less efficient compared to modern agricultural technologies. An additional factor that aggravates the situation is the significant dependence on monsoon rains, which makes production vulnerable to weather fluctuations, as well as the shortage of labor in rural areas caused by the outflow of young people to cities and abroad in search of work. Land fragmentation, where farms consist of several small, scattered fields, also reduces the efficiency of agricultural production.