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State programs for Nepal's agro-industrial complex - a labyrinth or real help? A detailed analysis of the conditions for receiving subsidies
Nepal's agriculture presents a fundamental paradox. On the one hand, it is the basis of life for the vast majority of the population: about 62% of all households in the country are employed in the agricultural sector. On the other hand, its economic output is disproportionately small and continues to decline. If three decades ago agriculture accounted for almost half of the economy, then by 2022 its contribution to GDP had fallen to 23-24%. This disparity is evidence of extremely low productivity and a systemic crisis that the government is trying to solve with large-scale state programs. But are these programs really helping or have they become an impassable bureaucratic labyrinth?
The root of the problem lies in a complex of interconnected challenges. The most acute of these is the mass labor migration of young people, which leads to a serious shortage of labor in villages. This phenomenon, in turn, gives rise to the “feminization” of agriculture, with the main burden falling on women, and leads to large areas of arable land remaining uncultivated. Those who remain continue to rely on traditional, inefficient farming methods on small, fragmented plots of land that are not suited to modern mechanization. Add to this poor access to markets, poor infrastructure and high vulnerability to climate change impacts such as droughts and floods, and the picture becomes complete.
Under these conditions, many farmers lose motivation, and the profession itself acquires a low social status. A vicious circle is created: low profitability and hard work push people out of the village, which further increases the costs and risks for those who remain, reducing their income and motivation. Ultimately, a country with huge agricultural potential is forced to increase food imports to feed its own population. It is precisely to break this vicious circle that government support programs were created. Their goal is not just to provide assistance, but to make agriculture attractive and profitable again. This study aims to analyze how successfully they are coping with this task in 2025.
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By Alpha Business MediaNepal's agriculture presents a fundamental paradox. On the one hand, it is the basis of life for the vast majority of the population: about 62% of all households in the country are employed in the agricultural sector. On the other hand, its economic output is disproportionately small and continues to decline. If three decades ago agriculture accounted for almost half of the economy, then by 2022 its contribution to GDP had fallen to 23-24%. This disparity is evidence of extremely low productivity and a systemic crisis that the government is trying to solve with large-scale state programs. But are these programs really helping or have they become an impassable bureaucratic labyrinth?
The root of the problem lies in a complex of interconnected challenges. The most acute of these is the mass labor migration of young people, which leads to a serious shortage of labor in villages. This phenomenon, in turn, gives rise to the “feminization” of agriculture, with the main burden falling on women, and leads to large areas of arable land remaining uncultivated. Those who remain continue to rely on traditional, inefficient farming methods on small, fragmented plots of land that are not suited to modern mechanization. Add to this poor access to markets, poor infrastructure and high vulnerability to climate change impacts such as droughts and floods, and the picture becomes complete.
Under these conditions, many farmers lose motivation, and the profession itself acquires a low social status. A vicious circle is created: low profitability and hard work push people out of the village, which further increases the costs and risks for those who remain, reducing their income and motivation. Ultimately, a country with huge agricultural potential is forced to increase food imports to feed its own population. It is precisely to break this vicious circle that government support programs were created. Their goal is not just to provide assistance, but to make agriculture attractive and profitable again. This study aims to analyze how successfully they are coping with this task in 2025.