Agriculture has long been the backbone of Nepal’s economy and way of life. The sector still provides employment for about 62% of the country’s households, forming the social and cultural fabric of rural communities. However, these figures hide a disturbing reality. Agriculture’s contribution to the country’s gross domestic product (GDP) has been steadily declining, falling from over 36% in the past to around 23-24% in recent years. This decline is not the result of rapid growth in other sectors, but rather reflects a deep productivity crisis within agriculture itself.
The Nepalese farmer today faces a complex of interrelated problems. Labor productivity remains low due to the widespread use of traditional farming methods that have been passed down from generation to generation but no longer meet the requirements of the modern world. Land holdings are highly fragmented, with almost 75% of households cultivating plots of less than one hectare, making commercial production extremely difficult. Access to markets and year-round irrigation remains limited, leaving farmers dependent on unpredictable monsoon rains and volatile prices.
To these long-standing problems has been added a new, even more acute one: the shortage of labor. The mass labor migration of young people, mainly men, in search of higher earnings abroad has bled dry rural areas. This has led not only to a shortage of labour during peak seasons, but also to an increase in the cost of hired labour and an increased burden on women, who bear the brunt of agricultural work. As a result, vast areas of fertile land remain uncultivated across the country, a tragic paradox for a nation increasingly dependent on food imports.
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By Alpha Business MediaAgriculture has long been the backbone of Nepal’s economy and way of life. The sector still provides employment for about 62% of the country’s households, forming the social and cultural fabric of rural communities. However, these figures hide a disturbing reality. Agriculture’s contribution to the country’s gross domestic product (GDP) has been steadily declining, falling from over 36% in the past to around 23-24% in recent years. This decline is not the result of rapid growth in other sectors, but rather reflects a deep productivity crisis within agriculture itself.
The Nepalese farmer today faces a complex of interrelated problems. Labor productivity remains low due to the widespread use of traditional farming methods that have been passed down from generation to generation but no longer meet the requirements of the modern world. Land holdings are highly fragmented, with almost 75% of households cultivating plots of less than one hectare, making commercial production extremely difficult. Access to markets and year-round irrigation remains limited, leaving farmers dependent on unpredictable monsoon rains and volatile prices.
To these long-standing problems has been added a new, even more acute one: the shortage of labor. The mass labor migration of young people, mainly men, in search of higher earnings abroad has bled dry rural areas. This has led not only to a shortage of labour during peak seasons, but also to an increase in the cost of hired labour and an increased burden on women, who bear the brunt of agricultural work. As a result, vast areas of fertile land remain uncultivated across the country, a tragic paradox for a nation increasingly dependent on food imports.