Nepal’s agriculture is at a critical crossroads. Although the sector provides employment for the vast majority of the population, its contribution to GDP is disproportionately low, reflecting systemic inefficiencies and low productivity. This problem is compounded by a worrying demographic shift: the exodus of young people from rural areas in search of work abroad is leaving the agricultural sector with a rapidly ageing workforce, threatening the country’s long-term food security. This report provides a comprehensive analysis of this multifaceted challenge and offers a policy roadmap to address it.

The proposed strategy is based on a fundamental transformation of agriculture from an activity perceived as a burden to a modern, profitable and prestigious profession that is attractive to Nepal’s young generation. The report argues that the key to this transformation is a comprehensive, multi-pronged approach based on four interrelated pillars: creating a new image, reforming education, providing access to land and finance and introducing technologies.

Agricultural cooperatives have been identified as the central institutional mechanism for implementing this transformation. Despite current governance challenges, their vast network provides an unrivalled infrastructure for disseminating knowledge, technology, financial services and collective marketing. Analysis shows that successful cooperatives, supported by external partners, already demonstrate the potential to significantly increase farmers’ incomes and commercialise agriculture.