Agricultural Scenario of Nepal: Growth Performance and Swot Analysis

Abstract

This study aimed to determine the performance of agriculture sector in Nepal which would help in formulating better policies for its improvement. The study estimated the growth and instability for the period 2001-02 to 2020-21, dividing it into two periods, period-I (2001-02 to 2010-11) and period-II (2011-12 to 2020-21). The growth and instability analysis indicated that the growth of production of almost all crops were increased during period-II. Oilseeds showed the highest increase in production with growth rate of 6.26%, whereas millet and coffee showed decreasing rate of production in period-II. The area under wheat and millet decreased drastically in period-II. Although instability in area increased in period-II for almost all the crops, tea experienced highest increase. Instability in coffee production decreased from 41.85% in period-I to 15.92% in period-II, highest among selected crops. The instabilities in production were due to natural calamities, lesser and untimely availability of inputs, less priority in the research sector for minor crops and so on. Livestock subsector has been performing well as compared to the crop sector. Prioritization by the government and wide climatic conditions are the major strengths of the sector whereas unavailability of inputs in time and lack of investment frameworks are the weaknesses. Farm mechanization, topography and agri-tourism are some opportunities and climate change, fragmentation of arable land, brain-drain are the threats to this sector in Nepal. The major focus of the government should be on utilizing the rural labor force on agriculture sector through different schemes such as effective crop and livestock insurance, timely supply of demanded inputs and proper extension services.