Nepal is primarily known as the agricultural nation, with over 66 per cent of population directly engaged in farming that is subsistence in nature and unable to lift the national economy. Despite being an agro-based nation, it imported food and livestock products worth Rs. 224 billion in the fiscal year 2018/19 alone. This is a sheer paradox that exposes inertia and incompetence of populace that has failed to tap into the huge potential of agriculture. Failure to bring about agriculture revolution by exploiting the modern science and digital technology has held back Nepal’s prosperity for decades. Defective policies adopted since the early 1990s have been chiefly blamed for the current situation. The successive governments pursued neo-liberal and pro-market economic policies that divested Nepali farmers of subsidies given to agricultural inputs such as seed, fertilisers, implements and other elements of production.

This caused disastrous impacts on agro sector- soaring costs of production and loss of competitive strength of Nepali farmers in domestic and international markets. Nepali agro products failed to compete with that of India and China. Farmers from neighbouring nations enjoyed high amount of grants, subsidies and concessional loans offered by their government but their counterpart here have been deprived of such facilities. As a result, agriculture has no longer become a lucrative sector for youths, who rather prefer to fly to foreign labour markets in search of jobs and bright future. Nonetheless, the policy makers and government leaderships have gradually realised the policy shortcomings in the agriculture and began to rectify them. The governments have unveiled some programmes and policies aimed at giving incentives to the farmers. For example, the Prime Minister Agriculture Modernisation Project is one such initiative. Under it, the government developed super zones, zones, blocks and pockets for different commodities in all states of Nepal with a view to commercialising agriculture and improving its market and competitiveness.

In yet another bid, the government has fixed minimum support price of paddy, encouraging farmers to sell their paddy to the Food Management and Trading Company (FMTC). According to the news report carried out by this daily the other day, farmers have been enthused by the scheme and are now selling their products to the company that offers better price compared to the private traders. The FMTC purchases coarse paddy per quintal at Rs 2,532.80 and medium paddy at 2,673.16 per quintal. The price fixed this year is higher by Rs 200 per quintal than the minimum price of last year. Farmers from across the country are now visiting the Company to sell their paddy. This is a right move in direction of controlling market price and private traders who are smart enough to exploit every opportunity to buy paddy from farmers at lower price and sell it in higher price in the market.

This strategy will attract more farmers into agriculture occupation for it ensures the security of their investment and returns from it. As one expert suggested, the government should announce the minimum support price of paddy prior to the plantation season. In a similar report, farmers in Lamjung are upbeat as they have doubled their cardamom production this year. The government has set up cardamom Super Zone in Lamjung and expanded the cardamom plantation areas that cover four municipalities and four rural municipalities. The Cardamom Super Zone Office expects gradual increase in cardamom production in coming years. The government deserves kudos for such an agro promotion programmes that will help improve the living standards of peasants as well as boost the national economy.