Agriculture In Priority

Agriculture remains the primary source of livelihood for over 60 per cent of Nepal's population, yet it has not become the driver of prosperity. Its contribution to national GDP has declined to around 24 per cent, indicating inadequate policy intervention and insufficient investment in modernisation of the sector. Despite Nepal's diverse climate and fertile soils, successive governments have failed to provide proper incentives, leaving the agro sector stagnant and prompting young people to abandon farming. Consequently, vast areas of land lie uncultivated.  To unlock the sector's potential, the state must address structural challenges such as limited irrigation, labour shortage, fragmented landholdings, poor mechanisation, weak road connectivity and lack of market access. Climate change has further compounded these issues, exposing crops to drought, flooding and heavy downpours. As such, the new government led by Prime Minister Balendra Shah has instilled hope by announcing a series of reforms across nearly every sector, including agriculture. Recognising agriculture's vital role in driving growth and improving the quality of life for Nepali citizens, the government has given it priority in its '100-Point Governance Reform Action Plan'.  Unveiled immediately after the formation of the government, the plan outlines measures to protect farmers, strengthen agriculture markets and address land management issues. 

The government has also announced that it will determine the minimum support price for major food crops, with the process beginning within 30 days. This measure aims to protect the farmers from losses caused by unpredictable market fluctuations and the absence of a guaranteed minimum price for key agricultural produce. According to a news report carried by this daily the other day, a new directive will soon come into force to regulate credit-based transactions in the purchase of agricultural products. Under the rule, buyers must make payments within 25 days. If they fail to do so, they will be required to pay the amount along with interest. In order to ensure better market access for agricultural products, a National Agricultural Market Information System will be established. It will inform farmers of market prices on a daily basis through SMS and other digital platforms. The government has proposed the “One Municipality, One Cold Storage Centre” scheme to enable farmers to sell their products at fair prices. The introduction of soil health cards will help improve productivity through better soil management and farmers are expected to receive them within three months. 

Land reform has been a major issue for every political party in Nepal for decades, but the issue has not been dealt with rationally. It has become a politically-charged topic, sparking disputes among the rival parties. There is a need for a consensus-based approach to solve the issue of landless squatters and unmanaged settlements. The government has decided to collect and verify integrated digital data on landless squatters and unorganised settlers within 60 days. A household survey will be conducted in coordination with the local level within 1,000 days to resolve this issue. The government will provide land to the verified landless squatters or rehabilitate them through housing projects, especially in the urban areas. These initiatives to boost agriculture and implement land reforms are timely and pragmatic. The government must demonstrate strong willpower and secure support from all stakeholders in accomplishing this task, thereby helping Nepal become a prosperous nation within a short period of time.