Agriculture sector growth to almost halve this fiscal

By A Staff Reporter, Kathmandu, May 28: The growth rate of the agricultural sector is estimated to decline in the current fiscal year compared to the previous year. 

According to the Economic Survey of the current fiscal year 2025/26, made public by the government on Wednesday, the agricultural sector is estimated to grow by only 1.58 per cent in the current fiscal year, compared to a growth rate of 3.05 per cent in the previous fiscal year.

The structure of Gross Domestic Product (GDP) is estimated to consist of a 24 per cent contribution from the agricultural sector and a 76 per cent contribution from the non-agricultural sector.

The production of almost all major crops is expected to increase in the current fiscal year 2025/26.

However, due to unseasonal rainfall, the production of cereals is estimated to decrease by 1.63 per cent. 

The cash crop production is expected to increase by 2.06 per cent. Similarly, industrial crops are expected to increase by 1.38 per cent, pulses by 1.53 per cent, spice crops by 2.50 per cent, fruit crops by 2.50 per cent, and vegetable production by 2.02 per cent in the current fiscal year.

In the current fiscal year, paddy production has decreased by 4.20 per cent, reaching 5.7 million tonnes. The average productivity of paddy has reached 4.14 tonnes per hectare.

The share of food crops has remained high in both agricultural production and cultivated area.

In the current fiscal year, among agricultural crop production, the share of food crops is estimated at 45.3 per cent, followed by vegetables at 18.5 per cent, cash crops at 16 per cent, industrial crops at 11 per cent, fruits at 6.2 per cent, and other crops at 3 per cent.

In the previous fiscal year, the share of food crops was 46.2 per cent, vegetables 18.2 per cent, cash crops 15.7 per cent, industrial crops 10.9 per cent, fruits 6 per cent, and other crops 3 per cent.

In the current fiscal year, the area under cereal crops is estimated to account for 70.4 per cent of the total cultivated agricultural land.

Similarly, cash crops are estimated at 10.3 per cent, vegetables at 7.3 per cent, pulses at 5.5 per cent, and other crops at 6.5 per cent.

Over 2.38 million households registered under farmer listing 

Under the farmer listing programme, by mid-March of the current fiscal year, more than 2.383 million household farmers across the country have been registered. 

So far, out of 753 local levels, the farmer registration process has been completed in 60 local levels.

The farmer listing programme is being implemented to ensure proper identification of farmers, systematise agricultural subsidy distribution, formulate agriculture-related plans, programmes and policies, and reduce duplication of benefits received by farmers.

In the fiscal year 2025/26, out of the agricultural subsidy of Rs. 37.31 billion allocated by the federal government, Rs. 24.22 billion (64.9 per cent) has been spent by mid-March 2026.

In the fiscal year 2024/25, out of the allocated agricultural subsidy of Rs. 36.15 billion, Rs. 32.13 billion (88.9 per cent) was spent.

Likewise, by mid-March of the current fiscal year, only a subsidy payment of Rs. 8.997 million has been made for crop insurance premium.

In the fiscal year 2024/25, under subsidies for agricultural and livestock insurance premiums, a total subsidy of Rs. 1.60 billion was disbursed. 

This included Rs. 177 million for crop insurance, Rs. 1.09 billion for livestock insurance, and Rs. 331 million for fisheries.

Irrigation facilities expanded

Irrigation facilities have been expanded across the country. By mid-March 206, irrigation services have been extended to 44.63 per cent of cultivable land and 62.61 per cent of irrigable land throughout the country.

Under the small irrigation system construction and maintenance programme, an additional 5,830 hectares of irrigated area was expanded in the previous fiscal year, bringing irrigation facilities to a total of 36,524 hectares.

Similarly, under this programme, 156 small irrigation schemes have been constructed by mid-March of the current fiscal year, further expanding irrigation services to an additional 248 hectares of land.