We cannot be self-reliant in food without year-round irrigation
Nepal has faced three Indian economic blockades and the current one is the worst. That is because Nepal now does 80 percent of its trade with India. Domestic industries have been decimated as raw materials and other inputs are stranded at the Kolkata port. Lending by banks and financial institutions has dried up as borrowers have lost confidence in the financial sector. The country, in other words, is on the brink of an economic crisis.At household level, people are suffering from the shortage of daily essentials, such as cooking gas, edible oil and rice. One million workers, including 400,000 industrial workers, are unemployed now due to Tarai unrest. This crisis has also led to income loss for many people. It has not spared agriculture sector as well.
Except cooking oil, other food items are available in the market. Factory owners say they cannot produce cooking oil due to shortage of raw materials. Nepali factories import oilseeds from Australia, Malaysia, Brazil, Argentina and Indonesia via India and process them here. However, price of locally produced food items such as pulses and rice have also rocketed over past three months. The rise in price of food is not because of supply-side constraints but due to black-marketing. Traders have been creating artificial shortage of essential goods and raising price arbitrarily.
Nepal is nearly self-reliant in flowers—there was no shortage of flowers in the market during this Deepawali. Nepal used to import around 40 percent of marigolds for this festival in the past. We became self-reliant on flowers because many people have entered this business. The growth of floriculture has been impressive—with 10-15 percent annual growth. Besides, Nepal has also started to export flowers in substantial quantities. Apart from Kathmandu, floriculture is expanding in Pokhara, Narayangadh, Hetauda, Biratnagar, Dharan and Dhangadhi.
Promotion of fruits and fresh vegetable crops is vital for self-sufficiency. Vegetable production has grown rapidly over past two decades. Between 2000 and 2010 vegetable production increased by an average of 6.9 percent a year, well ahead of population growth of 1.47 percent over the same period. Cultivation area, which increased 4-6 percent annually, contributed to this growth. Average yield increased by 2.2 percent annually. Moreover, Nepal's per capita vegetable consumption has increased to 105 kg from 60 kg over the last 20 years.
Smallholders are responsible for almost all vegetable production in Nepal. According to 2009-10 Nepal Vegetable Crops Survey, vegetable farming is common and important source of livelihood for over 3.2 million families.
Vegetables can be grown all-year. This provides an opportunity for increased income for producers through intensified cropping patterns. In total production, household consumption contributes 40 percent and 60 percent goes to the market. There are 55 different vegetable crops cultivated in Nepal.
Tea industry is growing due to participation of private sector. Nepal is self-sufficient in CTC tea. Currently, Nepal's tea yield per hectare is 750 -1477 kg. But we could potentially produce 5000kg/ha. There is a room for improvement of both productivity and quantity.
Nepal is also moving towards self-sufficiency in coffee. According to official records, coffee production area has expanded from 424 ha in fiscal year 2000/01 to 1760 ha in 2011/ 12.
Nepal is not self-reliant on cardamom and ginger. But even these commodities are exported in significant amounts. Nepal is the world's top producer of large cardamom, with annual production exceeding 6,600 metric tons. Cardamom, farmed and processed by over 70,000 households in eastern region, consistently ranks among Nepal's top 12 export commodities, contributing an annual US $20 million to national economy. Nepal is the fifth largest producer and fifteenth largest exporter of ginger in the world.
Nepal is also self-sufficient in eggs, chicks and chicken meat. Nepal's poultry market has grown by 30 percent in past five years to Rs.20 billion, contributing four percent to GDP. We are close to self-sufficiency in milk. Dairy sector contributes around a percent to GDP. A total of 950,000 families are involved in this sector.
Nepal is not self-reliant on major fruits. They are imported, particularly from India and China, to meet rising demands. Fruits like apple, grape, pomegranate, papaya and sweet lime are being imported in large quantities. According to Nepal Rastra Bank, fruit imports were Rs 1.65 billion in 2014.
Nepal also has the potential to meet its need in cereals, but these days a lot depends on monsoon rains and availability of seeds and fertilizers.
In past 24 years, cereal production was above average for 12 years and disappointing for the other 12. In fact, Nepal cannot be self-reliant in food unless there are year-round irrigation facilities in 80 percent rice growing areas, according to Agriculture Development Strategy (ADS).
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