Analyzing the Growth and Performance of Agriculture Sector in Nepal

Abstract

Agriculture is the backbone of Nepalese economy but higher poverty, constant trade deficit and erratic inflation rate has led to the shrinkage of agriculture share in the national GDP from 27.59% in last fiscal year to 26.98% in this fiscal year. Agriculture production rate is increasing at an average rate of 2.7% but is expected to grow at 5.1% this year due to the better monsoon. Nepal shares 0.66%, 0.27%,0.22% and 0.4% in global production of rice, wheat, maize and pulses respectively in the year 2018-19. The production of oilseeds has increased to 9.89% in 2018-19 from 4.68% in 2014-15. The minimal increment to 0.36% in 2018-19 from 0.3% in 2008-09 is noticed in case of production of vegetables. The share of Nepal in global production of fruit is only 0.16% in 2018-19 after increment from 0.1% in 2008-09. The share of Nepal in global milk production is very low i.e.0.247% though dairy sector is in prosperous state in Nepal. After adopting different suggestive measures better growth can be attained in the agriculture sector. The agriculture sector is in booming stage with the help of different government policies. An integrated sustainable approach is necessary to increase the income of people involved in agriculture sector.