The Himalayan nation’s wheat harvest is likely to exceed 2 million tons this fiscal year as a result of good weather during winter, said a senior government official.

The all-time high wheat harvest comes in succession to a bountiful paddy harvest last summer.

According to Nepal Agriculture Ministry Chief Statistician Krishna Regmi, this year’s harvest is expected to record a 7 percent increase as a result of good winter rainfall.

The wheat bounty is likely to increase farmer incomes, reduce Nepal’s import bill and cool down inflation.

Moreover, it will further propel the government’s targeted growth rate of 8 percent as Nepal is primarily dependent on farming. The Nepal Government will soon announce crop production estimates for 2018-19.

Nepal Wheat Production 2014-18

Following is Nepal’s wheat output over a period of four years:

• 2014-15 – 1.97 million tons
• 2015-16 – 1.73 million tons
• 2016-17 – 1.84 million tons
• 2017-18 – 1.93 million tons

Last year’s wheat output of 1.93 million tons was the second highest record in Nepal’s history despite a dry winter.

According to Regmi, snowfall was equally helpful in boosting the wheat produce in the hilly and mountains regions, besides the Tarai region.

Additionally, government officials attributed the bumper production to improved varieties of wheat seeds. Nearly 45 percent of Nepal’s wheat fields acreage is covered by improved seeds.

Also, there was no shortage of chemical fertilizers except in a few places this fiscal year, except in a few places, Regmi added. Insufficient soil fertilizers have been a significant cause of low productivity in the past.

Wheat is Nepal’s third most common cereal crop after paddy and maize.

Nepal’s Paddy Harvest 2018-19

As per Nepal Agriculture Ministry’s preliminary statistics, Nepal’s paddy harvest will likely touch an all-time high of 5.6 million tons this fiscal year. This will mark a 9 percent increase from the previous year.

This high output will be a result of the bountiful rainfall predicted this year. The Ministry’s statistics indicate that Nepal’s paddy productivity will increase to a record high of 3.8 tons per hectare this fiscal year, compared to 3.5 tons last year.

The country’s average productivity is 3 tons per hectare and this year’s paddy harvest is worth more than NPR 115 billion.

Nepal’s agriculture sector has a major contribution in its economy. The high level of wheat harvest is a great boost to Nepal’s economic growth.

The post FY 2018-19: Nepal Sets New Record in Wheat Harvest appeared first on Nepali Sansar.

The Minister said this at a program event titled ‘Nepal’s Agriculture Structure: Constructive Change for Prosperity’ held by Nepal Sociological Association in Kathmandu on November 21, 2018.

Khatiwada said that the country’s agriculture sector needs to be modernized with optimum usage of technology.

In this regard, he pitched on the need to bring conclusions drawn from relevant studies and researches by various sectors to farmers’ purview.

“The technology is confined in the laboratory. The studies carried out by NARC, NAST, universities are there amongst us, but have not reached the farmer’s doorstep. Now is the time to pay attention to this aspect,” said Khatiwada.

The Minister stressed on technology implementation while expressing concern over lack of sector’s growth and decrease of arable land despite incentives and special facilities.

Speaking about government’s expectations of five percent agriculture production this year, Khatiwada said that achieving this target would suffice the country’s food grains requirement.

In this regard, he urged for price adjustment to reduce production cost in Nepali agricultural sector owing to its production performance compared to other sectors.

“The problem is that two-thirds of the laborers are engaged in agriculture whose production is merely one-third. This ratio should be brought down to at least one-third in the next 10 years and the bulk of the labor force should be engaged in other enterprises,” he said.

Stating that the rate of women ownership of land has increased from 8 percent to 30 percent currently, Khatiwada pitched for a change in society’s thinking perspective towards women-related taboos.

Meanwhile, Nepal Agriculture Scientist Dr. Kailash Nath Pyakurel said the program has been organized with an aim to give a sociological analysis of Nepal’s land reforms and agriculture policy and programs.

As part of the program, Dr. Purna Subedi, Dr. Bishnu Uprety, Dr. Yubaraj Luitel, and Yamuna Ghale presented a working paper on land and agriculture, gender concept in the agriculture sector and food security.

Various discussions and debates held as part of the program will further be submitted to the government for further review.

Sociologist Bidya Bhattarai, Representative of the Agriculture and Forestry University Ramhari Timilsina and Action Aid Director Sujita Mathema were among the key speakers of the program.

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As the latest reports say, different schemes under the 10-year-long ‘Prime Minister Agriculture Modernization Project’ are giving positive results for the country’s potato farming.

As a result, more number of farmers are inclining towards commercial potato farming availing the government schemes and increasing farming mechanization benefits.

With this, farmers could double their potato production year-on-year while significantly minimizing production costs in farming.

Kamal Rural Municipality is one locality that benefited the most out of this scheme and emerged as a ‘potato pocket’ zone. Potato cultivation in this area has seen a two-fold rise in this region from 35 dedicated farmers last year to 60 farmers this year.

A special potato management committee has been formed under this project to help farmers plant seeds using potato planters. “The committee also helps farmers harvest their produce by using a potato harvester without charging them any extra cost for the machine,” says Yam Bahadur Rai, chairman of the committee.

According to Tanka Kattel, a facilitator of Integrated Pest Management (IPM) Agriculture Cooperative, the committee helps farmers to also sell their products upon harvest.

We have received 50 percent of subsidy on potato seeds, and the committee has been helping us with potato transplanter and harvester which have significantly reduced our costs of production,” says Durga Prasad Parajuli, a local farmer in Kamal Rural Municipality.

While it takes a day to plant a potato in a katta of Nepali land using traditional methods, it takes only 20 minutes to do the same with the machine.

“The potato planter saves time and costs significantly. Almost 75 percent of our costs are cut down, and because of this more and more farmers are willing to grow potatoes for a living,” says Govinda Shrestha, another local farmer.

The NPR 130 billion project envisages adoption of modern farm techniques to boost productivity and increase the country’s self-reliance in food.

Wish the project implemented in 2016 will go a long way ahead to benefiting the Nepali farming community!

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This a good omen for Oli-led Nepal Government that envisages an 8 percent economic growth rate for the coming Fiscal Year 2018-19 (beginning mid-July). Also, this comes as a much-required push for Nepal whose three-trillion economy is very much dependent on the agricultural sector’s 27.6 percent contribution. To meet the expected rate, the government is targeting a current growth rate of 4.5 percent.

What Economists Have to Say?

Economists say, a good monsoon-start tremendously benefits farm output. This is because 55 percent of Nepal’s 3.09 million hectare is arable and is highly dependent on rainfall. It can be also key in arresting inflation, which is currently worrying the Nepal Government and threatening the country at large.

Further, bumper harvest tackles inflation in a way that it creates avenue for supply.

The government should smartly allocate minimum support prices on farm products in case farmers don’t earn enough on surplus supply, say experts.

Economist Keshav Acharya says, “Overall, if the agricultural sector performs well and the local and provincial governments spend their allocated capital, the 8 percent economic growth target is attainable.”

“This year, despite poor capital spending, regular supply of electricity and good industrial relation, helped the country to achieve 6 percent of growth,” he adds.

Agriculture – A Key Influencer
According to Acharya, the agricultural sector growth or productivity is a highly-influencing factor.

For example, if the agricultural production increases, it will automatically lead to productivity in the non-agricultural sectors such as industries, tourism, education, hotels, hospitals and retail.

“The increase in agriculture production means farmers’ income will also increase and they will spend more,” says Acharya.

Following which he added that a small growth in agricultural sector can create a ripple effect on other sectors.

Cloudy Sky for Nepal

As per the statement of the 12th session of the South Asian Climate Outlook Forum (SASCOF) released on April 20, 2018, ”Nepal is expected to witness a ‘normal’ monsoon this year.”

“There is a very slim chance of a deficient monsoon this year and based on the forecast, we can expect Nepal’s agriculture sector to get a big boost,” says Rishi Ram Sharma, Director General, Hydrology and Meteorology Department.

Speaking further he adds, “Monsoon has entered Nepal from the eastern part of the country. It is expected to cover the entire country within few days. This is the first time in last 10 years that monsoon has arrived two days before of its schedule.”

Paddy Crop Boost in FY 2016-17
In the last fiscal year, Nepal’s paddy harvest saw an all-time high of 5.23 million tons after the country received above-normal monsoon. The paddy production last year accelerated the agricultural sector’s growth rate by 5.43 percent leading to a higher economic growth rate of 6.9 percent in the past 23 years.

Chitwan Faces Crisis – Traditional Rice Varieties Vanish

Meanwhile, Chitwan District in Province 3 of Nepal is facing crisis over the wipe out of almost 321 varieties of rice except the ‘Anadi’. The district that boasted of a wide variety of rice until three decades ago is now having to depend on hybrid varieties.

According to the Nepal Agricultural Research Council (NARC), the increasing usage of hybrid and Genetically-Modified (GM) rice varieties has beaten the usage of traditional varieties. And, the former scenario is increasingly visible in the Tarai region to hilly areas.

Currently, NARC is conducting research and studying new methods of developing high-yielding varieties of the rice crop that are resistant to climate change and diseases through the usage of traditional variety seeds.

IFAD and Nepal sign MoU Over Food Security
Recently, the International Fund for Agricultural Development (IFAD) and Nepal have come to an understanding to significantly boost incomes and food and nutrition security for 35,000 rural farming households in 10 districts of State 6.

The MoU was signed by Gilbert F Houngbo, President of IFAD and Sreekrishna Nepal, Joint Secretary, Ministry of Finance, Nepal.

With a duration of six years and a budget of USD 68.1 million; inclusive of a USD 38.3 million loan and a USD 1.8 million grant, this initiative will be co-funded by the Swiss Agency for Development and Cooperation (SADC) and the Government of Nepal with a funding of USD 3 million and USD 11.5 million, respectively.

The program will be started in Dailekh, Humla, Jumla, Mugu, Dolpa, Jajarkot, Kalikot, Salyan, Rukum and Surket districts of State 6.

“The scheme will target smallholder producers and landless rural people interested in engaging in targeted value chain activities,” says Lakshmi Moola, IFAD Country Program Manager.

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Recent floods, which have been concerning various parts of Nepal since a week, have badly hit the country’s agricultural sector resulting in huge crop loss for the country.

The Ministry of Agricultural Development (MoAD) informed that floodwaters wiped out crops worth Rs 8.11 billion and inundated huge tracts of land across 31 districts (19 severely) of the country.

Put together the loss of livestock and damage of private food stores, officials project further loss amounting to billions.

“This is the first time that the entire country, except Kapilvastu, has been flooded at the same time,” said Rishi Ram Sharma, Director General of the Department of Hydrology and Meteorology.

Nepal is facing this situation at a time when the country’s agricultural economy is witnessing some signs of recovery since the last fiscal.

The World Bank had projected Nepal’s economic growth rate at 7.5 percent in the last fiscal year on the basis of rise in agricultural output due to a favorable monsoon, elimination of power cuts and higher government spending, among others.

However, the country’s agricultural sector takes a hit again with the recent floods. According to officials, impact of the recent floods would be high on farmer incomes & inflation and a fall in domestic production may also increase country’s agricultural imports (currently close to Rs 200 billion mark).

Government Hopeful About Paddy Output

Despite this weakening situation, MoAD bets big on paddy output. It projects paddy output at 5.4 million tonnes in the current fiscal year, above the record production of 5.2 million tonnes in the last fiscal year.

“The floods have shattered growth prospects. But we are confident that the paddy harvest will not be lower than last year’s level,” said Yogendra Kumar Karki, Ministry Spokesperson.

According to the Ministry, the recent floods damaged 270,406 hectares of standing crops of paddy, maize, pulses, banana and spices and wiped out fishes in 2,224 hectares.

Overall, paddy plantation suffered major damage worth Rs 3.18 billion, followed by vegetables (Rs 2.96 billion), fishes (Rs 800 million), pulses (Rs 536 million), turmeric (Rs 340 million) and maize (Rs 241 million).

MoAD projects the loss could be much higher with loss of food stored by people in their homes  included.

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