Agriculture is the backbone of the entire economic structure of Nepal. Agriculture is an economic activities occupation which involves production of food grains, animal husbandry, horticulture, etc. It is the main source of food for men and raw materials for industry.
Around 66% of total active labor forces are engaged in agriculture and about 32% of total GDP is obtained from this sector. However Nepalese farmers carry out their agricultural activities mostly for their livelihood which is known as subsistence farming. Lack of irrigation facilities is one of the major causes of low productivity in agriculture sector of Nepal.
1. Discuss the characteristics of Nepalese agriculture.
Ans:- The characteristics of Nepalese agriculture are explained below:
i) Subsistence farming:- Most of the Nepalese farmers carry out their agricultural occupation for their survival and livelihood. There is very less commercialization of agriculture. Agriculture in most areas is operated with traditional method and tools. This results low production per unit of land.
ii) Food crops predominance:- Food crops are dominant in Nepalese agriculture. For about 76% of total cultivated land is given to food crops and only 24% in cash crops.
iii) Traditional farming practice:- As we know, farmers in Nepal seems to follow agricultural occupation for subsistence farming still uses of Halo, Kodalo , old seeds and method used by for fathers. This is a major cause for low agricultural productivity in Nepal.
iv) Unequal distribution of landholdings:- The distribution of land in Nepal is unequal. About 92% are small farmers and 8% are medium and large farmers. Most of the irrigated land belongs to rich farmers while most of the small farmers are lacking irrigation facilities. Due to this fact, small farmers are practicing subsistence farming and rich farmers are only doing commercial farming.
v) Low productivity:- Due to use of inferior quality seeds, traditional method of farming, lack of irrigation facilities, low level of education in farmers etc. As resulted lower agricultural productivity in Nepal.
vi) Small size of landholding:- The average size of land has been estimated to be 0.96 hectare. About 53% of total number of farm families have less than 0.5 hectare land. Such type of small land is not appropriate for business purpose farming. As a result agriculture is carried on subsistence basis.
vii) Disguised unemployment:- Agriculture provides only seasonal employment in Nepal. People are not employed all the year round. Due to seasonal employment, there is problem of disguised unemployment. The reason for disguised unemployment is growing population.
viii) Geographic variation:- The agricultural practices pattern are different in different part of the country due to geographical variation.
Plains:- Rice, Wheat, Maize, Oilseed, Jute, Sugarcane.
Hills:- Maize, Tea, Cardamom ( इलायची)
Mountains:- Herbs, Medicinal plants
ix) Monsoon best agriculture:- Agriculture in Nepal is dependent on monsoon. Irrigation is the lifeblood for agriculture about 54% of total cultivable land is able to get irrigation facilities. And about 46% depends upon monsoon season.
x) Duel ownership of land:- Duel ownership of land is an important feature of Nepalese agriculture. Land owners and tenants both are eligible for ownership of land. In dual ownership land, the poor people cultivate the land and rich class people enjoy the benefits without any force.
2. Discuss the role or importance of agriculture in Nepal.
Ans:- The role or importance of agriculture in Nepal are as follow:
i) Sources of food:- Agriculture Provides various staple food crops and cash crops, meat production, fruits, dairy products, vegetable etc. which are essential for the people for their consumption.
ii) Source of livelihood:- The main source of livelihood for many people in Nepal is agriculture. Approximately 66% of total populations of Nepal are engaged in agriculture sector for their survival. These people are also engage in livestock, poultry farming, and bee keeping etc. which also depends on agriculture.
iii) Source of employment opportunities:- Approximately 66% of the total population of a country are getting employment opportunities in agriculture sector of Nepal. Agriculture provides direct and indirect employment opportunities to unskilled, semi-skilled and highly skilled manpower in a agro based industries.
iv) Supplier of industrial raw materials:- Agricultural sector is necessary for supply of raw materials for agro industries. Agriculture sector provides raw materials such as raw jute, cotton, herbs, sugarcane, etc. as input to relate industries.
v) Basis of foreign trade:- Nepal export trade is dependent on agriculture. The main export items of Nepal are jute, tea, coffee, skin of animals, oil seeds, Ginger, medicinal herbs etc. Agriculture sector contributes 70% of the total export.
vi) Sources of government revenue:- Agriculture sector is one of the main source of government revenue. The Government of Nepal generates its revenue through land, tax, registration fees, water tax, export duty etc.
vii) Maintain environmental balance:- Agriculture promotes healthy environment by providing greenery and forestry in the country. It help to protect bio-diversity and helps in preventing soil erosion.
viii) Improve living standard of rural people:- The development of agriculture sector helps to develop other sector (industry, trade and commerce). As a result, it helps to increase employment opportunities for rural people and intern increases their purchasing power and helps to raise their standard of living.
ix) Source of national income:- Agriculture is the main source of National income in Nepal. About 66% of total active populations are engaged in agriculture farming. And about 32% of total GDP is contributed by agriculture sector.
x) Increase in rate of savings, capital formation and economic development:- Agriculture sectors provide employment opportunities directly and indirectly. This inturned generates income for the people. As income increases their savings also increases. The saved money ultimately leads to capital formation. Capital will be for the utilize in public and private sector as in investment. As a result it leads to economic development in our country.
3. Explain the problems of agriculture in Nepal.
Ans:- The problems of agriculture in Nepal are explained below:
i) Lack of irrigation facilities:- Irrigation is the lifeblood of agriculture. But the irrigation facilities are not sufficient in Nepalese agriculture. Approximately 50% of cultivable land has got irrigation facilities and remaining 50% are dependent on monsoon. This reduces the productivity and quality.
ii) Excessive pressure of population on cultivable land:- The cultivable land in Nepal is limited in area where as there is growing pressure of population of land due to rapid increase in the population. Increasing population disturb the quick development of agriculture. When there is increase in population, there is subdivision of land which reduces area of land per person and this increases burden of population on agriculture.
iii) Low productivity:- The Nepalese agriculture is suffering from low productivity. Farmers in Nepal fully depend upon monsoon season which is very uncertain. On the other hand, they are also lacking irrigation facilities, modern method of farming, skilled labor, etc. which reduces their productivity.
iv) Under employment of disguised unemployment:- Agriculture provides only seasonal employment in Nepal. Due to seasonal employment there is problem of under employment and disguised unemployment. The reason for disguised unemployment is growing population and no remarkable development in industrial sector.
v) Traditional method of farming:- Most of the farmers in Nepal still practices traditional method of farming. Due to lacking in education and wide-spread poverty, farmers are unable to use improved seeds, chemical fertilizers, improved tools and equipment’s etc. This has resulted lower productivity in Nepal.
vi) Inadequate agricultural credit:- About 22% of the people in Nepal are below poverty line and majority of them are farmers. They are having low income and even cannot sustain their family within the income. In this very situation, they are compelled to take loan from land owners at high rate. Provision of Agricultural credit through Agricultural Development Bank, Rural Development Bank etc. does not reach to the poor people.
vii) Unorganized agricultural marketing:- The agricultural marketing system in Nepal is unorganized. Most of the farmers are compelled to sell their product to middle man at the time of harvesting to meet their basic needs. Due to lack of organized agricultural marketing, farmers are not getting reasonable price for their product.
viii) Lack of physical infrastructure:- Nepal is poor in physical infrastructure development. In the absence of road facilities, electricity, communication, etc. the development of agriculture become difficult.
4. What are the remedial (solution) measures for the problem of agriculture in Nepal?
Ans:- The remedial measures for the problem of agriculture in Nepal are explained below:
i) Control population growth:- The pressure of population on land has created various problem. Thus, the population pressure on agricultural land should be reduced by effective population control measures and diverting agricultural labor to other sector of the economy.
ii) Introduce land reform system:- Dual ownership is the big problem in Nepal in which poor class people cultivates the land and the rich class people enjoy the benefits without any effort. This has discouraged poor farmers to work hard. Therefore, land reforms system should be implemented in an effective way to provide greater intensive to the farmers.
iii) Provision of Agricultural credit:- The credit facilities should be made available for farmers at lowest possible rate through Agricultural Development Bank, Rural Development bank and other financial institution.
iv) Introducing modern farming:- There is need of modern technology in the agriculture sector of Nepal. The use of modern technology will help to increase the productivity.
v) Providing irrigation facilities:- The irrigation facilities should be extended throughout the country wherever possible and viable. An adequate irrigation facility enables crop diversification as well as round the year farming.
5. What is agriculture finance?
Ans:- Agriculture finance is credit money obtained from different sources for the development of agriculture. Sufficient and timely credit is very important for the progress of agriculture. There is need of Agricultural finance for the purchase of improved seeds, purchase of fertilizers irrigation facilities etc.
6. What are the sources of agricultural finance in Nepal?
Ans:- There are two sources of Agricultural finance in Nepal. They are explained below:
(i) Traditional/ Unorganized sources /Informal/ Non formal
Ans:- The Sources which are not legal established under the control of Nepal Rastra Bank to provide loan are called unorganized sources of Agricultural finance. They usually charges high rate of interest. The attractions of those resources are less complicated formalities for borrowing. The following are the unorganized sources of Agricultural finance:
a) Friends and relatives:- The farmers generally try to approach their friends and relatives for credit money. The farmer can get small amount of money to meet day to day requirement. Friends and relatives lend money with or without interest and security.
b) Village money lenders and landlords:- From the very beginning village money lenders and landlords are the main source of short term loan and long term loan to the farmers. Generally short term loan is provided against security of standing crops and long term loan is provided against security of land, house etc. The rate of interest is high.
c) Merchants and traders:- Merchant and traders provides loan to the farmers. They generally provide credit during pre- harvest season. The farmers are forced to sell their product at low price because the time for re-payment of loan is very short.
(ii) Formal/ institution/ organized sources
Ans:- The sources which are legally established under the control of Nepal Rastra Bank to provide loan are called organized sources of Agricultural finance. The following are the formal sources of Agricultural finance:
a) Agriculture Development Bank:- This Bank was established with the objective of providing credit to agricultural sector in the country. It provide short term loan (less than 1 year), medium term loan (1 to 5 years) and long term loan (more than 5 years) to the farmers for the purchasing of agricultural inputs, equipment’s, fixed assets against the security of gold, silver, land and buildings etc.
b) Rural Development Bank:- Rural Development Bank provides loan without security to the rural people. These banks focus on low income group people with the objective of increasing standard of living of poor people. The objective of bank is also to provide banking service to the targeted groups in rural area.
c) Commercial Banks:- Commercial Banks are the second largest finance institution to provide agricultural credit to the farmers. There are 29 commercial banks in Nepal by the end of 2016.
d) Co-operative:- Cooperatives are another important source of agricultural finance. There are 16 savings and Credit Cooperative is considered best for providing credit to small farmers.
7. Give the meaning of agricultural marketing in Nepal. Explain the nature and problems of agriculture marketing in nepal.
Ans:- Agriculture marketing involves on number of operation and processes of moving agricultural products from farm to final consumer.
The problems of agriculture marketing in Nepal are explained below:
i) Unorganized:- The agricultural marketing system in Nepal is not organized. The farmer produces small quality of food grains and sale from their household to fulfill their basic needs. Due to lack of organized market, the management system of price, quality control, measurement etc. are unsystematic.
ii) Seasonal:- Agricultural production and marketing both are seasonal. Farmers don’t have storage facilities so they follow single cropping pattern. So the sale and purchase of agricultural commodity take place only in one season.
iii) Pre-dominance of middleman:- Agricultural marketing in Nepal is pre-dominant by middle man. They are rich and can afford storage facilities. They visit doors steps of farmers and collect the product produced by farmers at low price. Again the same product is sold by middleman at very high price in the market.
iv) Influence of Indian market:- There is long open border between Nepal and India. The Indian agro- products are low price and are of superior quality as compared to Nepalese agro product. This adversely affects the Nepalese agricultural marketing.
v) Lack of transport and communication:- Farmers cannot carry their produced goods to the market place due to lack of transportation facilities. Similarly they are unaware about the actual price of the product because of lacking in communication system in Nepal. So they are compelled to sell their product to middle man.
vi) Lack of storage facilities:- Lacking in a storage facility has compelled farmers to sell their product immediately after harvest. Generally price is very low during harvest period. They are bound to store their products in traditional method which destroyed their product by heat, rain, etc.
vii) No grading and standardization:- Nepalese farmers producer the different type of products but they are not graded and standardized according to their quality standard. Farmers are unaware about the relative advantage of grading and standardization. So they cannot obtain higher price for their quality product. For example, cardamom is categorized according to its size 6 mm, 7mm, 8mm, and 8.5 mm. As the size of cardamom increases price also increases.
viii) Defective weight and measures:- Most of the traders in rural areas do not use proper weight and measurement. They are using stone, bricks etc. in buying goods from farmers to exploit them.
ix) Problem of adulteration:- Mixing of inferior products with superior quality product is a common practice among traders in rural areas of Nepal. Sant in food grains, water in milk etc. are some of the adulteration found in Nepal.
8. What are the remedies against problems of agricultural marketing?
Ans:- The remedies against problems of agricultural marketing are as follow:
i) Developing market information:- Reliable and relevant market information system should be established for supply, pricing, location and quality of agricultural goods. This enables farmers to make right decision on their products and their prices.
ii) Developing transport and communication:- Transport and communication facilities such as rural roads, etc. should be extended to rural and remote areas. This will help the farmers to transport their products to the market centres.
iii) Provision of agricultural credit:- Agricultural credit from the organized financial institutions should be made easily accessible to farmers without procedural difficulties at reasonable interest rates to safeguard poor farmers from being exploited by local moneylenders.
iv) Provision of warehouse:- Provision of storage and warehouse facilities should be made available so that farmers are protected from the compulsion of selling off their goods at harvesting time only. This can facilitate farmers to get reasonable price for their products.
v) Uniform system:- standardization, grading and weighing system should be enforced in rural areas also to improve marketing efficiency. This can greatly benefit both producers and consumers in terms of cost and price.
