Farm sector growth slows due to fertiliser crunch, delayed rains
KATHMANDU, JUL 13 -
The contribution of agriculture to the Gross Domestic Product ( GDP ) shrank 1.1 percent to 34.3 percent in this fiscal year, according to the economic survey unveiled by the government on Friday. The decline in the growth of the farm sector pulled down the country’s overall economic growth to 3.6 percent. The big challenge, the survey pointed out, is to boost the economy by increasing agricultural output.
Growth in agriculture has been weak at 1.26 percent this fiscal against 4.98 percent last year. The poor growth has been attributed to a delayed monsoon, especially during the peak paddy planting period of June-July last year. In addition, the government’s inability to supply fertilisers during the planting season added to the woes of Nepali farmers who depend on imported soil fortifiers. Moreover, the winter crop output did not turn out as expected.
The survey showed that Nepal’s annual output of cereal crops has dropped 7.6 percent to 8.73 million tonnes. The country produced 719,244 tonnes less food grain in 2012-13 compared to the last fiscal. Of the total cereal crops, paddy that accounts for 60 percent of the total produce fell 11.3 percent.
The area under paddy cultivation also declined 7.2 percent, largely due to insufficient rains. The output of maize, the second major crop after paddy, fell 8.3 percent. The survey pointed out that the agriculture sector plays a major role in determining the country’s economic growth rate.
“Naturally, a poor agricultural performance has contracted the country’s economy. More than that, it has affected farmer incomes,” said agro economist Hari Krishna Upadhyaya.
He said a majority of the producers are also consumers themselves, and reduced production obviously is a concern to farmers who normally sell their produce at cheaper rates and later buy at higher rates. “The government has decided to increase investment in the agriculture, but it should be focused on the priority sector.”
Last year, a bumper cereal harvest had boosted the country’s economic growth rate to 4.5 percent. Agriculture growth has remained at a meagre 3.3 percent for the last decade. The rain-fed agricultural sector was greatly affected this year with 17 percent less rainfall during the monsoon (June-Sept). Despite a fall in cereal output, the Agriculture Ministry estimates that the country will be in a food surplus position this year with 408,000 tonnes extra. However, there will be a 900,000-tonne rice deficit.
The next big challenge, the survey points out, is the rising bill for cereal imports. The study shows that in the first eight months of this fiscal year, the country imported food and livestock worth Rs 39.57 billion, a whopping 58.9 percent rise.
POOR IRRIGATION
The survey showed that in the last fiscal year, new irrigation projects provided irrigation facility to 47,795 hectares of farm land. This included 15,230 hectares watered by farmer-managed systems.
Irrigation coverage has increased by 33.7 percent in the last fiscal compared to the previous fiscal. In the first eight months of the current fiscal year, an additional 17,447 hectares have been covered by irrigation facilities, which is 49 percent less compared to the same period last year.
According to the survey, various projects have been conducted to increase the total irrigation coverage to 1.766 million hectares out of the country’s 2.641 million hectares of arable land. Irrigation has historically been a major factor for increasing crop productivity.
At present, the country has only 18-20 percent round-the-year irrigation facility, said Upadhyaya, adding investment in irrigation should be increased, but it should be focused on micro irrigation so that farmers have their ownership.
“Micro or low-cost irrigation for crops can be a feasible option under conditions of water shortage, which large irrigation cannot provide, and has the potential to contribute to improved and sustainable crop production for smallholder farmers.”
Source: The Kathmandu Post
