The Cost of Nepal’s Failing Rice Strategy

Even as Nepal marked the 22nd National Paddy Day on Sunday, the existing data tells a sad story. Nepal imported paddy and rice worth around Rs 39 billion in the first 11 months of this fiscal year alone. That’s more than Rs 3 billion per month, which could have gone into strengthening local agriculture through the modernization of agriculture foundations. More than 753,000 metric tons of paddy and rice were imported during this period, a sharp rise of Rs 11 billion in value from the same period last year. Also, rice plantation land in Nepal is shrinking, with a decline of 3.04% projected for this year alone. This reduction is driven by a shift towards cash crops, urbanization, infrastructure development, and the abandonment of farmland due to labor shortages and out-migration. Government data indicates a decrease from 1,438,989 hectares last year to 1,395,207 hectares this year. All of these raise questions over the government’s annual commitments to self-sufficiency in paddy and rice production by boosting local farming. Every year, the government sets a target for increased paddy production, yet the fields utilized for paddy production continue to shrink. The shortage of standard seeds and essential fertilizers as well as arable land lying idle in several districts have decreased paddy output over years. Irrigation facilities do not exist or are outdated, and the required support from authorities has fallen short, making the matter worse for paddy farmers.