header banner

Room for growth

alt=
By No Author
Growing import of agro products is a reason behind rising trade deficit. Thus the new focus on import substitution

Nepal imports raw and processed agro commodities worth more than Rs 75 billion every year. Import figures over the past couple of years suggest import of agro commodities, mainly rice, maize, wheat, vegetables and fruits, is gradually increasing. The import of rice, maize and wheat during 11 months of this fiscal has exceeded Rs 31 billion. Similarly, fruits and vegetables worth over Rs 5 billion are imported annually. Experts attribute the rising imports to inadequate production. Such dependence on import of agro-products is a major reason behind rising trade deficit. Realizing this, the government has focused its annual program on agriculture for the fiscal year 2015/16 on import substitution.The government has developed programs for self-reliance in rice by declaring 12 Tarai districts as special rice pocket zone. To substitute fruits and vegetables imports, emphasis has been given on increasing production and installing cold stores at strategic points. Such import substitute measures introduced to meet domestic demands of rice, vegetables and fruits is appreciable.

The paddy mission is a three-year project and the government plans to increase average paddy productivity to 3.66 tons per hectare in the third year (2017-18) from the current 3.17 tons per hectare. Regarding import substitution, the government aims to decrease rice import bill to Rs 8 billion from Rs 14 billion for this fiscal and Rs 2 billion by 2016/17. For the third year, the government forecasts surplus rice production.

Regarding fruits and vegetables, imports of potato, onion, garlic, dried peas, chicken peas, apples, lime, lemon, and nuts amount to billions of rupees annually and hence, production, and processing of these crops should get priority. Though climate conditions are suitable to produce all these crops, past experience is not good. Their production was not made a campaign and the youth were not engaged in technology-based commercial farming.

To meet these targets, the government has focused on irrigation and mechanization. Compared to the targets, the proposed budget is inadequate and existing mechanism of program implementation is weak. There is no special program to improve implementation. Further, wheat, which is also an important crop, is generally grown after rice. Hence, it would have been better if this crop was included in the paddy mission, and the mission renamed 'paddy-wheat mission'. The government, however, has internalized the need of public, private and civil society stakeholders.

Decline in soil fertility all over the country is constraining production and productivity of these crops. The national average use of fertilizers is very low to meet the nutrient demand of these crops. So the focus needs to be on soil fertility management to increase production for import substitution.

It is good to note that emphasis has been given to construction of inter-watershed, water transfer and reservoir-based multi-purpose projects to provide irrigation service by expanding irrigated area for rice. But when these projects will be completed is uncertain. Further, the government has proposed irrigation services for all irrigable land within five years. But it is not clear whether the irrigation water will be available all-the-year round or it will be monsoon-based. However installing 7,100 shallow tube-wells in the vegetable pockets within a year is possible and it will greatly support vegetable production.

Non-conventional irrigation (NCI) for increased vegetable production has not been prioritized in the budget. NCI includes a range of technologies such as drip and micro-spray and is often used to irrigate high value crops.

Quality planting materials (seeds and seedlings) also play a vital role in increasing yields of crops including rice, vegetables and fruits. Existing seed replacement rate for rice at 4.4 percent is low. Only five percent of quality seed requirement of major food crops is met by formal sector. In case of vegetable seeds, domestic production meets only 50 percent of estimated vegetable requirement. Quality seedlings of desired varieties of fruit crops are also in short supply. Thus, unless there is improvement in the supply of production inputs, import substitution cannot be achieved.

Rice is a water-loving crop. Production decreases significantly whenever there is less water or untimely monsoon. This year, production of rice has decreased by five percent due to less rain. Furthermore, the policy is not fully supported by programs. Those programs in turn are not adequately supported by the new budget. Thus it is difficult to achieve surplus rice production within three years.

Similarly, meeting domestic demand of fruits in this period is also not possible unless there is financial support to small farmers during gestation period. However, the target of substitution of imported vegetables with domestic products can be achieved if existing vegetable production programs are effectively implemented.

bhairabr@gmail.com



Related story

As a Dalit girl is denied a room to rent, an int’l report highl...

Related Stories
My City

Styling tricks to make a small living room seem bi...

emily-henderson-la-bungalow-living-room-1-1526920978_20190921163354.jpg
SOCIETY

Breastfeeding room established at DAO

Breastfeeding room established at DAO
ECONOMY

Govt revises down growth forecast to 6 pc

Govt revises down growth forecast to 6 pc
ECONOMY

Growth rebounds strongly to 7. 5 percent in FY2017...

the world bank.jpg
ECONOMY

Govt projects economic growth of seven percent nex...

economy_20221231082731.jpg