"We Have To Focus On Natural Capital Advantage"
Dr. Hari Krishna Upadhyay
Dr. HARI KRISHNA UPADHYAY, Chairman of Center for Environment and Agricultural Policy Research, Extension and Development (CEAPRED), has made a significant contribution in Nepalese agriculture sector by introducing programs to transform it from subsistence-based to market-orientated. Former member of National Planning Commission, Dr. Upadhyaya spoke to KESHAB POUDEL on various issues including the role of CEAPRED in the poverty alleviation program. Excerpts:
How would you see future scenario in agriculture sector following the restoration of peace in the country?
If past trend continues and business goes as usual, it is very difficult for us to achieve high and pro-poor economic growth which we need to achieve in the context of new Nepal . The early indications show that the situation in the country will not remain as usual given the tremendous development potential in Nepal. In a relatively comfortable socio-political scenario, we will achieve pro-poor high growth.
How will you achieve it?
If we shift our agricultural system towards more natural ecological advantages, making it more responsive to our competitive advantage, we can bring the changes. The issue of linking north-south corridor is important for this.
Where do we need to focus?
We must focus on agriculture in which most of Nepalese people are dependent upon. We need to reinvent rural sector. For this we need to change the present subsistence-based traditional agriculture system.
How competitive the agriculture market is going to be in future?
Nepal is now a full-fledged member of World Trade Organization which means Nepal is subjected to rules and regulations defined by WTO regime. Nepal is also a member of BIMSTEC and also a member of SAFTA. Being a member in all these trading blocs, Nepal is in a very difficult situation but at the same time it also poses a very favorable situation. It will face difficulty in view of requirement to become competitive.
How do you see the future of traditional crops?
Many commodities – which Nepalese farmers traditionally produced like cereal crops and maize - are not in a position to survive in markets where they have to compete with the production of highly subsidized farmers from across the border. Even if we produce more rice, more maize, we will not be able to compete with the farmers across the border because they are receiving subsidies. Moreover, they have much larger economy of scale compared to ours. Our production pockets are very scattered and small in which each individual farmer can produce only a couple of kilograms whose cost of production is very high.
How can we make market favorable?
We have natural and ecological capital. If we continue to produce what we have been producing in the past, if we continue our agriculture system in the same mode and same pattern which we have been doing since ages, then we will not able to compete in the regional market as well as in the domestic market because we cannot block the commodities from outside. If we get cheaper apple from Kashmir , nobody will pay high price for apples brought from Jumla or Mustang.
What do Nepalese farmers need to do?
Again, there is a need to reorient agriculture system to tap natural ecological capital or climatic diversity. Then, Nepalese farmers can compete with anybody. During the time Nepalese produce certain commodities, farmers across the border or in other regional market cannot produce them because of the climate. The diversity - which Nepal has in north and south in a distance of few kilometers – is unique. One can find temperatures ranging from tropical and warm in the south to cold temperature in north. This is the advantage where one can produce various commodities ranging from sub-tropical to warm temperate climate. If we specialized in the commodities that have absolute natural comparative advantages because of the natural capital, then we don't have to compete with others. This is where I see advantages of north south economic road corridor.
Can you elaborate the advantage of north-south road corridor?
Traditionally, our road networks have been dominated by east west high way. The roads - which opened up access to wider market – are there but the producers have to compete with each other in the market as all of them have been producing similar commodities. The basic advantage we can enjoy by linking the north-south corridor is that the producers don't have to compete among themselves in particular market because they produce different commodities.
How do you see Surkhet-Jumla road corridor?
Surkhet-Jumla road corridor - where we have started some activities based on north south corridor development approach – is one of the most potential areas. For example, in a particular part of the year, Surkhet produces certain commodities what Jumla cannot produce because the temperature of Jumla is much lower and vice versa. If you can develop the production system in a way that links the opportunities existing in Jumla to market of Surkhet and further down to the market of Nepalgunj up to the market of India, then the opportunities that you can tap because of natural capital can be led to trigger better growth not only in Jumla but also across the corridor. So, there are built-in market linkages as well as production synergies among the districts falling in the same corridor. We have already launched Local Livelihood Program (LLP) as a pilot program designed to benefit poor farmers living in North South corridors of Surkhet-Jumla and Chhinchu-Jajarkot road corridor with support from International Fund for Agriculture Development.
What does competitiveness involve?
There are only two ways to compete to us to remain competitive. One is to produce what others cannot produce; like producing cauliflower during July which farmers in plain or across the border cannot produce and focus on commodities that depend on our specific climatic conditions. Another way to remain competitive is to produce any commodity that does not use inputs which increases the cost of production. If Nepalese farmers have been producing rice without subsidies in irrigation, electricity, fertilizes and chemicals, they cannot compete with Indian rice which produce by using heavily subsidized fertilizers, irrigation, electricity and chemicals.
What will be the alternative then?
Organic farming is the best alternative. If we produce rice without using any chemical fertilizers, this will be organic and it has its own market. Nepalese farmers have already started to export organic coffee and tea but the production is still limited comparative to the potential available in Nepal . We are promoting this concept in CEPARED. Our concept is to build an organic village which can produce all products organically.
As politicians of all sorts have been talking about new Nepal , how do you visualize new Nepal ?
All of us want our country to be a sovereign, prosperous, peaceful and equitable. The word may vary to define what basically new Nepal means but every one must have those elements in their mind. In the center of this concept should be prosperity. If you are not prosperous or if you are operating in very low equilibrium or low growth scenario, poverty is bound to exist. Peace without prosperity is like life without vitality.
As a founding founder-chairperson of CEAPRED how do you feel about your achievement?
Of course, there is an element of satisfaction. But, I don't see this as being sufficient ground for us to be complacent. We could have definitely done better and achieved more than what we have achieved. Given the social, economic and political context, we have been operating in the past ten years particularly in reference to conflict. It was not so convenient for mobility. Whatever limited achievement we have achieved does provide a certain degree of satisfaction.
As you have recently celebrated a ceremony to mark 17 years of CEAPRED, how do you see the growth of your organization?
CEAPRED has grown in size, institutional capacity and strength, and it has grown in its outreach and coverage of the people. It is now working with close to half a million people. As an institution that is widely referred as a successful story, it is a matter of satisfaction. We are proud to say that the previous South Asian Poverty Alleviation Report included CEAPRED as one of the best institutions in the region. There is enormous amount of interest emerging among people from outside both government, non-government, private as well as other sectors in what we are doing and how we are doing. These are some elements of satisfaction.
What lessons have you learnt from your experience?
We started with off season vegetables back in 1990/91 in Dharan-Basantapur highway that led to wide replication. It is now standardized. After that, we decided to go on vegetable seeds, which have also been standardized. In this line, we thought of north south corridor. This has been spelled out in government plans and policies also. Tenth Plan and agriculture policy also talk about this. If this new innovation succeeds, it will not only lead to economic benefits, poverty reduction and livelihood but also more social harmony will be there.
