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AGRICULRURE
Commercialization Is The Key

By KESHAB POUDEL

Ghanashyam Kharel, a resident of Panchkhal Village development Committee, about 60 kilometer east of capital Kathmandu, does not have to worry about the untimely rain and its implication on annual production. Frustrated by low productivity of traditional crops like rice and wheat because of uncertain monsoon pattern, he has switched to market-oriented products like vegetables.

Although prices of food stuffs have gone up by more than 50 percent in the last one year, Kharel, who holds just about 3 ropanies of land, makes enough money by selling vegetables to buy food. Along with spending money in buying foods and paying health and education bills, he is also able to save.

"I am generating enough money to buy food, pay medical and education fees," said Kharel. "I have been producing vegetables all the year round. Because of uncertainty of monsoon rain, the production of rice fluctuates from time to time whereas the vegetable production is rising with the use of fertilizers."

Kharel is not the only farmer in Panchkhal valley to have switched to vegetable production. A large number of farmers have already moved from subsistence-based traditional agriculture to market-oriented and income generating products. Since Arniko highway links Panchkhal with a big market of Kathmandu, farmers have hundreds of choices.

Growing population and increasing affluence have increased the items in the food and vegetable menu in the kitchens of middle class people. Susbsequently, more farmers living in the surrounding areas like Panchkhal, Trishuli, Makwanpur and Dhading have marketed their products successfully.

"You can produce various kinds of vegetable in a very short duration like pumpkin, cucumber, cabbage, cauliflowers and tomato. Tomato is a big attraction," said Kharel. "There are more risks in paddy production, which needs a long duration."

The case of Krishna Ram Rijal of Dhake village, 30 kilometer west of Kathmandu is not different than Kharel. Rijal has been producing vegetables for eight months out of a year while he plants paddy once a year since 1985. "The combination of paddy and vegetables help me a lot," said Rijal, whose market has extended even across the border into India.

"Whether there is a good monsoon or bad monsoon, my production remains constant. Thanks to irrigation facilities available through the local river, there is abundant water," said Rijal. “When I grow vegetables in winter, spring and autumn, I don't need much water. I plant paddy, which requires a huge volume of water, during the monsoon season.”

Seti Tamang of Palung village, 70 kilometers south west of capital, can afford the rising food prices. "Although the prices of rice and maize have gone up by many times, my income generated through the vegetable production is helping me meet the demand. Had I continued to follow the subsistence-based agriculture, my family would have starved," said Tamang. "The maize produce in the hill is very expensive than the maize production in plain."

Compared with rice and wheat, potatoes, tomatoes and other vegetables require nominal water. Unlike the duration for rice, wheat and maize, the vegetable production duration is also short. "If there is a shortfall of rain, rice production can drastically decline. However, there is very nominal loss in the vegetable production," said Kharel.

Change In Weather Pattern

Various studies have shown that climate change is going to have major implication in agriculture sector as the change in monsoon pattern may badly hit subsistence agriculture. The monsoon pattern varies every year. When the monsoon is weak, the production declines drastically.

With more than 65.6 percent of population engaged in the agriculture, it remains the major contributor for Gross Domestic Product (GDP). It contributes around 35 percent of the GDP. The Statistical Information on Nepalese Agriculture 2005/2006, published by Ministry of Agriculture and Cooperatives, show that out of 3364139 hectare of agricultural holdings, only 1031137 hectare is irrigated. This shows that monsoon is still the determining factor for annual agricultural production directing the national economy.

According to a report prepared by Asian Development Bank Nepal Resident Mission for the year 2007, inclement weather continued to hamper agriculture in FY 2007 which decelerated to 0.7 percent from 1.1 percent the previous year. Poor monsoon rains caused paddy output fall by 12.5 percent. They also affected other major crops such as potatoes and oil seeds.

Production of Traditional Crops

There have been ups and downs on agriculture productions. Although the total volume of traditional crops have increased, it cannot meet the demands of growing population. According to statistics of 1984-85, the paddy was cultivated in 1376860 hectares producing 2709430 metric tons of rice. The yield was 1968 kg per hectare. Likewise, maize was planted in 578720 hectare with 819850 metric tons of production and 1417 kg yield per hectare. Millet occupied 134370 hectare of land producing 124430 metric tons with 826 kg yield per hectare. Wheat occupied 451890 hectare of land producing 533720 metric ton with 1181 kg yield per hectare. Barley was planted in 27390 hectare of land producing 13460 metric tons with 857 kg per hectare yield.

According to 2005/2006 data, the overall production of all the traditional crops have significantly increased. During the period, the paddy was planted in 1549447 hectare producing 4209279 metric tons of production with yield of 2717 kg per hectare. Similarly, maize, millet, wheat and barley were cultivated in 849892, 258839, 675807 and 26428 hectares, respectively. Their yield and production have also drastically increased. However, the population has also gone up from about 16 million in 1985 to 26 million now. The production is barely sufficient to feed all the population.

As the uncertainty of rain pattern and fluctuating prices of rice, maize and wheat produced in low land, vegetable has emerged as a competitive product for the farmers in upper hill. As more farmers are moving towards vegetables, the production has drastically increased. According to statistics, in 1984/85 farmers grew vegetables in 140500 hectares of land producing 1127884 metric tons with the yield of 8028 kg per hectare. In the year 2005-06, the area increased to 189832 hectare with 2190100 metric tons of production with the yield of 11537 kg per hectare.

As the country's traditional production has failed to meet the demands, more money is required to import food items. According to the Ministry of Agriculture and Cooperatives, the nation needs 5.2 million metric tones of food grain- rice, wheat and maize. The yield was 5.2 MMT last year and the deficit was met by importing food from India and Bangladesh. The production of rice has increased by 17 percent this year but the production of maize has not increased. The production of wheat will depend on monsoon trend.

"We must opt for commercialization of the farm sector. FNCCI is working with the government to prepare a long term plan on this," said Kush Kumar Joshi, president of Federation of Nepalese Chamber of Commerce and Industry. “Commercialization motivates farmers to be competitive and innovative."

From fertilizers to irrigation, farmers from other countries get heavy subsidies whereas farmers in Nepal have to pay higher bill for electricity, fertilizers and seeds. The low use of fertilizer and old varieties of seeds are major reasons behind the slow progress in the annual productivity.

"The commercialization of agriculture is the way out to address the long term challenges. We cannot increase annual production and compete in the market just following subsistence farming," said Dr. Shanker Sharma, former vice chairman of National Planning Commission. "You must link agriculture with markets."

WFP's Forecast

According to the United Nations World Food Programmed (WFP), in the last few decades, Nepal has become a food deficit country. Yields per hectare have not been able to keep up with the rapid growth in population and the country has had to export from neighboring India to fill the gap.

Since the 1990s, Nepal has been growing steadily dependent on food imports. "Food, fertilizers, pesticides and even seeds -- we are so dependent on India and other countries that any price fluctuation in the international market is going to have a huge impact on prices here in Nepal," says Jagannath Adhikari, a food security expert.

Nepal imports over Rs 2 billion (30.7 million US dollars) worth of rice and Rs 50 million (769,000 dollars) worth of wheat every year to help feed its population.

"We are most worried about the effect that rising prices are having on Nepal's eight million poor -- those who typically spend more than 80 percent of their income on food. For these families any increase, much less a 40 percent increase, in food prices spells disaster," says Richard Ragan, country representative of the World Food Programmer (WFP) in Nepal.

WFP has been working in Nepal for 41 years and last year it fed nearly two million Nepalese. Its recent report says that in 2006, drought and other natural disasters resulted in a national 13 percent cereal production deficit, in summer of 2007 paddy harvest bounced back with estimated 17 percent increase as compared to the year before.

But, despite these good crop yields, food prices have increased significantly leaving millions extremely vulnerable. WFP estimates that the number of Nepalese struggling with food security has doubled from four million to nearly eight million people.

Experts argue that the government can take a number of steps to protect those living on the razor-thin line of poverty. Nepal needs to quickly adapt initiatives that build households food security like developing small scale irrigation projects, providing improved feed stacks and other agricultural inputs to farmers.

Efforts of NGOs

Realizing the need to make the difference in the rural life, many Non Governmental Organizations and International Organizations have been encouraging farmers to switch to new system. Run by renowned agro-economist Dr. Hari Krishna Upadhyaya, Center for Environment and Agricultural Policy Research, Extension and Development Center (CEAPRED), has been implementing the programs in many parts of the country promoting vegetable and vegetable seeds as an alternative to subsistence farming.

After making successful impacts on the life of farmers of eastern region through the off-season vegetables, the CEAPRED has now been working in Kavre, Dolakha, Surkhet, Dadeldhura and Baitadi. The organization has already launched programs in mid-western region along Karnali road.

Practical Action, a UK based International Non-governmental organization is also promoting farmers to adopt alternative agriculture. At a time when majority of

people in rural villages are struggling for enough food to sustain their livelihoods; and bearing consequences of climate change, Practical Action has been launching programs focusing towards the accessibility of food and use of alternative technologies.

The Food Security Monitoring and Analysis System of the World Food Programme (WFP) has reported that average household food stocks have gone down by half in 38 districts in the last three months (November 2007 to January 2008) compared to the same period a year earlier.

"One cannot stop the implications of global warming. What we need to do now is opt for diversification of crop," said Bhola Man Singh Basnet, spokesman and agriculture scientist of Nepal Agriculture Research Center (NARC).

"The diversification of agriculture and commercialization is essential to bring the change. The government has been making every effort to modernize the agriculture system," said Hari Dahal, spokesperson of the Ministry of Agriculture.

The programs implemented in various parts of country show that commercialization of agriculture is the key to meet the challenges of food crisis and global warming.


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