The poverty scenario and Agriculture situation in Nepal
Poverty in Nepal is still deeply rooted. Poor in Nepal are of different socio-economic groups. Dalit and indigenous people are more poorer than the high-caste group. But all high-caste people are not rich. Similarly, not all lower cast people are poor or other wise disadvantaged. Geographally the mid and far western development region constitutes our strong manifestation of historical geographical exclusion that has effected every segment of population irrespective of caste, religion, sex from the main stream of economic development.
Regarding the overall national figure, an average of Rs.. 76,695 as the national poverty line according to Nepal living standard serve 2003\04 near about 30.85% of the population is remaining below the poverty line. In terms of purchasing power parity , which is calculated on the basis of an income one US dollar are day, the internationally adopted measurement standard bye world bank , about 24.1% of population is found to be living below the so called poverty line according to the same survey.According to the survey, among the poor people living below poverty line , 67 percent people were employed in agriculture and 11 percent were agriculture laborers .Therefore , 78 percent 0f the poor were those for whom the agriculture sector is the main source of employment and income generation. The disparity in the distribution of poverty among different caste/ ethnicity, 46 percent of Dalits,44 percent of Janajatis of Hills, 41 percent of Muslims, 31 percent Janajatis of Terai and the remaining 31 percent of other minority groups are living below the poverty line. Similarly, 14 percent Newars, 18 percent Brahmins, 21 percent of middle level groups of the Terai are living below poverty line (Three Year Interim Plan (2007/08 – 2009/10 ,83).
Since the mid-1980’s the government of Nepal has been implementing the policies of economic liberalization to encourage private sector for It’s involvement in economic activities. Poverty reduction has given the top priority as a policy focus since eight five year plan. However, there doesn’t seem any dramatic visible scene in reduction of poverty.
The economic growth has been concentrated primarily in the urban areas especially in Kathmandu valley. The latest census 2001 shows that 86% of the total population is living rural areas. The rural people are highly dominated from the exclusion of mainstream of economic development. So, poverty in Nepal is predominantly are rural phenomenon.
However poverty incidence has decreased over time. The main reasons for the decline in poverty rate are remittance income, fast growing urbanization, increase in agerage wage in the agricultuire sector, and increase in the number of economically active population. During FY 1995\96, percentage of urban population below poverty line was 21.6 percent which fell relatively sharply to 9.6 percent by 2003\04, but in the same period the population below poverty line in rural areas decreased to 34.4 percent from 43.3 percent. In addition, poverty gap in Nepal is estimated to be 7.6 percent and squared poverty gap as 2.7 percent which has shown in table 1.
Table 1: Poverty measures (1995/96-2003/04) (Percentage)
| Areas | Population Below Poverty | Poverty Gap | Squared Poverty Gap | |||
| 1995/96 | 2003/04 | 1995/96 | 2003/04 | 1995/96 | 2003/04 | |
| Urban | 21.6 | 9.6 | 6.5 | 2.2 | 2.7 | 0.7 |
| Rural | 43.3 | 34.6 | 12.1 | 8.5 | 4.8 | 3.1 |
| Nepal | 41.8 | 30.9 | 11.8 | 7.6 | 4.7 | 2.7 |
Source: ECONOMIC SURVEY FICAL YEAR 2008/09, GOVERNMENT OF NEPAL, JULY2009 (P81)
Poverty has strongly linked with agriculture in a rural dominated economy like Nepal since agriculture is the strong basis to alleviate poverty through sustainable economic development and making strong rural economy. Nepal is agro based country and majority of the people still depend on agriculture, which are has remained measure source of employment and income generation. Agriculture contributes the largest share to GDP at present sustainable development is not possible in the absence of agriculture development regarding this on denied able fact , the agriculture is accorded the top most priority in the previous development plans. Agriculture business promotion policy 2063 (2006) has been introduce aiming at fostering the national economy and making it more competitive in regional and global market for developing the strong foundation to make the agriculture sector more commercial and sustainable.
For the reduction in poverty, The Agriculture Perspective Plan was introduced. The plan has included out put growth export promotion income generating activities diversification of commercial centres and food security and had given priority to irrigation fertilizer facility increase specialization research and extension animal nutrition and veterinary services. The vision of the plan remained meaning less for the hill and mountain regions where the possibility of commercial agriculture in almost negligible and the output from agriculture is very low in relation to the Terrai region.
The absence of good governance increase in defense expenditure lack of basic physical infrastructure and mass unemployment all are responsible factors to create so high figure of poverty in the country.
Specialization in the agriculture sector is the key way to reduce poverty and food security existing the western hills. Food poverty has been we major challenge in Nepal during these years. Until 1970s, Nepal was a food surplus and exporting country and at the start of 1980s the food production was declined in relation to the growth of population and further the lack of state responsiveness to deal with the reason for the shortage of food. Nepal has turned from a food surplus country into food deficit country. Most households in the hill and mountains of Nepal annually experience lean seasons or food deficit from their own production.
Really, food insecurity is the most serious problem of the poor. The Agriculture Perspective Plan(App) estimated 41 0f the 75 districts of Nepal as being food deficit in 1996(APROSC &JIMA, 1995:193).Other estimates suggest the number of such districts to be far higher, as high as 55(Seddon and Adhikari, 2003: RRN/ Action Aid Nepal,(2002).Further climate change has created extra problem in production of food grain which will be more dangerous in future. Considering this challenge as an emerging issue the government should take the policy option to increase food productivity through agrarian reform which is the crux of the problem of Nepalese economy. On the one hand this will be helpful to fulfill the basic food commodity and on the other reducing poverty. Further more ,if irrigation facilities will make easily available and intensification of farming is practiced, Nepal can gain revolutionary economic changes through agriculture reform.
Some attempts are made in the recent years for agricultural development like one village one product programme, bird-flu control programme, co-operative farming programme and the co-operative store programme are the major activities in the area of agriculture.
One village one product programme is the concept based on Public-Private Partnership programme which has made remarkable achievement within three years of its implementation.Under this programme Ramechhap,Sindhuli, Nuwakot and Rasuwa were selected for sweet orange, rainbow trout fish, bel,lapsi respectively and further Agro- tourism programme is in operation in Lekhanath Municipality of Kaski district.Furthermore ,Simbidian Orchid farming Programme is iniciated in Lalitpur district.
Highly Pathogenic Avian Influenza(HPAI) H5NIvirus was decleared for the first time in Mechinagar Municipality ward no 10 of Jhapa was declared as virus affected district as per the bird-flu control declaration 2064(2007) of the government of Nepal. At that time , Chickens totaling totaling 23987 together with eggs,egg crates, chicken feed and other birds pigeons and Mainahs were destroyed and compensation for such destruction amounting to Rs 3,167,788 was also distributed.
The co-operative Farming Programme Manual,2065(2008) has been issued for the implementation of this programme .Anotice to this effect was published in 33 districts on the basis of its working procedures. Pig and Poultry farming programmes are being implemented under this programme in Bhojpur ,`Kathmandu ,Kaski,Dang, Bardia, Kailali, Banke and Saptari districts.
Co-operative Stores Operation Rules, 2065(2009) is in implementation.Subsequent to wide publicity made through Radio,TV,FM stations and Newspapers for awareness raising and proposals are invited with expectation of wider participation from the willing co-operative stores.
Regarding the production status, the production of major food crops ( rice,wheat,maize,millet and barley) increased by 740,000 MT (10.1%) in FY 2007/08 to 8,069,000 MT as compared to the previous year. The preliminary estimations show that the production of these crops will rise further by 46,000 MT (0.6 %) reaching 8,115,000.00MT in the current fiscal year as compared to the preceding fiscal year. The area covered by such crop in FY 2007/08 was 3,416,000 hectares, which was 3.4 percent increase in cultivated area. This figure is expected to reach 3,418,000 hectares by the end of current fiscal year. Despite the fact that wheat production fell by 14.5 percent in the current fiscal year, there has been, minor growth in the overall productions of food crops due to the production growth in rice by 5.2 percent, maize by 2.8 percent and millet by 0.7 percent.
On cash crops, the production of oilseeds (mustards, sunflower etc.) fell by 1.5 percent in FY 2007/08 to 134.000 MT as compared to the precious year. Preliminary estimations show that the production of these crops will increase by 1.5 percent totaling 135,000 MT this year. In FY 2007/08, area under such crops decreased by 2.2 percent totaling 184,000 hectares. as per the preliminary estimates, the area under this crop will reach to 181,000 hectares with minor increment in the current fiscal year. The area had decreased by 2.2 percent to 180,000 hectares in FY 2007/08. In FY 2008/09, there has been minor growth in the area under cultivation of potato, its production, and productivity as compared to that of last year, while area and production of sugarcane, tobacco, and jute crops are expected to fall in the same fiscal year (economic survey, 2009, 92).
References
Seddon,D and j Adhikari (2003), conflict and food security in Nepal: a preliminary analysis, Kathmandu ( an unpublished report prepared for RRN).
Government of Nepal, Ministry of Finance (2009). Economic survey, Fiscal year 2008/09. Ministry of finance.
