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Nepal’s Self-Reliance in Paddy Production Questioned Amid Rising Imports and Slow Yield Growth

CEO Tab by CEO Tab
June 30, 2025
in Prime News
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Despite a public commitment by Agriculture Minister Ramnath Adhikari to achieve paddy self-sufficiency within two years, government data paints a much more pessimistic outlook. Speaking at a program marking National Paddy Day, Minister Adhikari promised that the government would move beyond rhetoric and “materialize its promises” for the benefit of farmers.

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However, a closer examination of the latest data from the Ministry of Agriculture and Livestock Development (MoALD) reveals a stark mismatch between production and consumption trends, raising doubts about the feasibility of the government’s target.

Key Figures and Trends:

  • Annual paddy production: 5.955 million tons
  • Annual consumption demand: 7.008 million tons
  • Deficit: 1.053 million tons (fulfilled primarily through imports)
  • Growth in imports over past decade:
    • Quantity: 24.5%
    • Monetary value: 38%
  • Growth in domestic production: ~2% per annum

MoALD Projections:

  • By 2035, Nepal’s paddy production needs to increase by 70% to meet expected demand of 99.7 to 102.6 million tons per annum.
  • Land productivity is expected to increase only marginally from the current average of around 4 tons per hectare.
  • Land under paddy cultivation is declining at 0.36% annually, posing a serious structural threat to growth.

Current Challenges:

  • Shrinking arable land
  • Low land productivity
  • Rising production costs
  • Climate change impacts
  • Water scarcity
  • Spread of invasive pests

Government’s Strategy:

Minister Adhikari emphasized the promotion of spring paddy (Chaite Dhan) as a means to supplement monsoon paddy shortfalls. Ram Krishna Shrestha, joint-secretary at MoALD, stated that the government is focusing on:

  • Promoting spring paddy in 22 districts
  • Providing assistance in irrigation, mechanization, and storage
  • Offering subsidized credit and insurance schemes
  • Ensuring timely fertilizer and seed supply
  • Implementing minimum support price (MSP) and buy-back guarantees

Economic Importance:

  • Annual value of paddy production: Rs 220 billion
  • Contribution to GDP: 4%
  • Contribution to agricultural GDP: 15%

Conclusion:

While government efforts and policy commitments are commendable, the reality of slow production growth, structural limitations, and increasing dependence on imports suggest that achieving self-reliance in paddy production within two years is highly unlikely without dramatic improvements in productivity, land management, and input supply chains.

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