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Home Prime News

Paddy Plantation Area Shrinks as Farmers Shift to Cash Crops

CEO Tab by CEO Tab
June 29, 2025
in Prime News
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Nepal records highest quantity of paddy production this year
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Nepal is witnessing a decline in paddy plantation area this fiscal year (2024/25), as more farmers pivot toward cash crops due to low returns from traditional rice farming, according to the Department of Agriculture (DoA).

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Key Highlights:

  • Estimated paddy plantation area:
    FY 2024/25: 1,395,207 hectares
    FY 2023/24: 1,438,989 hectares
    ⮕ Drop of 3.04% (≈43,782 hectares)
  • Reason for the shift:
    Farmers are increasingly opting for higher-value crops, citing low profitability in paddy production.
  • DoA Director General Prakash Kumar Sanjel stated that the economic appeal of cash crops has led to a visible shift in cropping patterns, continuing a trend observed last year as well.

Province-wise Paddy Plantation Projections:

ProvinceEstimated Area (hectares)
Madhesh383,150
Lumbini302,889
Koshi276,386
BagmatiN/A
GandakiN/A
SudurpashchimN/A
Karnali41,904

Early Season Progress (As of Friday):

  • Sudurpashchim: 45.49% completed
  • Bagmati: 20.53%
  • Karnali: 20.11%
  • Gandaki: 13.79%
  • Lumbini: 9.66%
  • Koshi: 5.96%

Implications:

Nepal is likely to fall short of self-sufficiency in rice production, further increasing its reliance on imports. In the first 10 months of FY 2024/25 alone, the country:

  • Imported 201,916 tons of rice (worth Rs 15.76 billion)
  • Imported 496,989 tons of paddy, including seeds (worth Rs 19.77 billion)

Government Response:

To address the shortfall, the government is promoting spring paddy (Chaite dhan), which is cultivated with irrigation. Currently, it is being grown on 110,000 hectares, with aims to double the area to help close the production gap.

This shift in cropping trends signals a critical transition in Nepal’s agricultural priorities, with a need for policy adaptations to ensure food security while supporting farmers’ livelihoods.

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