By A Staff Reporter
Kathmandu, May 29: Contribution of the agricultural sector (agriculture, forest and fisheries) in total gross domestic product is estimated to be 25.8 per cent in the current fiscal year 2020/21.
The contribution of the agricultural sector to the GDP has been steadily declining over the years. The share of agriculture sector to the GDP was 32.7 per cent in 2012/13. Involvement of people in the agricultural sector is also gradually declining due to the increasing use of technology and professionalism in agriculture and expansion of the service sector.
According to the Nepal Labour Force Survey of 2008, 73.9 per cent of the population was engaged in agriculture sector, but in 2018 the proportion has dropped to 60.4 per cent.
The country has become self-reliant in chicken, eggs and powdered milk in the current fiscal year.
According to the economic survey of the current fiscal year published by the government Friday, the share of food crops has been higher in total agriculture production.
In total agriculture production of the current fiscal year, the share of food crops is 44.9 per cent, of vegetables 17.2 per cent, of cash crops 14.7 per cent, industrial crops 13.7 per cent and others 9.4 per cent.
Production of spices, vegetable, cash crops, fruits and honey has increased while production of food crops, pulses and industrial crops has declined.
Of all the agricultural crops, productivity of vegetable is high while that of industrial crops is low.
Food cultivating area had also increased by 0.5 per cent in the fiscal year 2020/21 compared to the fiscal year 2019/20. The area increased in the current fiscal year as many people living in the urban areas returned to villages because of COVID-19 pandemic and engaged in farming in villages.
During the review period, production and productivity of honey, spices crops, vegetables and fruit have increased by 7 per cent, 6.4 per cent, 5.9 per cent and 4.4 per cent respectively.
However, due to the lack of winter rain, production of industrial crops, pulses and food crops declined by 2.8 per cent, 1.7 per cent and 0.1 per cent respectively.
The production of paddy has increased by 1.28 per cent and maize by 3.22 per cent. Likewise, the production of vegetables is estimated to increase by 5.9 per cent to 4.19 million tonnes.
Similarly, production of fruit is estimated to increase by 4.4 per cent to 1.3 million tonnes in the current fiscal year compared to last fiscal year. Production of fruits had increased by 6.1 per cent last fiscal year.
In the current fiscal year, fish production is estimated to be 103,000 tonnes. During the mid- March of the current fiscal year, milk production has reached 1,623,000 tonnes.
Various agricultural insurance programmes have been implemented since 2012 with a view to increase the attraction towards the agri-business by providing protection to the investment made in agricultural sector against the damage of agricultural crops and livestock from natural and other disasters.
Crop insurance and livestock insurance have also been included under agriculture insurance since fiscal year 2013/14.
By mid-March of this fiscal year, the amount of grant subsidy has reached Rs. 19.3 million for the insurance premium under food crops. Similarly, the government has paid Rs. 50 million as premium subsidy under livestock and fishery insurance scheme.