Agricultural Transformation in Nepal

Ganesh Thapa • Anjani Kumar • P. K. JoshiEditors

Agricultural Transformationin NepalTrends, Prospects, and Policy Options

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EditorsGanesh ThapaVisiting ScientistInternational Centre for IntegratedMountain Development (ICIMOD)Patan, Nepal

Anjani KumarResearch FellowInternational Food PolicyResearch Institute (IFPRI)New Delhi, India

P. K. JoshiFormer Director, South Asia OfficeInternational Food PolicyResearch InstituteNew Delhi, India

ISBN 978-981-32-9647-3 ISBN 978-981-32-9648-0 (eBook)https://doi.org/10.1007/978-981-32-9648-0

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Foreword

Agriculture is a vital sector of Nepal’s economy for the achievement of goalsrelated to food security, employment generation and poverty reduction. However,this sector’s performance during the last two and half decades, as measured by thegrowth in total factor productivity, has lagged behind that of its South Asianneighbours. At the same time, as in other developing countries, the demand forfood, particularly high-value food commodities, has increased due to risingincomes, urbanization and diet diversification. As domestic food production has notkept pace with rising food demand, the country has turned into a net importer offood, both staples and high-value commodities.

The decade-long armed conflict and a long political transition that followed hadan enormous adverse effect on the agriculture sector in Nepal. The promulgation ofnew constitution and completion of elections have provided much-needed politicalstability that is crucial for development. However, the agriculture sector faces anumber of challenges, some of which are structural while others are new chal-lenges. Farmers, particularly smallholders, have poor access to technology, inputsand credit. The second challenge is to enhance the participation of smallholders inthe production of high-value commodities. They are constrained by high transactioncosts, low capacity to bear risk and low access to inputs and information. Anemerging challenge is the potential impact of climate change on smallholders, whoare the most vulnerable to floods, droughts and other extreme events.

Despite these challenges, several new opportunities have opened up, which canhelp in boosting agricultural production and productivity sustainably and inensuring the inclusion of smallholders in the production of high-value agriculturalproducts. As a result of rising demand for high-value commodities, farmers’ incomeenhancement opportunities have grown significantly. Remittance flows to ruralareas have increased significantly in recent years due to high level of migrationfrom rural areas to other countries. Available evidence shows a positive impact ofremittances on agricultural development and rural livelihoods. However, only asmall proportion of remittance flow is currently invested in agriculture andrural development. Therefore, potentials exist to significantly increase the useof this resource for investment in agriculture and other rural enterprises.

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Many technological and institutional innovations are now available for agriculturalproductivity enhancement and to help smallholders benefit from high-value agri-culture and adapt to the effects of climate change. These include mechanicaltechnologies, climate-smart agricultural technologies and information and com-munication technologies.

Although there has been scattered research on the various dimensions of thechallenges and opportunities in the agriculture sector, it is generally felt that there isa lack of comprehensive and analytical research, which can provide evidence-basedpolicy directions to the government and other stakeholders to formulate andimplement appropriate policies, programmes and projects. This book tries to fillthat gap.

This book covers topics related to macro-issues affecting agriculture, agriculturalproductivity growth, agricultural diversification, trade and marketing and institu-tions and governance. Some chapters of this book present the findings of researchcarried out under the Policy Reform Initiative Project for Agricultural Developmentand Food Security in Nepal, funded by USAID and implemented by IFPRI incollaboration with Nepal’s Ministry of Agricultural Development between 2014and 2019. Some others were sponsored by IFPRI for the purpose of this book,whereas a few chapters were the work of individual research by the authors.

The chapters included in this book try to analyse the important issues andprovide answers to questions surrounding new developments and emerging chal-lenges in Nepal’s agriculture sector. Based on such analyses, they provide policyoptions for the government and other stakeholders to formulate and implement newpolicies, programmes and projects for the development of the sector. I would like tocongratulate the editors for their hard work in bringing out this work. I am confidentthat this book will stimulate discussions among various stakeholders and willcontribute to evidence-based policy-making.

November 2019 Yubak Dhoj G. C., Ph.D.Secretary

Ministry of Agriculture and Livestock DevelopmentGovernment of Nepal, Kathmandu, Nepal

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Acknowledgements

This book is an outcome of the efforts of several colleagues from National Systemsand international organizations, along with various policy-makers. We greatlyacknowledge the support of donors that include USAID and IFPRI. This work wasalso undertaken as part of the CGIAR Research Programme on Policies, Institutionsand Markets (PIM). The opinions expressed here belong to the authors and do notnecessarily reflect those of USAID, IFPRI or PIM. We would like to thank thegovernment departments and ministries and the academicians from national insti-tutions who provided the intellectual inputs that shaped this book and added valuein many ways.

We profusely thank the authors for their excellent contributions and timelycompliance with several deadlines. We express our sincere gratitude to ShriMadhab Karkee, who contributed immensely from conceptualization of themes,identification and coordination with the authors. The coverage of different themeson agricultural development in Nepal requires a spectrum of expert knowledge andpolicy discourse. We hope that this book will contribute to add value in Nepal’sgrowth trajectory.

Last but not least, we are grateful to Ms. Nupoor Singh and her team for theirmeticulous efforts in bringing out this book.

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Contents

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Ganesh Thapa, Anjani Kumar and P. K. Joshi

Part I Macro-issues in Agriculture

2 Structural Transformation and Growth: Whither Agriculturein Nepal? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Ramesh Paudel and Swarnim Waglé

3 The Role of Agriculture in Poverty Reduction in Nepal . . . . . . . . . 27Ganesh Thapa, Raghav Gaiha and Katsushi Imai

4 Household Food Expenditure, Dietary Diversity, and ChildNutrition in Nepal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Anjani Kumar, Ganesh B. Thapa and P. K. Joshi

5 Food Inflation in Nepal and Its Implications . . . . . . . . . . . . . . . . . . 91Ramesh Sharma

6 Climate Change Impact on Agricultural Sector of Nepal:Implications for Adaptation and Resilience Building . . . . . . . . . . . 119Ganesh R. Joshi and Binaya Joshi

Part II Productivity Growth and Its Drivers

7 Food Demand System and Projections to 2035: Nepal . . . . . . . . . . 159Praduman Kumar, Anjani Kumar and P. K. Joshi

8 Seed Sector Development in Nepal: Opportunitiesand Options for Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199Devendra Gauchan

9 Use of Chemical Fertilizers in Nepal—Issues and Implications . . . . 231Hiroyuki Takeshima

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10 Agricultural Mechanization in Nepal—Patterns, Impacts,and Enabling Strategies for Promotion . . . . . . . . . . . . . . . . . . . . . . 261Hiroyuki Takeshima and Madhusudan Bhattarai

11 Agricultural Research and Extension System in Nepal:An Organizational Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291Suresh Chandra Babu and Ram Pratap Sah

Part III Agricultural Diversification

12 Agricultural Diversification in Nepal . . . . . . . . . . . . . . . . . . . . . . . . 323Champak Pokharel

13 Non-timber Forest Products (NTFP) and Agro-forestrySubsectors: Potential for Growth and Contributionin Agriculture Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385Madhav Bahadur Karki and Chhote Lal Chowdhary

14 Impact of Migration and Remittances on Agriculture:A Micro–Macro-analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 421Amina Maharjan and Beatrice Knerr

Part IV Agricultural Trade and Marketing

15 Trends, Structure and Drivers of Nepal’s Agricultural Trade . . . . 443Ramesh Sharma

16 Agricultural Marketing and High-Value Chains: Enhanced Rolefor Private Sector Towards Value Chain Integration . . . . . . . . . . . 475Rajendra Adhikari

Part V Agricultural Trade and Marketing

17 Agrarian Relations, Institutions, and Land Reform in Nepal . . . . . 503Jagannath Adhikari

18 Agricultural Credit and Insurance in Nepal: Coverage, Issues,and Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 529Nara Hari Dhakal

19 Nepal’s Changing Governance Structure and Implicationsfor Agricultural Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 573Jordan Kyle and Danielle Resnick

Part VI The Policy Agenda

20 Concluding Chapter: The Policy Agenda . . . . . . . . . . . . . . . . . . . . 603Ganesh Thapa, Anjani Kumar and P. K. Joshi

x Contents

Editors and Contributors

About the Editors

Dr. Ganesh Thapa worked for the International Fund for AgriculturalDevelopment (IFAD) from March 1998 to April 2014 as the Regional Economistfor Asia and the Pacific region and as the Country Programme Manager for NorthKorea. He is currently a Visiting Scientist at the International Centre for IntegratedMountain Development (ICIMOD). He holds a Ph.D. in Agricultural Economicsfrom Cornell University, USA, and degrees from the University of the Philippinesand G.B. Pant University of Agriculture and Technology, India. As the RegionalEconomist, he led IFAD’s work on policy analysis and strategy formulation foragricultural development and rural poverty reduction in Asia and the Pacific region.Prior to joining IFAD, he worked as the Country Director for Winrock Internationalin Nepal and led a project on policy analysis in agriculture and natural resourcemanagement. He has also worked as a Senior Economist for the Ministry ofAgriculture, Nepal. He has conducted research and published books and articles onsuch topics as risks, vulnerability, and poverty reduction; sustainability of micro-finance; indigenous peoples and poverty reduction; effects of new agriculturaltechnologies on income distribution; constraints on agricultural marketing; and foodsecurity and environmental policies.

Dr. Anjani Kumar is a Research Fellow with the South Asian Chapter of theInternational Food Policy Research Institute (IFPRI) based in New Delhi, India. Heobtained his Ph.D. in Dairy Economics from the National Dairy Research Institute(NDRI), Karnal, India, and has over two decades of research experience in dairyeconomics, trade, food safety issues, food and nutrition security, agriculturalgrowth, etc. He has to his credit several awards including the Lal Bahadur ShastriYoung Scientist award, and awards from the Dr. R. T. Doshi Foundation andNational Academy of Agricultural Sciences. Prior to joining the IFPRI, he was aPrincipal Scientist at the National Institute of Agricultural Economics and Policy

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Research (NIAP) and at the International Crops Research Institute for theSemi-Arid Tropics (ICRISAT). He also worked as a Senior Agricultural Economistwith the International Livestock Research Institute (ILRI).

Dr. P. K. Joshi is Former Director, South Asia, of the International Food PolicyResearch Institute (IFPRI). He previously served as Director of the NationalAcademy of Agricultural Research Management (NAARM) and National Instituteof Agricultural Economics and Policy Research (NIAP). He holds a Ph.D. inAgricultural Economics from G.B. Pant University of Agriculture and Technology,Pantnagar, India. He has more than four decades of research experience in tech-nology policy, research evaluation, impact assessment, agriculture marketing,institutional innovation, water markets, trade, etc., and is a recipient of severalawards such as the Professor R. C. Agarwal Lifetime Award, Dr. M. S. RandhawaMemorial Award of the NAAS, D.K. Desai Award of the Indian Society ofAgricultural Economics, and Dr. R. T. Doshi Foundation Award.

Contributors

Jagannath Adhikari is an academic and researcher. At present, he is an adjunctfaculty at Curtin University of Technology, Perth, Australia. He also teaches assessional academic at University of New South Wales, Sydney, Australia. Hecompleted his Ph.D. from The Australian National University, Canberra, Australia,in 1995. For over a decade he worked as independent researcher with frequentassignment as visiting professors in various universities outside Nepal. He hasauthored/co-authored over a dozen books and many journal articles on themes likeagriculture development, land reform, agrarian change, food security, and migration& development.

Rajendra Adhikari is a Research Fellow in Value Chain Management at theUniversity of Tasmania, Australia. Prior to this fellowship, he was the JointSecretary and Chief of Policy and International Cooperation Coordination Divisionin the Ministry of Agricultural Development Nepal. He has more than 20 years ofexperiences in agricultural policy analysis, planning, monitoring and evaluation ofdevelopment interventions as well as agricultural extension. His current research ismainly directed towards agribusiness value chain analysis and modelling, innovationand entrepreneurship, agrifood actors’ behaviour and practices, linking farmers tomarkets and consumer research. He has got extensive experiences of working withbilateral and multilateral development agencies in Vietnam, Australia and Nepal.

Suresh Chandra Babu is a Senior Fellow and Head of Capacity Strengthening atthe International Food Policy Research Institute (IFPRI) in Washington, D.C. He isalso an Extraordinary Professor of Agricultural Economics at the University ofPretoria, South Africa. Before joining IFPRI as a research fellow in 1992, Babu was

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a research economist at Cornell University. He has published 20 books andmonographs and more than 100 peer reviewed journal papers on food andagricultural policies in developing countries. Over the for the past 30 years he hastrained more than 10,000 professionals in food, nutrition, agricultural and naturalresource policy analysis through face to face courses in more than 50 countries.Dr. Babu received his Ph.D. and M.S. both in Economics from Iowa StateUniversity, where he was awarded the Outstanding Young Alumnus Award for hisservices to global development. He completed his M.Sc. (Ag) in AgriculturalEconomics from the Tamil Nadu Agricultural University and B.Sc. (Ag) fromAnnamalai University in Tamil Nadu, India.

Madhusudan Bhattarai is a former principal scientist (economist) for theMarkets, Institutions and Policies Research Program at the International CropsResearch Institute for the Semi-Arid Tropics (ICRISAT), a CGIAR center, wherehe coordinated the semi-arid tropic (SAT) India component of the ICRISAT villagestudies project. He has a Ph.D. in Applied Economics from Clemson University,SC, USA, with specialization in natural resources economics and public policyanalysis. After his Ph.D., he worked for over 15 years at three CGIAR centers andother international development agencies in India, Sri Lanka, Thailand, Taiwan,and other countries in Asia. His expertise relates to public policy analysis, theeconomics of agricultural and rural development programs, natural resourcesmanagement, rural labor markets, institutional economics, transactional cost anal-ysis, governance analysis, village studies, and social protection programs.

Chhote Lal Chowdhary is a forester with over 20 years’ work experience inNepal. He pioneered the rattan research and development work in Nepal. His keyexpertise relates to rattan, bamboo, medicinal and aromatic plants research anddevelopment, capacity building of communities for participatory management,micro-enterprises development, and value chain development. He is the principalauthor of “rattan conservation, management and development initiative of rattan inNepal” and Post Formation Support of Community Forest User Groups: in thePerspective of Good Governance of Community Forest User Groups. He has var-ious journal articles published in national and international journals.

Nara Hari Dhakal obtained a Bachelor of Science (honours) in Agriculture fromChaudhary Charan Singh Agricultural University, Hissar, Haryana and Master’sdegree in Economics from Thammasat University, Bangkok, Thailand. He didM.Phil. in Economics from Global Open University, Nagaland, India and Ph.D.from Tribhuvan University, Nepal. He started his professional career as Loan Officerat Agricultural Development Bank Limited, Nepal in 1983 and worked there till1991. After that he provided professional services to different bi-lateral and multi-lateral organizations, local and national non-government organizations and privatesector on banking, finance, enterprise development and livelihood in Afghanistan,India, Bangladesh, Cambodia, East Timor, Nepal, and Thailand. Since 2000,Dr. Dhakal has also been engaged in teaching courses on industrial economics,

Editors and Contributors xiii

banking, finance, enterprise development and project cycle management as a VisitingFaculty in Kathmandu University School of Management. Currently he is working asExecutive Director, Centre for Empowerment and Development (CED) Nepal and hasbeen undertaking activities such as fund raising, undertake research and studies onbanking, finance, enterprise development and livelihood improvement.

Raghav Gaiha is (Former) Professor of Public Policy, Faculty of ManagementStudies, University of Delhi. He has been visiting fellow/scholar at Harvard, MIT,Stanford, Penn andUniversity ofCambridge.He is currently (Hon) Professorial Fellow,Global Development Institute, University of Manchester and a Visiting Scholar,Population Studies Centre, University of Pennsylvania. He has served as a consultantwith the World Bank, ILO, FAO, IFAD, WIDER and ADB. He has coedited withRaghbendra Jha The Economics of Food Security, Edward Elgar, Diets, Malnutritionand Disease-The Indian Experience, (jointly with R. Jha and Vani S. Kulkarni),OxfordUniversityPress,BattlingCorruption:HasNREGAReached India’sRural Poor(jointly with Shylashri Shankar), Oxford University Press.

Devendra Gauchan is an agricultural economist with specific experience andinterest in agricultural R&D policy, seed system and agrobiodiversity conservation.He has worked and served in agricultural research and development sector in theGovernment of Nepal and international organizations in various capacities. He iscurrently working as National Project Manager at Bioversity International (a CGIARcenter) in Nepal office, Kathmandu. Before joining Bioversity International, he wasthe Senior Scientist and Head of Socioeconomics & Agricultural Research PolicyDivision, at Nepal Agricultural Research Council, Kathmandu, Nepal. He hasworked as Post-Doctoral Fellow and Social Scientist at the International RiceResearch Institute and served as consultant an expert for various international andbilateral organizations in agricultural projects evaluation, feasibility and impactstudies. He was one of the core team members involved in drafting of recentlyimplemented Nepal’s long term ‘National Seed Vision (2013–2025)’ and NationalStrategic framework of Nature Conservation for Sustainable Development (2015–2030) of the Government of Nepal. He has a Ph.D. from the University ofBirmingham, United Kingdom, M.S. from Chiangmai University, Thailand andB.Sc. (Ag) from University of Agricultural Sciences, Bangalore, India.

Katsushi Imai is Associate Professor in Development Economics at Economics,School of Social Sciences. He joined the University of Manchester in September2004. Dr Katsushi Imai serves as a research lead of the Development Economicsand Policy RAG and a programme director of MSc Development Economics andPolicy. He graduated with B.A. (Econ) from Univ. of Tokyo in 1990, an M.Sc.from LSE in 1997, and a D.Phil. (Econ) from Oxford in 2001. Since then he taughtat Oxford as a post-doctoral fellow at CSAE and Senior Associate Member atSt. Antony’s College, and at Royal Holloway, the University of London as Lecturerin Economics, before joining Manchester in 2004. Katsushi regularly works for theIFAD, the UN as a consultant to assist its policy making. He is also an associate

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fellow at the Sheffield Institute for International Development (SIID), theUniversity of Sheffield and an external research fellow at RIEB, Kobe University.

Binaya Joshi is working as a Senior Climate Change Officer in the Third NationalCommunication (TNC) Project implemented by the Ministry of Forests andEnvironment (MoFE), Government of Nepal. He obtained his master’s degree inenvironmental science from Tribhuvan University Nepal. He has practical experi-ences in research work ranging from Climate Change Vulnerability and Adaptationto Biodiversity Conservation. He has published half dozen papers in the form ofjournal article, book chapter and workshop proceeding. His areas of interest areclimate change adaptation and mitigation and environmental management.

Ganesh R. Joshi obtained his Ph.D. degree with specialization in ResourceEconomics and Policy from University of the Philippines Los Banos in 2003. Heworked at various capacities under the then Ministry of Agriculture, Nepal. Heserved as a Secretary in different Ministries such as Environment, Agriculture,Forests and Soil Conservation, Defense, and Tourism and Civil Aviation. Currentlyhe is working as the Commissioner in Commission for the Investigation of Abuseof Authority. Dr. Joshi completed his Post-doctoral research as a Research Fellowof Alexander von Humboldt Foundation Germany in 2005/06. He is also a VisitingProfessor (Environment Science) in Tribhuvan University and Adjunct Professor(Argil. Economics) in Agriculture and Forestry University Nepal. He also con-tributed as a Lead Author to Options for Governance Chapter in IPBES Asia PacificRegional Assessment on Biodiversity and Ecosystem Services. His areas of interestare climate change, agricultural development, natural resources management andgovernance. He has published over 3 dozen papers in the form of book, bookchapter, journal article and seminar proceeding.

Madhav Bahadur Karki is a senior Natural Resources Management andSustainable Development expert. He has served in government, academia andinternational organizations in diverse capacities. He is currently working as theExecutive Director of the Centre for Green Economy Development, Nepal(CGED-Nepal). He is an expert member of the Environment Protection Council,Nepal; a member of Multidisciplinary Expert Panel of the IntergovernmentalPlatform on Biodiversity and Ecosystem (IPBES); Deputy Global Chair of the IUCNCommission on Ecosystem Management (CEM) and Co-chair of IPBES Task Forceon Indigenous and Local Knowledge. He has just completed co-chairing theRegional Assessment of Biodiversity and Ecosystem Services in Asia-Pacific forIPBES. He worked as Deputy Director General of ICIMOD (2005–12) and SeniorProgram Officer in IDRC, Canada (1995–2005). Dr. Karki did his Ph.D. and M.Sc.in Forestry from the US and B.Sc. Ag. (Hons.) from India. He has 100 plus pro-fessional publications.

Editors and Contributors xv

Béatrice Knerr is a professor of development economics, affiliated to theUniversity of Kassel, Germany, where, from 1996 until 2016, she headed theDepartment of Development Economics, Migration and Agricultural Policy(DEMAP). Since then, in the frame of the German Government’s AcademicExchange Service (DAAD), she has served as guest professor at the UniversidadAutonoma de Yucatan (UADY) in Merida, Mexico (2016), the College ofEconomics at Hue University, Vietnam (2016/17), and the University of Malang,Indonesia (2017/18). Her major research foci are rural development; the economicimplications of labour migration and remittances; and agricultural transformations.In that capacity she led research projects with extensive field work in more than 40countries, and published and edited more than 30 books, and around 120 journalarticles and book chapters. She is also editing two wide-spread book series on“International Labor Migration” and on “International Rural Development”.

Praduman Kumar is former professor of Agricultural Economics, IndianAgricultural Research Institute, New Delhi, India. Dr. Kumar has been conductingresearch for almost 45 years now. Dr. Kumar has made significant contributions todifferent sectors of agriculture including water management, livestock, crops andfisheries and has written extensively in the areas of total factor productivity, sus-tainability issues, demand supply projections for food commodities, price policy,small farmers and household food and nutritional security. Dr. Kumar has devel-oped a number of econometric models for crops, livestock and fisheries.Dr. Kumar’s research on TFP, food demand projections are utilized andacknowledged at national and international levels.

Jordan Kyle is a Senior Research Fellow at the Tony Blair Institute for GlobalChange and a Non-resident Fellow at the International Food Policy ResearchInstitute (IFPRI). She was formerly an Associate Research Fellow in theDevelopment Strategy and Governance Division of IFPRI. Her primary researchinterests are in political economy of development, citizen-state relations, socialpolicy, and political attitudes. Her research appears in the Journal of PoliticalEconomy and Comparative Political Studies, among other venues. She received herPh.D. in political science from Columbia University.

Amina Maharjan works as a Livelihood Migration Specialist at the InternationalCentre for Integrated Mountain Development since April 2015. She is responsiblefor expanding the work of organization in human mobility and migration and itslinkages with sustainable mountain development and climate change adaptation inthe Hindu Kush Himalayan region. She has a Ph.D. in Agriculture from Universityof Giessen, Germany and a master in Agricultural Economics from India. She startedher career as a development practitioner in Nepal in 2002 and has gained experiencein sustainable livelihood development, socio-economic analysis, sustainable agri-cultural development, gender equity and social inclusion, vocational skills

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development. Since 2006, she has been working in the field of human mobility andmigration on various capacity, including her Ph.D. research on “Labour migrationand its impact on farm households in mid hills of Nepal”. In HELVETAS SwissIntercooperation Nepal, she has worked as team leader of the first migration projectin Nepal, called, “Safer Migration” from September 2011 to July 2013.

Ramesh Paudel is a Visiting Fellow at the Australian National University (ANU),Canberra, Australia. Paudel has an extensive experience in the academia in Nepal andAustralia. Currently, he is also working as a Research faculty at KathmanduUniversity and is a consultant at theWorld Bank, AsianDevelopment Bank and SouthAsian Watch on Trade, Economics and Environment. His interests include interna-tional trade, liberalization and reforms, development financing, foreign directinvestment, landlocked economies, development economics, and macroeconomics.Paudel has published several academic papers in peer reviewed journals and workingpapers. He has also authored a book, Financial Liberalization in Sri Lanka: AnAnalysis, 2010, and co-authoredRural Economics 2002, andGovernment AccountingSystem of Nepal 2001, and has co authored in some book chapters. He holds Ph.D.from ANU, and Master by Research in Economics from the Wollongong University.

Champak Pokharel is a Former Member (Economics) of National PlanningCommission, Nepal. He holds a Ph.D. in Agricultural and Applied Economics fromUniversity of Minnesota USA and master’s in development economics (WilliamsCollege, USA) and Economics (Tribhuvan University, Nepal). He is an academi-cian and a policy planner. He was a senior economist in Agricultural ProjectsServices, Kathmandu. Later, he joined National Planning Commission for morethan 15 years, as an advisor, senior advisor and the Member. Partly, he was alsoteaching economics. He was a key architect in helping the government in reformingagriculture and in implanting result-based system and projects prioritization inNepalese Planning. He has worked also internationally, in those areas. He haspublished several articles, nationally and internationally. Presently, he serves as‘Regional Representative for Asia’ in the ‘Steering Committee for GlobalAgriculture and Food Security’, World Bank, Washington D.C.

Danielle Resnick is Senior Research Fellow and Governance Theme Leader atthe International Food Policy Research Institute (IFPRI). Her research primarilyfocuses on the political economy of development, urban politics and servicedelivery, and decentralization. She has conducted fieldwork in Botswana, BurkinaFaso, Ghana, Malawi, Nepal, Nigeria, Senegal, and Zambia. Her research is eitherfeatured or forthcoming in journals such as Comparative Politics, ComparativePolitical Studies, Party Politics, Political Geography, and World Development, andshe has authored, co-authored, and co-edited four books. She received her Ph.D. inGovernment from Cornell University.

Ram Pratap Sah is a senior agricultural professional in Nepal with over 40 yearsof experience in research and development. He worked for 37 years in NepalAgriculture Research Council at different capacities from research scientist to

Editors and Contributors xvii

program managers, and finally to executive director. He has significantly con-tributed to development for new varieties and production technologies throughparticipatory research, capacity building and effective institution management. Hehas also worked as consultant for IFPRI, PAC/IFC/WB, DFID, USAID, FAO,ICIMOD and Finland on agriculture, food and nutritional securities, climatechange, and priority and strategy formulations. Dr. Sah has over 40 reports andpublications to his credit. He received his Ph.D. (Plant Breeding-Genetics) fromMichigan State university/USA, M.S. Ag (Plant Breeding) from Punjab AgricultureUniversity-ICRISAT/India, and B.Sc. Ag from GBPUAT, Pant agar/India.

Ramesh Sharma retired from FAO in 2013 having served as an economistin Trade and Markets Division in Rome and at the FAO Regional Office for Asiaand the Pacific in Bangkok. Prior to FAO, he was at the Agricultural ProjectsServices Centre (APROSC), Kathmandu, Nepal. His work experience has been on:agricultural trade, notably issues related to the WTO Agreement on Agriculture,global food markets, food and agricultural policy, food security and relateddevelopment topics, and economics of projects. He continues to work occasionallyon agricultural trade, food policy, and food security and nutrition. He studiedeconomics at the Tribhuvan University, Nepal, and agricultural economics atthe University of New England, Australia and Stanford University, United States.

Hiroyuki Takeshima is a Research Fellow of Development Strategy andGovernance Division at International Food Policy Research Institute. He obtainedPh.D. in Agriculture & Consumer Economics from University of Illinois,Urbana-Champaign, USA. He joined in IFPRI in 2009 as Post-Doctoral Fellow andspent three years in IFPRI Nigeria office before moving to IFPRI Washington DCoffice. Dr. Takeshima has published a number of peer-reviewed papers on thedeterminants and impacts of adoptions of agricultural mechanization, fertilizer,irrigation, agricultural R&D and varietal technologies, in Nepal as well as Africancountries like Nigeria and Ghana. His areas of interests include agricultural eco-nomics, technology adoptions, production economics, agricultural transformation,agriculture-nutrition linkages, micro-econometrics, as well as economic geography.

Ganesh B. Thapa is a freelance agricultural economist. He has a Ph.D. in AgriculturalEconomics from Purdue University. His doctoral study was supported by Feed theFuture Nutrition Innovation Lab. He has previously worked as a fisheries developmentofficer with the Ministry of Agriculture and Livestock Development and as an economistfor the World Bank based in Nepal. He has also worked as a Consultant for severalreputed international institutions such as IFPRI, CIMMYT, ILO, WFP and the WorldBank. Currently, he is working as a consultant for Asian Development Bank. Hisresearch interests include food security, agricultural development, child nutrition, valuechains, impact evaluation, technology adoption and diffusion, poverty alleviation,agricultural price analysis, marketing, food safety and child labour.

xviii Editors and Contributors

Swarnim Waglé is an economist who served as the 24th Vice-Chair of the NationalPlanning Commission (NPC) in the Government of Nepal. He led the NPC fromAugust 2017 to February 2018, prior to which he served as a Member of theCommission for 28 months at two different periods between 2014 and 2017.Dr. Waglé worked as an international development professional for more than 15years on policy assignments in over 20 countries, most recently as Senior Economistat The World Bank in Washington, D.C. At the United Nations DevelopmentProgram (UNDP), he co-authored the 2013 Human Development Report titled “TheRise of the South”. From 2002 to 2007, he co-led the Asia-Pacific Trade andInvestment Initiative. Dr. Waglé holds a Ph.D. in Economics from the AustralianNational University, an MPA in International Development (MPA/ID) from HarvardUniversity, and a B.Sc. (Econ) from the London School of Economics.

Editors and Contributors xix

Abbreviations and Acronyms

ACIAR Australian Centre for International Agricultural ResearchADB Asian Development BankADBN Agricultural Development Bank of NepalADF Augmented Dickey–Fuller (test)ADS Agricultural Development StrategyAFND Academic Foundation, New DelhiAGDP Agricultural gross domestic productAIAT Assessment Institute for Agricultural Technology (Indonesia)AIC Agriculture Inputs CorporationAPP Agricultural Perspective PlanAPROSC Agricultural Projects Service CentreATF Agreement on Trade Facilitation (WTO)BRICS Brazil, Russia, India, China and South AfricaBS Bikram Sambat (Nepali year)CIF Cost, Insurance and FreightCADP Commercial Agriculture Development ProjectCAESC Community-based Agricultural Extension Service CenterCAGR Compound annual growth rateCARP Comprehensive Agrarian Reform ProgrammeCBM Community-based Biodiversity ManagementCBOs Community-based organizationsCBS Central Bureau of StatisticsCBSP Community-based seed productionCDD Crop Development DirectorateCEAPRED Center for Environmental and Agricultural Policy Research,

Extension and DevelopmentCFUG Community Forestry Users’ GroupCGIAR Consultative Group on International Agricultural ResearchCMS Consolidated Management Services NepalCoO Country of origin

xxi

CPI Consumer price indexCPI-IW Consumer Price Index for Industrial Workers (India)CPN Communist Party of NepalCSAM Center for Sustainable Agricultural MechanizationCSB Community seed bankCSRC Community Self-Reliance CentreCTEVT Council for Technical Education and Vocational TrainingCTH Change in tariff headingDADO District Agricultural Development OfficeDADOs District Agricultural Development OfficersDAFF Department of Agriculture, Forestry and Fisheries (South Africa)DANIDA Danish International Development AgencyDAP Diammonium phosphateDCGE Dynamic computable general equilibriumDDC Dairy Development CorporationDDCs District Development CommitteesDFID Department for International DevelopmentDFRS Department of Forest Research and SurveyDISSPRO District Seed Self-Sufficiency ProgramDLOs District livestock officersDOA Department of AgricultureDOI Department of IrrigationDoLIA Department of Land Information and ArchiveDOLIDAR Department of Local Infrastructure Development and Agricultural

RoadsDUS Distinct Uniform and StabilityEAs Enumeration areasECM Error correction modelEFDB Emission Factor DatabaseEU European UnionFOB Free on boardFAO Food and Agriculture OrganisationFDI Foreign direct investmentFNCCI Federation of Nepalese Chambers of Commerce and IndustryFORWARD Forum for Rural Welfare and Agricultural Reform for DevelopmentFY Fiscal yearGDP Gross domestic productGHG Greenhouse gasGLOF Glacial lake outburst floodGNDI Gross National Disposable IncomeGNP Gross national productGoI Government of IndiaGoN Government of NepalGTZ German Agency for Technical CooperationHa Hectare

xxii Abbreviations and Acronyms

HM Hills/mountainsHS Harmonized systemHVAP High-Value Agriculture ProjectHYVs High-yielding varietiesI/NGOs International non-government organization(s)IAARD Indonesian Agency for Agricultural Research and Development

(Indonesia)ICAR Indian Council for Agricultural Research (India)ICBT Informal cross-border tradeICIMOD International Center for Integrated Mountain DevelopmentIDS Integrated Development StudyIFAD International Fund for Agricultural DevelopmentIFPRI International Food Policy Research InstituteIGC Intergovernmental Committee (SAFTA)IGSC Intergovernmental Sub-committee (SAFTA)Interim APP Nepal Interim Agriculture Perspective PlanIPCC Intergovernmental Panel on Climate ChangeIPNS Integrated plant nutrient management systemIPs Indigenous peoplesIRRI International Rice Research InstituteITP Indicative Trade PotentialJICA Japan International Cooperation AgencyJMA John Mellor AssociatesKUBK Kisankalagi Unnat Biu-Bijan KaryakaramKVKs Krishi Vigyan Kendras (India)LAPA Local Adaptation Plan of ActionLDC Least developed countryLFUG Leasehold Forest Users' GroupLI-BIRD Local Initiatives for Biodiversity, Research and DevelopmentLRSC Land Reform Saving CorporationLSGA Local Self-Governance ActLULCF Land use and land use change and forestryMARDI Malaysian Agricultural Research and Development Institute

(Malaysia)MECs Members of the Executive Council (South Africa)MFSC Ministry of Forest and Soil ConservationMI Ministry of IndustryMINMECs Ministers and Members of Provincial Executive Committees (South

Africa)MOLRM Ministry of Land Reform and ManagementMOAC Ministry of Agriculture and CooperativesMoAD Ministry of Agricultural DevelopmentMoCPA Ministry of Co-operatives and Poverty AlleviationMoCS Ministry of Commerce and SuppliesMoED Ministry of Agricultural Development

Abbreviations and Acronyms xxiii

MoE Ministry of EnergyMOE Ministry of EnvironmentMoFALD Ministry of Federal Affairs and Local DevelopmentMOF Ministry of FinanceMoFSC Ministry of Forestry and Soil ConservationMoGA Ministry of General AdministrationMoHA Ministry of Home AffairsMoI Ministry of IrrigationMoLD Ministry of Livestock DevelopmentMOP Muriate of potashMOSTE Ministry of Science, Technology and EnvironmentMRAs Mutual Recognition AgreementsMt Metric tonMoUD Ministry of Urban DevelopmentMVs Modern varietiesNA Not availableNAMC National Agricultural Mechanization CommitteeNAPA National Adaptation Program of ActionNARC Nepal Agricultural Research CouncilNARES National Agriculture Research and Extension SystemNARI National Agricultural Research InstituteNARMA Centre for Natural Resources Management, Analysis, Training and

Policy ResearchNASPR Nepal Agriculture Sector Performance ReviewNASRI National Animal Science Research InstituteNAST Nepal Academy of Science and TechnologyNBSAP National Biodiversity Strategy and Action PlanNDDB Nepal Dairy Development BoardNepal-SIMI Nepal Smallholder Irrigation Market InitiativeNFP National Fertilizer PolicyNGA Non-governmental agencyNGOs Non-government organizationsNLSS Nepal Living Standard SurveyNMMSS National Milk Marketing and Strategy StudyNOM Non-originating materialNPC National Planning CommissionNRB Nepal Rastra BankNSB National Seed BoardNSC National Seed CompanyNTB Non-tariff barrierNTIS Nepal Trade Integration StrategyNTM Non-tariff measureOPV Open-pollinated varietyp.a. Per annumPACT Project for Agriculture Commercialization and Trade

xxiv Abbreviations and Acronyms

PDA Provincial Department of Agriculture (South Africa)PEMANDU Performance Management and Delivery Unit (Malaysia)PMAMP Prime Minister's Agriculture Modernization ProjectPPP Public–private partnershipPSC Public Service CommissionPSM Propensity score matchingPTM Para-tariff measurePVP Plant Variety ProtectionPVS Participatory varietal selectionR&D Research and developmentRCA Revealed comparative advantageRFID Radio frequency identification deviceRISMFP Raising Incomes of Small and Medium Farmers' ProjectRoO Rules of originRoW Rest of the worldRSTL Regional Seed Testing LaboratorySAARC South Asian Association for Regional CooperationSAFTA South Asian Free Trade AreaSALGA South African Local Governance Association (South Africa)SARSO South Asian Regional Standards OrganizationSDC Swiss Agency for Development and CooperationSINA Statistical Information on Nepalese AgricultureSL Sensitive listSNV SNV Netherlands Development OrganisationSPS Sanitary and phytosanitary (WTO)SQCC Seed Quality Control CentreSRR Seed Replacement RateTBTs Technical barriers to trade (WTO)TCI Trade complementarity indexTEPC Trade and Export Promotion Centre (Nepal)TFP Total factor productivityTLP Tariff liberalization programme (SAFTA)TU Tribhuvan UniversityUHT Ultra-heat treatedUK United KingdomUNDP United Nations Development ProgrammeUNIDO United Nations Industrial Development OrganizationUSA United States of AmericaUSAID United States Agency for International DevelopmentUSD United States DollarVVDP Value Chain Development ProgrammeVAT Value-added taxVC Value chainVCA Value chain analysisVDC Village Development Committee

Abbreviations and Acronyms xxv

WFP World Food ProgrammeWPI Wholesale price indexWTO World Trade Organization

xxvi Abbreviations and Acronyms

List of Figures

Chapter 2

Fig. 1 Sectoral share of value-added and per capita income(worldwide). Source World Bank (2016) . . . . . . . . . . . . . . . . . . . 13

Fig. 2 Sectoral share of employment and per capita income(worldwide). Source World Bank (2016) . . . . . . . . . . . . . . . . . . . 14

Fig. 3 Forms of rural and urban employment in 1995 and 2010. SourceTiwari et al. (2016) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Fig. 4 Composition of employment in rural and urban areas, 1995and 2010. Source Tiwari et al. (2016) . . . . . . . . . . . . . . . . . . . . . 20

Fig. 5 Sectoral value added, 1965–2014. Source WorldBank (2016) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Fig. 6 Remittances as a share of GDP (%). Source WorldBank (2016) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Fig. 7 Growth of sectoral value added, 1974–2015. Source WorldBank (2016) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Chapter 4

Fig. 1 Distribution of cereals’ expenditure share and HAZ in 1995and 2011. Source Nepal, Central Bureau of Statistics(1996, 2011). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Fig. 2 HAZ and dietary diversity, Nepal. Source Nepal, CentralBureau of Statistics (2011) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Fig. 3 HAZ and expenditure shares of major food items consumedin Nepal. Source Nepal, Central Bureau of Statistics (2011) . . . . 60

Fig. 4 HAZ and dietary quality for children of different age groups(up to 1000 days and greater than 1000 days), Nepal. SourceNepal, Central Bureau of Statistics (1996, 2011) . . . . . . . . . . . . . 60

xxvii

Fig. 5 Nonparametric regression showing the relationship betweenHAZ and dietary diversity (Simpson Index) based on farm size.Source Nepal, Central Bureau of Statistics (2011) . . . . . . . . . . . . 61

Fig. 6 Dose–response function assessing the impact of number of foodvarieties/groups consumed on HAZ. Source Authors ownestimation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

Fig. 7 Dose–response function assessing the impact of number of foodvarieties/groups consumed on HAZ for children up to andgreater than 1000 days of age. Source Authors ownestimation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

Fig. 8 Impact on HAZ of expenditure shares going to cereals, fruitsand vegetables, animal proteins, and plant proteins. SourceAuthors own estimation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Fig. 9 Impact of monthly food expenditure on HAZ and on theprobability of children being severely stunted. Source Authorsown estimation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

Fig. 10 Histogram plot of number of food varieties consumedin a typical month. Source Authors work based on the NLSSdatasets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Fig. 11 Common support for the treatment number of food varieties(overall sample). Source Authors work based on the NLSSdatasets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

Fig. 12 Dose–response function assessing the impact of number of foodgroups/varieties consumed on child stunting outcomes. SourceAuthors work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

Fig. 13 Dose–response function assessing the impact of expenditureshares devoted to different food items on child stuntingoutcomes. Source Authors work . . . . . . . . . . . . . . . . . . . . . . . . . . 86

Chapter 5

Fig. 1 Long-term trends in food, non-food and overall inflation. NoteFY1991 means 1990/91 (July/June), and so on. Source Basedon the NRB data on price indices. Note that throughout thisstudy, the data used for all analysis refer to those forKathmandu valley. The inflation data are for Kathmandu valley(see footnote 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

Fig. 2 Long-terms trends in food, non-food and overall inflation ratesin Nepal and India, 1992–2015. Note FY1992 refers to 1991/92(July/June) and so on, for both Nepal and India. Data forFY2015/16 is up to March 2016. Source Based on Nepal’s CPIdata and India’s CPI-IW data . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

xxviii List of Figures

Fig. 3 Cereals inflation (%). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100Fig. 4 Pulses inflation (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101Fig. 5 Edible oils inflation (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102Fig. 6 Vegetables inflation (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103Fig. 7 Fruits inflation (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104Fig. 8 Sugar inflation (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105Fig. 9 Meats and fish inflation (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106Fig. 10 Milk inflation (%). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107Fig. 11 Food inflation (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108Fig. 12 Non-food inflation (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109Fig. 13 Overall inflation (%). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110Fig. 14 Impact on inflation during trade blockade, September 2015–

March 2016. Note The left panel compares average inflationduring September 2015–March 2016 with the average for thesame months in the previous four years (FY2011–FY2015); theright panel shows inflation differential (Nepal’s minus India’s)during these two periods. Source Computed based on inflationdata used in previous graphs and tables . . . . . . . . . . . . . . . . . . . . 111

Chapter 8

Fig. 1 Types of seed systems, formal, informal and integratedseed system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203

Fig. 2 Trend in seed replacement rate (SRR) in major food cropsin Nepal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208

Chapter 9

Fig. 1 Major crops for which inorganic fertilizer is used,by agroecological belt, year. Source Authors’ estimationsbased on the NLSS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242

Fig. 2 Chemical fertilizer intensity and farm size; a (Left panel)comparison between the Terai and the Hills; b (Right panel)comparison between 2003 and 2010 in the Terai (bands indicate90% confidence interval, while the middle lines inside the bandsare the estimated averages). Source Authors’ estimation basedon NLSS data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245

Fig. 3 Small-size and low-asset owners. Source Authors Notes forFig. 3 through Fig. 6: Left=Terai; right=Hills excluding centralregion; top=short specification; bottom=full specification. Thelines show the mean estimates as well as the 90% confidenceinterval based on 100 bootstrap processes. The vertical axismeasures the natural log of annual household income measured

List of Figures xxix

in terms of kilograms of cereals valued at local prices. Thehorizontal axis measures chemical fertilizer nutrients used(kilograms per household per year) . . . . . . . . . . . . . . . . . . . . . . . 248

Fig. 4 Small-size and high-asset owner. Source Authors. . . . . . . . . . . . . 248Fig. 5 Medium-to-large-size and low-asset owner. Source Authors. . . . . 249Fig. 6 Medium-to-large-size and high-asset owner. Source Authors . . . . 249Fig. 7 Changes in per capita household income and agricultural

income in response to chemical fertilizer price change,differentiated by the size of lowland owned in 2003;a household income; b agricultural income. Source AuthorsNote y-axis shows the change in annual per capita householdexpenditure (equivalent to kilogram of cereals measuredat local price) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253

Fig. 8 Change in per capita agricultural revenue in responseto chemical fertilizer price change, differentiated by the sizeof lowland owned in 2003. Source Authors Note y-axis showsthe change in annual per capita agricultural income (equivalentto kilogram of cereals measured at local price). . . . . . . . . . . . . . . 253

Fig. 9 Effects of reduced chemical fertilizer price on per capitalivestock revenue, differentiated by the size of lowland ownedin 2003. Source Authors Note y-axis shows the changein annual per capita agricultural income (equivalent to kilogramof cereals measured at local price) . . . . . . . . . . . . . . . . . . . . . . . . 255

Fig. 10 The effects of lower chemical fertilizer price on the per capitavalue of surplus maize, differentiated by the size of lowlandowned in 2003. Source Authors Note y-axis shows the changein annual per capita agricultural income (equivalent to kilogramof cereals measured at local price) . . . . . . . . . . . . . . . . . . . . . . . . 257

Chapter 11

Fig. 1 NARC’s organizational structure . . . . . . . . . . . . . . . . . . . . . . . . . 293Fig. 2 Organizational structure of MOAD/MOLD . . . . . . . . . . . . . . . . . 295Fig. 3 NARC’s institutional partners. . . . . . . . . . . . . . . . . . . . . . . . . . . . 296Fig. 4 Federal organizational structure of agriculture extension Source

Thapa and Devkota (2019) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309

Chapter 13

Fig. 1 Illustration of trade supply chain in NTFP/MAPs. . . . . . . . . . . . . 388

Chapter 14

Fig. 1 Remittances inflow to Nepal and share of gross domesticproduct. Source: Based on World Bank (2016) . . . . . . . . . . . . . . 424

xxx List of Figures

Fig. 2 Remittances inflow, exchange rate, cereal productionand imports, and production of non-tradeables in Nepal(indexed by 1993 = 100) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431

Chapter 15

Fig. 1 Trends in Nepal’s agricultural exports, 1991–2016 (million $).Source NRB trade data. 1991 refers to fiscal year 1990/91and so on. Average annual growth rates are trend growth ratescomputed by regressing the logarithms of the trade valueon time trend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 446

Fig. 2 Trends in Nepal’s agricultural imports, 1991–2016 (million $).Source NRB trade data. 1991 refers to fiscal year 1990/91and so on. Average annual growth rates are trend growth ratescomputed by regressing the logarithms of the trade valueson time trend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 447

Fig. 3 Trends in agricultural trade balance, 1991–2016 (million $).Source NRB trade data. 1991 refers to fiscal year 1990/91and so on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448

Fig. 4 Average annual growth rates of outputs of major crops andlivestock products. (1) All cereals include millet and barley also,with paddy counted in rice equivalent (using a conversion factorof 0.65). Growth rates are trend rates estimated by regressingthe log of the variable concerned on time trend, including all theyears covered. For six crops in the group with potato and fourlivestock products, the series begin in 2005 (hence, the growthrates are for 2005–09 and 2010–15). Source Author,based on MoAD statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463

Chapter 16

Fig. 1 Value attribute ladder for Nepalese tomato consumer. SourceAuthor’s calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 489

Fig. 2 Farmers’ perception of consumer value . . . . . . . . . . . . . . . . . . . . 491Fig. 3 Value chain map of a fresh tomato chain (Kavre-Kathmandu).

Source Author’s analysis of the chain. Note Intra-activities referto activities performed by an actor within its domain. Interfaceactivities refer to activities performed at supplier–customerinterface. Integrative activities refer to activities performedcollaboratively by various actors of the chain. . . . . . . . . . . . . . . . 492

Chapter 19

Fig. 1 Selected case study countries. Source Compiled by the authors.Agriculture as a share of GDP is from the World DevelopmentIndicators (WDI) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 590

List of Figures xxxi

Fig. 2 DADO/DLO survey sample. Source Authors’ compilation.Notes Black lines provide a rough indication of the provincialboundaries as set forth in the January 2016 Constitutionalamendment. However, these boundaries were still underconsideration as of the writing of this chapter . . . . . . . . . . . . . . . 597

xxxii List of Figures

List of Tables

Chapter 2

Table 1 Nepal’s per capita GDP (constant $, 2010), as a share (%)of other countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Table 2 A typology of structural transformation, institutionalcapabilities and growth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Table 3 Sectoral investment (per cent of total investment) . . . . . . . . . . . 19

Chapter 3

Table 1 Poverty estimates in selected Asian countries. . . . . . . . . . . . . . . 32Table 2 GDP per capita PPP (constant 2005 international $) . . . . . . . . . 35Table 3 Share of agriculture in GDP (%) . . . . . . . . . . . . . . . . . . . . . . . . 35Table 4 Simulation results for poverty headcount ratios ($2/day)

in selected low-income countries in APR in 2013–15(baseline year 2006) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Chapter 4

Table 1 Descriptive statistics of variables used in the analysis . . . . . . . . 62Table 2 Effects of dietary quality on HAZ using a multilevel model . . . 66Table 3 Effects of dietary quality on the probability of child stunting

in Nepal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70Table 4 Robustness test: effects of dietary quality on HAZ. . . . . . . . . . . 72Table 5 Explaining observed improvements in HAZ between

1995–1996 and 2010–2011 in Nepal . . . . . . . . . . . . . . . . . . . . . 75Table 6 Factors explaining improvement in nutrition between

1995–1996 and 2010–2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75Table 7 Balancing test for covariates given the generalized propensity

scores: t-statistics for the equality of means . . . . . . . . . . . . . . . . 76Table 8 Factors influencing child nutrition improvement between

1995–1996 and 2010–2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

xxxiii

Chapter 5

Table 1 Nepal–relative contributions of different foods to overall foodinflation by fiscal year (relative contributions in %) . . . . . . . . . . 96

Table 2 Relative contribution of different foods to overall foodinflation during six episodes of high food inflation . . . . . . . . . . 97

Chapter 6

Table 1 GHG emission by sectors in Nepal . . . . . . . . . . . . . . . . . . . . . . 122Table 2 Estimated contribution of agriculture to Nepal’s GHG

emission, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124Table 3 Projection of GHGs emission in the agriculture sector . . . . . . . . 125Table 4 Losses due to droughts in different years . . . . . . . . . . . . . . . . . . 126Table 5 Ranking of districts based on temperature and rainfall risk . . . . 134

Chapter 7

Table 1 Estimated total food expenditure function, Nepal . . . . . . . . . . . . 162Table 2 Estimated parameters of selected group’s food expenditure

function, Nepal: 1995–2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163Table 3 Estimated parameters of the QUAIDS food demand system

for Nepal, 1995–2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165Table 4 Food basket in Nepal: the changing trends. . . . . . . . . . . . . . . . . 169Table 5 Demand elasticities of food groups, Nepal, 2011 . . . . . . . . . . . . 170Table 6 Price and income effect on food demand, Nepal, 2011 . . . . . . . 171Table 7 Per cent share of household consumption and indirect

use of food in total food demand at Nepal . . . . . . . . . . . . . . . . . 172Table 8 Assumptions for projecting food demand in Nepal . . . . . . . . . . 173Table 9 Annual per capita consumption of food (kg) in past

and future years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173Table 10 Annual growth (%) of food demand in Nepal . . . . . . . . . . . . . . 174Table 11 Demand for cereals in Nepal . . . . . . . . . . . . . . . . . . . . . . . . . . . 174Table 12 Demand for pulses in Nepal. . . . . . . . . . . . . . . . . . . . . . . . . . . . 175Table 13 Demand for vegetables in Nepal . . . . . . . . . . . . . . . . . . . . . . . . 175Table 14 Demand for fruits in Nepal . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176Table 15 Demand for edible oils in Nepal . . . . . . . . . . . . . . . . . . . . . . . . 176Table 16 Year-wise demand for sugar and Gur in Nepal . . . . . . . . . . . . . 177Table 17 Year-wise demand for milk in Nepal . . . . . . . . . . . . . . . . . . . . . 177Table 18 Demand for meat, fish and eggs in Nepal . . . . . . . . . . . . . . . . . 177Table 19 Projected population and income growth in Nepal:

2005–2035 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178Table 20 Expenditure elasticities in the base year and predicted years

for Nepal: 2011–2035 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178Table 21 Annual per capita consumption of food (kg) in past and future

in Nepal: 2011–2035 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179

xxxiv List of Tables

Table 22 Year-wise demand for cereals in Nepal: 2011–2035 . . . . . . . . . 181Table 23 Year-wise demand for pulses in Nepal: 2011–2035 . . . . . . . . . . 182Table 24 Year-wise demand for vegetables in Nepal: 2011–2035. . . . . . . 182Table 25 Year-wise demand for fruits in Nepal: 2011–2035. . . . . . . . . . . 183Table 26 Year-wise demand for edible oils in Nepal: 2011–2035. . . . . . . 184Table 27 Year-wise demand for sugar in Nepal: 2011–2035. . . . . . . . . . . 186Table 28 Year-wise demand for milk in Nepal: 2011–2035 . . . . . . . . . . . 186Table 29 Year-wise demand for meat, fish, and eggs in Nepal:

2011–2035 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187Table 30 Demand for major cereals in Nepal: 2011–2035 . . . . . . . . . . . . 188Table 31 Demand for major pulses in Nepal: 2011–2035 . . . . . . . . . . . . . 189Table 32 Demand for major vegetables in Nepal: 2011–2035. . . . . . . . . . 190Table 33 Demand for major fruits in Nepal: 2011–2035. . . . . . . . . . . . . . 191Table 34 Demand for major edible oils in Nepal: 2011–2035. . . . . . . . . . 192Table 35 Demand for major meat, fish and eggs in Nepal:

2011–2035 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193

Chapter 8

Table 1 Seed policies, legislation, regulation and guidelines addressingseed sector growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201

Table 2 Release and registration of key crop varieties in the last60 years (1955–2015) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205

Table 3 Status of seed production and supply of important cropsin Nepal (mt) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207

Table 4 Quantity of formally imported seeds in the past four years(tons) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210

Table 5 Percent households using type of seeds in agriculturalproduction (2011/12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211

Chapter 9

Table 1 Total inorganic fertilizer use (1000 metric tons) . . . . . . . . . . . . 236Table 2 Use of inorganic fertilizer at farm household level. . . . . . . . . . . 236Table 3 Inorganic fertilizer use (kilograms/hectare of cultivated area,

annual) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237Table 4 Urea price by region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238Table 5 DAP price by region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239Table 6 Estimated nitrogen, phosphate, and potassium use

(kilogram per farm household, year) . . . . . . . . . . . . . . . . . . . . . 240Table 7 Shares of chemical fertilizer obtained from major sources

by fertilizer-using households in each agroecological belt . . . . . 243Table 8 Subgroups of farm households defined for assessing returns

to chemical fertilizer use (among farm households usingchemical fertilizer) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247

List of Tables xxxv

Table 9 Effects of chemical fertilizer price on key householdoutcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252

Table 10 Effects of chemical fertilizer price on livestock revenue,land rental revenue and crop revenue . . . . . . . . . . . . . . . . . . . . . 254

Table 11 Effects of chemical fertilizer price on livestock productioncosts and expenses on purchased fodders . . . . . . . . . . . . . . . . . . 256

Table 12 Share (%) of the harvest of each crop giving out to thelandlord through sharecropping in Nepal Terai in 2010 . . . . . . . 258

Chapter 10

Table 1 Adoptions of tractors, threshers, and pumps in Nepal(% of farm household using and owning) . . . . . . . . . . . . . . . . . 266

Table 2 Real farm wages (village district median) (ratio of daily wageto 1 kg of rice and wheat price) . . . . . . . . . . . . . . . . . . . . . . . . . 268

Table 3 Mechanization and cropping patterns (% of farmers growingin 2010, Terai) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269

Table 4 Determinants of tractor use based on Heckman’s (1979)estimation model (all agroecological belts combined) . . . . . . . . 271

Table 5 Balancing properties of propensity score matching methodfor the analyses of each type machine/agroecological belts . . . . 281

Table 6 Effects of adopting various tractors, threshers and pumpson household incomes (total incomes and agriculturalincomes). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282

Table 7 Effects of mechanizations on agricultural inputs uses(land, fertilizer, labor) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283

Table 8 Effects of mechanization on land productivity . . . . . . . . . . . . . . 284Table 9 Effects of mechanization on market participations . . . . . . . . . . . 285Table 10 Effects on livestock revenue, land rental revenue,

off-farm income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285

Chapter 11

Table 1 NARC’s sectoral projects and budget allocationin 2014–15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297

Table 2 NARC’s project category and operational budget allocations,2014–15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298

Table 3 Analysis of NARC’s budget trends over 2000–2014 . . . . . . . . . 298Table 4 NARC staffing status 2016. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299Table 5 Total number of agricultural researchers’ trend during

2000–2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299Table 6 Agricultural projects promoting agribusiness and private

sector in Nepal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304Table 7 Challenges, implications and potential solutions of NARC

reforms under federal system . . . . . . . . . . . . . . . . . . . . . . . . . . . 307

xxxvi List of Tables

Table 8 Allocation of responsibility across tiers of federal systemfor agriculture sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310

Table 9 Challenges, implications and potential solutionsof decentralized extension in federal system. . . . . . . . . . . . . . . . 310

Chapter 12

Table 1 Landholding structure in Nepal . . . . . . . . . . . . . . . . . . . . . . . . . 327Table 2 Key indicators of agriculture sector in Nepal . . . . . . . . . . . . . . . 328Table 3 GDP and regional GDP by agriculture, non-agriculture

and sub-sectors of agriculture, 2011 (Rs. million) . . . . . . . . . . . 332Table 4 AGDP annual growth by regions (between 1995 and 2011)

at 2001 price (Rs. million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334Table 5 Index of agriculture production 2001–15 and share

in value added . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334Table 6 Mix of major crop areas in the country 2000–15 (‘000 ha) . . . . 336Table 7 Production performance of livestock products in Nepal

(2000–2015). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341Table 8 Fish farming in ponds, 1999/00–2014/15 . . . . . . . . . . . . . . . . . . 343Table 9 Road density and % distribution of rural roads in mountain,

hills and Terai . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348Table 10 Per capita annual consumption pattern and growth in urban

and rural area (expenditure in Rs.) . . . . . . . . . . . . . . . . . . . . . . . 356Table 11 Performance of area, production and productivity of cash

crops, 2000–15 (area ‘000 ha, production 000 Mtand yield Mt/ha). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371

Table 12 Performance of area production and productivity of cerealcrops, 2000–15 (area ‘000 ha, production 000 Mtand yield Mt/ha). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372

Table 13 Performance of area, production and productivity of cashcrops, 2000–15 (area ‘000 ha, production 000 Mtand yield Mt/ha). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373

Table 14 Performance of area, production and productivity of pulsecrops, 2000–15 (area ha, production Mt and yield Mt/ha) . . . . . 374

Table 15 Performance of area, production and productivity of vegetable2000–15, (area ha, production Mt and yield Mt/ha) . . . . . . . . . . 375

Table 16 Performance of area, production and productivity of fruits,2000–15 (area ha, production Mt and yield Mt/ha) . . . . . . . . . . 376

Table 17 Performance of area, production and productivity of specialtycrops, 2000–2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377

Table 18 Sector productivities in livestock . . . . . . . . . . . . . . . . . . . . . . . . 378Table 19 Principal indicators of manufacturing establishments:

2001/2 and 2011/12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379Table 20 Urban consumer price index. . . . . . . . . . . . . . . . . . . . . . . . . . . . 382

List of Tables xxxvii

Chapter 13

Table 1 Prioritized NTFPs/MAP species according toeco-physiographic and administrative regions of Nepal(Credit FNCCI-AEC/NEHHPA 2012) . . . . . . . . . . . . . . . . . . . . 392

Table 2 List of 20 prioritized NTFPs/MAPs for economicdevelopment (in alphabetical order) (Credit:FNCCI-AEC/NEHHPA 2012) . . . . . . . . . . . . . . . . . . . . . . . . . . 393

Table 3 SWOT Analysis of the NTFP/MAP Sector in Nepal . . . . . . . . . 398Table 4 Various policies and laws related to NTFP/MAPs in Nepal

(NEHHPA 2012; Ghimire 2012; MSFP 2014) . . . . . . . . . . . . . . 406

Chapter 14

Table 1 Impact of workers’ remittances on the Nepaleseeconomy—elasticities with respect to workers’ remittances . . . . 431

Table 2 Import values and remittances . . . . . . . . . . . . . . . . . . . . . . . . . . 433Table 3 Import quantities and remittances . . . . . . . . . . . . . . . . . . . . . . . . 434Table 4 Production value of non-tradeables and indicators

of non-tradeables, domestic production of staple foodand remittances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435

Table 5 Remittances and domestic production quantities . . . . . . . . . . . . 436

Chapter 15

Table 1 Structure of Nepal’s agricultural exports, 2009–2013. . . . . . . . . 449Table 2 Structure of Nepal’s agricultural imports, 2009–2013 . . . . . . . . 453Table 3 India’s general rules of origin under various trade agreements,

2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459

Chapter 16

Table 1 Typology of value chains: nature, characteristic and focus. . . . . 483Table 2 Taxonomy of variables used in the analysis . . . . . . . . . . . . . . . . 488Table 3 Segments of tomato consumers in Kathmandu . . . . . . . . . . . . . . 490

Chapter 17

Table 1 Poverty measurement by landownership in Nepal, 1995–96,2003–04 and 2010–11 (rural areas only) . . . . . . . . . . . . . . . . . . 507

Table 2 Occupation of the family head and poverty rate. . . . . . . . . . . . . 507Table 3 Availability of land in Nepal in the last 50 years

(1961–2011). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 508Table 4 Percentage distribution of number and area of landholdings by

size of holding 1961–2011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 510

xxxviii List of Tables

Table 5 Access of indigenous peoples to land (percentage distributionof household owning self-operated land by farm size andethnicity, 2001) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512

Table 6 Land ceiling proposed by government at different times(Land Act 1964 and its revision in 2001) . . . . . . . . . . . . . . . . . 519

Chapter 18

Table 1 Performance on agricultural credit disbursement(2009–2015). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 545

Table 2 Percent of total loans in agricultural sub-sectors, 2015. . . . . . . . 546Table 3 Status of crop and livestock insurance

(FY 2012/13–2016/17) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 551Table 4 Progress on FY 2014/15: company-wise total

premium (Rs.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 552Table 5 Loan guarantee by DCGF as of Mid-July 2018 . . . . . . . . . . . . . 553Table 6 Number and area of holdings and number of holdings

reporting access to agricultural credit (2011/12) . . . . . . . . . . . . . 554Table 7 Sources of agricultural credit for farm households

(2011/12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 555Table 8 Need for agricultural credit in Nepal (2011/12) . . . . . . . . . . . . . 564Table 9 Main purpose of loan for needy households with agricultural

credit need in Nepal (2011/12). . . . . . . . . . . . . . . . . . . . . . . . . . 565Table 10 Estimated agricultural need for agricultural credit

(2018/19) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 566

Chapter 19

Table 1 Key issues for devolved government . . . . . . . . . . . . . . . . . . . . . 578Table 2 Schedule of powers across tiers of government within

agricultural sector according to the 2072 constitution. . . . . . . . . 581Table 3 Institutional changes for agriculture envisioned

by the constitution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 581

List of Tables xxxix

List of Charts

Chapter 12

Chart 1 Share of different crops in arable cropped area (%). Sourceof Data Agriculture Census 2011. . . . . . . . . . . . . . . . . . . . . . . . 327

Chart 2 Percentage of farmers raising different animals. Sourceof Data Agriculture Census 2011. . . . . . . . . . . . . . . . . . . . . . . . 327

Chart 3 Average share of agriculture and non-agricultureGDP. Source Estimates by the Author based on NationalAccount Series, CBS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329

Chart 4 Annual growth rates in AGDP, non-AGDP and GDP(2007–16) %. Source of Data: Economic Survey, 2072/73;Ministry of Finance, Government of Nepal . . . . . . . . . . . . . . . . 330

Chart 5 Engagement of active population in agriculture. Source Datafrom Nepal Population and Housing Census, CBS, 2011 . . . . . 332

Chart 6 Sub-sector annual growth % in area and production. SourceAuthor’s Estimate Based on MOAD Cross Data Series,SINA Issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337

Chart 7 Annual cumulative growth rates (%) in area and productionof field crops over 2000–2015. Note ‘prod’. stands forproduction. Areas; production and yields by crops and theirgrowths are shown in Annex Tables 11, 12 and 13. SourceAuthor’s analysis based on Production Data Series, SINAIssues, MOAD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337

Chart 8 Annual cumulative growth rates (%) in area and production ofhorticulture crops over 2000–2015. Note ‘prod’. stands forproduction. areas; production and yields by crops and theirgrowths are shown in Annex Tables 14 and 15. SourceAuthor’s analysis based on Production Data Series, SINAIssues, MOAD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337

Chart 9 Growth rate of speciality crops (2007–15) %. Source basicdata from SINA Issue MOAD. . . . . . . . . . . . . . . . . . . . . . . . . . 340

xli

Chart 10 Proportion of milking cows and buffaloes and laying poultrybirds (%). Source Basic data from SINA, MOAD. . . . . . . . . . . 342

Chart 11 Contraction and expansion in farming (in %) within theintervals of sample of agriculture censuses 2002 and 2012(farmers and animals in numbers and crops in area). SourceBasic Data from Nepal Sample Census of Agriculture,2012, CBS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343

Chart 12 Share in total value-added growth in capital (%) of largest 10agro-industrial groups in 2002 and 2012. Source Author’sanalysis based on manufacturing establishment census data2002 and 2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345

Chart 13 Arable land irrigated (%). Source National plan DocumentNPC and Economic Survey Ministry of Finance . . . . . . . . . . . . 347

Chart 14 Irrigated land and percentage of arable land by region. SourceCensus of Agriculture, CBS, 2012. . . . . . . . . . . . . . . . . . . . . . . 347

Chart 15 Road construction by department of road (km). Source Basicdata from Economic Survey 2015–16 . . . . . . . . . . . . . . . . . . . . 348

Chart 16 Sale of chemical fertilizer in the country and uses (gross)per Ha of land. Note Use in nutrient equivalent is about halfthe gross use in sales from Source of Data: SINA Issue,MOAD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349

Chart 17 Public expenditure in agriculture (2001–16) at 2001 price(Rs. 10 million). Source Basic Data from various Issuesof Economic survey, MOF . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351

Chart 18 Agriculture credit outstanding from institutional source(2015), Rs. million. Source Quarterly Economic Bulletins,Nepal Rastra Bank. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354

Chart 19 Outstanding credit of commercial banks (Rs. million). SourceQuarterly Economic Bulletins, Nepal Rastra Bank . . . . . . . . . . 354

Chart 20 Urban consumer price index of various commodities andgroups (year 2006 = 100). Note Figures in parenthesesrepresent cumulative annual growth rates (2006–15). SourceIndexes Reworked by the author by shifting base to 2006from the urban Consumer Price Indexes by Nepal Rastra Bankfor different . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360

Chart 21 Import–export gap of agriculture products of Nepal(Rs. 10 million). Source Basic Data from Economic survey,2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361

Chart 22 Export of agriculture products of Nepal by major category2005–15 (Rs. 10 million). Source Basic Data from Economicsurvey, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361

xlii List of Charts

List of Boxes

Chapter 3

Box 1: Interregional and ethnic variations in poverty in Nepal . . . . . . . . . 32

Chapter 8

Box 1: Community Seed Banks for Local Seed System and Adaptationto Climate Change. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220

Chapter 16

Box 1: Global value chain: Case of UK-Africa horticulturalproduct chains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480

Box 2: Industry value chain: the case of the Pakistan mangoindustry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 481

Box 3: Enterprise level value chains: Houston’s farm-fresh saladvalue chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 482

Chapter 17

Box 1: Leasehold forestry in Nepal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517

Chapter 18

Box 1: Chronology of agricultural finance in Nepal . . . . . . . . . . . . . . . . . 531

xliii