KATHMANDU, May 25: Nepal’s agriculture import bill has continued to rise, fueled by declining domestic production and structural weaknesses in the farming sector. Analysts point to inadequate irrigation, outdated agricultural technology, poor supply of fertilizers and quality seeds, rising production costs, migration of youths and market uncertainty as the primary causes behind the surge in imports.
Nepal’s overall food grain imports reached Rs 46.70 billion in the first ten months of the current fiscal year (FY) and is nearing last year’s total of Rs 59.92 billion.
Government-led programs have also failed to deliver results. The Office of the Auditor General, in its 63rd annual report, highlighted poor progress in the flagship agriculture modernization project. Despite a Rs 130.74 billion investment over a decade, the program has missed nearly all major targets — from developing pocket areas and zones to creating jobs and ensuring food self-sufficiency — as the project nears its deadline.
Meanwhile, the Ministry of Agriculture stated that the government’s spending in this sector has increased by an average of 10.7 percent annually, yet production of key crops has shown mixed trends, with some declining significantly. The budget allocation rose from Rs 21.40 billion in fiscal year 2013/14 to Rs 59 billion in fiscal year 2024/25.
Damage to irrigation amounts to Rs 2.42 billion
Data published by the Ministry of Agriculture and Livestock Development show that Nepal produced 5.047 million metric tonnes of paddy, 2.283 million tonnes of maize, 1.883 million tonnes of wheat, 304,105 tonnes of millet and 100,335 tonnes of buckwheat in fiscal year 2013/14.
Despite domestic production, imports of major food grains have increased in recent years. According to the Department of Customs, Nepal imported paddy, rice, maize, millet and buckwheat from countries including India, China, Argentina and Malaysia.
In fiscal year 2024/25, the country imported 753,305 metric tonnes of paddy and rice, 299,989 tonnes of maize, 8,443 tonnes of millet and 698 tonnes of buckwheat, spending Rs 59.92 billion.
The import bill exceeded the government’s agriculture budget of Rs 57.29 billion for the same period by Rs 2.63 billion, highlighting growing dependence on foreign supply.
Likewise, in the current fiscal year, paddy and rice dominate the import bill, accounting for Rs 34.07 billion out of the total imports of Rs 46.70 billion including Rs 2.24 billion during the last month. Of the total amount, Rs 16.74 billion was spent on 449,600 tons of paddy from India, Rs 7.33 billion on 63,900 tons of Basmati rice, and Rs 9.99 billion on more than 155,300 tons of non-Basmati rice.
Customs data, however, show imports of paddy and rice have declined compared to the same period last FY, when Nepal imported paddy worth Rs 18.95 billion, Basmati rice worth Rs 6.54 billion, and non-Basmati rice worth Rs 8.99 billion.
According to Tilak Raj Chaulagain, a senior agriculture economist at the Department of Agriculture, Nepal requires around seven million metric tonnes of paddy annually to feed a population of about 30 million. Current production falls short by around 1.3 million tonnes.
Corn imports on the other hand surged, with Rs 10.41 billion spent on 248,000 tons, largely due to growing demand in poultry farming and reduced domestic supply. Other food grains such as millet, buckwheat, and barley added to the rising bill. Nepal spent Rs 510 million to import 10,000 tons of millet, Rs 253.90 million on buckwheat, Rs 45.3 million on barley, and over Rs 10 million on sorghum (Junelo), proso millet (Chino), and foxtail millet (Kaguno).
Over the past decade, annual production growth stood at 1.034 percent for paddy, 3.98 percent for maize and 0.8 percent for wheat, while millet and buckwheat declined by 22.1 percent and 17.6 percent respectively.
Meanwhile, the area of cultivable land has also shrunk significantly. According to the National Statistics Office, arable land decreased from 2.53 million hectares in 2011/12 to 2.22 million hectares in 2021/22, a decline of nearly 300,000 hectares.
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