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AGRICULTURE,
NEPAL
 Agriculture dominated the economy. In the late 1980s, it was the livelihood for more than 90 percent of the population--although only approximately 20 percent of the total land area was cultivable--and accounted for, on average, about 60 percent of the GDP and approximately 75 percent of exports. Since the formulation of the Fifth Five-Year Plan (1975-80), agriculture has been the highest priority because economic growth was dependent on both increasing the productivity of existing crops and diversifying the agricultural base for use as industrial inputs.
In trying to increase agricultural production and diversify the agricultural base, the government focused on irrigation, the use of fertilizers and insecticides, the introduction of new implements and new seeds of high-yield varieties, and the provision of credit. The lack of distribution of these inputs, as well as problems in obtaining supplies, however, inhibited progress. Although land reclamation and settlement were occurring in the Tarai Region, environmental degradation--ecological imbalance resulting from deforestation--also prevented progress (see The Land , ch. 2).
Although new agricultural technologies helped increase food production, there still was room for further growth. Past experience indicated bottlenecks, however, in using modern technology to achieve a healthy growth. The conflicting goals of producing cash crops both for food and for industrial inputs also were problematic.
The production of crops fluctuated widely as a result Nepal is a small, landlocked country wedged between China and India. It lies between 27° and 30° N latitude and 30° and 88° E longitude. Its rectangular shape covers a length of roughly 800 km and a width of from 130-140 km.
The rice-growing part of Nepal is in AEZ 6, characterized as warm subhumid subtropics with summer rainfall. However, within the short span of its width can be found all varieties of climate and topography. The topography varies from the plains of the terai (the narrow band of plains adjacent to the foothills of the Himalayas) to the deep valleys of high mountains of the north.
The country can be broadly divided into three parallel geographic regions based on topography. Proceeding from the east to the west is the terai, or lower elevation fringe of the Gangetic plain in the southern border at 100-500 m elevation with an annual rainfall of more than 1600 mm; the middle hills at altitudes between 500 m and the forest line at 4000 m; and the high mountains of the Himalayas in the north, extending above the forest line as high as 8000 m. With more than 50% of the cultivated land in the country, the terai is the granary of Nepal. Mountain regions cover only 5% of the cultivated area.
The population of the country was more than 21.4 million in 1995. The economy is largely rural, with almost 90% of the population engaged in agriculture. The population has been growing at 2.5% per year.
 Importance of rice
Agriculture contributes about 60% to GDP, provides employment to over 38% of the total population, and produces 80% of the value of exports.
Rice, maize, and wheat are the three most important crops, occupying about 55%, 29%, and 23% of the cultivated area, respectively, while millet and oil seeds cover about 10% of the area. Rice (65% of the cultivated plains area) and wheat (25%) are dominant in the terai. Maize (38%), rice (28%), and millet (18%) are the most important crops in the hills.
Rice is the most important food crop of Nepal. The main diet of the Nepalese is also rice. Almost all people in the terai and river basins depend on this crop.
Rice farming dominates the agricultural sector of Nepal, which itself dominates the economy. It is, therefore, the single most important industry in the country, contributing approximately one-fourth of the GDP and occupying approximately 1.4 million ha. From 1981 to 1994, production has increased at about 2.4% per year.
Virtually all of the increase in total rice production came from increases in the area cropped. It is estimated that more than 100Ê000 ha of riceland (roughly 7% of the total) are double-cropped.
Recently, there has been a substantial shift to the use of higher-yielding varieties. Adoption of modern varieties has induced farmers to apply commercial fertilizers to rice, a practice not followed when local varieties are grown.
 Rice environment
Rice is grown under a wide range of ecological conditions. Of the total area, 88% is in the subtropical climatic region of the terai, inner terai, and equivalent regions of foothills and river basins of valleys up to 900 m altitude. Similarly, 10% is found in the warm temperature regions from 1000 to 1400 m, and 2% in the cold tropical regions between 1500 and 3050 m, which is the highest altitude in the world for rice cultivation.
In the inner and outer terai, temperatures are similar, but the rainfall regimes vary dramatically from east to west. Rainfall, soil, and topographic variation produce a range of field water regimes, which cause major differences in the rice production potential in different areas.
In the middle hills, lower air and water temperature dictate different rice varieties, production practices, and cropping systems from those prevalent in the terai. The vast range in elevations, soils, and slopes in this region results in a diversity of rice microenvironments.
Three major rice cultural types are recognized in Nepal rice cultivation: irrigated, rainfed wetland (lowland), and dryland (upland). All are found in both the terai and the middle hills.
Rainfed wetland rice is the dominant rice cultural type, occupying about 66% of the rice area. Fertilizer use in the rainfed area is very low. Nearly all nutrients applied to rice are used in the irrigated area.
Irrigated rice has the greatest elevation range, from about 100 m to 2500 m. Temperature, length of time of irrigation availability per year, dependability of water supply, and soil fertility are the major determinants of production potential and cropping intensity.
Upland rice is grown on about 3% of the total riceland, and is more concentrated in the western part of the country. Local varieties are grown in the entire area without fertilizer applications.
 Production constraints
Constraints to rice production in Nepal fall into four broad categories: those associated with irrigation, credit and input supply, soils, and pests and diseases.
Irrigated ricelands make up about 23% of the total harvested area. However, the area is considered as only partially irrigated because of an undependable water supply, which limits yields. The lack of improved technologies for the rainfed lowland and the partially irrigated areas also keep yields low.
Rice producers have to deal with low price incentives and the lack of credit. In addition there is a shortage of inputs such as fertilizers. Labor shortages occur during peak periods.
Siltation and flooding affect the terai plains; soil erosion is a problem in the middle hills. There is also declining soil fertility because of environmental degradation and the increasing cultivation of marginal lands.
Production opportunities
Nepal set for itself the goal of doubling rice production within the 1990s and elevating the income and nutritional status of small farm households by the year 2000. Meeting those goals depends on raising yields and intensifying cropping, which are difficult tasks.
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