Nepali farmers are anticipated to achieve a record paddy harvest of 5.72 million tonnes in the current fiscal year, despite concerns related to the El Niño phenomenon. The growth in paddy output is seen as a positive development for Nepal’s economy, grappling with low output and high inflation. The Ministry of Agriculture and Livestock Development projects a year-on-year increase of approximately 4.33 percent in paddy production, marking a historic high. The favorable outcome defied predictions of drought, as Nepal’s Department of Hydrology and Meteorology initially foresaw below-normal monsoon rains.
The robust harvest is attributed to factors such as late but sufficient rainfall, a steady supply of chemical fertilizers, low pest outbreaks, and limited flooding. Chemical fertilizer imports, amounting to Rs40 billion in the last fiscal year, reached a record high, contributing to increased productivity. Paddy, planted twice a year in June and February, holds significant economic importance for Nepal, with its high output expected to alleviate inflationary pressures and stimulate the economy. The government’s decision to raise the minimum support price for paddy further underscores efforts to support farmers.
Despite earlier concerns about El Niño’s impact on water-intensive crops like rice, Nepal’s successful paddy harvest is expected to reduce reliance on rice imports from India. While government officials suggest that Nepal may no longer need to import rice due to the bumper harvest, some traders argue that the varieties preferred by urban consumers are not locally produced. The significant contribution of paddy to Nepal’s gross domestic product, coupled with its role as a staple food, highlights the critical importance of agriculture to the country’s economic well-being.
