Lalitpur, Nepal – The private sector has called on the government to prioritize import substitution and export-oriented agricultural production to unlock the vast potential of Nepal's agriculture sector. Stakeholders also highlighted the low budget allocation for agriculture and urged the government to increase funding in the upcoming fiscal budget.
This sentiment was voiced during a national dialogue on agricultural investment and export promotion, organized by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Swisscontact/KASA Program, and the Agriculture Enterprise Center in Lalitpur on March 25, 2025.
Experts and stakeholders pointed out Nepal’s rich geographical diversity, favorable climate, and abundant natural resources, emphasizing the country’s untapped potential in agriculture. They urged the three tiers of government to focus on policy reforms, investment promotion, and export-driven programs to foster agricultural growth.
Speaking at the conference, Minister for Agriculture and Livestock Development, Ramnath Adhikari, announced the government’s plans to introduce an integrated agricultural policy aimed at the long-term development of the sector. "We are in the final stages of preparing an integrated policy for agricultural development, which will address concerns raised by stakeholders," said Minister Adhikari.
The Minister also emphasized the need for collective efforts from all sectors to achieve self-reliance in agriculture, noting that the private sector’s collaboration is critical to achieving the government's goals. Addressing concerns about subsidy misuse, he revealed that NPR 105 billion had been spent on agricultural subsidies over the past five years, with plans to monitor and optimize future allocations.
FNCCI President Chandra Prasad Dhakal stressed the need for increased budget allocation, stating, "Despite being the backbone of Nepal's economy, agriculture has been consistently neglected in budget planning. The government must prioritize agriculture in the upcoming budget."
Anjan Shrestha, Senior Vice President of FNCCI, underscored the importance of actionable policies and stronger government-private sector collaboration. "The private sector is ready to work with the government, but actionable programs are essential. The state must be more proactive in providing fertilizers, seeds, and technology to farmers," he said.
Currently, agriculture receives only 3% of Nepal's total budget, a significant portion of which is allocated to chemical fertilizers. Stakeholders questioned how meaningful development can occur with such limited funding.
The conference, attended by policymakers, private sector representatives, and development partners, concluded with a shared commitment to boosting investment, addressing policy gaps, and fostering collaboration to drive export-oriented agricultural growth.
