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Country profile - Nepal

nepal

Nepal's landscape is broadly defined by three contrasting bands, which run parallel, east to west. The most southerly, the Terai, which borders India, is an extension of the Gangetic plain. This flat, lowland region has the greatest agricultural potential of the three, and attracts migrants from the rest of the country. North of the Terai are the mid-hills, one of the most densely populated mountain regions in the world. The hills, which fifty years ago were covered with forests and rhododendrons, are a beautiful but very fragile environment. In places they give way to wide, fertile basins, such as Nepal's 'cradle of culture', the Kathmandu valley. Further north the hills rise to form the Himalayas, sparsely populated, but home of the Sherpas and other groups of Tibetan/Mongolian origin.

Agriculture is the mainstay of the Nepalese economy. Together with agro-industry it contributes about 60% of GDP, and employs up to 90% of the population. The livelihood of a typical Nepalese family is based on small-scale subsistence farming; average farm size is 0.5 hectares in the hills, and 1.5 ha in the Terai. Cash crops make up about 30% of total agricultural production, and agro-processing of jute, sugarcane and grain accounts for much of Nepal's industry. 80% of exports are based on agricultural products.

Rice is the main crop in the Terai; others include pulses, wheat, barley and oilseeds. Also grown are jute, tobacco, cotton, indigo and opium. In the lower mountain valleys, rice is grown during the summer, and wheat, barley and vegetables in the winter. In the hills, terraced and irrigated land on which rice can be grown is much more expensive than the sloping fields used to grow maize, mustard and vegetables. Hence, for most families, maize flour porridge is the staple food. Mustard, grown for its oil, is another popular crop in the hills, the bright yellow fields a striking foreground for the distant, snow-capped Himalayas. In the higher altitudes to the north, the range of crops is limited to maize, wheat and potatoes.

In terms of livestock, goats and poultry are found virtually everywhere; cattle are most common in the Terai; oxen are used for ploughing in the hills, and buffalo are kept for their milk. Life in the highest altitudes would be impossible without yaks, which provide meat, milk and wool, as well as being a pack animal for traders. Some types of livestock are associated with particular ethnic groups, for example Newars keep buffalo for meat, and Magars keep pigs.

Agricultural productivity in Nepal tends to be very low, and many reasons for this are cited: lack of infrastructure limits access to markets; the steep and fragile land is easily damaged by landslides and flooding during the monsoon rains; soil fertility is declining due to deforestation and erosion; little use is made of modern farming technology, improved seeds or chemical fertilizers; and there is only a small amount of irrigated land, so farmers must attempt to plan their crop production on the basis of the unpredictable monsoon. In the higher mountain areas and the drier west of the country, periods of food shortage between harvests are common.

Research and extension, to improve Nepal's agricultural productivity, need to be very area specific, the country containing at least eight different agro-ecological zones. The greatest potential for increased production exists in the Terai, where the flat land is most suitable for modern farming methods. In the hills there is some potential for improved horticulture to contribute to family incomes. However, because the area is so densely populated, nearly all available land is already being tilled, and cultivating more land would require cutting down forest, thereby reducing soil fertility and crop yields. In the mountainous regions, expanding the herds of livestock could be one way to increase farming income. Yak cheese is already being exported to foreign markets, and apple growing is another possible area for exploitation. Non-farming options such as eco-tourism, and gathering of herbal medicines are also strong candidates for income generation.

Any schemes to improve farming methods need to consider the disastrous effects of deforestation. The area under natural forest has halved in the last thirty years, to make way for a population that has doubled in the same period. Damage to watersheds and erosion of topsoil has led to a reduction in average crop yields in recent years. Despite this, Nepal's forests, if properly managed, represent one of its most important natural resources, both for timber and other forest products. Community forest management has been a very successful way of helping local communities to derive income from their forest, while preventing further deforestation.

In addition, Nepal has vast surface and groundwater resources which could be tapped to increase the amount of irrigated land. Small hydro-electric projects could power irrigation systems and, given appropriate technical support, could also be used by cottage industries for processing natural or agricultural products.

Without infrastructural improvement it is hard to see how livelihoods can be significantly improved. However, building roads and supplying power to thousands of small villages perched on precipitous mountainsides must be all but impossible from a practical point of view, and would moreover have major environmental costs. Improving food security through appropriate technical developments, supporting cottage industries, and reversing the damage done to forests and watersheds, may therefore offer the best hope for Nepal's rural population.

Statistical information
  • Country: Nepal
  • Capital: Kathmandu
  • Area: 140,800 sq.km
  • Population: 24,702,119 (2000 est.)
  • Population growth: 2.4%
  • Language: Nepali (official), numerous others among the different ethnic groups
  • Labour force: agriculture 81%, industry 3%, services 16%
  • Population below poverty line: 42%
  • GDP: US$ 27.4 billion (1999 est.)
  • GDP per capita: US$1,100 (1999 est.)
  • GDP composition by sector: agriculture 41%, industry 22%, services 37%
  • Major industries: tourism, carpets, textiles, cement, cigarettes
  • Land use: arable land 17%, forests and woodlands 42%, permanent pastures 15%, other 26%
  • Irrigated land: 8,500 sq. km
  • Natural resources: quartz, water, timber, hydropower, scenic beauty
  • Agricultural products: rice, maize, wheat, sugarcane, root crops, milk, water buffalo meat
  • Export commodities: carpets, clothing, leather goods, jute goods, grain
  • Major Export Partners: India, US, Germany

Date published: May 2001

 

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