This document provides an overview of the agricultural sector in Nepal. It notes that agriculture provides employment for 65% of Nepal's population and accounts for 27.59% of GDP. The main crops and livestock vary depending on the mountain, hill or Terai region. Opportunities for investment and growth exist in areas like processing industries, organic farming, high value crops, and integrated agriculture development projects. The government is promoting the modernization and commercialization of agriculture through various plans and policies to support the sector and attract foreign investment.

1. AGRO AND FOREST
PRODUCTS
Opportunities Through Niche And Value Chains
PRESENTER
DR. YOGENDRA KUMAR KARKI
Joint-Secretary
Ministry of Agriculture and Livestock Development

2. COUNTRY OVERVIEW: GLIMPSES OF NEPALESE
AGRICULTURE (MOUNTAIN)
MOUNTAINS: Yak,
Sheep, Goats and
fruits

3. COUNTRY OVERVIEW: GLIMPSES OF NEPALI
AGRICULTURE (MID-HILL)
HILLS: Cereals, sub-tropical
and fruits, vegetables,
coffee, tea, flowers, milk
production, Goat, and
poultry mild-temperate

4. COUNTRY OVERVIEW GLIMPSES OF NEPALI
AGRICULTURE (TERAI)
TERAI: Cereals,
tropical and sub-
tropical fruits,
vegetables and milk
production

5. OVERVIEW OF AGRO SECTOR IN NEPAL
Provides employment for
almost 65% of the
population
Mainstay of Nepal's economy
and comprises 27.59 % of
nation's GDP
The agriculture production of
Nepal has increased by 3.2% in
past two decades
Nepali agriculture and
livestock husbandry system is
focused on rural enterprise and
small holding farmers
Productivity of agriculture
labor is very low; $ 835 and
the average productivity of
Agriculture Land is $3278/ha
Commercial agriculture farming and
livestock husbandry practices is
increasing in Peri-urban areas and
villages with better market access

6. OVERVIEW OF AGRO SECTOR IN NEPAL
Average Annual Growth rate of Agriculture sector(%)
Source: Economic survey, 2018
Present Status of National Food Availability
Source: MoALD, 2016

7. OVERVIEW OF AGRO SECTOR IN NEPAL
Nepal has targeted on Graduation to
developing country by 2022 and
upgrade to a middle income country
by 2030
Forest and grazing lands provide
more than 50% of fodder and
forages to the livestock in Nepal.
Overall agriculture output is
expected to grow by 3.0% in
FY2018
Structural transformation in Nepalese economy
demands boosting up productivity
 within sectors (shifting from lower value added
activities to higher value)
 across sectors (shifting production/employment
structure from agriculture to industry)
DEVELOPING
COUNTRY
MIDDLE INCOME
COUNTRY2022
2030

8. OVERVIEW OF AGRO SECTOR IN NEPAL
Imports by Commodities (FY 2017/18) Production and Productivity by Commodities
SN DESCRIPTION
IMPORT ($
MILLION)
1 Cereals 445
2 Fruits 145
3 Vegetables 227
4 Coffee and Tea 107
5 Fish 17
6 Animals; live 41
7 Meat and edible meat offal 2
8 Dairy Product 26
Total 1011
SN COMMODITY
PRODUCTION
(MT IN
MILLION)
PRODUCTIVITY
(MT/HAC)
1 Paddy 5.61 3.7
2 Maize 2.56 2.68
3 Millet 0.31 1.19
4 Wheat 1.95 2.76
5 Barley 0.03 1.24
6 Vegetables 4.10 14.04
7 Fruits 1.01 11.40
8 Meats 0.35
9
Milk and Milk
Product
2.09
10 Fish 0.09

9. OVERVIEW OF AGRO SECTOR IN NEPAL
Commercialized farming of
agriculture and livestock are
established through out Nation
Nepal self reliant with: Green
vegetables, poultry and egg
Agriculture-Livestock Integration:
Prospective to supply processed
products (domestic need) and
export
Private Sectors: Involvement in large scale
farms and Niche products: Ostrich farming,
Kiwi, Tea, Coffee, Large Cardamom, Dairy and
Poultry products etc.

10. INVESTMENT POTENTIAL AND OPPORTUNITIES
ESTABLISHMENT OF FERTILIZER BLENDING INDUSTRY
PHYSICAL INFRASTRUCTURES DEVELOPMENT
AGRICULTURAL MACHINE, TOOLS AND TECHNOLOGY
SEED PRODUCTION
PROCESSING INDUSTRIES
ORGANIC FARMING

11. INVESTMENT POTENTIAL AND OPPORTUNITIES
POSSIBILITIES
1
2
GRAPE FARMING AND VINEYARD3
4
FLORICULTURE5
SCOPE FOR INVESTMENT IN THE SECTOR IS HUGE DUE TO
AGRO-ECOLOGICAL DIVERSITY OF THE COUNTRY
NON TIMBER AND FOREST PRODUCTS
NICHE AND HIGH VALUE PRODUCTS SUCH AS GINGER, CARDAMOM,
TURMERIC, WALNUT, KIWI, AVOCADO, STRAWBERRY, ALMOND, GROUND
APPLE, DRAGON FRUITS, HONEY, HIDE AND SKIN ETC.

12. INVESTMENT POTENTIAL AND OPPORTUNITIES
POTENTIAL INTEGRATED AGRICULTURE DEVELOPMENT COMPONENTS

13. INVESTMENT POTENTIAL AND OPPORTUNITIES
Strategic location of country between
India and China, two of largest
economies in World
Duty free access to India and China
Nepal-India Trade and Transit Treaty
Signatory country of Double
Taxation Avoidance Agreements and
Bilateral Investment Protection and
Promotion Agreements (BIPPAs)
Member of the World Trade
Organization (WTO)
Government Commitment for
promotion of foreign investment,
providing a unique opportunity for
foreign direct investment (FDI)

14. INVESTMENT POTENTIAL AND OPPORTUNITIES
Mutual understanding
and cooperation
between institutions,
farmers and
entrepreneurs
Harmonization
between central,
provincial and local
government
Local level
institutional
participation and
development

15. POLICY INCENTIVES ON AGRO AND AGRO-BASED INDUSTRY
GOVERNMENT PLANS, POLICIES AND PROGRAMS
Prime Minister Agriculture Modernization Project (PM-AMP): envisaged pockets,
blocks, zones and super zones for agriculture products
15th Periodic Plan (Under Preparation): Commercialization of Agriculture, Use of
Innovation and Technology in Agriculture, Agriculture sector as Driver of
Economic Development
Agriculture Development Strategy (2015-2035): Agriculture sector plan for next
20 years, Recommends spending USD 5 billion in beginning 10 years, Commission
a study on FDI in agriculture in Nepal
Nepal Trade Integration Strategy (NTIS): Seek to address the outstanding trade
and competitiveness

16. POLICY INCENTIVES ON AGRO AND AGRO-BASED INDUSTRY
INVESTMENT INCENTIVES
Subsidies and facilities for foreign invested industries will be as per the
national standard and norms
Effective tax rate of 70 % of applicable tax rate for industry based in
agriculture sector
Foreign Investment and Technology Transfer Act, 1992 (FITTA) enables for
conducive environment for foreign investment
40 % tax exemption for fruit based brandy, wine, cider-producing industries
established at under developed areas specified by GON for first ten year

17. POLICY INCENTIVES ON AGRO AND AGRO-BASED INDUSTRY
VAT exemption facility for agro-based cold storages
VAT exemption for spare parts imported by jute industries on
recommendation of Department of Industries
25 % VAT square off facility for all-purpose flour industries
50 % VAT square off facility for mustard oil and Vanaspati ghee producing
industries, dairy industries and tea producing and refining industries
70 % VAT square off facility for sugar producing industries
Special exemption in income tax and dividends for Industries established in
Special Economic Zones

18. PROJECTS SHOWCASED IN SUMMIT
Project Location Province Capacity
Urlabari, Morang 1
Cold storage: 4,000 Mt.
Warehouse: 17,500 Mt.
Parsagadhi, Parsa 2
Cold storage: 5,000 Mt.
Warehouse: 20,000 Mt.
Banepa and Chitwan 3
Cold storage: 4000 Mt.
Warehouse: 10,000 Mt.
Hemja, Pokhara Gandaki Province
Cold storage: 4000 Mt.
Warehouse: 15,000 Mt.
Manigram, Tilottama,
Rupandehi
5
Cold storage: 4,000 Mt.
Warehouse: 25,000 Mt.
Birendra Nagar, Surkhet Karnali Province
Cold storage: 2,500 Mt.
Warehouse: 75,000 Mt.
Ginger Processing: 20,000 Mt.
Godawari, Attariya Sudurpaschim Province
Cold storage: 2,500 Mt.
Warehouse: 10,000 Mt.
INTEGRATED AGRICULTURE INFRASTRUCTURE PROJECT
(ESTABLISHMENT OF COLD STORAGE AND WAREHOUSE)

19. THANK YOU