Agriculture is the mainstay of Nepal’s economy. Nepal’s geography, topography, water resources and ample supply of labour give Nepal a comparative advantage in agricultural production. Nepal’s economy is largely dependent on agriculture, which accounted for 33% of GDP as of 2016 and absorbs about two thirds of the labour market. The Government of Nepal has put forward plans to double the agricultural production in the next 5 years through modernization, diversification, commercialization and marketing of the agriculture sector. Towards this, the government plans to make available agricultural inputs, such as irrigation, electricity, transportation and agro-credit. The Agriculture Development Strategy 2014 recommends spending NPR 502 billion in 10 years. This represents a massive opportunity for foreign investors Investment opportunities in the Nepali agriculture sector lie in input market as well as production and processing. There are good opportunities in input markets (such as for seeds, nurseries, fertilizers, agricultural infrastructure and technology, and agriculture financing). The Government of Nepal has made its intention to encourage investment into the chemical fertilizer industry as Nepal has no chemical fertilizer manufacturing facility. At this point, there are only small producers, they lack market sophistication and the technical and financial ability to take advantage of the opportunities being made available. Similarly, there are also investment opportunities in agriculture extension services (including cold storage units, collection centres laboratories, plant quarantines, etc.). Opportunities also exist in agriculture production, processing, packaging and branding (non-timber forest products, cardamom, ginger, aquaculture, vegetables, floriculture, tea, coffee and honey). Building on the Trade Policy 2015, the National Trade Integration Strategy 2016 has identified nine products (including large cardamom, ginger, tea, and medicinal and aromatic plants (MAPs)) and three services as having high export potential and has prioritized their development.
Input Markets and Value Chain Development
Seeds | Fertilizers | Tools | Technology
Processing, Packaging and Branding High-Value Products
Ginger | Cardamom | Aquaculture | Vegetable | Horticulture | Tea | Coffee | Honey | Turmeric | Walnut | Ground Apple | Grape | Avocado | Strawberry | Almond