KATHMANDU: Nepal has imported more than Rs 203 billion worth of agricultural products in the first seven months of the current fiscal year. This increase shows the failure of government programs to increase the productivity of local agriculture. According to the Department of Customs (DoC), between mid-July 2024 and mid-February 2025, agricultural products accounted for 81% of the Rs 251.46 billion in total imports for the previous fiscal year.

Vegetable oils and animal fats were the most expensive imports under agriculture and were imported at Rs 66.20 billion, whereas the previous year's figure stood at Rs 48.27 billion. Second, came food grains with an import value of Rs 36.35 billion, whose previous year's figure was Rs 45.79 billion. A trend emerges showing the greater need for imports to satiate domestic demand.

Over time, Nepal's reliance on agricultural imports has increased. Despite giving farmers subsidies of Rs 107.66 billion over the past five years, the government hasn't done anything to boost domestic agricultural output. A growing number of farmers and businessmen are worried about the rising need for imports, which is being made worse by the urbanization-induced loss of agricultural land.

Dhumbarahi vegetable seller Rasmila Thapa clarified that the nation currently imports a lot of veggies due to the country's declining cropland. She added that because of its growing appeal to Nepali customers, dealers are bringing in pumpkins from Bangalore, India. 

Fresh vegetables sold for Rs 25 billion, potatoes for Rs 5.48 billion, dry onions for Rs 2.13 billion, and garlic for Rs 6.81 billion were among the nation's imports during the review period. Pulses were imported at a cost of Rs 3.97 billion, fruits at Rs 12.32 billion, and agricultural raw materials at Rs 16.42 billion. Heavy imports of sugar and dairy goods totaled Rs 2.61 billion and Rs 908.4 million, respectively.

Even though the government claims to have achieved the largest-ever paddy production this year, imports of the crop increased significantly. It imported Rs 25.29 billion worth of this product, almost double the Rs 13.05 billion during this same timeframe last year. This means that the actual needs are not equal to production claims.

The government provides various benefits to sugarcane producers and to agriculture in general, such as grants for cultivation, livestock insurance, and cooperatives. Billions of rupees are also allocated each year to support chemical fertilizers in the hope of producing higher agricultural output. However, these did not provide the expected results.

This current financial year, the government has slashed the allocation for the agricultural sector due to the failure of these subsidies to work. The budget for agriculture in 2018 is Rs 57.29, only slightly reduced from the Rs 58.98 in the previous year. Clearly, the drop reflects concerns about subsidies not delivering any improved production performance from the farm sector.

Also Read: Nepal’s Foreign Trade Surge of 13.3% This Fiscal Year