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Contribution of agro sector in Nepal GDP to shrink to 26.5 percent

Christian Fernsby |
The contribution of the agricultural sector in the country’s gross domestic product (GDP) is expected to shrink more in the current fiscal year 2018-19.

According to the Regional (Provincial) National Accounts 2019 report prepared by the Central Bureau of Statistics (CBS), the contribution of the agricultural sector in the country’s GDP may shrink to 26.50 percent compared to 27.60 percent in the last fiscal.

Meanwhile, the 15th five-year national plan has also set a target to shrink the contribution of the agricultural sector in GDP to nine percent over the next 25 years, with annual agricultural output growth of 5.5 percent.

Similarly the government plans to transform and modernise the agriculture sector with increased use of high-tech equipment.

The national plan has aimed to bring down the employment in agricultural sector to 20 percent in the next 25 years compared to 60 percent of the total population engaged in the agricultural sector at present.

The CBS report has termed the growth of the agricultural sector in the current fiscal year as ‘satisfactory’ as the Gross Value Added (GVA) of agricultural products is estimated to go up by 5.02 percent by the end of this fiscal compared to last fiscal year.

As stated in the report, production of major crops will increase in the current fiscal year.

Based on data compiled by the Ministry of Agriculture and Livestock Development, production of rice will go up by 8.89 percent, that of vegetables by 5.49 percent, of wheat by 4.50 percent, of maize by 3.48 percent and of potatoes by 4.30 percent.

However, the production of pulses is projected to decline by 1.68 percent in the current fiscal.

Meanwhile, ministry has claimed that commercialisation of agricultural sector, timely distribution of fertilisers and irrigation expansion will play a significant role in increasing the production of major crops.

Above all, favourable climate in current fiscal is believed to lead to significant growth of major crops, claimed the ministry.

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