1. What are the problems of Nepalese agriculture?
Ans: Though agriculture regarded as the backbone of the Nepalese economy, it is still in an underdeveloped situation. Some of the major problems in agriculture of Nepal are as follows:-
- Lack of physical infrastructure:-
Agro products need physical infrastructures like roads, irrigation facilities, equipment, warehouses, market centers, etc to increase the farmer’s income. But there is a lack of proper that type of infrastructures. So, it seems the main problem of the agriculture of Nepal.
2. Lack of agricultural credit:-
Most of the people who are below the poverty line are farmers. Due to lack of proper agricultural credit, farmers must to borrow credits at high-interest rates. It completely disappoints the farmers.
3. Increasing pressure of population:-
Due to the high population growth of Nepal, we should fragment and divide the cultivated land. As a result, both production and productivity have been affecting.
4. Use of traditional techniques:-
In Nepal, education is based on traditional technology like kutto, Kodaly, etc. There is no use of appropriate agricultural inputs such as new techniques, improved seeds, fertilizers, etc.
5. Lack of irrigation facilities:-
Around 50 percent of arable land depends upon monsoon in Nepal. Thus, because of the lack of adequate irrigation facilities around the year agriculture is not possible.
2. Explain the features of Nepalese agriculture.
Ans: The major characteristics of Nepalese agriculture are given below:-
- Duel ownership of land:-
On the one hand, there are rich owners who get a substantial portion of agricultural products without work. On the other hand, there are poor peasants (farmers) who do the hard work in less return.
2. Monsoon based agriculture:-
Irrigation is the heartbeat of agriculture. But 50% of the cultivated area of Nepal is completely dependent on monsoon.
3. Subsistence farming:-
Especially Nepalese follow agriculture as an occupation to survive their livelihood. They produce goods just enough for their consumption. There is barely any surplus product left for sale.
4. Geographical variation:-
Different goods grow up in the deferent region of Nepal. For example, farmer product paddy, wheat, and some cash crops like oilseeds in Terai, maize, tea, cardamom in Hills and herbs, potato, horticulture in the Mountain region.
3. Discuss the present status of the agricultural market in Nepal.
Ans: The nature of agricultural marketing in Nepal are as follows:-
Since there is a lack of storage facilities and modern technologies, agricultural production, and marketing both become seasonal activities in Nepal which cause oversupply in the market at lower prices.
Due to the lack of favorable price, quality, technologies, only small quantity products of food grains, vegetables, fruits, etc. the marketing system in Nepal is unorganized.
3. Predominance of middleman:-
In our country, middlemen visit door to door and buy products at a very low price and sell the same goods to other consumers at higher prices. In this process, they make sustainable profits.
4. Influence of Indian market:-
Actually, the Indian agricultural production system is more efficient because of modern techniques and technologies. So, their products are cheaper than the products of Nepal. It adversely affects the Nepalese agricultural market.
5. Small size of market:-
Due to small size or rural markets, farmers are being discouraged to produce goods. Because their products don’t get a good price and then their productivity and income become low.
4. Explain the problems of agriculture marketing in Nepal.
Ans: There are many problems in the Nepalese agricultural marketing system. The main problems are briefly discussed below:-
- Lack of storage facilities:-
Many farmers in rural areas are compelled to store their products in a traditional manner which destroys their product by heat, rain, pests, etc. So, they should sell them even at lower price. These are all caused by the lack of storage facilities.
2. Lack of effective organization of peasants:-
Though there are many organizations of peasants associated with political parties, there is a lack of peasant organizations that can only credit in proper interests for farmers.
3. Lack of transportation and communication:-
Due to lack of transportation and communication facilities, farmers are not able to take their products (especially perishable goods) easily to market centers and sell them at reasonable prices and they can’t get useful and relevant information about agricultural marketing.
4. Problem of adulteration (Mixed):-
Adulteration or mixing of inferior products with superior goods such as sand in food grains, water in milk, oil in ghee, etc.
5. Existence of middlemen:-
Middlemen visit door to door and buy products at a very low price and sell the same goods to other consumers at higher prices. In this case, neither the producers nor the consumers but rather the middlemen are benefited.
5. Explain the sources of agricultural finance in Nepal.
Ans: Sources of agricultural finance in Nepal can be classified broadly into two groups:-
1. Traditional or unorganized sources:-
Unorganized sources are those resources that are not legally established to provide a loan. There are less complicated formalities for borrowing. The unorganized resources are as follows:-
a) Village money lenders and lenders
b) Merchants and traders
c) Friends and relatives
2. Modern or organized resources:-
Organized resources are those resources that are legally established institutions to develop the agricultural sector and other sectors under the policy and regulation of the government. Some sources are as follows:-
a) Agricultural Development Bank (ADB/N)
b) Commercial Banks
d) Rural Development Bank (RDB)
Principles of Economics of Grade 11
We hope it helped you to know a little bit about agriculture.