Nepal's Agricultural Economy

Rice (dhaan) is Nepal's most important food crop, providing roughly 50% of daily caloric intake for the population. It is grown primarily in the Terai plains, which account for over 85% of national paddy output, with a smaller monsoon crop in mid-hills valleys. Nepal cultivates about 1.52 million hectares of paddy producing around 5.46 million metric tonnes annually, though the country remains a net rice importer due to high consumption demand.

Nepal's major agricultural exports are large cardamom (alainchi) - where Nepal is the world's 3rd largest producer - and premium orthodox tea from the Ilam highlands. Other significant agri-exports include ginger, medicinal herbs, dried vegetables, and pulses. Large cardamom alone generates NPR 15–20 billion per year in export revenue, making it Nepal's highest-value agricultural export by unit price. Coffee exports to Europe, Japan and the USA are also growing, though volumes remain small.

Nepal has made significant progress in food security but still faces persistent challenges. Approximately 22.5% of households experience moderate or severe food insecurity (WFP CFSAM 2022). The high-altitude mountain districts face the most acute food insecurity, with 40–60% of households food-insufficient for three or more months per year. Nepal is a net food importer - wheat, edible oil and sugar are imported in significant quantities, primarily from India. Agriculture GDP growth of ~3.5% CAGR over the past decade has improved the overall picture.