”Cost Of Production Is High”

December 24, 2004
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— Dr. Bishwambher Pyakuryal

Professor Dr. Bishwambher Pyakuryal is a well-known economist. Dr. Pyakuryal spoke to SPOTLIGHT on various issues regarding the marketing aspects. Excerpts:

On Market

Nepalese food grain producers are yet to get the return of their investment in agriculture sector. Although farmers are not getting benefits, the consumers have benefited from competition of internal and external producers in the market. Whether we talk about the regional or global market, we need to improve competitiveness in our food products. When we look from the context of food security and poverty alleviation, only three products provide two third contribution to the total AGDP. The fluctuation in these three products may change the overall contribution of agriculture. When we talk about marketing, we must see the restrictions on the movements of goods and prices. Now the public and private sector market is deteriorating.

On Policy

The cost of production is very high in Nepal as compared to neighboring countries. Nepalese farmers do not get any subsidy in irrigation, fertilizers and marketing. They also lack infrastructures. Basically, there are policy failures. And a new environment has emerged following the insurrection. The government needs to formulate plans to increase the production, which has competitive advantages. There is a need to diversify products with competitive edge. We should also encourage high value food products as pattern of consumption is changing. There is a disincentive to the farmers to invest in the commercial agriculture. It discourages the farmers. Nepal is not a food deficit country but we are not in a position to carry food to deficit areas. The government needs a broader agriculture policy as per the suggestions given by the APP.