A. CEREAL CROPS

• Cereal crops occupy>75% crop area and contribute 55% of total Agricultural production
• Contribution of cereal crops in AGDP is higher i.e. 36.2 as compared to other components
• Major cereal crops are Rice, Maize, Wheat, Barley, Millet

Table: Nepal – Cereal production, Requirement and Balance (in mt)

Table: Area and production of cereal crops

(Sources: – Statistical information on Nepalese Agriculture 2000/2001 and 2001/2002. H.M.G. Ministry of Ag. & Co-operatives Nepal)

Problems: –

• Lack of effective research for new technology
• Poor infrastructure i.e. transportations
• Lack of year-round irrigation i.e. 21% of the total cultivation area (and is irrigated)
• Low fertilizer uses and inefficient supply
• Lack of reliable market.

B. CASH CROPS

• Major cash crops: sugarcane, potato, tobacco, oilseed and jute
• Minor cash crops: tea, coffee, ginger, turmeric, cotton, cardamom

Importance

• Export potential and import substitution
• Raw material is provided for agro-based industries
• More profitable than cereal crops (high Economic return)
• Soil conservation to minimize soil erosion
• 4 % of total cultivated area is used for cash crop production which contributes 6.87% of total agricultural production.

Table: Area and production of cash crops

Production of cash is affected by

• National and international demand & supply
• Supply side
• Climatic condition
• Availability of technical inputs

Some existing problems of each crop

• Lack of appropriate technology and knowledge
• Lack of reliable market
• Lack of processing industries
• High cost of production and low price
• Rainfed production
• Lack of commercialization
• Lack of insurance
• Small scale production
• Illegal trading practices and monopoly of handful of traders in the border

C. HORTICULTURAL CROPS

• It includes fruits and vegetable
• Contribution: – 5 % of GDP and 16 % to AGDP
• Condition: not sufficient for domestic demand from national production (domestic production)
• In Nepal 20 % vegetable and 60 % fruits are imported from India
• Fruits occupy 1.7 % of total cultivated area & 5.4 % by veg.