• The agricultural sector, which dominates the economy of Nepal, accounts for about 39% to the national GDP and provides direct employment to about 76% of the economically active population.
• If agricultural production gets increased per capital income of the farmer also gets increased thus increasing the standard of living of people. Realizing its importance in the economy, agriculture problems in Nepal have received the highest priority in recent years and the region is obvious.
• The Government has been investing a substantial amount every year (about Rs. 2795 million in 2001/2002) for research and development of agriculture.
• In spite of three decades of planner efforts, there is decimal performance of agricultural sector in Nepal. Low productivity is one of the main problems of Nepalese Agriculture, Nepal has been turned down to a net-food importing country since the last few years.
• Some of the main factors responsible for the low productivity are the inadequate supply of various essential inputs i.e.

• Fertilizer
• improved variety of seed
• lack of adequate irrigation facility
• lack of plant production measures
• lack of knowledge on the part of the cultivators about improved techniques of cultivation, poor farming techniques, insufficient incentive to farmers, lack of agricultural credit and marketing facilities.

Broadly these problems can be categorized as follows:

1. Natural obstacles
2. Technical obstacles
3. Economic obstacles
4. Structural and institutional obstacles
5. Administrative or Bureaucratic obstacles
6. Socio-cultural obstacles