Harvesting prosperity: Role of advanced farming technology in economic development

Nepal’s economy has always been based on agriculture, which is also a significant component of its rich cultural legacy. The bulk of the people of this landlocked South Asian country depend primarily on agriculture for their means of subsistence. Around 65 percent of people are engaged in agriculture in Nepal as their main profession. 

The agricultural diversity in Nepal is a result of the country’s geographical diversity, which includes a wide range of temperatures and altitudes. The diverse landscapes of Nepal, which range from the fertile Tarai plains in the south to the rugged Himalayan mountains in the north, provide a foreground for a variety of crops and farming methods. Among the basic crops planted here are rice, wheat, maize, millet, barley and potatoes. Cash crops including tea, coffee, sugarcane and various fruits are also grown. Cattle, poultry and yak herding are examples of livestock farming, which makes a considerable contribution to the agricultural industry.

It is impossible to exaggerate the value of agriculture to Nepal’s economy. Almost two-thirds of the nation’s workforce is employed in it, giving the vast majority of people a means of subsistence. Also, the GDP of Nepal is mostly derived from agriculture about one-third.

In addition, the Constitution of Nepal has enlisted agriculture in the Directive Principles, Policies and Obligations of the State. Article 51 (e) Policies relating to agriculture and land reforms. Its objective is to implement scientific land reforms to benefit farmers and eliminate dual land ownership, encourage land pooling to boost productivity and discourage idle land ownership. It also aims to promote land management, commercialization, industrialization, diversification and modernization of agriculture while protecting farmers’ rights. Additionally, the policy talks about regulating land use based on factors like productivity, land type and ecological balance while ensuring farmers have fair access to agricultural inputs, products and markets.

As we see in India, With the help of cutting-edge farming innovations like the Green Revolution and genetically modified crops like Bt Cotton, India’s agricultural sector transformed from a food-deficit country into a major agricultural producer, boosting both farmer income and economic growth. Likewise, China’s extensive modernization of agriculture, which includes the use of GM crops and cutting-edge equipment, emphasizes the importance of government support in enhancing agricultural output and promoting economic growth. With the help of programs like the ATA, Ethiopia’s tech-driven agriculture is increasing production, luring investment, and boosting economic growth while also raising food security and job possibilities.

With a 34 percent share, agriculture contributes to about one-third of the nation’s GDP. When it comes to agricultural land, the Tarai makes up 60 percent of all agricultural land in Nepal. In Nepal, there are numerous huge, regularly flowing rivers, making irrigation facilities for agriculture readily available. The rivers in Nepal are capable of irrigating 6.5 x 10 power six hectares, according to estimates. This exceeds our six hectares (3.8 10 powers) of agricultural land.

International organizations and development groups help Nepal’s efforts to modernize its agriculture. Due to their close ties, nations like India and China have contributed significantly to the development of Nepal’s agricultural industry. Additionally, international collaborations, like the one with the Food and Agriculture Organization (FAO) of the United Nations, have been crucial in providing technical know-how and financial support.

Nepal’s economy, especially the agriculture sector, has been significantly impacted by the Covid-19 pandemic. Using cutting-edge farming technology can be very beneficial to the nation’s economic growth. The necessity of investing in agricultural innovation and technology to boost productivity and income is highlighted in the World Bank report ‘Harvesting Prosperity: Technology and Productivity Growth in Agriculture’. The research proposes that harnessing the significant potential gains in agricultural productivity and income can be facilitated by increased investment in new knowledge and its implementation.

Despite covid-related lockdowns, the US Agency for International Development (USAID) has been offering farmers and micro-, small- and medium-sized enterprises (MSMEs) technical support, high-quality inputs, and enhanced market linkages. These efforts have resulted in agricultural produce sales exceeding $256,000,000 in 2021—a five percent increase from 2020.

An $80m Rural Enterprise and Economic Development Project has been agreed by the World Bank and the Nepal government to support the country’s agriculture industry and accelerate post-pandemic recovery. Through the support of rural businesses and the creation of local jobs and possibilities, the project seeks to revolutionize Nepal’s agriculture industry. The agriculture industry in Nepal can become more robust and productive with the use of cutting-edge farming technologies, which will promote long-term economic growth and development.

In order to boost productivity and economic growth in agriculture, technology and innovation are crucial, according to the World Bank research ‘Harvesting Prosperity: Technology and Productivity Growth in Agriculture’. The paper places a strong emphasis on the necessity of public funding for research and development to increase productivity, new technology investment for growth, and trade and intellectual property rights legislation to foster innovation.

A number of agriTECHs in Nepal are using cutting-edge digital technologies to revolutionize agriculture. For example, the private sector collaboration with Nepali cooperatives, funded by Feed the Future, offers 200,000 farming households in 25 districts access to machines and training. In a similar vein, contemporary agricultural technology gives farmers the ability to lower labor costs and boost output.

In conclusion, Nepal is mostly dependent on agriculture, which employs 65 percent of the country’s workforce and makes a major GDP contribution. The diversified topography of the nation supports a wide variety of crops, although the agricultural industry suffers difficulties, most notably in the wake of the Covid-19 pandemic. With the help of international partnerships with China, India and the Food and Agriculture Organization, Nepal is actively implementing cutting-edge farming technologies to get over these obstacles and promote long-term economic growth. The World Bank emphasizes that in order to promote agricultural innovation, public investment for research, technology and laws are necessary. Together with initiatives like the Rural Enterprise and Economic Development Project, initiatives from the World Bank, USAID, and agriTECHs demonstrate a commitment to modernizing Nepal's agriculture and promoting hope for a more resilient and productive sector that will advance the country’s economy as a whole.

The author is pursuing BA LLB at Kathmandu School of Law