- Government policy (no legal binding and improper govt. policy):
– In Nepal, policy formulation only for periodic plan and failure of policy due to change in government structure.
– Implementation rate of policy is very low due to political instability.
– Policy follow top to bottom approach rather bottom to top approach
– Government policies are very ambitious.
- Lack of information/awareness among producers and traders (less research & extension):
– Lack of market information about price, quality produced, quantity produced, etc. this is due to failure of the government information sector.
- Lack of quality inputs:
– Quality: fertilizer, seed imported from India,
– Quantity: fertilizer, seed, irrigation are not in sufficient quantity and Time: whether in right time or not?
– Poor distribution of fertilizer, seeds, etc.
- Traditional philosophy of farming (i.e. subsistence in nature):
– Muscle drain (flow of young people for luxurious work/blue color work) and brain drain problems.
– So our farming system is dominated by traditional farmers and they are reluctant to use new technology and marketing then farm commercialization/mechanization is very low.
- Uneconomic size of land holding:
– The subsistence orientation of Nepalese farmers limits contribution to income growth and poverty reduction.
- Open border system:
– For example, India buys our rice in Magsir and sells us in scarce period.
- Political instability/liquidity:
- Lack of appropriate technology:
- Poor adoption of technology (late majority and laggards adopters):
- Topography (irrigation , transportation, landslides, flooding):
– Undulated land structure and provide us climate diversity, but it is difficult for infrastructure construction.
– Furthermore, economic life of assets (roads, machines, building) is very low.
- Lack of well developed transportation and communication facilities:
- Lack of credit (quality, quantity and time):
– Processing plant, quality improvement, time efficiency, etc. are required credit.
– Our financing structure divert from agriculture to non-agriculture sector due to very poor recovery percentage (less than 60%).