Crop Diversification in the Asia-Pacific region - United Nations in ...

Table 2. Growth of Agricultural Commodities 1998/99 (Nepal)Agricultural Commodities Annual/Growth (%)1. Paddy 1.92. Maize 2.33. Wheat 4.04. Millet 3.55. Barley 1.76. Sugar cane 11.67. Oilseed 1.38. Potato 5.79. Pulses 3.5Source: Economic Survey FYP of 1998/99, Ministry of Finance, 1999 HMGN/NepalSo far as trade is concerned, India is and will continue to be the largest export marketfor Nepal's agricultural products, including secondary crops such as lentils, ginger, oilseedsand vegetables. There is scope for import substitution of agricultural products such as sugar,pulses, vegetables, dried chillies and vegetable oils. On the basis of the market investigationthere are a number of crops that will have the potential in any future project includingvegetables and vegetable seeds, sugar cane, soybean, pulses, oilseeds, ginger, potato, chillies(dried), maize and fruits (banana and citrus). All have sufficient annual demand increment towarrant promotion.National mustard oil demand is in deficit by an estimated 27,000 tonnes. Sales arereputed to be increasing by 25 percent per year. The local crop has higher oil recovery ratesthan the imported one.The lentil's export markets are India, Bangladesh, Pakistan and Sri Lanka. Nepalesedemand is 122,000 tonnes, which exceeds the supply of 113,520 tonnes per annum.Potato production has increased by 8 percent over the last three years to 972,000tonnes per annum, which amounts to 80 percent of the country's requirement. Similarly,Nepal's sugar production was estimated at 95,000 tonnes in 1998/99. Domestic productionhas increased by 250 percent over the last four years. Fifty percent of the domesticrequirement is being met by imports from India.In the Terai, maize is emerging as a commercial crop for processing into glucose,breakfast cereal, animal food and corn oil. The demand for maize is expected to grow by 4percent per year over the next 20 years as a result of increased demand for food in the hillsand in the Terai.The demand for fresh ginger can be termed as optimistic. Export earnings fromginger have doubled over the last three years and domestic household consumption is rising.However dried ginger exports are declining. With regards to dried chillies, imports fromIndia amount to 7,933 tonnes. The study shows that 67 percent of the vegetables consumedin the country originates from India. Off-season vegetable production is considered thesolution for increasing farmers’ income.85