Agricultural Policy

AGRICULTURAL POLICY
INTRODUCTION
 Agricultural policy describe a sets of laws
relating to domestic agriculture and imports of
foreign agricultural products.
 Government usually implement agricultural
policies with the goal of achieving a specific
outcome in the domestic agricultural product
markets.
OBJECTIVES
 To give knowledge about agricultural
development policy.
 To provide employments for the citizen and raw
material for all agro-based industries.
 To increase productivity and promoting natural
resources to utilized them in the interest of
farmers.
 To analyze the strength and weakness of
agricultural development policy.
CHALLENGES OR
ISSUES
 Raising the agricultural productivity per unit
of land.
 Reducing rural poverty through a socially
inclusive strategy that comprises both
agricultural as well as non farm employment.
 Ensuring that agricultural responds to food
security needs
AGRICULTURAL POLICY
CONCERNS
 Poverty reduction
 Bio security
 Food security
 Food sovereignty
AGRICULTURAL POLICY TOOLS
 An agricultural subsidy is a governmental subsidy
paid to farmers and agribusinesses to manage the
agricultural industry as one part of the various
methods a government uses in a mixed economy.
 A government can erect trade barriers to limit the
number of goods imported or enact tariffs to raise
the domestic price of imported products. These
barriers give preference to domestic producers.
 The conditions for payment and the reasons for the
individual specific subsidies vary with farm product,
size of the farm, nature of ownership, and country
among other factors.
 Price controls encourage more production.
ARGUMENTS
 A number of countries that are signatories to
multilateral trade agreements have provisions that
prohibit this practice. When rich countries subsidize
domestic production, the excess output is often given
to the developing world as foreign aid.
 This process eliminates the domestic market for
agricultural products in the developing world
because the products can be obtained for free from
western aid agencies. In developing nations where
these effects are most severe, small farmers could no
longer afford basic inputs and were forced to sell
their land.
 If developed nations eliminated subsidy programs,
the export value of agriculture in lesser developed
nations would increase.
 Exporters can offer surpluses for sale at prices
around half the cost of production; destroying local
agriculture and creating a captive market in the
process.
 Free trade advocates desire the elimination of all
market distorting mechanisms (subsidies, tariffs,
regulations) and argue that, as with free trade in all
areas, this will result in aggregate benefit for all.
AGRICULTURAL DEVELOPMENT
STRATEGY (ADS) 2015 TO 2035
INTRODUCTION
 The Agriculture Development Strategy (2015-2035)
is a road map with a ten years action plan that is
expected to guide the agricultural sector of Nepal
over the next 20 years.
 Has been approved after the completion of the
long-term Agricultural Perspective Plan (APP).
 Is based on the concept of Total Factor
Productivity and High Investment which advocates
Open Market Economy.
OBJECTIVES
The overall objective of the ADS includes five dimensions
of:
 Increased food and nutrition security
 Competitiveness
 Higher and more equitable income of rural households
 Strengthened farmers’ rights.
In order to monitor the progress according to the

objectives of the strategy in terms of implementation,
various indicators and targets are presented.
EXPECTATIONS
 Agricultural transformation by enabling
agrarian community to generate more income
from the service and industrial sector
 Rural development of non-agricultural sector
including agriculture
 Enhanced growth of land and labor productivity
 Trade balance
 Improved employment and youth migration
 Agricultural transformation in the context of
climate change
VISION OF THE STRATEGY
 “Self-reliant, sustainable, competitive and
inclusive agricultural sector that speeds up the
economic growth, uplifts livelihood and
contributes to food sovereignty, food and
nutrition security.”
 It is expected that Nepal will be a middle
income country with a significant increase in
gross domestic production in the coming 20
years and creating a significant portion of
income fromm industry and service.
DESIGN OF THE STRATEGY
ADS is supposed to achieve its vision and outcomes
compared to previous policies as it has ensured the
participation of related stakeholders and proposed
new mechanism of implementation.
In order to achieve the strategy’s vision, the ADS will
accelerate the growth of agricultural sector through
four strategic components:
 Good governance
 Productivity
 Profitable commercialization
 Competitiveness
It also promotes inclusiveness, sustainability,
development of private sector and cooperative sector,
and connectivity to market infrastructure, whose
growth is expected to result in:
 Increase food and nutrition security
 Agricultural trade competitiveness
 Higher and more equitable income of rural
households
 Strengthened farmers’ rights
ANY QUESTIONS??
THANK YOU!!

Agricultural Policy

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