Nepal’s paddy output set to fall for first time in four years

Summary

Nepal’s paddy output is set to decline by 4.2% in the current fiscal year due to drought in Madhesh, unseasonal rainfall, and rural-to-urban migration, impacting the economy and food security.

Key Points
  • Nepal’s paddy output is projected to decline by 4.2% to 5.75 million tonnes in the current fiscal year, the first drop in four years.
  • Prolonged drought in Madhesh province and unseasonal rainfall in October are major causes of the decline in paddy production.
  • The reduction in paddy output is expected to hurt farm incomes and pressure Nepal’s economy, which heavily depends on agriculture.
  • The World Bank has projected slower economic growth for Nepal in 2025-26, partially due to delayed paddy planting and agricultural challenges.
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