KATHMANDU: Over 65 per cent of Nepal’s population lives in rural areas and 71 per cent of the population derives its livelihood directly from agriculture but agricultural products are still less competitive both in terms of price and quality.

According to Anup Bahadur Malla, coordinator of Federation of Nepalese Chambers of Commerce and Industry’s (FNCCI) Export Promotion Forum (EPF), only 30 per cent of agricultural land has year-round irrigation and national agricultural productivity remains the lowest and most unstable by South Asian standards.

Malla said the cereal production grew at 2 per cent per annum, far below the rate of population growth. During a seminar organised by FNCCI/EPF on technology expansion and market access for agriculture products, representatives of various sectors stressed on the need for new technology.

Ministry of Industries secretary Dr Badri Pokharel said there is need for investment in the agriculture sector as it has the potential to create a sustainable economy. There are major issues and constraints at the production level. Collective efforts at grass root level are inadequate to reduce the cost of production.