Kathmandu, April 27

The contribution of the agricultural sector in the country’s gross domestic product (GDP) is expected to shrink more in the current fiscal year 2018-19.

According to the Regional (Provincial) National Accounts 2019 report prepared by the Central Bureau of Statistics (CBS), the contribution of the agricultural sector in the country’s GDP may shrink to 26.50 per cent compared to 27.60 per cent in the last fiscal.

Meanwhile, the 15th five-year national plan has also set a target to shrink the contribution of the agricultural sector in GDP to nine per cent over the next 25 years, with annual agricultural output growth of 5.5 per cent. Similarly the government plans to transform and modernise the agriculture sector with increased use of high-tech equipment. The national plan has aimed to bring down the employment in agricultural sector to 20 per cent in the next 25 years compared to 60 per cent of the total population engaged in the agricultural sector at present.

The CBS report has termed the growth of the agricultural sector in the current fiscal year as ‘satisfactory’ as the Gross Value Added (GVA) of agricultural products is estimated to go up by 5.02 per cent by the end of this fiscal compared to last fiscal year.

As stated in the report, production of major crops will increase in the current fiscal year. Based on data compiled by the Ministry of Agriculture and Livestock Development, production of rice will go up by 8.89 per cent, that of vegetables by 5.49 per cent, of wheat by 4.50 per cent, of maize by 3.48 per cent and of potatoes by 4.30 per cent. However, the production of pulses is projected to decline by 1.68 per cent in the current fiscal.

Meanwhile, ministry has claimed that commercialisation of agricultural sector, timely distribution of fertilisers and irrigation expansion will play a significant role in increasing the production of major crops.

Above all, favourable climate in current fiscal is believed to lead to significant growth of major crops, claimed the ministry.