Agricultural and rural mechanisation in Nepal: status, issues and options for future

Nepal is a small land-locked mountainous country with diverse agroecologies, culture and agriculture. Agriculture is a key source of economic growth, poverty reduction and environmental sustainability in Nepal. It is the mainstay of the national economy, contributing one third of GDP and providing livelihood to more than two thirds of the population (MoF, 2013). The poverty rate is declining over the last two decades but it is still high with one-quarter of its population (25.1%) living below poverty line (CBS, 2012). Food crops are the major

components accounting for about 40% of AGDP, while

livestock and fishery account for 30%, horticulture and

cash crops 20%, and forestry about 10% (MoF, 2013).