Nepal : Climate Resilient Community-Managed Irrigation Project

Agriculture, natural resources and rural development / Irrigation

The agriculture sector contributes about 26% of Nepal's gross domestic product. In 2018, about 55% of the working age population was engaged in agriculture, forestry, and fishing of which 62% are women and 38% are men either directly or indirectly in producing, processing, and marketing of agricultural products. Over the past decade, Nepal's agriculture sector growth has stagnated to an average annual rate of 2.7% which is mainly attributed to lack of reliable irrigation. The country vulnerability to food insecurity is exacerbated by recurring climate induced natural hazards, mostly floods, droughts and heat waves, and a decline in farming systems suitability to climate variations. The agriculture sector is still dominated by subsistence farming resulting in low productivity and farmer incomes.

Nepal's poverty reduction strategy recognizes that agricultural growth is essential for attaining broad-based economic growth and improving livelihoods of the poor, who are mostly in rural areas. Agriculture is largely based on low-value crops and subsistence production, with only 10.3% of households regularly selling farm products in the market, 41.5% of households selling when they have surplus after self-consumption, and the rest never selling their products. Key problems that contribute to low agricultural productivity and high vulnerability to climate change include: (i) unreliable access to water exacerbated by climate change; (ii) inadequate irrigation infrastructure, delivery services, and farmers irrigation practices leading to low water use efficiency; (iii) limited capacity and knowledge of marginal farmers; (iv) small and fragmented land holdings; (v) limited access to good quality seeds, fertilizers, mechanization, and market; and (vi) limited extension services. Many productive uplands along river valleys (tar) remains barren due to lack of access to year-round irrigation. Climate change is impacting rainfed and irrigated crops with delayed monsoon, longer dry and wetter wet seasons, and increasing frequency of extreme climatic events. The average annual economic loss from climate induced disasters is reported NRs2,778 million (equivalent to 0.08% of gross domestic product for 2018/19).

National food security increased (Agriculture Development Strategy 2013)

Climate resilient irrigated agricultural productivity and sustainability enhanced.

Climate-resilient irrigation infrastructure in project areas constructed or modernized.

Irrigation management strengthened.

Climate-resilient agriculture and irrigation practices introduced in the project area.