Horticulture Development in Nepal: Prospects, Challenges and Strategies

Nepal has different ecological belts endowed with different types of climates due to its geographical locations for the production of horticultural crops. Government organizations were not in existence for the development of horticulture sector before 1950, yet growing of fruits, vegetables, spices and flowers started from time immemorial in private sector. After the creation of Department of Horticulture during sixties several horticulture farms were established in different agro-ecological zones where research and extension programs were launched and horticulture development took momentum. There is tremendous scope for commercial horticultural crops production to enter into the international market. Due to subsistence farming system, poor infra-structure, transportation facilities, linkage to the international market and technical know-how, horticulture development could not gain momentum as expected. The productivity of horticultural crops comparing with two giant neighboring countries i.e. China and India does not give matching results but in case of spices especially in large cardamom, Nepal’s productivity is higher than these two countries. Large cardamom, ginger, tea and coffee have played significant role in trade balance while in case of fruits, flowers and some of the fresh vegetables Nepal faces still trade deficit.


Introduction
Nepal is situated as trapezoidal shape 870 km in length by 130 km in width. Its total area is 1,47,181 sq. km. In latitude, it ranges from 26 o 22' to 30 o 27' N and in longitude from 80 o 04' to 88 o 12' E, Agriculture Diary 2015 [1]. In altitude ranges from about 60 m above mean sea level in the Terrain (Kechna Kabal, Jhapa District) in the South-East to 8,848masl at the summit of Mount Everest in the North. It is surrounded by China in the north and India in the east, west and south. It has favorable agro ecological diversity for agricultural production, especially in the horticulture sector. Different ecological belts are endowed with different types of climates due to its geographical locations. Most of the important fruits, vegetables, spices and flowers of the world can be grown in this country. Three distinct seasons experienced are hot and dry season from March to mid-June, wet summer from mid-June to September and dry and cold season from October to February. The unique agro-ecological zones favored by altitudes, topography, and aspect within the country offer an immense opportunity for growing different types of fruits, vegetables, flowers, spices and other plantation crops. Nepal is rich in biodiversity as wild plants of mandarin in Mangtewa, custard apple in Dhankuta in the east while Amla (Indian gooseberry) plants in Jasbire way to Indrawati, wild citron in mid hill of central region and wild olive plants are found in Humla and Kalikot, the western part of Nepal. Actually, Nepal is the land of wonder with agro-climatic variability, NHS 2016 [6]. Horticulture development at the government level started during sixties when the Horticulture Division was created in the newly established Department of Agriculture in 1952. Many farms were established during sixties, commodity development divisions were established in seventies, agricultural research was given a special focus and a separate research wing named Nepal Agricultural Research Council (NARC) was formed in the year 1993, Poudyal et al. [7].
In the last sixty years, there have been significant progresses in policy development, institutional development, and technology generation and transfer. With Nepal's membership to WTO and regional trade associations, increasing education levels and nutrition knowledge of the people, increasing demand and import of horticultural commodities shows high prospects for horticulture development and to harness the potentiality of horticultural development in Nepal experience shows that there are challenges for enhancing production, improving physical infrastructure, enhancing marketing and promotion of processed products. In Nepal, 65.5% population are engaged in agriculture and its contribution to national GDP is 31.23% where horticulture sub-sector has the most significant role in AGDP which shares 21.42 percent, MOAD 2015 [5].

Historical Background
Horticulture was limited to growing indigenous fruits and vegetables before 1950 in the private sector, while collection and growing of fancy plants existed in

Potatoes
During last 10 years, area and production of potatoes have been increased by about 31% from 150,864 to 197037 ha and from 1,974,755 MT to 2,586,287 MT respectively.

Coffee
During the last 5 years, area of coffee has been increased by about 49% from 1,752 ha in 2010-11 to 2,618 ha in 2014-15 whereas the production (green beans) has been increased by about 8% from 402 MT in 2010-11 to 434 MT in 2014-15 as shown in table 6 and figure 6. The area and production is in increasing trend but the productivity is slightly decreasing due to the reason that new plantation for area expansion is increasing but the coffee plants haven't come into fruiting stage yet.

Fruits
In total export, share of summer fruits is 96% followed by citrus fruits (3%) and winter fruits (1%) by volume while by values summer fruits cover almost 100 percent and citrus and winter fruits are in insignificant amount whereas in total import, share of summer fruits is 59% followed by citrus fruits (16%) and winter fruits (25%) by volume while by values summer fruits cover 65% followed by citrus fruits (14%) and winter fruits (21%). Table 8 illustrates that the import of fruits by volume and values is more than the export which expels that this sub-sector should be emphasized.

Vegetables
In total export, share of fresh vegetables is 88% followed by potatoes (12%) and dried vegetables in insignificant quantity by volume while by values fresh vegetables cover 64% followed by dried vegetables (22%) and potatoes (14%) whereas in total import, share of fresh vegetables is 34% followed by potatoes (54%) and dried vegetables (12%) by volume while by values fresh vegetables cover 33% followed by potatoes (41%) and dried vegetables (26%). Table 9 demonstrates that the import of vegetables by volume and values is more than the export which interprets that attention should be paid in the promotion of vegetable sub-sector for exportable commodities.

Spices
In total export, share of ginger is 83% followed by big cardamom (10%), cinnamon (6%), garlic (1%) and other spices in insignificant quantity by volume while by values big cardamom covers 86% followed by ginger (10%), cinnamon (3%), garlic (1%) and other spices in insignificant amount whereas in total import, share of other spices is 68% followed by garlic (30%), ginger (1%), cinnamon (1%) and big cardamom in insignificant quantity by volume while by values other spices cover 83% followed by garlic (14%), ginger (2%), cinnamon (1%) and big cardamom in insignificant amount. Here, other spices cover fenugreek, chilies, turmeric, pepper, coriander, cloves, cumin and small cardamom. Table 10 explains that export of spices by volume and values is little bit more than the import where big cardamom plays significant role while in the other spices sector a lot of progress have to be performed, Thapa et al. [8].

Tea
In total export, share of black tea is almost 100% where green tea is in insignificant quantity by volume while by values black tea covers 99% and green tea 1% whereas in total import, share of black tea and green tea is 99% and 1% respectively by volume and values. Table 11 shows that export of tea by volume and values is more than the import which reflects the positive sign for the development of tea sub-sector. (NRs. = Nepalese Rupees) (1USD ≅ 102 NRs.) Source: SINA 2015 [4], (1USD ≅ 102 NRs.)   Source: SINA 2015 [4], (1USD ≅ 102 NRs.) Figure 11. Export and import of tea by volume and values

Coffee
Nepal exports green beans coffee whereas general coffee is imported in the country. In the export and import point of view the share of both types of coffee is almost same by volume while by values green beans coffee covers more than 40% in export in comparison to import of general coffee (Table 12) which is a sign of encouragement in the coffee sub-sector.

Flowers
In export, share of live plants is 91% followed by cut flowers (8%) and ornamental foliage (1%) by volume while by values live plants covers 80% followed by cut flowers (20%) and ornamental foliage in insignificant amount whereas in import, share of live plants are 77% followed by cut flowers (22%) and ornamental foliage (1%) by volume while by values live plants cover 93% followed by cut flowers (7%) and ornamental foliage in insignificant amount. Table 13 aware that much more steps to be taken forward for flourishing the floriculture sub-sector.

Comparative Advantage
The climate in hills and mountains differ from the terrain. During summer, temperature in the hills and mountains is low. Normal season vegetables in hills considered as off-season in terrain and neighboring countries. Off-season vegetables fetch higher price in the market as well. Because of diverse agro-ecological situations in the hills and mountains, different fruits, spices, flowers have niche value as well as it has comparative advantages like production season of citrus is differed from India and Bangladesh, export quality of large cardamom is produced in the eastern hills, niche type of orchids and highland specialty coffee has high demand in the international market, orthodox tea is highly appreciated in the international arena, Gautam, D. M. [3].
As per Statistical Information of Nepalese Agriculture 2014/2015, Nepal's significant horticulture production is in increasing trend despite its comparatively lower productivity. Both in case of fruits & vegetables, productivity of Nepal (8.96 & 13.41 ton per hectare respectively) are lower than the productivity of China (11.6 and 23.4 ton per hectare), India (12.3 and 17.3 ton per hectare) and world average (11.4 and 19.6 ton per hectare). During 2013-14, in case of spices basically in large cardamom, Nepal's productivity (6.86 ton per hectare) was better than the China and India (3.3 and 2.0 ton per hectare respectively). Though the comparison of Nepal's horticulture productivity with that of China, the leading producer of fruits & vegetables, and India does not give identical results but there is a potentiality in case of large cardamom, tea and coffee. In case of large cardamom production Nepal's yield is the best amongst the major producers (Table 14).

Employment Opportunity
The drain of manpower to the overseas is due to unemployment problems in the country. At present situation more than 3,000,000 youths have been deployed in the overseas in search of job. Production, processing and marketing of horticultural crops create employment opportunity to the rural and urban youths. Commercialization of horticulture crops and their value addition generate income to the people, Gautam, D. M. [3].

National and International Market
Nepal has been under the process of rapid urbanization. It is assumed that by 2030 about 50% of the population will live in the town and cities. This will create a high demand for agricultural commodities in the markets. At present context the import of fruits, vegetables and other high value commodities is increasing every year. Current Import scenario of horticultural crops in values are as such, apple of In some commodities where import is increasing it can be substituted by producing such commodities within the country such as; mango, banana, onion, potato, chili and other vegetables. On the other hand, by utilizing diverse agro-ecology of hills and mountains various high value commodities can be produced in niche areas and export to other nations. Nepal does have potential scope to export horticultural crops like mandarin, sweet orange, lime and areca nut in fruits; cabbage, peas and tomatoes as off-season vegetables; large cardamom and ginger in spices; tea and coffee in plantation crops; cut flower, orchid, rose and carnation in flower sub-sector, SINA 2015 [4].

Government Policies and Plans
Government of Nepal has always prioritized for horticulture development in periodic plans. In the 20 year Agriculture Perspective Plan (APP, 1994/95-2014/15), government outlined the broad policy to transform subsistence agriculture into commercial one and priorities given to the horticultural crops such as apple in mountain; citrus, coffee, tea and vegetable seeds in mid-hill and mango, banana and fresh vegetables in terrain. The policies emphasize to facilitate market oriented high value commodities, contribute internal and export markets through agro-based industries and poverty reduction through commercialization of horticulture.
Likewise, government formulated Nepal Trade Integration Strategy (NTIS) in 2010, which identified seven agro-food i.e., ginger, tea, large cardamom, lentil, honey, noodles and medicinal herbs for export potentialities, out of which three are horticulture commodities.
The government has endorsed Agriculture Development Strategy (ADS) in 2015 with the vision of a competitive, sustainable inclusive agriculture sector that contribute to economic growth, improved livelihood, and food and nutrition security. It will accelerate agriculture sector growth through four strategic components including improved governance, productivity, commercialization and competitiveness. Priority is given to inclusiveness (both social and geographical), sustainability (both natural resources and economical) and connectivity to market infrastructures (agricultural roads, collection centers, packing houses, market centers etc.), information infrastructures and ICT, and power infrastructure, ADS 2015 [2].

Identified Horticultural Crops
The climate of terrain (lower belt), mid-hills and high hills are suitable for the production of many kinds of fruits and high value horticulture commodities such as mango, banana, papaya, areca nut, tea, cut flowers, vegetables and potatoes in terrain; mandarin, sweet orange, lime, pomegranate, kiwi, coffee, tea, large cardamom, ginger, cut-flowers, vegetables and potatoes in mid-hills and apple, walnut, apricot, peach, pear, plum, vegetables and potatoes in high-hills, Gautam, D. M. [3].

Challenges
Despite of greater scope and potentiality there are various constraints for the production of horticulture crops commercially, Gautam, D. M. [3]:

Subsistence Farming
Farming system in Nepal is conventional and subsistence type. Each farmer grows most of the crops as per need of his family. The scattered form of farming imposed a greater constraint in marketing of horticultural crops. From sustainable point of view growing all crops is important. For commercial production it should be specialized to particular crop. The low volume of products and absence of consolidated marketing system create the great setback for export.

Lack of Systematic Marketing System
In Nepal marketing system is a major problem. Farmers are encouraged to grow vegetables, fruits and high value crops without sustainable market and marketing system. Productions without market create embarrassing situations to the growers and discourage production. Producers face problems due to lack of transportation facilities such as marketing of apple from high hill regions and citrus fruits in the mid-hill regions.

Lack of Physical Infra-structure
In remote areas inaccessibility to the road is the major problem to produce horticultural commodities. The production of most of the fruits is seasonal in nature. The production areas are in remote and the bulk of production is confined to a particular limited time. Bulk production of seasonal crops in a limited period leads to fetch poor market price due to lack of proper storage and processing units. Lack of cleaning, grading, sorting, fumigation, waxing and other packing house operations decrease export quality of the horticultural products. In many instances, inferior qualities are processed to different product such as juice, jam jellies and beverages. In some crops production without processing is useless such as coffee, tea etc. Because of growing transaction the size of existing market has squeezed and is not enough.

Human Resource Management
In Nepal the well trained manpower are not enough. There is lack of subject matter specialists (SMS) in spice crops, tea, and coffee sub-sector. In the field of postharvest handling and processing of horticultural crops skilled manpower is still lacking. Overseas job creates shortage of youth labor in the country as well. Due to foreign job migration of people from rural areas to urban areas is in increasing trend.

Low Priority in Investment
Poor economic status of Nepalese people cannot support big projects of commercial production and processing of horticultural crops. Inadequate investment of government in horticulture sector is also a great challenge. Foreign investor or donors have less priority in fruit sub-sector for investments.

Strategies
The government of Nepal has made efforts to promote the horticulture sector in short as well as in long term plans, yet some deficiencies are experienced which are to be addressed in future:  Emphasis should be given to niche fruits, plantation crops, flowers and spice crops production in larger areas.


Research institutes should be strengthened to develop the hybrid varieties of horticultural crops especially vegetables.  Big production blocks should be created and strengthened in fruit sub-sector.


The plantation areas of tea and coffee should be expanded because demand of coffee (green beans) and green tea in international market is high.  Processing units should be established for the promotion of ginger, areca nut and large cardamom.  Big storage house facilities should be provided for year round supply and price stabilization.  Capacity enhancement for the horticulturists and frontline extension workers need to be strengthened.  Foreign aid/ investment need to be mobilized through single door policy.  Implementation of crop insurance policy should be assured to commercial farmers.  Sanitary and phyto-sanitary (SPS) measures should be followed strictly for exportable commodities.