Kathmandu, Nepal – A growing reliance on imported food is exacerbating existing nutritional deficiencies in Nepal, prompting experts to call for a fundamental shift in trade policy that prioritizes public health. A new study reveals a concerning disconnect between economic strategies and the well-being of the Nepali population, particularly vulnerable groups like children and women.
The research, conducted by the South Asia Watch on Trade, Economics and Environment under the South Asian Coalition for Improved Nutrition, with support from the International Development Research Center, highlights a paradox: despite being traditionally known as an agricultural nation, Nepal is increasingly dependent on external food sources. This dependence, coupled with fragmented policymaking, is undermining efforts to improve nutrition and food security, researchers say. The core issue, they argue, is that nutrition outcomes are not systematically considered when shaping trade agreements or setting tariffs.
Alarming statistics underscore the urgency of the situation. According to the study, 26 percent of Nepali children are stunted, 7 percent are wasted, 19 percent are underweight and a staggering 43 percent of infants aged 6–59 months suffer from anemia. These figures, released Thursday, point to long-term consequences for human capital and national productivity. Addressing these issues requires a holistic approach that integrates nutrition into all facets of economic and trade decision-making.
Rising Food Imports and Household Strain
Nepal’s dependence on cereal imports currently stands at 14 percent, with the nation’s annual food import bill averaging approximately NPR 300 billion (roughly $2.3 million USD as of November 2, 2023) over the past five fiscal years. The Nepali Times reports that informal imports, particularly from India, are believed to be even higher, further complicating accurate assessment and regulation.
This reliance on imports places a significant burden on Nepali households, particularly those with limited financial resources. The study found that poor families spend between 60 and 67 percent of their income on food. High tariffs imposed by India on essential food items – 28.6 percent on eggs and dairy, 17.5 percent on meat and fish, 19.2 percent on pulses, 19.5 percent on vegetables, and 22 percent on fruits and nuts – are exacerbating the financial strain. These tariffs effectively increase the cost of nutritious foods, making them less accessible to those who need them most.
A Paradox in the Food Basket
The situation is particularly acute in the Tarai region, historically Nepal’s most productive agricultural area. Despite its agricultural output, the Tarai experiences widespread deficiencies in essential micronutrients. Madhesh Province, within the Tarai, exhibits the highest anemia rates in the country, affecting 52 percent of women and 51 percent of children. This highlights a critical disconnect between agricultural production and nutritional outcomes.
Experts point to a lack of diversification in agricultural practices as a contributing factor. Historically, cereal production has been prioritized, often at the expense of more nutrient-rich crops. While there has been a recent shift towards promoting crop diversity, as noted by Sabnam Shivakoti, joint secretary at the agriculture ministry, the transition is ongoing. “In the past, cereal-based production dominated, but now there have been significant interventions in vegetables and fruits,” she stated, adding that the Agriculture Development Strategy includes food and nutrition security as a core objective.
Policy Fragmentation and Coordination Challenges
A central finding of the study is the lack of coordination among Nepal’s government agencies. Trade, nutrition, agriculture, and commerce policies are developed and implemented by separate institutions, leading to unintended consequences and ineffective outcomes. The Finance Ministry and Customs Department, for example, do not formally consider nutrition when setting tariffs. Simultaneously, the health ministry focuses on treating the symptoms of malnutrition – such as anemia and stunting – without addressing the underlying dietary issues stemming from trade policies.
Rajeshwar Gyawali, joint secretary at the industry ministry, acknowledged the challenges posed by cheaper imports, which can undermine the competitiveness of domestic agriculture. “While the principle of comparative advantage encourages importing cheaper goods and exporting higher-value products, he said this approach may not fully apply to agriculture due to food security concerns.” He also highlighted Nepal’s limited capacity for trade negotiation, citing small delegation sizes and financial constraints as hindering effective representation in international forums.
Nepal currently relies heavily on India and China for essential food imports like wheat and sugar, often through ad hoc arrangements rather than formal, long-term agreements. Gyawali emphasized the need to “formalise supply guarantees through bilateral treaties,” citing high transportation costs, food losses, and inadequate infrastructure as additional drivers of rising food prices.
Looking Ahead: Towards a Nutrition-Sensitive Trade Policy
Yamuna Ghale, a food and nutrition security expert, underscored the varying levels of hunger and malnutrition across different regions, genders, and socio-cultural groups within Nepal. She also pointed to structural issues like land insecurity and informal leasing practices, which discourage agricultural activity and contribute to land lying barren – approximately 32 percent of Nepal’s arable land is currently unused.
As Nepal prepares to graduate from Least Developed Country status in November 2026, experts warn that the nation must fully utilize provisions within the World Trade Organization (WTO) and leverage international technical support to strengthen its domestic production and reduce import dependence. A key step will be integrating nutrition considerations into all trade-related policies and fostering greater coordination among government agencies.
The upcoming budget cycle and ongoing trade negotiations with India and China represent critical opportunities to implement these changes. The Nepali government is expected to release updated agricultural and trade policies in early 2024, and these will be closely watched by nutrition advocates and public health officials.
This issue demands continued attention and collaborative action to ensure a healthier and more food-secure future for Nepal. Share your thoughts and experiences in the comments below.
