Government Moves to Cut Middlemen and Raise Farmers’ Earnings

The government has intensified efforts to address longstanding problems in Nepal’s agricultural supply chain and reduce the influence of middlemen under a special initiative led by the Office of the Prime Minister and Council of Ministers. A task force formed to recommend reforms has accelerated field studies and data collection to address the persistent situation in which farmers receive low prices for their produce while consumers pay significantly higher prices. Preliminary findings from the task force, coordinated by Dr. Diwas Raj Bista, Deputy Director General of the Department of Agriculture, have revealed that agricultural products pass through at least five layers of intermediaries before reaching consumers, preventing a significant share of the value from reaching farmers. The government aims to reduce these unnecessary layers to just two or three, which the task force estimates could increase farmers’ current selling prices by around 30%. The task force has been collecting data from 12 major agricultural markets and production centers to identify practical reforms, including market-driven farming, improved storage, modern processing and packaging, reduction of post-harvest losses, and the development of a market information system. The government also plans to promote technology-driven delivery startups that can connect farmers directly with consumers and reduce the distance between production and consumption. Following broader consultations with the Ministry of Agriculture, Forest and Environment and other stakeholders, the task force is expected to submit a report within one month, including concrete policy recommendations and implementation measures. The government expects the initiative to provide a long-term solution to the persistent price gap in Nepal’s agricultural sector.