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Repcrit No. 519a-NEP FILE COPY Agyricultural Sector Survey of Nepal: The General Report (In l-wo Volumes) Public Disclosure Authorized Volume II: Annexes 1-8 Deccmber 20, 1974 South Asia Projects Department Noit for Public Use Public Disclosure Authorized Public Disclosure Authorized Doclment of the International Bank for Reconstruction and Development Public Disclosure Authorized lnteinational Development Association This report was prepared for official use only by the Bank Group. It may not be ptiblished, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report. CURRENCY EQUIVALENTS US$1 = Nepalese Rupees (Rs) 10.56 Rs 1 US$0.094 = Indian Rupees (IR) 0.726 Rs 1,000,000 = US$94.340 WEIGHTS AND MEASURES Metric System 1 kilogram (kg) = 2.20 pounds 1 quintal = 100 kg = 220 pounds 1 metric ton (m ton) = 1,000 kg = 2,204.62 pounds = 0.98 long ton 1 meter (m) = 39.37 inches = 3.28 feet = 1.09 yards 1 kilometer (km) = 0.62 mile 1 bigha = 0.68 ha 2 = 1.7 acres 1 hectare (ha) 2 = 10,000 m = 2.47 acres 1 square kilometer (km ) = 100 ha = 0.39 square mile Crop Year: June 1 - May 31 Financial Year: July 16 - July 15 (exact dates vary with lunar calendar) ABBREVIATIONS AND ACRONYMS ADBN Agricultural Development Bank of Nepal ANC = Agricultural Marketing Corporation CEDA = Center for Economic 1)evelopment and Administration, Tribhuvan University DA = Department of Agriculture DF = Department of Forestry DIHM = Department of Irrigation, llydrology and Meteorology DT = Department of Transport FAMSD = Food and Marketing Services Department, MFAI FMS = Farm Management Study HMG = Government of Nepal IAAS = Institute of Agriculture and Animal Science, Tribhuvan University JT = Junior Technicians, DA JTA Junior Technical Assistants, DA M = Million MFAI = Ministry of Food, Agriculture and Irrigation MPP = !finimum Package Program NDC = Nepal Dairy Corporation NESP = National Education System Plan NPC = National Planning Commission NRB = Nepal Ra'stra Bank NRC = Nepal Resettlement Company VC = Village Committees VP = Village Panchayats NEPAL AGRICULTURAL SECTOR SURVEY Table of Contents Paragraph Number VOLUME I (GENERAL REPORT) SUMMARY ........... i - xxxvi I. INTRODUCTION ................ 1.01 - 1.08 1I. BACKGROUND .................................. 2.01 - 2.26 Natural Resource Base .2.01 - 2.11 Socio-Economic Disparity: The Hills and The Terai .. 2.12 - 2.26 III. PRESENT POSITION .3.01 - 3.70 The Principal Agricultural Products ......... ....... 3.01 - 3.30 The Institutional Setting ....... .................... 3.31 - 3.70 Ill. A PROPOSED DEVELOPMENT STRATEGY ...... .................... 4.01 - 4.106 Government's Emphasis and Plans ..... ................ 4.01 - 4.03 The Basic Strategy ........... ........................ 4.04 - 4.06 Agricultural Development in The Hills .... ........... 4.07 - 4.21 Agricultural Development in The Terai .... ........... 4.22 - 4.42 Linking The Hills to The Terai ...... ................ 4.43 - 4.49 Improving Support Services ...... .................... 4.50 - 4.86 Reaching The Small Farmer ....... .................... 4.87 - 4.97 Programs [or the Development Regions ..... ........... 4.98 - 4.106 V. PROJECTS, PREINVESTMENT REQUIREMENTS AND PROSPECTS ....... 5.01 - 5.23 Project Selection .......... 5.01 - 5.02 Present Foreign Assistance and Projects .......... 5.03 - 5.07 Proposed Projects for External Financing .......... 5.08 - 5.22 Preinvestment Requirements and Studies .......... 5.23 Table 1: Geographic Regions, Climate and Agricultural Location. Table 2: Components for Secondary Roads and Area Development Projects. Appendix: Socio-Economic Characteristics of 'i'he Hills and The Terai. -2- VOLUME II (ANNEXES) Annex 1 - Natural Resource, Land Use and Land Settlement Annex 2 - Forestry Development Annex 3 - Foodgrain Production Annex 4 - Cash Crop Development Annex 5 - Livestock and Fodder Development Annex 6 - Irrigation and Water Resource Development Annex 7 - Credit and Cooperatives Annex 8 - Statistical Annex MAPS 10906 - Nepal - Geographic Regions and Districts (General Report) 10907 - Nepal - Administrative Regions, Zones and Districts ( " " ) 10908 - Nepal - Topography, Large Valleys and River Systems ( " " ) 10742 - Nepal - Crop Concentration and Land Use ( " " ) 11172 - Nepal - Remaining Level Forests in Eastern Terai ( " " ) 10912 - Nepal - Remaining Level Forests in Western Terai ( " " ) 10909 - Nepal - Transportation Infrastructure ( " " ) 11050 - Nepal - Concentration of Government Agri- cultural Services ( " ) 10913 - Nepal - Annual Rainfall (Annex 1) 10741 - Nepal - Geology (Annex 1) 10911 - Nepal - River Basins and Watersheds (Annex 6) 10164 - Nepal - Existing and Proposed Main Irrigation Projects (Annex 6) ANNEX 1 Page (i) NEPAL AGRICULTURAL SECTOR SURVEY NATURAL RESOURCES, LAND-USE AND LAND SETTLEMENT Paragraph Number A. NATURAL RESOURCES ..................................... 1 - 16 Area and Physical Features .1 - 6 Climatic Regions and Agricultural Location ..... 7 - 8 The People ..... 9 Water and Hydropower Resources ..... 10 - 11 Forest Resources ..... 12 - 13 Soils ..... 14 - 15 The Report's Regional Coverage ..... 16 B. MIGRATION AND LAND-USE ..... 21 - 24 Population Pressure and Migration ..... 17 - 20 Land-Use ..... 21 - 24 C. LAND SETTLEMENT ..... 25 - 54 Introduction ..... 25 - 27 Nepal Settlement Company ..... 28 - 46 Department of Resettlement ..... 47 - 49 Proposed Settlement Plan ..... 50 - 54 D. RECOMMENDATION AND PROSPECTS ..... 55 Land-Use Planning ..... 56 - 65 Improving Settlement Capacity ..... 66 - 70 Spontaneous Settlement and Resettlement Department's Role . ... ............71 - 72 Table 1: Geographic Regions, Climate and Agricultural Location Table 2: Nepal - Terai and Inner Terai Forests, 1972 Table 3: Nepal Resettlement Company - Numbers of Families Resettled and Land Distributed Table 4: Existing Schemes of the Department of Resettlement Table 5: Nepal Resettlement Company - Current Five Year Settlement Program ANNEX 1 Page (ii) ANNEX 1: Natural Resources, Land-Use and Land Settlement Appendix 1: Climate Appendix.2: Assessment of Soil Investigations Appendix 3: Assessment of Land-Use Statistics in Nepal MAPS: IBRD 10913 - Nepal - Annual Rainfall IBRD 10741 - Nepal - Geology ANNEX 1 Page 1 NATURAL RESOURCES, LAND-USE AND LAND SETTLEMENT A. Natural Resources Area and Phyical Features 1. The Kingdom of Nepal is rectangular shaped, with an area of some 141,000 km2 . Completely landlocked, it is wedged between Tibet to the North, and India to the South. The physical and ecological features play an eminent role in determining the way of life in Nepal. The topo- graphy is the most varied of any nation. Nepal is roughly 850 km (530 miles) long from east to west, and 180 km (110 miles) wide. From the plains and lowlands of the south, about 50 km above sea level, the ter- rain rises in 160 km to the dramatic heights of the world's highest moun- tain, Mount Everest, at 8,850 m. 2. Geographically, the country is divided into three roughly parallel strips, each running generally east and west. The southernmost strip (about 25 km wide) is the Terai, covering about 17% of total area. An extension of the Gangetic plain of North India, it consists of generally flat, open coun- try blending into forested hills, and is noted for its heavy jungles and big game including tigers, rhinoceros, elephants, wild boars and crocodiles. The northernmost strip is about 35 km wide consisting of the great Himalayan Range (4,500 m - 8,850 m) with its perpetually snow-covered panorama. The region is about 35 km wide, and accounts for about 15% of the total land area. The central strip or the Hills is about 100 km wide, with elevations from 250 m - 3,000 m, covering 68% of the land area. 3. The Hills _/ essentially consists of two ranges: (a) The Churia Range; and (b) The Mahabharat Range. 4. The Churia Range consists of narrow steep ridges (The Churia Ridge or the Siwalik Hills) at its southern edge, and large valleys north of it. The Churia Ridge (Map 10908) extends east to west at an average height of 2,510 (760 m) and merges into the Indian border through its extensions at Dang (the Dundwa Range) and at Chitwan (the Someswar Range), conveniently dividing the Terai into three parts (Map 10906): (a) Eastern Terai (East of Chitwan); (b) Mid-Western Terai (between Chitwan and Dang Deokhuri); (c) Far-Western Terai (West of Dang Deokhuri). The Mahabharat Range merges closely into the Churia Range north of Far-Western Terai, Mid-Western Terai and the far-eastern third of Eastern Terai. 1/ See Maps 10906 and 10908, General Report. ANNEX 1 Page 2 5. The gap between the Churia Ridge and Mahabharat Range is the greatest in the Inner Terai districts where large river valleys (called duns) of the Churia Range are found. 1/ Although the Inner Terai may be considered as part of the hills, its valleys are agriculturally similar to the Terai. 6. The transition from the Mahabharat Range to the great Himalayan Range is not so obvious, but most of the Mahabharat is below 3,300 m (the upper limit for successful grain farming). The Hills can therefore be divided into (a) the Lower Hills (less 3,300 m) and (b) the Upper Hills or Mountains (Upper Mahabharat and Great Himalayas). 2/ Climatic Regions and Agricultural Location 7. Table 1 illustrates the effects of climate 3/ and topography on the distribution of crops in each region. The humid subtropical climatic zone (encomposing mainly the Terai and Inner Terai) reaches approximately