Question 1
What is the issue, and why does it matter?
Farming is still the main livelihood for most households. The 2021/22 agriculture census counted 4.13 million farm holdings; farm households were 62 per cent of all households, down from 71 per cent in 2011/12, and the farm population was 66.7 per cent of the country's population. Agriculture's share of GDP is estimated at 24.0 per cent in FY 2025/26, against an average of 25.0 per cent over the past decade.12
Farms are small and getting smaller. Of the 4.13 million holdings in 2021/22, 425,218 operated under 0.1 hectare, 648,450 between 0.1 and 0.2 hectares and 1,430,114 between 0.2 and 0.5 hectares, so more than 2.5 million holdings were under half a hectare (our sum of the census table). The total area operated fell from 2.52 million hectares in 2011/12 to 2.22 million hectares, and land under temporary crops fell by 392,316 hectares (18.5 per cent).13
Yields are low by regional standards and Nepal imports staple grains. The Economic Survey reports 2024 paddy yields of 4.19 tonnes per hectare in Nepal against 5.30 in Bangladesh and 7.15 in China, and maize yields of 3.49 tonnes per hectare, the lowest in the region it compares. The 16th Plan says the share of agricultural produce, animals and food in total imports was 15 per cent, against the 15th Plan target of 5 per cent. In FY 2081/82 customs records show imports of about 531 thousand tonnes of paddy under the 'other paddy' heading (Rs 20.36 billion; rice headings are listed separately) and 380 thousand tonnes of maize (Rs 18.31 billion).456
Land and farming are tied together. Who owns land, how large and scattered the plots are, whether they are irrigated and whether they are farmed at all shape what farmers can earn and how much food the country grows. For landless families and long-term informal settlers, a land title can also decide where they can live and whether they can borrow.
Question 2
What do current law and policy say?
Constitution, fundamental rights: every citizen has the right relating to food, to be safe from danger to life from scarcity of food, and to food sovereignty in accordance with law (Article 36). Every farmer has the right, in accordance with law, to access land for farming and to select and protect local seeds and species (Article 42(4)). The state is to provide land once to landless Dalits in accordance with law (Article 40(5)). The state may not take a person's property except for public interest, but this does not prevent land reform, management and regulation by law to raise productivity, modernise and commercialise agriculture, protect the environment or plan housing and urban development (Article 25(2) and (4)).7
State policies on agriculture and land (Article 51(e)): introduce scientific land reform in the interest of farmers while ending dual ownership of land; raise production by land pooling while discouraging absentee land ownership; manage land and commercialise, industrialise, diversify and modernise agriculture through land-use policies while protecting farmers' rights; regulate land use by productivity, nature of land and ecological balance; and ensure fair prices for agricultural inputs and products and access to markets. Article 51(h)(12) adds sustainable food production, storage and distribution in line with food sovereignty.8
Who holds which power: land use policies are federal (Schedule 5). Management of land and land records, and agriculture and livestock development, are provincial (Schedule 6). Land policies and laws, and drugs and pesticides, are shared by the federation and provinces (Schedule 7). Local irrigation and agro-roads, distribution of house and land ownership certificates, agriculture and animal husbandry, agro-product management and agricultural extension are local (Schedule 8). Agriculture, irrigation services and squatter management are shared by all three levels (Schedule 9).9
Land Act, 2021 (1964; amended many times, most recently by the 8th amendment of 2076 and an investment-facilitation Act of 2081): a person or family may hold at most 10 bigaha in the Terai and inner Madhesh, 25 ropani in Kathmandu Valley and 70 ropani in other hill areas, plus up to 1 bigaha, 5 ropani and 5 ropani respectively for a homestead; tenanted land counts half to the landowner and half to the tenant (section 7). Land held by government, public bodies, notified industries, agro-industries, cooperative farms and some others is exempt (section 12). Section 12A (added by the 8th amendment of 2076) let an industry, firm, company or institution operating when it came into force, which had bought and was using land above the ceiling without government approval, apply once within three months for approval to keep it, on paying Rs 150,000 per bigaha in the Terai and inner Madhesh, Rs 50,000 per ropani in Kathmandu Valley and Rs 10,000 per ropani in other hill areas; the 2081 investment-facilitation Act gave those that had not applied a further six months (section 12A(1A)). Tenanted land is to be split half-and-half between landowner and tenant, by area or value, if they cannot agree (section 26D).10
Land Act, landless people and informal settlers: the government is to provide land once to landless Dalits (section 52A) and to landless squatters, where they have been cultivating or on other suitable government land, up to a prescribed area; such land cannot be transferred for ten years except by inheritance or partition, and some land, such as riverbanks, forests, protected areas and road reserves, cannot be given (section 52B). Informal settlers who, when the section came into force, had been cultivating government, ailani or recorded-forest land for at least ten years may be given ownership of up to a prescribed area on payment of a fee (section 52C). Ordinance No. 7 of 2083 (published in the Gazette on 2083/01/20) removed the provision for a commission, allowed the government to form committees or task forces at central and district level for this work, required landless Dalits and squatters living on riverbanks, in forests, protected areas, road reserves or other risky places to be resettled elsewhere, and let the ministry issue directives and procedures (section 61A). The registers of ordinances of both Houses of Parliament list this ordinance as having become inactive under Article 114(2)(c) of the Constitution; what this means for the provisions it changed has not been established in the sources reviewed.11121314
Land Use Act, 2076 (2019): land is to be classified into zones including agricultural, residential, commercial, industrial, forest and public-use land (section 4); land in one zone may not be put to another use without approval (section 8; Ordinance No. 7 of 2083 had let a local land use council approve a change once, but Parliament's registers list that ordinance as inactive); rules are to regulate fragmentation, and governments may run land consolidation programmes for cooperative, collective and mechanised farming (section 10); no new houses in agricultural zones, except that an existing home may be rebuilt where the owner has no other land (section 11); the government may set up land banks at local level (section 21). Leaving land zoned for agriculture fallow for three consecutive years without notifying the local government of a reasonable cause beyond the owner's control is an offence punishable by a fine of up to Rs 100,000 based on estimated production (sections 24–25).15121314
Right to Food and Food Sovereignty Act, 2075 (2018): every farmer has food sovereignty rights, including access to the means needed for farming, choice of local seeds and protection from arbitrary removal from farming (section 12). Governments are to raise investment in food production, widen access to inputs, insurance and markets, fix minimum support prices for storable crops, give priority access to farmland for women farmers and landless families, and fix support prices based on production cost (section 13). They are to stop farmland being left fallow or plotted, and are to cut grants to landowners who leave farmland idle without reason and promote cooperative, contract or group farming of fallow land (section 15). Local governments must keep records of farmland and fallow land (section 17). The Act's regulations were published in the Gazette on 2081/01/10.1617
16th Plan (FY 2081/82–2085/86): its programmes include land classification and land use plans in all local governments, land re-survey, legal and institutional arrangements for land banks and a land market, use of idle government land for farming, cooperative and collective farming, a law to promote contract farming and land consolidation, an institutional production-based subsidy system, and a calendar for announcing minimum support prices and buying produce. For irrigation, it proposes finishing projects under construction and a state subsidy on electricity tariffs for lift irrigation in the hills and pumped groundwater irrigation in the Terai.18
FY 2083/84 budget: a pilot grant of up to 40 per cent for farmers who have invested at least Rs 20 million in production, paid out at 10 per cent a year for four years from the start of production; up to 80 per cent premium subsidy on agricultural insurance with other subsidies gradually phased out; a challenge fund for local small and medium irrigation; an Agricultural Bill on fair prices, farmer–buyer contracts and subsidies (para 24). Irrigation for an additional 15,800 hectares, which the speech says will bring irrigated agricultural land to 64 per cent (para 44). Rs 32.46 billion for fertiliser, Rs 2.07 billion for the National Agriculture Modernization Program, farmer identity cards, local land banks and private agro-pooling on uncultivated government land and reclaimed riverbanks, turning unused private arable land into shares in commercial farming companies, and arrangements for landless Dalits, squatters and informal settlers within the fiscal year (para 50).192021
Land banks: the ministry responsible for land approved a Land Bank (Establishment and Operation) Procedure on 2083/03/15 and, by a public notice of 2083 Shrawan 6, said it had been circulated to all local governments so that unused or fallow private land can be brought into use through them. Under the procedure, a landowner who deposits land keeps ownership and must keep paying land revenue and property tax, while the user must use the land only for the agreed purpose, protect its boundaries and soil fertility, and may not sublet it.2223