Rice Subsector Development and Farmer Efficiency in Nepal: Implications for Further Transformation and Food Security

With economic development agricultural systems in the Global South transform from subsistence farming to higher productivity with market integration and increase rural income food security. In Nepal, agriculture continues provide livelihoods for two-thirds of predominantly population, largely at a subsistence-level. Rice is staple covers largest land area but yields are relatively low, an annual import bill USD 300 Million. The study uses data 310 households two distinct rice producing areas assess farmers' production systems. It analyses efficiency using stochastic frontier function suggest how advance transformation Nepal's sector. Our finds that while related services such as access inputs, information, markets, irrigation, finance have generally improved, paddy farmers only able achieve 76% potential output. Small/marginal farms were less efficient than medium large farms. Women faced unequal technologies lower men. Unavailability labor capital, fragmentation, lack consistent seed fertilizers contribute reduced efficiency. Public private sector investments needed enhance timely adequate quality seeds, fertilizers, processing facilities, equipment services. Adopting approach through cooperative farming, targeted delivery extension services, linkages millers can promote inclusive growth improve security Nepal.