Peasants in Nepal Are at the Mercy of the Agriculture Value Chain

Abstract

Nepal’s agriculture is dominated by smallholder peasantry practicing subsistence farming with limited integration into market systems. Despite agriculture employing a majority of the population, farmers remain economically marginalized due to their weak position within fragmented and inefficient value chains. This study was necessary to understand how the agricultural value chain dynamics influence peasant livelihoods and to highlight pathways for their economic upliftment. The major finding reveals that farmers in Nepal are at the mercy of intermediaries, with limited bargaining power, access to markets, or infrastructure, resulting in low farm-gate prices and persistent poverty. Secondary data analysis shows that poor post-harvest facilities, inadequate cooperative structures, and lack of market information exacerbate farmers' vulnerabilities. Comparisons between traditional farming systems and emerging value chain initiatives indicate that without systemic support, including investment in rural infrastructure and farmer organization, value chain benefits will remain inaccessible to most peasants. The study concludes that strengthening farmers' linkages within value chains is crucial for enhancing rural livelihoods, promoting food security, and achieving inclusive agricultural development in Nepal.