Unlocking Local Economic Potential through Agribusiness Value Chain Strategies

Abstract

Agriculture is a key part of Nepal’s economy, employing about two-thirds of the population and playing a major role in GDP. However, inefficiencies in the agribusiness value chain—from production to market delivery—have limited its contribution to local economic development (LED). Despite its potential to boost rural livelihoods, there is limited research focused on Nepal’s specific socio-economic and institutional challenges. Many studies miss key issues like weak local governance, poor infrastructure, and policy gaps. This study, based on literature review and secondary data, identifies major problems such as fragmented land, limited digital technology use, and poor market access. It highlights strategies like cooperative farming, better infrastructure, digital tools, and public-private partnerships as ways to improve value chains. The study also underlines the importance of local governments, guided by policies like the Local Government Operation Act 2074, in creating inclusive agribusiness systems. Overall, it shows how value chain improvements can support sustainable and inclusive LED in Nepal.