Align Trade Policy with Nutrition: Experts’ Urgent Call Amidst Food Import Surge

Nutrition Crisis Looms as Nepal’s Trade Policies Fail to Align

Kathmandu, Nepal – Experts are sounding the alarm over Nepal’s escalating reliance on imported food, urging a fundamental shift to place nutrition at the forefront of trade policy. A recent study has revealed that disjointed policymaking is exacerbating both public health challenges and national food security, creating a critical juncture for the nation’s future.

The findings, presented by researchers from the South Asia Watch on Trade, Economics and Environment, under the umbrella of the South Asian Coalition for Improved Nutrition and supported by the International Development Research Center, paint a stark picture of Nepal’s nutritional landscape. The country continues to grapple with alarming rates of malnutrition, posing long-term risks to its human capital and economic productivity.

Key statistics from the report highlight the severity of the situation:
* 26 percent of children in Nepal suffer from stunting.
* 7 percent of children are identified as wasted.
* 19 percent of children are underweight.
* A staggering 43 percent of infants and young children, aged 6 to 59 months, are anaemic.

These figures underscore a critical need for integrated strategies that weave nutritional considerations into the fabric of economic and trade decisions, aiming to cultivate a healthier and more productive future generation.

The Growing Paradox of Food Imports

Nepal’s dependence on imported food is a growing concern. The nation currently relies on imports for approximately 14 percent of its cereal needs, with the annual food import bill averaging around NPR 300 billion over the past five fiscal years. This figure is likely an underestimate, as informal imports of cereals and packaged foods from neighbouring southern borders are believed to be substantially higher. Food products now constitute a significant 18 percent of Nepal’s total merchandise imports.

A particularly concerning paradox is emerging in the Tarai region, historically the breadbasket of Nepal. Despite its agricultural potential, widespread deficiencies in essential micronutrients persist. In Madhesh Province, the country’s most fertile agricultural area, anaemia rates are alarmingly high, affecting 52 percent of women and 51 percent of children.

Vulnerable Households Bear the Brunt

The economic strain of food insecurity disproportionately affects poorer households. These families are forced to allocate between 60 and 67 percent of their income solely to food expenses. The situation is further compounded by import tariffs imposed by India on key food items. These tariffs, which range from 19.2 percent on pulses to 28.6 percent on eggs and dairy products, significantly inflate household budgets and limit access to nutritious food.

A Chasm in Policy Coordination

A primary driver of these escalating problems is the stark lack of coordination among various government ministries and departments. Trade, nutrition, agriculture, and commerce policies are developed and implemented by distinct institutions, often leading to unintended consequences and undermining the effectiveness of national efforts.

The report highlights a critical oversight:
* Finance Ministry and Customs Department: Nutrition outcomes are not formally integrated into decisions regarding tariff setting.
* Health Ministry: Focuses on treating the symptoms of malnutrition, such as anaemia and stunting, without adequately addressing the root causes influenced by trade policies that shape dietary supply.
* Agriculture Ministry: Prioritizes production volumes, with insufficient emphasis on dietary diversity and the ultimate nutritional outcomes for the population.
* Industry Ministry: Manages trade agreements and import licensing without robustly incorporating food security and nutritional quality objectives into its mandates.

Efforts Towards Diversification and Challenges in Trade

Despite these systemic challenges, there are indications of a gradual shift within government. Sabnam Shivakoti, a joint secretary at the Ministry of Agriculture, acknowledged the ongoing importance of increasing production while noting a growing emphasis on promoting crop diversity. “In the past, cereal-based production dominated, but now there have been significant interventions in vegetables and fruits,” she stated. Shivakoti highlighted that the Agriculture Development Strategy explicitly includes food and nutrition security as a core objective, further supported by a Food and Nutrition Security Plan of Action focused on diversifying production, food systems, and utilization.

However, Rajeshwar Gyawali, a joint secretary at the Ministry of Industry, pointed to a significant challenge: the undermining of domestic agriculture’s competitiveness by cheaper imports. While the principle of comparative advantage suggests importing less expensive goods, Gyawali argued that this logic may not fully apply to agriculture due to critical food security considerations.

Nepal’s capacity in international trade negotiations is also limited. Small delegation sizes and financial and institutional constraints hinder effective representation and the achievement of favourable outcomes. The nation’s heavy reliance on countries like India and China for essential food imports, such as wheat and sugar, often occurs through informal, ad hoc arrangements rather than formal, secured bilateral treaties.

“There is a need to formalise supply guarantees through bilateral treaties,” Gyawali emphasized, also citing high transportation costs, food losses, and weak infrastructure as key contributors to rising food prices. Inadequate storage facilities, a lack of robust cold chains, and insufficient buffer stocks further exacerbate these inefficiencies.

Addressing Regional Disparities and Future Readiness

Yamuna Ghale, a food and nutrition security expert, underscored that hunger and malnutrition are not uniform across Nepal, varying significantly by region, gender, and socio-cultural group. She noted that even in food-producing areas, access to nutritious diets remains a challenge, exacerbated by structural issues such as land insecurity, informal leasing arrangements, and unclear land ownership, which disincentivize agricultural investment and leave substantial land barren.

As Nepal prepares to graduate from Least Developed Country status in November 2026, Ghale expressed concern that the country has not fully leveraged existing World Trade Organization (WTO) provisions and available international technical support. Weak export performance and low global competitiveness have contributed to a decline in domestic production and a growing, unsustainable dependence on imports. The path forward requires a comprehensive and coordinated approach, integrating nutrition into the very core of Nepal’s economic and trade policies.