Political economy of agricultural policy and practices in Nepal: Implications for smallholder agriculture and rural food systems transformation

Abstract

This study aims to generate policy-relevant insights to support inclusive, equitable, and sustainable agriculture and rural food systems in Nepal. Applying a political economy lens and systematic policy mapping approach, the study analyzed major policies according to their direct influence on agriculture and rural food system, complemented by qualitative fieldwork in western Nepal involving 196 respondents through interviews and focus groups discussions. The numerical analysis of various policies reveal that of 26 policies reviewed, 19 policies (73%) target food supply chains, compared to 10 on food environments (38%), seven on diets (27%), three on individual factors (12%), and just one (4%) on consumer behavior. This demonstrates a strong production-centric policy orientation. While legal discourse increasingly embraces rights-based frameworks through the Constitution of Nepal, effectiveness is significantly constrained by political economy factors such as electoral incentives, bureaucratic discretion, and power relations among stakeholders leading a short-term, distributive, and credit-claimable interventions such as seed, fertilizer, mechanization, and small-scale irrigations supports over systemic reforms in Nepal’s agriculture and food systems. The study concludes that transforming Nepal’s rural food systems requires shifting beyond production-focused paradigms toward an integrated food system approach. This requires strengthening policy-space for institutional reforms, cross-sectoral coordination, targeted smallholder assistance, and robust regulations, while realigning political and bureaucratic incentives to ensure systemic and long-term change within Nepal’s food systems. This study contributes to the literature by integrating political economy analysis with a food systems framework to examine how policy processes, power relations, and institutional incentives shape food system outcomes in Nepal.