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Need and Potential of Agriculture-based Industries in Nepal

Industries in Nepal are not developed very highly. They are very limited too. Therefore,
trade is also not prospered. People are still depending on agriculture but agriculture
is done in traditional ways. These show that there is strong need of agriculture
based industries for the sound agricultural development in Nepal. If agricultural
raw materials are consumed highly in agro-based industries, then farmers would get
right value of their products. It helps to increase their living standard. So production
of agricultural raw material in a large scale is required to expand the industrial
production. This will encourage the local production as well as increase in employment
opportunities, either seasonal or for long term.

The interrelationship between Agriculture, Industry and Trade is given below:

Agriculture Industry Trade

It provides raw It produces tools, It supplies raw
materials such as insecticides, pesticides, materials from the
sugarcane, jute, chemical fertilizers, agriculture to the
tobacco, rice, maize, machinery, required for industries.
wheat, tea, leaves, etc. agriculture.
for industries.

It promotes trade It promotes trade It expands markets
and market through through its industrial for agricultural and
agricultural products. products and goods. industrial products and
helps to gain in trade.

It helps to minimize It encourages farmers It encourages both the
environmental top adopt commercial farmers and industrialist
degradation or pollution farming through to produce the goods
caused by industries. the consumption in large scale, which is
Plants absorb carbon- of agricultural raw beneficial for all three.
dioxide to make materials.
environmental clean.

It increases the It encourages traders It encourages
accessibility of trade to involve actively in industrialist to produce
expansion. trade. goods of good quality.

It serves the people It serves the people It increases the value of
engaged in industries involved in agriculture agricultural raw material
and trade as a source and trade through and the industrial
of staple food and its production and products in national and
medicinal herbs. commodities. international market.

311 Dynamic Social Studies - Book IX