The economy in Nepal is dominated by agriculture. It was the livelihood for more than 80 percent of the population, although only approximately 20 percent of the total land area was cultivable, it accounted for, on average, about 60 percent of the GDP and approximately 75 percent of exports. According to the World Bank, agriculture is the main source of food, income, and employment for the majority.
In trying to increase agricultural production and diversify the agricultural base, the government focused on irrigation, the use of fertilizers and insecticides, the introduction of new implements and new seeds of high-yield varieties, and the provision of credit. The lack of distribution of these inputs, as well as problems in obtaining supplies, however, inhibited progress. Although land reclamation and settlement were occurring in the Terai Region, environmental degradation and ecological imbalance resulting from deforestation also prevented progress.
Although new agricultural technologies helped increase food production, there still was room for further growth. Experience indicated bottlenecks, however, in using modern technology to achieve a healthy growth. The conflicting goals of producing cash crops both for food and for industrial inputs were also problematic. Rice is the most important cereal crop. Other food crops included wheat, millet, corn, barley, and coffee.
The Asian Hiking Team will bring the group to Ilam is a municipality and tea-producing town in Nepal, in the Ilam District which is in the hilly Eastern Region of Nepal. It is famous for natural scenery and landscapes, tea production, and diverse agricultural economy and drive to the Daman agriculture farm in Palung and Tistung. Finally, return to Kathmandu.