The farm production system in Nepal is highly integrated and interlinked, and is characterized by subsistence farming. The majority of the farming communities have extremely small landholdings of less than 0.5 ha. Farming in Nepal has always been based on production techniques that are healthy and promote healthy existence of inter-related elements of the ecosystem.  But after the green revolution in the name of high production with the use of hybrid variety the use of the chemicals began to increase few decades ago. After that the chemicals began started to be used in the extreme way in the unmanaged and inappropriate conditions. Due to this there is great impact in the health condition and the soil fertility has also been decreased resulting in the degradation of the fertile land and extending towards the marginal land.

The advent of commercialization of agriculture has exacerbated environmental problems and to top it up climate change is affecting communities who already have limited options for coping with adverse weather conditions. Therefore farmers are now exploring farming systems that can help to produce more from the available land, water and labor resources without either ecological or social harm, and increase their resilience to climate change. Organic agriculture represents one such potential area that is gaining momentum in economic, health and environmental aspects.

There is growing trend among urbanites for organic products, especially vegetables. An increase in purchasing power, education and awareness about health and quality of organic foods and the willingness to pay for healthy foods among consumers have increased the demand for organically cultivated vegetables in urban areas. This has also resulted in a vague mechanism of organic pricing and premiums although there is no established framework for organic product pricing. Market practices of organic agriculture in Nepal show individual farmers, entrepreneurs and cooperatives that are taking the practice forward as a remunerative enterprise.

As the organic agriculture sector is gaining momentum in Nepal, it also possesses a great scope for its competitiveness, as Nepal is home to many potential products, namely spices, essential oils and medicinal plants, fresh fruits and vegetables. A significant area of agricultural land in Nepal is also organic by default, and is gradually increasing. Thus, farming system in Nepal has been changing from the chemically produced conventional farming to the naturally balanced and environmentally sound organic farming which helps in the production of the healthy food and maintains the healthy well being of the human.