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. Land fragmentation is one of the serious problem. Farming in Nepal has always been based on production techniques that are healthy and promote healthy existence of inter-related elements of the ecosystem – soil, plants, animals and people. Synthetically produced fertilizers and pesticides have hardly been used or never been used in the case of some hill areas in Nepal. Also for tillage operation traditional way uses by most of the hilly rural farmers as in picture. 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. Many organic shops specially targeting the elite society and tourists are increasing in Kathmandu, Chitwan and Pokhara.

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

The role of organic agriculture in enhancing soil fertility and nitrogen inputs and addressing food security is well known. In addition it can involve youth and thus reduce the current alarming rate of youth migration to urban areas and abroad in search of better livelihood opportunities and higher incomes.