Poverty and food insecurity remain persistent challenges in Nepal, particularly in its western provinces, where the incidence of poverty is highest. Regions such as Sudurpashchim, Karnali, and Lumbini report poverty rates exceeding 24 percent, while Madhes Province, despite its fertile agricultural land, also struggles with over 22 percent of its population living below the poverty line. These economic hardships directly contribute to widespread food insecurity, defined as the lack of consistent physical and economic access to sufficient, safe, and nutritious food.

Water resources play a crucial role in addressing both poverty and food insecurity in the country, yet Nepal faces significant water management challenges. Agricultural use accounts for over 90 percent of water consumption, but irregular water availability—including periods of scarcity, excess, and pollution—hampers efficient utilization. The Terai Madhes region, vital for farming, increasingly relies on irrigation due to changing rainfall patterns linked to climate change. However, nearly a third of water sources in some localities are reported to have dried up, exacerbating difficulties for local agriculture.

Environmental concerns in the Chure region, which serves as an essential water reservoir for Madhes, further complicate the situation. Unregulated resource extraction and deforestation have led to ecological degradation and declining groundwater levels. Experts suggest that improved water retention structures, rainwater harvesting, and stronger conservation measures could help restore these critical water sources. Overextraction of riverbed materials and frequent water-related disasters like droughts and flash floods also contribute to the ongoing water crisis.

The water management framework in Nepal remains fragmented, with irrigation, domestic supply, and hydropower development handled by separate government bodies. This sectoral approach has limited the implementation of integrated water resources management (IWRM), a strategy endorsed in national policy since 2002. Institutional overlap, conflicting regulations, and inadequate local capacity further challenge effective water governance. Political interference and centralized decision-making, along with spatial administrative boundaries that do not align with natural river basins, limit responsive and sustainable water use.

Moreover, the lack of legislative support for water rights licensing, pricing mechanisms, and private sector involvement hinders proper irrigation management. The overall neglect of natural resource conservation—particularly soil and water—has kept these critical issues from receiving necessary policy attention. Combined with a decreasing youth agricultural workforce and declining land productivity, the situation has led to underutilized farmland and diminished economic returns for farmers.

Experts argue that overcoming poverty and food insecurity in Nepal requires a fundamental rethinking of development policies and institutional frameworks governing water resources. New approaches emphasizing integrated, sustainable water management and inclusive community participation are needed to address the multifaceted challenges and improve agricultural productivity, food security, and rural livelihoods.