Occupational safety and health situation in Nepal

M r. S.N. Vaidya, Director, Department of Labour and Employment Promotion, Kathmandu, Nepal

Socio-economic situation
The Kingdom of Nepal, landlocked between India and China, is a highly heterogeneous country in terms of geography, ethnicity, language and culture of the 23.15 million people comprising 102 different ethnic and caste groups. As per 2001 census data, 9 million (approximately 40%) live below poverty line, the Gender Development Index ranks 121st out of 143 and adult literacy rate is about 41.8% of the population above 15 years of age. The Nepalese industrial sector is in its infancy, which is severely affected by the national conflict. The non-agricultural sector, including services, accounted for 60.5% of the gross domestic product (GDP) in 2001/02. The largest component of this sector has traditionally been tourism, although a fall in the industry in 2001/02 resulted in the finance and real estate sector becoming the largest component, trade restaurants and hotels made up 10% of the GDP in 2001/02. Agriculture, which has been the backbone of Nepal s economy, has been crippled due to the national conflict. In addition, the tendency of increasing fragmentation of land holding is making the agricultural practice with traditional technology economically unviable. The migrant youth forced to shelter in the urban areas are lucky, if they somehow find a job and afford to pay to go to the foreign employment market, which is not always safe and gainful. Due to the difficulty encountered in the industrial and agricultural sector, their contribution to the GDP is being reduced. After the restoration of democracy in 1990, when the country was gaining momentum for take-off for a smooth economic development, the overall development situation of the country came in turmoil by the M aoist movement. The situation has worsened over the last three years and it continues.

Poverty situation
Poverty relates to deprivation from, as well as inability to gain, access to resources necessary to come out of the situation of struggle for day-to-day subsistence. Such resources include economic resources, such as land and capital, human development resources, such as education and health, and social resources, such as political power and influences.

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The challenge of overcoming poverty in Nepal is rather difficult because of its geographical, demographic and social conditions. M ost of the people in Nepal, about 90% of the population, live in rural areas. M ore than 65% of the total population depend on agriculture, mostly subsistence farming. The occupation is challenging because of the difficult geographical conditions. The provision of mechanized transportation is very small and difficult to sustain. The food production in hills and mountains is inadequate to fulfil the needs of the people in the areas for the whole year.

Employment situation in Nepal

At present it is estimated that nearly 10 million workers are engaged in employment in Nepal. If the 10th plan succeeds to achieve the economic growth as projected, it is estimated that it will create more than 1 million additional jobs during the period of the 10th five-year plan. According to the 10th five-year plan it is assumed that the following change will occur in the employment situation in Nepal. Table 1. Change in employment situation, sector-wise (percentage)
S.N. 1. 2. 3. 4. 5. 6. Sector Agriculture Industry and Mining Public Utility Construction Transport and Communication Service Base year 76.1 4.7 0.1 1.3 4.1 13.6 At the end of the Change 10 th Plan % 67.8 -10.9 7.0 48.9 0.1 0.0 1.7 30.8 6.0 46.3 17.3 27.2

At the end of the 10th plan also the agricultural sector will provide the highest percentage of employment, then come service, thirdly industry and mining, and fourthly transport and communication sector. M ore than 360,000 new workers enter the labour market each year. Although open unemployment remains low, it is increasing in the country, especially in recent years. The proportion of the formal/organized sector employment is declining and the corresponding figure increases informal employment and poverty.

Present Constitutional provisions on labour

The constitution of the Kingdom of Nepal incorporates several provisions concerning labour matters, which form the foundation of labour administration in the country. These include inter alia prohibition of slavery and forced labour; freedom of assembly, association and speech; freedom of trade, business, and profession; right of equality, promotion of social justice and economic well-being of the people, and eradication of the social evils.

Reference in the National Labour Policy on OS&H

In the objectives of the National Labour Policy, it has been stated that Labour Standards determined by the International Labour Organisation with respect to the health, social

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security and welfare of labour would be implemented according to the situation of the country. As to the policy, it is mentioned that occupational health and safety provisions be developed and made stronger in the enterprises timely.

Reference in the Government's Development Plan

The government believes that public action is needed to ensure the basic rights of the workers. Similarly, the principle of social justice requires that the government should provide support and protection to those sections of the population, which cannot take care of themselves.

The Tenth Plan (2002/03 2006/07)

The main thrust of the current Tenth Plan is to alleviate poverty by optimum utilization and mobilization of natural as well as human resources and promoting all kind of existing services and development activities. Strategies have been devised to formulate policies and approaches for making optimum use of existing resources and means in order to alleviate poverty, achieve a high economic growth rate, mobilize deposits, invite foreign investment in the water resource-based industries and tourism, give continuity to privatization, increase the volume of investment, and make the returns and benefits available to the neglected classes and communities.

Occupational safety and health

Work is essential for life, development and personal fulfilment. Unfortunately, indispensable activities, such as food production, extraction of raw materials, manufacturing of goods, energy production and services involve processes, operations and materials which can, to a greater or lesser extent, create hazards to the health of workers and the nearby communities, as well as to the general environment. However, the generation and release of harmful agents in the work environment, as well as mechanical, chemical, physiological, psychosocial, physical and biological hazards can be prevented, through adequate hazard control interventions, which not only protect workershealth but also limit the damage to the environment often associated with industrialization. If a harmful chemical is eliminated from a work process, it will neither affect the workers nor go beyond, to pollute the environment. The activities in occupational safety and health aim especially at the prevention and control of hazards arising from work processes. The goals of occupational safety and health include the protection and promotion of workershealth, the protection of the environment and contribution to a safe and sustainable development.

Concept and definitions of occupational safety and health (OSH)

Occupational safety and health is the science of the anticipation, recognition, evaluation and control of hazards arising in or from the workplace, and which could impair the

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health and well-being of workers, also taking into account the possible impact on the surrounding communities and the general environment. Although definitions of occupational safety and health may be presented in different ways, they all have the same meaning and aim at the same fundamental goal of protecting and promoting the health and well-being of workers, as well as protecting the general environment, through preventive actions in the workplace. The concept of occupational safety and health is still new to the people of Nepal.

Major legislation on OSH

The concept of working conditions, occupational safety and health of the workers is quite a new concept even to the oldest industry of Nepal, although there were some studies in relation to different aspects of various industries. Only a few studies specific to working conditions in industry, including the jute industry of Nepal, have been conducted so far. Nepal has not yet ratified the ILO Convention No. 155 on Occupational Safety and Health. After the restoration of a multi-party system in Nepal, His M ajesty's Government of Nepal has begun to pay more attention to industrial working conditions and environment by enacting and enforcing the new Labour Act, 2048 (1992). The Labour Act and its subsidiary rules, Bonus Act and rules, are the main labour laws in the country, which cover working conditions, welfare of workers, safety and health, and industrial disputes. The Labour Act contains provisions on conditions of work, workmen's compensation, leave and holidays, safety and health, minimum wage fixation and settlement of labour disputes. New provisions in this law relate to special benefits for workers employed in construction, transport, hotels, tea estates and travel establishments and those engaged in tourist business, such as trekking, rafting and jungle safari. The coverage of the Labour Act is confined to establishments employing ten or more workers. As far as industrial estates are concerned, all establishments, irrespective of the number of workers employed by them, come within the purview of the Act. The Act gives powers to the Government to extend its provisions on a selective basis also to smaller establishments. Thus, as per notice published in the gazette, a few important provisions of the Act such as minimum wage, overtime, working hour and leaves, and provisions on safety and health are also applicable to establishments which employ less than ten workers.

Characteristics of fundamental and general laws

The Labour Act, 2048 (1992)
Section 5 of Chapter II of the Labour Act restricts to employ to work any minor or a woman unless otherwise prescribed during the hours between 6.00 pm and 6.00 am. Chapter III of this Act contains sections 16 20 which provide restrictions on the working hours for the worker. It limits the working hours for adults to no more than eight hours a day or forty-eight hours a week. It provides for a weekly holiday with pay and compulsory intervals of rest. It also provides overtime payment and restricts to allow

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workers for overtime for more than four hours a day but not exceeding twenty hours a week. Chapter V of this Act contains sections 27 36, which entirely pertain to the health and safety of workers in the establishment. They prescribe arrangements for sanitation and cleanliness, modern lavatories, disposal and destruction of waste, adequate ventilation and lighting, and control of temperature, protection from dust, fumes and other impurities, avoidance of overcrowding in any room of the establishment, provisions for drinking water and extinguishing fire. The Act also includes the provision for medical examination of workers at least once a year in the establishment involved in processes, which are likely to cause health hazards. It provides a number of accident preventive measures, such as protection of eyes, protection against chemical hazards and fire, guarding against dangerous machinery, prohibition on lifting a heavy load, and safety measures for pressure plants. A provision has been made for compulsory notice of any kind of accident or disease. In this Act, the powers of the Factory Inspector have been enhanced by vesting him with powers to collect samples of any products and semi-finished products, as well as any material being used that may cause harm to the workers or damage their health. The Labour Act has made it obligatory on the part of the establishment management to inform the Labour Office in a prescribed manner before erecting or establishing or expanding an establishment on any land or in any house. The Labour Office may issue orders to close down unsecured parts of the establishment, plant or machinery. Factory Inspectors have been assigned responsibility to ensure that the building, machinery and manufacturing processes are safe for workers. Violations of these provisions are punishable with fines. The Labour Act contains special provisions for special type of establishment, such as tea plantation, construction, transportation and business relating to the hotels, travel, trekking, adventure, rafting and jungle safari on working hours, health and safety and accidental insurance.

Structure and personnel of administrative organization

The M inistry of Labour and Transport Management is the apex body in the labour administration and mainly functions at the policy level. The Department of Labour established in 1971 is responsible for matters related to labour administration. Under the Ministry of Labour and Transport M anagement, the Department of Labour and Employment Promotion is responsible for occupational safety, health and working conditions. There is no separate section or branch for safety and health in the ministry, but under the Secretary, a Joint Secretary (Tech) and an Under-Secretary (Tech) administer the work related to occupational safety and health. M atters relating to the safety and health of workers are the overall responsibility of the Inspection and M anpower Section of the Department of Labour and Employment Promotion. Under the Director General, Director (Tech) administers the works of occupational safety and health. The safety and health provisions under the Labour Act, 2048 (1992), are enforced by the Factory Inspectors of Labour Office.

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There are presently the following ten Labour Offices under the Department of Labour and Employment Promotion for labour law enforcement (see Table 2). Table 2. Number of staff for labour law enforcement
Location Kathmandu Number of officers Senior Factory Inspector 1 Factory Inspector 1 Labour Officer 1 Senior Labour Officer 1 Factory Inspector 1 Senior Labour Officer 1 Factory Inspector 1 Factory Inspector 1 Jurisdiction Bagmati Zone

Biratnagar

Koshi Zone

Birgunj Hetauda

Bara, Parsa and Rautahat districts Makawanpur and Chitwan districts of Narayani Zone Mechi Zone Lumbini and Rapti Zones Gandaki and Dhaulagiri Zones Janakpur Zones and Sagarmatha

Bhadrapur Butwal Pokhara Janakpur

Factory Inspector 1 Factory Inspector 1 Factory Inspector 1 Factory Inspector 1

Nepalgunj Dhangadhi

Factory Inspector 1 Factory Inspector 1

Beri and Karnali Zones Seti and Mahakali Zones

The safety and health provisions under the Labour Act are enforced by the Factory Inspector of the Labour Offices. The Factory Inspector of the Labour Office carries out his activities and performs functions in order to regulate the provisions of the Act to promote occupational safety and health conditions in the establishments within his jurisdiction. Similarly in order to watch out the irregularities in this connection, Factory Inspector inspects the establishment regularly and issues notices to defaulting employers suggesting improvements and, in case of not following the instruction mentioned in the notice to improve the safety and health condition, the employers are prosecuted. There are altogether 90 supporting staff in the Labour Offices.

Financing
M ore than 8 million rupees are allocated each year for the implementation of OHS-related provisions of the Labour Law 1992 for 10 Labour Offices and about 5 million rupees for the Department of Labour to implement the labour legislation.

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Labour inspection
The number of inspections at establishments has been found quite inadequate. Besides, a large number of establishments operating in districts have not been recorded in the inspection register. Table 3. Inspections made by the Labour Offices in 1997/982003/04
Particulars Number of establishments Number of workers Number of inspections made 1997/98 4,292 385,960 1,134 1998/99 1999/00 4,284 4,274 387,200 1,263 392,421 1,309 2000/01 2001/02 4,296 3,617 394,541 1,526 359,323 1,581 2002/03 2003/04 3,630 3,473 307,536 1,515 306,430 1,131

Trends of industrial injuries

An occupational accident in the establishment is quite a common phenomenon. M ost of the accidents are related to finger, hand, head, eye, and palm and leg injuries. Occupational accidents seem to be nominal, but this cannot be taken as the actual situation as many accidents are not reported, although reporting of any type of accident is mandatory. There is a legal provision of notifying the concerned Labour Office about the fatal accidents or any other accident which causes man-day losses. Practically this part has not been effective, thus the Labour Offices have been asked to be vigilant and pay more attention to such reported and unreported industrial accidents and to take serious notice of violations of the legal provisions. The causes of accidents are varied but the major causes are lack of training, emotional stage of the workers, lack of supervision, use of old or outdated machine or equipment, poor layout, congested workplaces, violation of safety rules and unsuitable working conditions. Similarly, there is no concession of any kind for installing safety and health devices to replace worn out and unsafe machinery or to provide occupational health diagnosis and treatment facilities in the industries. As far as safety measures adopted by the establishments to avoid accidents are concerned, they are limited to supervision from time to time, regular repair and maintenance of tools, equipment and machinery and providing necessary safety equipment, such as goggles, boots, gloves, etc.

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Table 4. Accidents in the establishments in 1997/98 2003/2004

Particulars 1997/98 Number of 4,192 establishments No. of workers 385,960 No. of accidents 39 Fatal 21 Serious 2 Minor 16 Man-day loss 190 19998/99 4,284 387,200 42 7 18 17 632 1999/00 2000/01 4,274 4,296 392,421 55 15 23 17 613 394,541 37 6 17 14 282 2001/02 3,617 359,373 46 6 23 12 623 2002/03 2003/04 3,630 3,473 307,536 36 6 16 14 976 306,430 83 6 17 60 991

It is assumed that there are many unreported accidents. Further, the construction industry, which has a high accident rate, is not fully covered by Labour Law as work is often subcontracted to small companies with less than ten workers. Data on occupational diseases are not available at present. As the current coverage of the Labour Law is limited to establishments with ten or more workers and those located within the industrial estates, the magnitude of the problems of occupational safety and health (OSH) is much higher than statistics show. The under-reporting of occupational accidents is also attributed to very low awareness of OSH among management and workers in general.

Accident cases by cause

The agencies of the accidents in the establishments are mainly prime movers, transmission machinery, machine tools, machine like hand presses, fire and electricity and other causes like misadventure. There were a number of fatal and nonfatal injuries due to struck by a falling body. The small establishments employing less than ten workers located all over the country are also accident prone, especially industries like rice mills, oil mills, flour mills and small engineering workshops.

Cases of occupational diseases

Till recently, the incidence of occupational diseases has not been reported in this sector, hence details are not available. But current occupational safety, health and working conditions indicate that there are potential risks of health hazards and diseases at workplaces in the industrial establishments. In this regard the Occupational Safety and Health Project is carrying out different types of activities and measures to identify occupational diseases.

Problems related to national policies and legislation

The national policy and legislation are not adequate although it has been recognized that the workforce is the most important segment of the social structure. Stability in the society is possible only when the organized industrial labour is given its due attention. Occupational safety and health provisions of the Labour Act do not cover all important sectors of establishments that pose serious hazards, such as agriculture and forestry. These sectors are also substantially labour-intensive. The legislative measures for occupational

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safety and health are not applicable to small units employing less than ten workers outside the industrial estates. It has been recognized that the Safety Committee can play a vital role in taking steps to prevent industrial accidents and injuries and promote occupational safety and health in the establishment. But in the legislation, at present, there is no provision for a Safety Committee to be constituted in an establishment. Similarly, there is no provision for the appointment of a Safety Officer in an establishment. There are no overlapping responsibilities in implementing the OSH provisions, but there is an urgent need for coordination and cooperation among the concerned line ministries to implement the current OSH provisions of the Labour Act effectively. The Labour Act, 1992 spells out various safety measures for the workers of the industrial establishments, and it also vests the Labour Office with powers to issue necessary orders for the installation of safety devices against potential hazards to eyes, chemical exposure, fire, and against risks of heavy machinery operation etc. in the concerned establishment. Events of death or injuries disabling the workers and employees to work more than 48 hours due to an accident in the factory or otherwise are to be reported to the concerned Labour Office within 3 days. In case of illness caused by the profession, such cases should also be reported to the Labour Office within 7 days of knowing the illness. The law, however, does not stipulate on the identification of the liability of medical treatment. There is no national surveillance system of health services for industrial workers who are suffering from occupational diseases in Nepal.

Occupational Safety and Health Project

The International Labour Organisation has estimated that the economically active population in the world is 2.7 billion and approximately 346 million workers meet occupational accidents and approximately 160 million people suffer from occupational diseases each year. Further, approximately 2.0 million people die of occupational accidents and diseases each year worldwide average 6000 per day. It is estimated that each year approximately 20,000 workers meet accidents at workplace which lead to about 200 lives lost in Nepal. These losses due to these accidents and diseases at workplace are not a loss merely to the industries but physical and economic loss to the society and the nation as well. The government of Nepal is committed to promoting occupational safety and health at workplaces by enhancing the improvement of working conditions. In this regard His Majesty's Government of Nepal established the Occupational Safety and Health Project under the Ministry of Labour and Transport M anagement in 1995 with the prime objective of creating awareness of occupational safety and health among industrial employers, employees and the concerned officials of the government and thereby improving the conditions of work. To fulfil the objective of the project His M ajesty's Government of Nepal has annually set aside a modest budget. The International Labour Organisation, ILO, and the Danish Cooperation Agency, DANIDA, have further supported this. Their main concern has been to strengthen the capability of the National Occupational Safety and Health Centre in the Ministry of Labour and Transport Management (MOLTM).

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Programmes supported by DANIDA

The Royal Danish Embassy through DANIDA has keenly started OSH support programme under ESPS. The various programmes under ESPS are as follows: 1. The human resource development programme trains the staff of MOLTM in occupational health and safety related to work environment in industries, cleaner technology, OHS policies and standards and at the same time review the OHS legislation towards developing basic legal framework for OHS promotion and OHS improvement. An information and data bank mainly on the work environment standards, cleaner production technology and dissemination of information to the concerned groups is being established. With the assistance from MOLTM/DOLEP, the capacity and programmes of employers' and workers' organizations are being strengthened.

2.

3.

Planned changes
M ore than 4 million rupees are allocated from the regular government budget to carry out OSH awareness activities and nearly 10 million rupees foreign aid each year to carry out the OSH development activities as follows:

Conduct an organizational study of the OSH Centre for enhanced operational efficiency Develop and conduct training, research visits in subjects related to occupational safety and health, including promotional aspects of OSH Identify, procure, and install needed facilities (IT and Equipment) for the OSH Centre and M OLTM , including a M obile Training and Demo Unit Conduct occupational hygiene and occupational disease surveys, monitor for compliance with OSH standards and establish a database/information system on OSH/CIS Assist in the review, amendment of legislation, formulation and enforcement of standards on OSH and transport management.

Workshop on the National Action Plan for Decent Work

A five-day Workshop on a National Action Plan for Decent Work was jointly organized by the M inistry of Labour and Transport M anagement and the ILO Office Kathmandu on 5 8 and 10 January 2005. Participants of the group work of the workshop finalized the drafted policy on social protection for informal and formal sector workers as follows:

Promote integration of social protection elements into labour legislation and the national policy Strengthen occupational safety and health at the workplace Promote extension of social protection coverage to all Institutionalize workplace education programmes on HIV/AIDS Address specific needs of vulnerable groups, such as women, conflict-affected, migrant workers, elderly and disabled.

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Second National Labour Conference

The M inistry of Labour and Transport Management and the Central Level Labour Advisory Committee organized the Second National Labour Conference with a slogan of Partnership for Justice and Decent Workon 12 14 January 2005, in Kathmandu, Nepal. In the declaration paper signed by the three social partners, it stated that a separate department be established to implement the labour legislation, including the provisions of occupational safety and health effectively. The current Central Level Labour Advisory Committee will be converted into a council and one of its responsibilities would be to promote the current situation of occupational safety and health conditions, including those in unorganized sectors. In order to cover the groups of workers that are not covered by the current legislation a concept has been formulated to create a new department during the 10th five-year plan to implement the new legislation on OSH. A new National Occupational Safety and Health Policy Framework and legislation on OSH is started to be formulated on the basis of the ILO Convention No. 155.

National Occupational Safety and Health Policy Framework

Objectives of the Policy are to 1. 2. 3. protect workers against safety and health risks at work promote occupational safety and health and adapt work according to the physical and mental capacities of workers provide for periodic review and updating of the Occupational Safety and Health Policy to maintain and improve safety and health standards that contribute to the improvement of the general environment protect persons other than workers who may be present at places of work.

4.

The OSH Act aims to:

update the law relating to health and safety of workers so as to better protect the workers against safety and health risks at work set clear objectives, obligations and functions which cover every workplace so as to provide for periodic review of the national policy and promote OSH to contribute to the improvement of the general environment set out roles of employers, workers, self-employed persons, manufacturers, designers, suppliers, installers and Factory Inspectors, and provide methods for the development or adaptation of detailed standards and codes of practice for securing the safety and health of workers and other persons who may be present at places of work.

Safety and health conditions in agricultural sectors

Agriculture is one of the most hazardous sectors of work; it clearly requires special attention. Safety and health risks in the sector are numerous and diverse: manual handling of heavy materials and loads, strenuous work postures, long and irregular working hours, exposure to extreme weather conditions, pesticides and other agrochemicals. Farms abound in opportunities for parasitic infection and animal and insect bites. Basic amenities for sanitation and welfare are frequently absent. 47

All of these hazards are increasing because of the fact that in agriculture the workplaceincludes the family dwelling. Tools, fertilizers and pesticides are often stocked in farmershouses, increasing the risk of exposure of all family members, especially children. Therefore, a training programme on the work improvement in agriculture should be conducted to provide a practical response to the general and special problems of agricultural safety and health, applying a participatory and action-oriented training approach, designed for rapid and sustainable improvement in farmerssafety, health and working conditions. To ensure relevance and response to farmers own initiatives, knowledge and resources, the following subjects could be included in the training programme. M aterial storage and handling Work station design and work tools M achine safety Work environment and control of hazardous agents Welfare facilities Work organization. His M ajesty s Government has promulgated the Pesticide Act, 1991 and the Pesticide Rules, 1994 in order to protect the environment by controlling the import, export, production, marketing and use of pesticides for killing the harmful pests that appear in various seeds, plants, trees, animals and fowls, etc. But these legislations do not spell out about any safety and preventive measures for the agricultural workers. There is no single provision for the events of death, injuries and illness during the work for the workers. The law does not stipulate on the identification of the liability of medical treatment.

Status of agricultural production in Nepal

Production of major foods crops in FY2002/03 increased by 1.6 percent compared to FY 2001/02. In FY2003/04, such production is estimated to have increased by 5.2 percent to a total of 7.744 million metric tons. The production situation of major cash crops in FY2003/04 is mixed. With the increase of 2.0 percent over and above the production of FY2002/03, the total production is estimated to be 4.11 million metric tons. Productivity of these crops is estimated to have increased by 1.6 percent compared to FY2002/03. As important contributors to the agricultural production, lentils and vegetable and such other crops performed well in FY2003/04 compared to the production of these crops in FY2002/03. Production of lentils increased by 2.1 percent to an estimated total of 262,000 MT. Production of fruits, however, dropped by 1.7 percent to an estimated total of 510,000 MT only. The production of vegetable was up by 5.0 percent to an estimated total of 1.89 million M T. Of the total agricultural production, shares of food and cash crops stood at 65.4 percent and 34.6 percent in FY2003/04 compared to 64.7 percent and 35.3 percent, respectively, in FY2002/03. According to the preliminary estimate of food grain supply of 4.717 million metric tons, against the requirement of 4.674 million metric tons there will be a surplus of around 43,000 metric tons of food grain in FY2003/04. In the previous fiscal year, estimated food grain supply was 4.653 million metric tons against the requirement of 4.620 million metric tons.

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Chemical fertilizers and improved seed

Chemical fertilizers In pursuance of HM G policy of encouraging the private sector participation in supply of chemical fertilizers and improved seeds, Agricultural Inputs Co. Ltd. (AICL), has to compete with the private sector. This has facilitated the supply of quality chemical fertilizers at the farmersdoorsteps. There has been no major problem in the supply of fertilizers and the quality has also improved. In FY 2002/03, the supply of fertilizers in nutrient terms was 38,940 metric tons. In the review period of FY 2003/04, the AICL has distributed 7,226 metric tons nutrient equivalent of chemical fertilizers. With the addition of the quantity of the private sector supplied fertilizers, it is estimated to have totalled at 125,000 metric tons by mid-January 2004. Average prices of urea, Di-Amonium Phosphate (DAP) and potash have registered a normal increase. Improved seed National Seed Co. LTD., established to give continuity to improved seeds being supplied earlier by the former AIC, is operating in competition with the private sector. It has been distributing standard seeds in demand from the farmers after insecticide treatment at the local level. In F Y 2002/03, this company distributed 2,953 MT of wheat, paddy and corn seed. The company distributed during the first eight months of FY 2003/04 a total of 1,755 metric tons seed against the target of 2,401 metric tons. Information on seed distribution by the private sector is not available, although it is also engaged in the business. An overall productivity growth in both the major food grain and cash crops in FY 2003/04 is shown in Table 5. Table 5. Productivity of agriculture (kg/ha)
Crops Food grain Paddy Corn Wheat Millet Barley Cash crops Potato Tobacco Sugarcane Jute FY 2002/03 Actual 2,206 2,675 1,877 2,009 1,092 1,151 9,981 10,925 962 38,776 1,438 FY 2003/04 Estimated 2,316 2,857 1,906 2,087 1,096 1,025 10,146 11,490 974 38,794 1,433

Source: M inistry of Agriculture and Cooperatives.

Problems and needs for international assistance

Industrialization is an important means for the economic development in Nepal, but industrial activities in Nepal have been gradually declining in recent years. According to the Department of Labour and Employment Promotion (DOLEP), there are 3,473 49

establishments employing ten or more workers and those located within the industrial estates employing less than ten workers. It is assumed that many workers are suffering from occupational injuries and diseases, while reliable statistics are not available due to the lack of proper reporting of accidents. Further particularly the construction industry, which usually has a high accident rate, is not fully covered by legal reporting requirement as the activities are often subcontracted to small companies for which labour law is not applied. On 22 M arch 1998, a major fire at a craft factory in Kathmandu claimed the lives of eight workers. The exits were not properly arranged. According to the trade union leaders in Nepal, many workplaces still lack basic welfare facilities, such as toilets, canteen, resting place and clean drinking water affecting the health conditions of workers. The Labour Law, 1992 provides certain requirements for Occupational Safety and Health (OSH) to be implemented in industries. A number of regulations and technical standards need to be developed in order to give guidance on specific measures to be taken. In elaborating OSH legislation, it would be important to examine the application of the principles laid down by the International Labour Standards, including particularly the Occupational Safety and Health Convention No. 155 (1981) and the Occupational Health Services Convention No. 161 (1985). The Labour Law is enforced by the labour officers and factory inspectors stationed at 10 regional labour offices in Nepal. Prime difficulty for the enforcement of OSH provisions is the low OSH awareness of most employers and workers. Factory inspectors are main officers responsible for the implementation of OSH provisions of the labour law. The capacity of the labour offices needs to be strengthened in terms of human resources and capability. A basis for such strengthening is supposed to be created through the implementation of the proposed project. In order to achieve the goals and objectives of the proposed project and carry out and implement the activities of the project there is a need for international assistance.

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Annex

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