Circular Economy Pathways for Agricultural Waste Management in Nepal: Prospects and Barriers

The circular economy (CE) offers a practical alternative to the linear “take–make–dispose” model dominating Nepal’s agricultural system, which employs approximately 61% of the workforce and contributes around 22% of GDP. Despite its significance, open burning or unregulated disposal largely mismanages agricultural waste, including crop residues, livestock manure, and agro-chemical packaging. This conceptual review examines the applicability of CE principles to Nepal’s agricultural waste sector at national and sub-national policy levels. Drawing on the Ellen MacArthur Foundation framework and recent Nepal-specific studies, the paper identifies four key opportunities: crop residue valorization, livestock waste-to-biogas systems, agro-industrial circular clusters (CEICs), and enabling mechanisms such as digital residue aggregation platforms and extended producer responsibility. However, significant barriers persist, including fragmented landholdings, weak institutional coordination, high infrastructure costs, and limited farmer awareness. The paper argues that CE is not optional but essential for Nepal’s resource-constrained federal context. Three policy priorities emerge: developing a national CE roadmap for agricultural waste, strengthening biogas–biofertilizer value chains through market-based mechanisms, and piloting inter-municipal CEICs across agro-ecological zones. This review contributes to evidence-based policymaking for sustainable agricultural transformation in Nepal.