Kathmandu, Jan. 20 -- Nepal's paddy output is projected to decline in the current fiscal year for the first time in four years, according to a government assessment that cites prolonged drought in Madhesh province, unseasonal rainfall in October and a rising rural-to-urban migration trend.

A fall in paddy production is likely to add pressure on an already struggling economy, as lower farm incomes limit spending by households dependent on agriculture, which employs about 60 percent of the population.

Preliminary production figures released by the Ministry of Agriculture and Livestock Development show paddy output may drop by 4.2 percent to 5.75 million tonnes in the fiscal year ending mid-July. The decline is largely attributed to a prol...