From capital to countryside

Agriculture is the primary means of support for many Timorese households, with nearly two- thirds engaged in the sector as smallholders. Despite its potential to drive inclusive growth, investment and productivity remain low. Timor-Leste has an annual average rice yield of 2 tonnes per hectare versus 5 tonnes in
Indonesia.

The limited use of agricultural inputs, such as fertiliser, improved seed varieties and plant protection products, is a key constraint. Based on the 2019 census, a mere 6 per cent of Timor-Leste's 141,000 agricultural households use fertiliser or plant protection, and just 20 per cent plant improved seed varieties.

The narrow range of inputs gives farmers few choices. Moreover, available inputs are often concentrated in Dili, leaving rural areas underserved by weak retailer distribution networks. Farmers, particularly those outside the capital, have limited knowledge of inputs - few understand how to use them or their benefits. As a result, domestic agricultural production remains below potential, impacting food security and increasing reliance on imports. The lack of inputs also worsens crop vulnerability to extreme weather events like droughts and floods.