Nepal, April 22 -- The ripple effects of the ongoing West Asia conflict, which began on February 28, are being felt across Nepal's agrarian hubs, as a sharp rise in petroleum prices pushes up production costs and squeezes rural livelihoods.

Farmers, contractors and small-scale entrepreneurs said the surge in fuel prices has made it increasingly difficult to operate machinery essential for both farming and infrastructure work. The situation has been exacerbated by dry conditions across many parts of the country, forcing farmers to rely heavily on diesel-powered pump-sets to irrigate their fields.

With wheat harvesting under way and pre-monsoon rice nearing maturity, the timing has added pressure. Farmers said the cost of running thresher...