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AIC to procure fertilizers from tainted Indian firm

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KATHMANDU, July 3: After weeks of debate and confusion, the state-owned Agriculture Inputs Company (AIC) has decided to procure fertilizer from the tainted Indian Potash Ltd (IPL) ignoring the instruction from the parliamentary Public Accounts Committee (PAC) to blacklist the Indian firm that supplied underweight sacks of fertilizer to Nepal.



AIC top management decided on Sunday to procure 11,000 tons of Diammonium Phosphate (DAP) out of the earlier agreed total 30,000 tons from IPL.[break]



The Ministry of Agriculture Development had given AIC the go-ahead last week to take necessary decision for procurement of the fertilizer from IPL, which had earlier supplied 50 kg sacks underweight by 2-5 kg per sack.



The fraudulent act of the Indian supplier had prompted PAC four months ago to instruct the government to take action against the firm by blacklisting it.



“We decided to procure DAP from IPL despite instruction from the Public Accounts Committee to blacklist the firm as our lawyers suggested that we go ahead with the procurement process saying there is no need to blacklist the firm,” said Shashi Raj Tuladhar, managing director of AIC.



Tuladhar said AIC is sending payment to IPL on Tuesday for the 11,000 tons of DAP at the rate of IRs 40,300 per ton.



Similarly, the first consignment of 2,500 tons of urea out of the agreed 12,500 tons from Mineral and Mine Trading Company (MMTC) is scheduled to arrive on Tuesday in Birgunj from Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL) of Assam.



India had agreed to sell 100,000 tons of fertilizers (60,000 tons of urea and 40,000 tons of DAP) to Nepal at IPP for the current fiscal year. Out of the total agreed quantity, 47,500 tons of urea and 10,000 tons of DAP have already arrived.



AIC distributes 2,926 sacks of urea



Meanwhile, AIC distributed 2,926 sacks (50 kg) of urea to farmers from its head office on Monday. AIC has also distributed coupons for 2,300 sacks and 2,200 sacks for Tuesday and Wednesday respectively.



To meet the growing demand for fertilizers from farmers, AIC has been transporting fertilizers from its regional offices in Bhairahawa and Birgunj.



According to Chandika Bhattarai, chief of AIC´s main branch in Kathmandu, a total of 2,600 sacks of urea arrived on Monday from the two regional offices.



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