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India to sell 100k tons of chemical fertilizers

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KATHMANDU, Feb 22: Responding to a request from the government, India has agreed to sell 100,000 tons of chemical fertilizers to Nepal at international parity price (IPP).



On the back of supply deficit in the market and lengthy procurement process from third countries, the government a few months ago had requested the southern neighbor to supply chemical fertilizers.[break]



Dr Hari Dahal, spokesperson at the Ministry of Agriculture and Cooperatives (MoAC), told Republica on Monday that the Indian government has agreed to provide 60,000 tons of Urea and 40,000 tons of Di-Ammonium Phosphate (DAP) to Nepal. “As per our request, India has decided to provide



“The Indian government has decided to supply 60,000 tons of Urea and 40,000 tons of DAP at IPP through Bramhaputtra Valley Fertilizer Corporation and Indian Potash Ltd," a letter sent by Indian Embassy in Kathmandu to the government states.



The government has allocated Rs 2.75 billion (Rs 2.5 billion for around 200,000 tons of chemical fertilizer and Rs 250 million for organic fertilizers) as fertilizer subsidy for the current fiscal year. The subsidy is aimed at providing relief for farmers that are facing tough time due rising cost of production.



According to Dahal, Agriculture Input Company Ltd (AICL) has imported a total 69,330 tons of chemical fertilizers from different countries till mid-February. AICL procured 21,000 tons of DAP and 10,372 tons of Urea from Turkey, 10,458 tons of Urea from Urea, 10,000 tons of Urea from China and 17,500 tons of Urea from India. AICL is all set to import 50,000 tons of Urea from China or Iran through India Potash Ltd and 25,000 tons of DAP from Morocco through a Bangladeshi firm.



"We will soon initiate the process of procuring chemical fertilizers from India through Agriculture Inputs Company Ltd (AICL). With the conformation of supplies from India, farmers this year won´t have to face shortage of fertilizers like last year,” Dahal added.



The government has announced Food Crisis Address Program worth Rs 481 million and subsidized fertilizers and seeds program worth Rs 73.7 million in 23 remote districts through the budget for current fiscal year.

Though the government has targeted to supply 3,410 tons of chemical fertilizers to these districts, it has managed to distribute only 146 tons so far due to low demand from farmers and lengthy process of selecting suppliers.



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