The state-owned fertilizer importer and distributer of fertilizer has attributed the fund scarcity to "one-third budget", which has left it with insufficient fund to place order for this year´s purchases. [break]
“AIC has to pay Rs 2.67 billion to overseas suppliers for 85,000 tons of fertilizers. However, the one-third budgetary provision allows us to spend Rs 1.14 billion,” said Dr Hari Dahal, spokesperson for the Ministry of Agriculture Development (MoAD). "This has left AIC with a shortfall of an additional Rs 1.53 billion for the planned procurement of fertilizer by mid-September," he stated.
Out of the total Rs 3.83 billion allocated for importing fertilizers, around Rs 3.42 billion was spent until the end of the last fiscal year.
Under its plan, the AIC was eyeing to procure 60,000 tons of urea, 20,000 tons of Diammonium Phosphate (DAP) and 5000 tons of Potash for the current fiscal year. "But uncertainty over funds for the required fertilizers will result in the another spate of scarcity during upcoming winter season," said Dahal.
Shashi Raj Tuladhar, acting managing director of AIC, said the company has already awarded the contract to Samsung Company of Korea and Lovana Company of Australia for supplying 50,000 tons and 30,000 tons of fertilizers respectively.
“We are also at the final stage of selecting the supplier company for the remaining 5,000 tons of fertilizers,” said Tuladhar.
Meanwhile, the government has procured all 12,500 tons of urea from Mineral and Mine Trading Company (MMTC) of India.
According to AR Khair, procurement manager of AIC, first consignment of 2,500 tons of the total 10,000 tons of DAP to be procured from Indian Potash Ltd (IPL) has arrived in Nepal. "Another consignment of 2,500 tons is arriving within a couple of days," he added.
Though government had originally planned to procure a total of 30,000 tons of DAP from IPL, budget crunch had forced it to scale down import to 10,000 tons.
Prolonged crisis of fertilizers, meanwhile, has forced thousands of farmers in the lurch.
Fed up with unsuccessful efforts to secure fertilizers for ongoing padding plantation, last week farmers had resorted to protests demanding easy availability of fertilizers.
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