The Ministry of Agriculture and Cooperatives (MoAC) has devised a concept paper with short-term, medium-term and long-term plans to ensure smooth supply of chemical fertilizers by increasing subsidy and exploring permanent sources of fertilizers to avoid the shortage.[break]
Under the short term plan that would last three years starting 2010/11, the government would provide subsidy on 300,000 tons of fertilizers in the first year. On the back of the lack of reliable sources of chemical fertilizers, the government would also take initiatives to ensure timely supplies of required chemical fertilizers from India.
“Under short-term plan for the relief of farmers, we have focused on upscaling the quantity of subsidized fertilizers and ending shortage of fertilizers by arranging imports from reliable sources,” said Dr Hari Dahal, spokesperson for the ministry.
He said the government would take initiative to ink a long-term agreement with India to import fertilizers at International Parity Price (IPP) for the elimination of perennial problems of supply deficit.
Keeping in view the rising demands of fertilizers and growing necessity of improved distribution network across the country, the ministry is also mulling to upgrade institutional and physical structure of Agriculture Inputs Company Ltd (AICL), the state-owned fertilizer distributor. Currently, AICL has around 350 employees in its network in over 41 districts across the country.
Under the plan, the ministry would also formulate a guideline to ensure transparency and impartial distribution of fertilizers. Farmers are complaining of misuse of subsided fertilizers, mismanagement in distribution and black marketing of fertilizers.
“To ensure unhindered supplies during crisis periods, we are also considering maintaining a buffer stock equal to 20 percent of annual national demand of chemical fertilizers,” Dahal added.
The ministry is also thinking of reviving feasibility study of establishing a chemical fertilizer factory to achieve self dependency in chemical fertilizers. The government had conducted a feasibility study to set up chemical fertilizers factory in 1984 when annual requirement of fertilizers was 70,000 tons. Officials said yearly demands have now reached around 500,000 tons.
Under the medium-term and long-term plans, the ministry is mulling over increasing fertility of soil through land use policy and welcoming the assistance of fertilizers in kinds from any donor community. “We are also coming up with the concept of linking fertilizers with food security as fertilizers are instrumental to increasing agriculture production,” said Dahal.
Plan envisages:
- To increase amount of subsidized fertilizers to 500,000 tons a year in next three years
- T take initiative to sign a long-term pact with India to supply fertilizers
- To upgrade institutional capacity of AICL
- To conduct feasibility study on setting up fertilizer factory
- To maintain buffer stock of 20 percent of annual demand
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