Fertiliser purchased from India under GtoG to arrive by Nov. 21

By Laxman Kafle

Kathmandu, Oct. 31: After a series of homework, it has been confirmed that chemical fertilisers will come from India under the government to government procurement process.

According to Agriculture Inputs Company Limited (AICL), all the processes of purchasing 30,000 tonnes of urea fertilisers for the first time from India through the GtoG system have been completed.

Acting Managing Director of AICL Rajendra Bahadur Karki said that fertilisers being purchased from India under GtoG are expected to arrive in Nepal within three weeks (by November 21, 2022.

He said that the payment process to the Rastriya Chemicals and Fertilisers Limited (RCF) of India has also been completed.

“The process of purchasing fertiliser has been completed based on the rates sent by the Indian company. The fertiliser will be received within three weeks as the process to deliver it by the RCF has already started,” Karki told The Rising Nepal.

He said that the fertiliser will be used for wheat and maize season.

According to the Company, the fertiliser was purchased at 768 USD per tonne.

Karki said that this price is 1.947 per cent cheaper (57.77 dollars) than the evaluation returns based on the price of the global tender.

The purchased fertiliser will be transported by the Indian company to the warehouses of the AICL within the 25 kilometres area of the border.

The final agreement between the state-owned AICL on behalf of the government of Nepal and RCF on behalf of the government of India was signed on July 17, 2022 for the buy and sale of chemical fertiliser through the GtoG system.

However, a Memorandum of Understanding (MoU) was signed between the government of Nepal and India for the supply of chemical fertilisers to Nepal through GtoG on February 28, 2022.

As per the MoU, India will provide chemical fertilisers to Nepal through GtoG for the next five years.

According to which, 150,000 tonnes of fertiliser will be brought in the first year, 170,000 tonnes in the second year, 195,000 tonnes in the third year. Similarly, in the fourth and fifth years, Nepal will purchase 210,000 tonnes as per the agreement with India.

Karki said that the AICL will start the process to purchase DAP from India through GtoG immediately after examining all the aspects of the arrived first lot of urea fertiliser. 

“This is a significant achievement for Nepal to purchase fertilisers from India through the GtoG model and improve the supply of chemical fertilisers during the high demand season,” he said.

According to him, the model of GtoG signed between the two countries is significantly better than that came in practice earlier as the supplier will deliver fertilisers to the warehouse of AICL without adding additional charge.

“The process to deliver fertiliser will begin within 30 days after sending the price by the supplier and complete delivery within 50 days. 

This is a good aspect as we can bring fertiliser in time as per requirement,” he said.