30,000 tonnes of fertiliser arrives from India

By A Staff Reporter,Kathmandu, Jan. 31: Almost all chemical fertiliser purchased from India under the government-to-government procurement process has arrived in Nepal.

According to an official of Agriculture Inputs Company Limited (AICL), about 30,000 tonnes of urea purchased under G-to-G arrived at the different warehouses of AICL by Monday.

“Undertaking company of the government of India - Rastriya Chemicals and Fertilisers Limited (RCF) has supplied 30,000 tonnes of urea to AICL by Monday in four weeks after given first delivery,” said Rajendra Bahadur Karki, divisional chief, procurement of AICL.

Even though there was a process to purchase 30,000 tonnes of urea from India under G-to-G, it supplied 30,600 tonnes as there is a provision to alter up to 2 per cent in the procurement.

Out of total purchased, around 11,500 tonnes of urea entered at Birgunj depots, 10,000 tonnes at Bhairahawa and 8,500 tonnes at Biratnagar depots of AICL.

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

The RCF of India has supplied the chemical fertiliser to AICL as per the Memorandum of Understanding (MoU) signed between the governments of Nepal and India on February 28, 2022.

However, 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 the fertiliser through the G-to-G system.

Karki said the fertiliser purchased from India is cheaper than the fertiliser imported through global tender. 

According to him, the fertiliser was purchased at 768 USD per tonne. “It is 1.947 per cent cheaper (57.77 dollars) than the evaluation returns based on the price of the global tender.”

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

He said that the distribution of urea has already started to 41 depots of AICL across the country.

Similarly, around 30,000 tonnes of urea purchased through the global tender is likely to arrive in Nepal shortly as the shipment of urea has started from Malaysia to Kolkata port in India, he said. He said that the LC has already been opened for the import of 20,000 tonnes of urea from Egypt and it is expected to start arriving in Nepal within a month, he said.

Karki said that AICL is prepared to issue a global tender for the purchase of 45,000 tonnes of chemical fertiliser, including 20,000 tonnes of DAP, 20,000 tonnes urea and 5,000 tonnes of potash.