Ministers, officials directed to improve supply of chemical fertilisers

By A Staff Reporter,Kathmandu, Aug. 13: Prime Minister KP Sharma Oli held discussions with Minister for Agriculture and Livestock Development, Minister for Industry, Commerce and Supplies, secretaries and other officials Tuesday in regard to supply of chemical fertilisers, farming status and other issues.

Prime Minister gave instructions following increasing number of complaints that farmers across the country are unable to get fertilisers during the current paddy plantation season.  

Prime Minister Oli directed them to take immediate steps to provide adequate fertiliser to farmers.

Expressing concern about the difficulties faced by farmers due to the shortage of fertiliser, he directed them to submit a three-point action plan for finding a solution within next three days.

Despite the fact that there is sufficient stock of fertilisers required by farmers and additional fertilisers are being received, Prime Minister Oli has been giving high priority to resolving the problem after complaints were received that farmers were not receiving fertilisers on time.

During the discussion, Prime Minister Oli directed the Minister and officials to bring a concrete plan with a new framework to streamline the supply system of chemical fertilisers.

Likewise, the Prime Minister instructed working to ensure that there is no shortage of chemical fertilisers.

Prime Minister Oli also asked the Minister for launching a national campaign for the production and use of compost and organic fertilisers and propose a subsidy policy for it.

He also directed to bring a study plan to establish a chemical fertiliser factory in Nepal that will protect soil fertility.

Despite repeated assurances from the government and years of discussions, Nepal has not yet made a concrete progress toward establishing a fertiliser factory. The plan to begin a process to set up a fertiliser factory in the country that successive governments have been including in their annual policy document for decades has been nothing more than tall talk.  

The idea of establishing a domestic fertiliser plant in Nepal is not new. Since the 1980s, the government has floated proposals to this end.

The government has prioritised the establishment of fertiliser factory in its policies, programmes, and budgets for the past few years and IBN carried out the feasibility study for the establishment of a plant.

Recently a new Detailed Feasibility Study Report (DFSR) regarding the establishment of urea fertiliser plant was done by the German-based DIAG Industries GmbH.

Above 49,000 tonnes of chemical fertilisers in stock

According to Ministry of Agriculture and Livestock Development, around 44,600 tonnes of chemical fertilisers have been imported during the four weeks (July 17 to August 11) of the current fiscal year 2025/26.

During the period, the Agriculture Inputs Company Limited (AICL) imported 31,106 tonnes of chemical fertilisers and the Salt Trading Corporation (STC) imported 13,560 tonnes. 

Of the total imported fertilisers, 34,000 tonnes are urea and 10,575 tonnes DAP.

The AICL and STC are the public enterprises which are importing and distributing subsidised chemical fertilisers to farmers as per the budget allocation by the government.

Around 43,700 tonnes of chemical fertilisers, including the stock of the last fiscal year, have already been distributed across the country as of August 11 of the current fiscal year.

As of Monday, the AICL has sold 33,851 tonnes and STC has sold 9,846 tonnes of chemical fertilisers. According to the Ministry, there is currently a stock of about 49,300 tonnes of chemical fertilisers. 

Out of 49,300 tonnes of stock, around 33,600 tonnes is urea, 9,200 tonnes DAP and 6,497 tonnes potash at the depots of AICL and STC. In addition, around 121,300 tonnes of chemical fertilisers are being transported within and outside the country, said the Ministry. 

The government has set a target to import around 600,000 tonnes of chemical fertilisers from the budget allocation for the current fiscal year 2025/26. According to the Ministry, the tender has already been awarded for the import of 300,000 tonnes of chemical fertilisers from the budget allocated for chemical fertilisers.

The government has allocated subsidy of Rs. 28.82 billion for ensuring the smooth supply of chemical fertilisers to farmers for the current fiscal year.