KATHMANDU, July 3: Nepal spent nearly Rs 50 billion importing chemical fertilizers in the first 11 months of the current fiscal year, yet farmers continue to struggle to access supplies during the peak paddy transplantation season. Despite billions of rupees spent on imports of urea, DAP and potash, recurring shortages have exposed weaknesses in the government’s supply and distribution system.
According to the Department of Customs, fertilizer imports reached Rs 49.83 billion by mid-June, including more than Rs 35 billion worth of urea, over Rs 12 billion worth of DAP, and around Rs 2 billion worth of potash. In terms of volume, urea constituted the largest share. The Ministry of Agriculture and Livestock Development estimates Nepal’s annual requirement at around 700,000 metric tonnes, with demand rising alongside the expansion of paddy, maize, wheat and vegetable cultivation.
The government supplies subsidized fertilizers through the Agricultural Inputs Company Limited and the Salt Trading Corporation. More than Rs 30 billion has been allocated for subsidies this fiscal year alone. Yet farmers often face empty warehouses or delayed deliveries when demand peaks.
Farmers begin paddy plantation despite shortage of chemical fer...
Stakeholders point to weak supply management as the main reason for persistent shortages. Delays in international tendering, transportation bottlenecks, and distribution challenges from ports to districts have repeatedly disrupted timely supply. Experts note that even when warehouses hold adequate stock, simultaneous demand across the country creates delivery delays, leaving some districts with surplus while others face scarcity. Informal cross-border outflows and black-market trading have further complicated the situation.
Rising international prices, fluctuations in the US dollar exchange rate, and higher transportation costs have added to import expenses. Although discussions on establishing a domestic fertilizer industry have been ongoing for years, no plant has come into operation. Feasibility studies and proposals — including those based on natural gas and green hydrogen — have stalled due to uncertainty over raw material supplies, high investment needs, and concerns that domestic production costs would exceed import prices.
Experts argue that operating a fertilizer manufacturing industry in Nepal would require large and reliable supplies of energy and raw materials on an annual basis, making long-term sustainability a major challenge.
-1200x560-1783083574.webp)
