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India fertiliser shipment to help stabilise Nepal’s urgent supply needs

New Delhi, May 19 (IANS) India’s fertiliser shipment to Nepal under a government-to-government arrangement, expected to arrive soon, will help the Himalayan nation meet demand during the “top dressing” phase of paddy cultivation, media reports said.

With fears growing over global supply disruptions triggered by the West Asia conflict, Kathmandu formally requested India’s state-owned supplier Rashtriya Chemicals and Fertilisers Limited to provide pricing details after the Cabinet on May 4 approved the procurement plan, Nepal’s English daily The Kathmandu Post reported on Tuesday.

Joint Secretary at the Ministry of Agriculture and Livestock Development, Ram Krishna Shrestha, told the newspaper that Rashtriya Chemicals and Fertilisers Limited had assured delivery within 120 days after payment.

“But since it’s an emergency, we have requested a shorter delivery period,” he said.

The price list is expected to be delivered this week, after which it will be reviewed and a formal order placed, the report said, quoting the official.

The Balendra Shah-led government earlier this month granted in-principle approval to the Agriculture Inputs Company to procure 80,000 tonnes of chemical fertiliser from India.

The spike in global prices and supply chain uncertainties was straining Nepal’s farm input system. Kathmandu relies heavily on fertiliser imports from countries in the Persian Gulf and is therefore vulnerable to disruptions in global shipping and energy markets.

The one-time purchase, to be carried out under a 2022 bilateral agreement, includes 60,000 tonnes of urea and 20,000 tonnes of di-ammonium phosphate, the report said. Nepal initially sought 150,000 tonnes, but the volume was reduced due to budget constraints.

Shrestha said the shipment would help meet demand during the top-dressing phase of paddy cultivation, when fertiliser is applied around 25 to 30 days after transplantation.

The government has allocated Nepali Rs 28.82 billion in subsidies for fertiliser imports in the current fiscal year, initially targeting procurement of 550,000 tonnes, the report stated.

However, rising global prices, driven largely by geopolitical tensions, have reduced Nepal’s purchasing capacity to around 440,000 tonnes, it added.

Nepal, according to The Kathmandu Post, requires around 250,000 tonnes of fertiliser during the paddy plantation season alone, raising fears of a potential supply gap that could hit crop yields and farm incomes.

The Agriculture Inputs Company currently holds around 171,000 tonnes of fertiliser in stock, while contracts for 94,450 tonnes are likely to be cancelled due to suppliers failing to deliver.

Officials told the newspaper that issuing fresh global tenders could take at least 225 days. This has prompted the government to seek urgent supplies from India ahead of the paddy transplantation season, which begins in June.

According to the report, rice is Nepal’s staple food, accounting for around 67 per cent of cereal consumption and more than half of calorie intake. Average annual per capita rice consumption stands at 137.5 kg.

Combined with legumes, rice provides nearly 23 per cent of total protein intake, the report added.

Fertiliser shortages directly affect crop yields, raise food prices, lower farm incomes, and increase dependence on imports.

Nepal’s chronic fertiliser shortages have long been linked to weak distribution systems, low buffer stocks, policy gaps, and exposure to global price shocks.

The recurring shortages continue to affect thousands of farmers already struggling with climate risks such as droughts and floods, the Kathmandu Post report added.

–IANS

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