Nepal Faces Fertilizer Shortage Amid COVID-19 Disruptions

Strategic Insights -

Nepal is currently facing a shortage of urea fertilizer due to transportation disruptions caused by the COVID-19 pandemic. The government has assured that Potash and Diammonium phosphate (DAP) are available, but the distribution of urea is limited. The Ministry of Agriculture and Livestock Development has initiated a process to bring urea and distribute it sufficiently when the plants start bearing fruits.

Key Takeaways:

  • The government has allocated Rs 10 billion to purchase fertilizers in the current fiscal year, a significant increase from Rs 8.99 billion in the previous fiscal year.
  • The tender for buying fertilizers was planned to purchase 120,000 metric tons of fertilizers, but it has been impacted by the COVID-19 outbreak.
  • The country has enough Potash and DAP, but urea is not available in sufficient quantity due to transportation disruptions.
  • The government plans to distribute 450,000 metric tons of subsidized fertilizers to farmers this year, 100,000 metric tons more than the previous fiscal year.
  • Farmers are given subsidies of 65-70% of the original cost in Urea, 25-30% in DAP, and 30-32% in Potash.
  • The Ministry of Agriculture and Livestock Development has initiated a process to bring urea and distribute it sufficiently when the plants start bearing fruits.

Statistics:

  • Rs 10 billion allocated for fertilizer purchase in the current fiscal year (up from Rs 8.99 billion in the previous fiscal year)
  • 450,000 metric tons of subsidized fertilizers to be distributed to farmers this year (100,000 metric tons more than the previous fiscal year)
  • 120,000 metric tons of fertilizers planned to be purchased through tender (although impacted by COVID-19)
  • 65-70% subsidized cost of Urea
  • 25-30% subsidized cost of DAP
  • 30-32% subsidized cost of Potash
  • Rs 5.67 billion allocated for fertilizer purchase in 2015/16 (a significantly lower budget compared to the current fiscal year)

Sources:

  • Bhusal, Ghanashyam. "Covid-19: Possibilities and Challenges in Agriculture." Association of Nepali Agricultural Journalists (ANAJ), 2022.
  • Ministry of Agriculture and Livestock Development.
  • Republica. "Nepal faces fertilizer shortage amid COVID-19 disruptions." HT Digital Content Services, 2022.