Kathmandu, Dec 29: The Ministry of Finance has granted source approval amounting to Rs 20 billion for the procurement of chemical fertilizers. The approval was provided following a request from the Ministry of Agriculture and Livestock Development for additional budgetary resources to purchase fertilizers for paddy cultivation.
Joint Secretary at the Ministry of Agriculture and Livestock Development, Dr Ram Krishna Shrestha, informed that the source approval has been arranged to be managed through the budget of the upcoming fiscal year 2083/84 BS. The Ministry of Agriculture had sought an additional Rs 10 billion from the Ministry of Finance to ensure smooth supply of chemical fertilizers for paddy crops.
“As immediate budget allocation was not feasible, the Ministry of Finance has provided source approval to be disbursed through the next fiscal year’s budget,” he said, adding, “Although the budget will be released in the next fiscal year, this approval allows us to proceed with the tender process for fertilizer imports.”
According to the ministry, fertilizer imports are currently taking place on a regular basis and there is no immediate shortage. However, due to the high demand for fertilizers for paddy cultivation, imports are being planned in advance to prevent seasonal shortages.
For the current fiscal year 2082/83, a budget of Rs 28.82 billion was allocated for the purchase of 550,000 metric tons of chemical fertilizers. Since tenders for fertilizer imports have already been issued under the allocated budget, the Ministry of Agriculture sought additional source approval from the Ministry of Finance to import more fertilizers. The ministry stated that tenders had been invited for the purchase of 465,000 metric tons of fertilizer by the end of December.
The ministry also noted that international fertilizer prices have increased by 20 to 25 percent over the past year, resulting in budget constraints in meeting procurement targets. Despite rising international prices, farmers continue to receive fertilizers at subsidized rates. Nepal’s annual demand for chemical fertilizers stands at around 700,000 metric tons.
Ministry launches fertilizer distribution information system
The Ministry of Agriculture has introduced the “Subsidized Fertilizer Distribution Information System” to streamline and regulate the procurement and distribution of chemical fertilizers.
The system has been launched to enhance transparency and efficiency in the purchase and distribution of subsidized fertilizers to farmers. Through this platform, real-time information related to fertilizer imports, storage, and distribution can be accessed at any time, the ministry said.
The system aims to address complaints related to favoritism by sellers, overpricing, and unauthorized sales of subsidized fertilizers to individuals or institutions not eligible for such benefits. Under the new system, detailed information—including the fertilizer quota allocated to each cooperative or firm, stock levels, and records of sales specifying which farmer received what quantity—will be publicly accessible.
Farmers and the general public can access fertilizer stock and distribution details by visiting the Ministry’s website (moald.gov.np), selecting their local government unit, and navigating to the “Subsidized Fertilizer Distribution Information System.” #nepal #fertilizer
