Wednesday 21st September 2022

Nepali and Indian corporations sign a supply agreement for fertilizer.


Published on : 28 July, 2022 4:05 pm

Kathmandu: Four months after the two neighbors signed a government-to-government agreement, Nepal’s Krishi Samagri Company Limited and India’s Rashtriya Chemicals and Fertilizers Limited on Wednesday signed a commercial agreement for the supply of chemical fertilizers to Nepal.

However, the commercial deal won’t guarantee the farm inputs, especially urea for top treating the paddy crop. Three weeks following the transplantation of the paddy, according to agricultural specialists, the initial top dressing must be treated with urea.

The government-to-government arrangement between Nepal and another country was intended to bring in fertilizers during the paddy transplanting season, but due to a number of legal obstacles, the two parties were unable to complete the commercial agreements in time.

Nepal reached a government-to-government agreement with India on February 28 to purchase chemical fertilizers for five years, giving farmers there hope that their perennial nightmare of shortages during planting season may finally come to an end.

“After a long discussion, a commercial agreement has been signed,” said Rajendra Bahadur Karki, general manager of Krishi Samagri Company. “We hope that the fertilisers will be available from the Rashtriya Chemicals and Fertilisers Company.”

He, however, said that the fertilisers could be available for the wheat plantation period in the winter.

As per the memorandum, Nepal can buy 150,000 tonnes of crop nutrients—100,000 tonnes of urea and 50,000 tonnes of diammonium phosphate (DAP)—from the southern neighbour in the first year.

Nepal will be eligible to purchase 170,000 tonnes in the second year, 195,000 tonnes in the third year, and 210,000 tonnes each in the fourth and fifth years.

Concerning where the Indian company would transport the fertilizers, however, the two parties had disagreed. Nepal had insisted that the fertilizers be delivered to Nepal’s border towns, despite the Indian company’s proposal to deliver them at Kolkata Port.

The Indian side would supply the inputs to border towns like Birgunj, Biratnagar, and Bhairahawa, according to Karki.

In order to obtain fertilizers for the wheat planting season, we will begin the procurement process, according to Karki. Thirty days after receiving our supply order, the Indian company will begin supplying fertilizers.

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