September 8: The Government of Nepal has reached an understanding with the Government of India to procure chemical fertilizers through the G2G process. A team comprising the representatives of the Ministry of Agriculture and Livestock Development has returned from New Delhi following a preliminary agreement in this regard with India.

At a secretary-level meeting between the two countries in Delhi, India agreed to sell fertilizers to Nepal through the G2G process for the next five years. Agriculture Secretary of Nepal, Dr Krishna Prasad Acharya, said that the Indian government has approved Nepal's proposal to purchase chemical fertilizer from India. According to him, the two countries have agreed to sign a memorandum of understanding in October.

After the signing of the MoU, India will initially sell 150,000 metric tons of chemical fertilizer to Nepal. He informed New Business Age that an agreement has been reached to increase the amount by 10 percent every year.

Last year, the government began discussions on long-term fertilizer management after farmers faced an acute shortage of fertilizer due to the dilly-dallying of two contractors, Shailung Enterprises and Honiko Multiple. The process, which the government started with the Indian government in August last year, is finally nearing completion almost after a year.

While the representatives are signing the MoU with India in October, there still an acute shortage of urea for top dressing of paddy during the current plantation season. It is estimated that more than 115,000 metric tons of urea is required for the current paddy and wheat plantation season. However, the government has only 7,000 metric tons of urea in stock at present. Besides urea, 3,800 metric tons of DAP and 3200 metric tons of potassium are in stock at the present.

Farmers in most of the districts are facing shortage of fertilizers. According to the ministry, 14 contracts signed earlier by the Agriculture Inputs Company Limited and Salt Trading Corproation for the purchase of fertilziers have been canceled. Thus, the fertilizers could not be imported on time.