Despite more than doubling the budget for procurement of chemical fertilizer over the past five years, Nepal continues to face acute fertilizer shortages during peak rice planting season, mirroring the situation of half a decade ago.
In fiscal year (FY) 2021/22, the government allocated Rs 12 billion for fertilizer purchases. That amount rose to Rs 27.95 billion for the current FY and is set to reach Rs 28.82 billion in the upcoming FY. Yet, the recurring shortage of fertilizer during monsoon planting persists.
According to Ram Krishna Shrestha, Joint Secretary at the Ministry of Agriculture and Livestock Development, the persistent supply crunch is primarily driven by a sharp rise in fertilizer demand.
“Consumption has increased significantly due to the expansion of commercial farming. Farmers now cultivate two to three crops annually on the same land. Moreover, hybrid varieties of maize, rice, and vegetables, which require over twice the amount of fertilizer compared to traditional crops, are becoming increasingly popular,” he explained.
Shrestha also noted that rising prices in the international market have compounded the issue. Although the budget has increased, global cost inflation has limited the volume of fertilizer the government can purchase. The price of urea, for example, rose from USD 600 per metric ton last year to USD 900 this year. DAP (diammonium phosphate) increased from USD 380 to USD 500 per ton over the same period.
Currently, the government holds a stockpile of 74,612 metric tons of chemical fertilizer. According to government data, this includes 42,095 tons of urea, 24,047 tons of DAP, and 8,469 tons of potash, stored across Salt Trading Corporation (STC) and Agriculture Inputs Company Limited (AICL) warehouses as of late June.
However, shortages remain widespread. Farmers across the Terai and hilly regions report difficulties accessing fertilizer during the critical planting window. Agni Aryal, coordinator of the Rajapur Super Zone in Bardiya, said that despite the shortages, nearly 80% of planting in the area has been completed, largely due to informal cross-border imports from India. “Government-supplied fertilizer is virtually unavailable. Where a farmer needs 10 to 15 sacks, they’re barely getting two,” Aryal said.
Eastern districts are facing similar challenges. In Sarlahi, farmer Bhuvaneshwar Yadav reported significant delays in planting due to the fertilizer shortfall. Ministry data shows that, as of early July, only 22% of rice planting had been completed in the Terai, compared to around 80% in other regions. Yadav attributed the delay to both fertilizer and irrigation shortages.
Minister for Agriculture and Livestock Development Ramnath Adhikari has publicly acknowledged the shortfall, stating at various forums that the government is unable to provide adequate fertilizer supplies to all farmers. In a recent parliamentary committee meeting, he admitted the distribution system is limited by current stock and funding constraints. He emphasized that fertilizer distribution must follow a strict quota system based on local government recommendations to prevent favoritism and ensure transparency.
Minister Adhikari previously stated that with the current budget, Nepal can procure only around 450,000 metric tons of fertilizer annually. However, the Ministry estimates total national demand to be approximately 650,000 metric tons, leaving a consistent supply gap year after year.
