Despite Heavy Spending, Govt Struggles to Deliver Fertilizer on Time

Despite the government’s repeated assurances to deliver fertilizer on time, farmers continue to face a persistent shortage, with annual demand of around 650,000 metric tons far outstripping the state’s average supply of roughly 450,000 metric tons.

This structural gap—combined with the delay in deliveries and uneven distribution—left farmers without adequate fertilizer during the crucial planting season, raising fears of a significant drop in paddy output this year.

According to the state-run national news agency RSS, the government has set a target of importing 550,000 metric tons of fertilizer this year and allocated Rs 28.82 billion for the purpose. The Ministry of Agriculture and Livestock Development informed RSS that the government has already called tenders to import 465,000 metric tons of chemical fertilizer for this fiscal year.

As of late November, 266,510 metric tons are in the supply pipeline—180,491 metric tons through the Agriculture Inputs Company Limited (AICL) and 86,016 metric tons through the Salt Trading Corporation (STC). AICL is importing 88,213 metric tons of urea and 92,278 metric tons of DAP, while the STC is importing 24,498 metric tons of urea, 53,795 metric tons of DAP and 7,725 metric tons of potash.

The ministry also reported that 86,333 metric tons remain in domestic warehouses—57,818 metric tons at AICL and 28,514 metric tons at STC—while another 120,597 metric tons are currently in transit through international supply routes.

Officials maintain that this combined stock, pipeline supply and upcoming consignments will ensure adequate availability for winter crops. But repeated pledges have done little to reassure farmers who experienced acute shortages earlier in the year.

Delayed fertilizer supply, coupled with insufficient rainfall in Madhesh and Koshi provinces, pushed paddy transplantation down to 94.9 percent of the planned 1.37 million hectares—below last year’s 98.5 percent. Experts warn that paddy output could fall by up to 7 percent this year, forcing Nepal to increase imports and potentially raising food prices in the coming months.

Many farmers say they received only a fraction of their required fertilizer during peak transplanting weeks, despite official claims of adequate stock. Some resorted to informal imports from India to keep their fields productive.

Although the budget for fertilizer procurement has more than doubled in five years—from Rs 12 billion in FY 2021/22 to nearly Rs 28 billion this year—systemic weaknesses in planning, tendering, supply routes and distribution continue to disrupt availability. Meanwhile, rising global fertilizer prices and the increased use of hybrid seeds, which require greater nutrient input, have widened the gap between national demand and supply.