Nepal-India Joint Agriculture Meeting to Discuss Agri-Industrial Park, Fertiliser Deal

Nepal and India are set to discuss the construction of an agri-industrial park in Chitwan with Indian assistance and review their government-to-government (G2G) fertiliser procurement arrangement at the ninth meeting of the Nepal–India Joint Working Group on Agriculture starting this weekend.

The meeting will be held in Kathmandu from December 27 to 29, government officials said.

An 11-member Nepali delegation, led by Joint Secretary Dr Hari Bahadur KC of the Ministry of Agriculture and Livestock Development, has already been formed for the meeting. According to Dr KC, the three-day meeting will hold detailed discussions on building an agri-industrial park in Chitwan with Indian support.

He said the proposed park aims to support agricultural production, processing, packaging and marketing, and discussions will focus on reaching a bilateral understanding to move the project forward. If implemented, the park could help address the problem of Nepali farmers being unable to secure fair prices for their produce, he added. Details such as the project cost will be made public only after an agreement is reached.

The meeting will also review a fertiliser procurement understanding reached about four years ago under which Nepal was to purchase 935,000 metric tonnes of chemical fertiliser from India through the G2G mechanism. The memorandum of understanding was signed on March 1, 2022, with India agreeing to supply the fertiliser to Nepal over a five-year period. The deal was aimed at easing Nepal’s chronic fertiliser shortages, particularly during the paddy plantation season.

However, the ministry said Nepal has managed to import only 115,000 metric tonnes of fertiliser from India under the G2G arrangement over the past four years.

Another joint secretary at the ministry, Ram Krishna Shrestha, said the fertiliser agreement is set to expire in March. He noted that under the G2G process, India sources fertiliser from third countries and supplies it to Nepal. “Nepal wants to import fertiliser produced in India because it is cheaper,” he said.

Shrestha said delays occurred because India sought advance payment for the fertiliser, a condition Nepal did not accept, resulting in Nepal being unable to import the agreed quantity on time.

“We will now put forward a revised proposal addressing these issues. Based on India’s response, a decision will be taken on whether to extend the agreement,” he said.

The ministry said Nepal’s key agenda items also include Indian support for agricultural infrastructure and technology, as well as collaboration between Nepali and Indian agricultural scientists in agricultural research.