KATHMANDU : Nepal hasn’t been able to forge a deal on its proposal to procure chemical fertilizer from India under Government-to-Government (G2G) scheme for the next five years.
In July, Nepal had sent a proposal to the Indian government to buy 9,35,000 metric tonnes of chemical fertilizer for the next five years starting from the current fiscal year. However, the procurement process has been stuck in limbo after India said it will initiate the process after finalizing the issue through “high-level discussion”.
A request letter that will be sent to the Indian government through the Ministry of Foreign Affairs has proposed a G-2-G deal to procure chemical fertiliser for at least five years at the international parity price. The 935,000 metric tonnes fertilizers include 565,000 metric tonnes urea and 370,000 metric tonnes DAP.
Nepal had planned to purchase 150,000 metric tonnes of fertilizers for the current fiscal year (2018/19) under G2G scheme, targeting the winter crop. Similarly, there was a plan to procure 170,000 metric tonnes for the fiscal year 2019/20; 195,000 metric tonnes for the fiscal year 2020/21; and 210,000 metric tonnes each for the fiscal year 2021/22 and 2022/23.
In response to the proposal, India said a secretary-level discussion was needed to take a call on the supply of fertilizer under G2G scheme. Based on India’s reaction, Nepal formed a panel headed by joint secretary Dr Yogendra Kumar Karki, Chief of Planning and Foreign Aid Co-ordination Division. However, the two sides have not held discussions.
“We had proposed the date for meeting between Dashain and Tihar festival. But the meeting couldn’t take place as they said they don’t have time,” said spokesperson at the Ministry of Agriculture and Livestock Development Tej Bahadur Subedi. “The date will be finalized soon after discussions.”
As Nepal had been purchasing chemical fertilizer from India under G2G scheme in the past, this year the government sent a proposal through the Ministry of Foreign Affairs to procure the fertilizer at once for five years.
Though Nepali farmers have started cultivating winter crop after harvesting the paddy, some experts assume that the uncertainty about the purchase of fertilizer under G2G scheme will directly affect the yield.
Spokesperson Subedi said the purchase of fertilizers through regular process has been continuing even though the G2G scheme is still under discussion.
In Nepal, Agriculture Inputs Company Limited has been selling 70 percent of the fertilizer and Salt Tradition Corporation has been selling 30 percent.
But Managing Director at Agriculture Inputs Company central office, Ambar Raj Khayar acknowledged the failure to supply adequate fertilizer in any place even though the season for cultivating winter crop has begun. He added the government has failed to supply the fertilizers to meet the demands.
Khayar attributed the shortage to the short supply of fertilizers. He said though the annual demand for chemical fertilizer is 700,000 metric tonnes, the government only purchases 300,000 metric tonnes in a year.
It has already been projected that Nepal need to buy 11, 15,000 metric tonnes of urea, 8,20,000 metric tonnes of DPA, 55 tonnes of potassium fertilizers in the next five years.
