Around 42,000 MT of chemical fertiliser in stock, claims government

The government claimed that there is adequate chemical fertilizer for crop plantations for this season. 

According to the Ministry of Agriculture and Livestock Development (MoALD), there is around 42,000 metric tonnes (MT) of chemical fertiliser in depots of the state-owned organisations across the country. 

The spokesperson of ministry Prakash Kumar Sanjel today confirmed that there is enough availability of fertiliser at present. Some 86,246 MT of chemical fertiliser has been sold and distributed in four months – from mid-July to mid-November – of the current fiscal year and some 42,981 MT of fertiliser is still available, he said, adding that of the total stock, some 21,763 MT urea, some 19,286 MT are di-ammonium phosphate (DAP) and remaining around 1,932 MT potassium is in the stock.

Krishi Samagri Company (Agriculture Inputs Company Ltd) has some 35,499 MT and Salt Trading Corporation (STC) has some 7,534 MT of fertiliser in stock. “Krishi Samagri Company has 15,179 MT of urea, some 18,432 MT of DAP and some 1,837 MT potash. Likewise, STC has some 6,584 MT urea, some 854 MT DAP and some 95 MT potash in its stock.”

However, farmers face shortage of fertilizers every year during the plantation season, also due to mismanagement of the stocks and delay in imports. Due to lack of timely fertilizer, the 'agriculture country' Nepal has been cursed to import billions of agriculture produces every year to feed its population.

China to provide an additional two million Covid-19 vaccines to Nepal

 China is providing additional two million doses of Covid-19 vaccines -- Vero Cell vaccines manufactured in China -- to Nepal under grant assistance.

During a telephonic conversation with foreign minister Narayan Khadka, Chinese foreign minister Wang Yi announced to provide an additional vaccine, according to a press note from the Foreign Ministry.

The two foreign ministers -- during an hour-long telephone conversation -- discussed entire gamut of the bilateral relations between the two countries, including vaccine cooperation, trade and commerce, development cooperation and border management, the press note reads, adding that the two foreign ministers also talked about progress of different development projects, return of Nepali students to China for continuation of their studies, increasing the number of containers of fertilisers and other goods and their shipment through Tatopani-Zhangmu and Rasuwagadhi-Kerung border ports and resumption of regular air services between Nepal and China. "The two leaders agreed to work closely on issues of common interest and to further promote friendly and long-standing bilateral relations and cooperation between the two countries."

China is the largest provider of vaccines to Nepal, both under grant and commercial deals.

The state councilor and foreign minister Yi also extended an invitation to foreign minister Dr Khadka to visit China at a mutually convenient date.

Chemical fertilizers procured from Bangladesh arrives

Nepal received the first consignment of the chemical fertilizer imported from Bangladesh on government-to-government (G2G) basis, though it has been too late for this year's planting season as the harvesting season has already started.

According to the Agriculture Inputs Company (AIC), some 2,500 tonnes -- of the total 50,000 tonnes of chemical fertilizers that the government of two countries reached a deal -- has arrived in Nepal today. The imported fertilizers will be kept at the depots of the company in Biratnagar, Birgunj and Bhairahawa, The AIC informed, adding that the company has now 40,000 tonnes of Diammonium Phosphate (DAP), some 7,000 tonnes of Potash and 10,000 tonnes of urea in stock.

During December planting season, every year the farmers face the shortage of chemical fertilizer, which has forced the government this year to procure fertilizer from Bangladesh on G2G basis. Earlier, Nepal used to procure the fertilizer from India on G2G basis, but the fertilizer arrives always late due to government apathy.

The government signed an agreement with Bangladesh to purchase 50,000 metric tonnes of urea fertilizer in December to maintain fertilizer supply mainly during the paddy plantation season as the farmers, as always, faced severe shortage. 

Government promises to provide fertilizer by mid-January

 Though, it has failed repeatedly, the government has promised to bring chemical fertilizer from Bangladesh by mid-January.

Agriculture Inputs Company Ltd (AICL) today claimed that it will import chemical fertilizers – which Bangladesh is providing to Nepal on a refundable basis – by mid-January. 

Last week, on December 20, the two governments reached an agreement for the purchase of 50,000 metric tonnes of chemical fertilizer through the G2G mechanism. The state-owned enterprise – after several failed attempts – reiterated that it opened a letter of credit (LC) last week to import fertilizers. “The company has already selected Gentrad FZF Company of the United Arab Emirates (UAE) to transport chemical fertilizers from Bangladesh,” according to a press note issued by the company. “The AICL – through international bidding on September 19 – awarded the shipping contract to the company.”

The company is purchasing fertilizers at the $259.19 per metric tonne, according to the company that has promised the farmers to provide fertilizers for winter crops.

Earlier, the companies – that had bagged contract – failed to deliver fertilizer. “The government had contracted Shailung Enterprises of Lalitpur and Honiko Multiple of Kathmandu, to supply chemical fertilizers for last rainy season,” according to the company. “However, they had failed to deliver fertilizer.”

After their failure, the government started process to import fertilizers from Bangladesh with a promise to refund it later. But as the export company failed to provide fertilizer forcing the government to sign government-to-government contract to import the fertilizer.

Government cancels contract with fertiliser importers

 Agriculture Inputs Company Ltd (AICL) has scrapped the contract and blacklisted them as the non-perfroming importers failed to import the fertilisers on time.

The AICL had awarded a tender to import fertilisers to Shailung Enterprises and Hobiko Multiple, informed the agriculture minister Ghanashyam Bhusal, organising a press meet at the Ministry of Agriculture and Livestock Development (MoALD) today. “AICL has decided to cancel their contracts and also seize the money they had deposited as collateral,” he said, adding that AICL had signed an agreement with Shailung Enterprises and Hobiko Multiple, on April 24 and 27, respectively with a target of importing fertilisers by May 12. They have kept guarantees worth Rs 48 million each while signing the contracts. The government has also sought to recover the compensation amount from the contractor companies.

According to the agreement, the first shipment was supposed to have arrived within 42 days from the date the agreement was signed and the second shipment within 72 days from the day the agreement was inked. But they both failed to bring fertilisers on time even after AICL extended the deadline by 25 days on their request. “The extended deadline terminated on Saturday but both the companies have not yet provided any update regarding shipment nor submitted any documents,” the minister informed, adding that both the companies will also be blacklisted.

Both Shailung Enterprises and Hobiko Multiple had signed agreements to import 25,000 tonnes of urea, one of the important fertilizers used for paddy production. While Shailung was supposed to import fertilizer from Russia or Oman, Honiko had informed the government that it planned to import the fertilizer from China. The two companies on May 12 opened the letter of credit accounts in Nepal Investment Bank and Siddhartha Bank, respectively.

Bhusal, on the occasion, also expressed his distress in the delay in the import of fertilisers due to the negligence of the non-performing importers of chemical fertilizers. “Despite allocating the budget and awarding the tender on time, the negligence of the contractors has forced farmers to suffer this year too,” he said, adding that the contractors are solely responsible for the delay in fertiliser import and distribution, though there has been some few hurdles created by the Covid-19 pandemic.

The failure of the contractors to import chemical fertilizers on time is feared to bring huge reduction in the production of overall paddy production this year.

Claiming that the action will be an example to the wrongdoers in the future too, he said that the ministry will be vigilant and regulate the agriculture sector wrongdoers. 

There has been two aspects concerning shortage of fertilisers – supply and distribution – but the government has sorted the issues of distribution, he claimed, adding that the supply side used to be a big hindrance for a long time but the ministry has started it out. “In the coming years farmers will not have to face any issues related to fertilisers.”

Nepal asks Bangladesh to provide fertilizer

 Though the harvest season has almost come to an end, Nepal has asked Bangladesh to provide urea fertilizer on refundable basis.

Prime Minister KP Sharma Oli while talking on telephone with the Prime Minister of Bangladesh Sheikh Hasina this afternoon sought Bangladesh’s support of 50,000 tonnes of urea fertilizer to Nepal on refundable basis, according to a press note issued by the Foreign Ministry.

Prime Minister Hasina positively took the request of Prime Minister Oli for supply of fertilizer to Nepal for this crop season, the press note reads. “Prime Minister Oli congratulated Prime Minister Hasina on Bangladesh’s success in becoming a food-surplus country,” the press note reads, adding that Nepal can benefit from Bangladesh’s success story in the field of agriculture. PM Oli – while sharing Nepal’s efforts for scaling up agricultural production, both for domestic consumption and export – commended Bangladesh for effectively containing the spread of coronavirus in Nepal.

Congratulating Prime Minister Hasina – on the occasion of the Birth Centenary of Bangbandhu Sheikh Mujibur Rahman today evening – Prime Minister Oli expressed thanks for the supply of 5,000 vials of Remdesivir injection and other essential medicines and medical logistics to Nepal. 

The two Prime Ministers also exchanged experience on the efforts made by their respective governments to fight against Covid-19 pandemic and agreed to strengthen cooperation to tackle this menace, the press note reads, adding that OM Oli also appreciated the steps taken by Bangladesh to contain the pandemic. “The Prime Minister Oli recalled the successful visit of the President of Bangladesh to Nepal last year.”

Recalling the fourth BIMSTEC summit held in Nepal, both the Prime Ministers shared views on enhancing regional cooperation for economic development and prosperity. The two Prime Ministers also exchanged views on various matters of common interests, including cooperation in power generation, grid connectivity and power supply from Nepal to Bangladesh, promotion of barrier-free and balanced trade between the two countries, improved transit facility for Nepal through Bangladesh, enhanced connectivity, promotion of tourism. “Prime Minister Oli thanked his Bangladeshi counterpart for providing a new railway route through Rohanpur (Bangladesh) to Singabad (India) railway line,” reads the press note.

Major regional meeting examines new approaches to improve fertilizer use in South Asia

Government officials, researchers and other experts from across South Asia are gathering in Nepal to share their experiences with effective ways to promote the balanced use of fertilizers and explore innovative approaches that improve the application of these important nutrients in the region.
The regional policy dialogue, ‘Innovations for Advancing Farmers’ Use of Balanced Nutrient Application in South Asia,’ will include presentations on the experiences of India, Nepal, Bangladesh and Sri Lanka with balanced application of nutrients. Senior government officials, policy advisors, researchers, representatives of the fertilizer industry, digital innovators in the extension space, grassroots organizations, and donors engaged in soil nutrient management are set to participate in the discussion.
“Balanced fertilizer application is a vital issue for the region,” country director for India at the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) Arabinda Padhee, said, adding that the proper application of these nutrients can increase farm productivity and boost profitability for farmers without compromising quality and environmental outcomes. “These discussions will help us develop recommendations on improving fertilizer policy in South Asia.”
Imbalanced fertilizer use has been a widespread problem in South Asia, due largely to distortionary subsidies and a lack of scientific information and adequate extension messaging on soil health and crop nutrient requirements among farmers. Over the last decade, countries in South Asia have tested an array of policies, technologies and extension approaches to address fertilizer prices and the information farmers have about using them effectively. Some of these changes have come to stay while others were quickly reversed.
“Today, we are seeing important market innovations in the fertilizer industry, including customized blends, the implementation of direct benefit transfer (DBT) programmes, and changes in the structure of subsidy programs,” said research fellow at the International Food Policy Research Institute (IFPRI) Avinash Kishore. “Our colleagues across the region have vital information to share about these new approaches, and the role that national policy can play in promoting them.”
The dialogue will also address the advancement of new technology for detecting existing soil properties and generating recommendations for balanced nutrient use, including soil health cards, digital soil maps, and new extension services.
“Technology is giving us new tools to speed up the soil testing process, increase its accuracy, and share this information with farmers,” senior research fellow at IFPRI David Spielman said, adding that the question now is what role national policies can play in expanding the use of these tool and reducing their cost.
Organisers say they hope the deliberations will encourage cross-country learnings from successes and failures and enable researchers and policy makers to take concrete actions in successful implementation of policy priorities.

Nepal to buy fertilizers from India via G2G process

The government has decided to procure chemical fertilizers from India through G2G process.
Minister for Communications and Information Technology Gokul Banskota informed that – during the regular press meet to announce government decisions – today the recent Cabinet has decided to procure chemical fertilizers from India through G2G process as the harvesting season is coming.
Every year, during the harvesting season, farmers face shortage of chemical fertilizer. The shortage of chemical fertilisers due to a delay in imports will hit paddy plantation.
According to the Ministry of Agriculture and Livestock Development, there are 10,000 tonnes of DAP in stock, not nearly enough to meet the country’s demand for even 15 days. The government imports chemical fertiliser worth Rs 16 billion annually that includes Rs 6 billion given for fertiliser subsidies.
The Agriculture Ministry had targeted to purchase 286,000 tonnes of chemical fertiliser this fiscal year, but due to the appreciation of the dollar and a price rise in the global market, it was only able to buy 225,000 tonnes. The four-month plantation period alone requires 150,000 tonnes of chemical fertiliser. However, there has been a deficit of 50,000 tonnes this year.

Government should confiscate barren land: Secretary

The government should confiscate the farmland, if a farmer household does not harvest for three years, according to a secretary.

Addressing an interaction, here in Kathmandu today, secretary at the Office of the Prime Minister Krishna Hari Baskota said that the move will encourage the farmers to harvest regularly, unlike current trend of leaving it barn.

The subsistence agriculture pattern will not help promote the commercialisation of agriculture, he said, adding that the trend has to be reversed to make the agriculture commercial.

Some 3.5 million hacter of land is farm land in the country, though only less than half around 1.3 million has irrigation facility, Baskota said, adding that the government will help provide irrigation to all the farmland within the next five to seven years.

In the budget for the current fiscal year 2013-14, the government has allocated Rs 6 billion to Rs 7 billion for fertilizer subsidy. "If any entrepreneur plans to establish fertilizer plans, the government will provide 50 per cent subsidy, he promised, claiming that the government has also established Gene Bank to encourage the commercialisation of agriculture.

However, the agro-scientists claimed that the subsidy is far less than the subsidy provided by the neighbour India for its farmers.

Due to lack of access to loan and market, modern technology, improved seeds, fertilizer and irrigation on time, ever year the farmers have to pay more to smuggled fertilizer and untested seeds that have downgraded the quality of land.

Likewise, some 39.8 per cent of the total land is covered by forest in Nepal. "The forest areas should also be encouraged to use for cash crops, except grazing land for livestock," the secretary added.