Nepal Secures 80,000 Tonnes of Fertiliser from India Amid Global Supply Disruptions
Nepal to procure 80,000 tonnes of fertiliser from India as Iran disrupts global supply chains
The Economic TimesImage: The Economic Times
Nepal has arranged to procure 80,000 tonnes of fertiliser from India due to global supply chain disruptions exacerbated by geopolitical tensions. This includes 60,000 tonnes of urea and 20,000 tonnes of di-ammonium phosphate (DAP), aimed at supporting the upcoming paddy transplantation season.
- 01Nepal will purchase 80,000 tonnes of fertiliser from India amidst global supply issues.
- 02The procurement includes 60,000 tonnes of urea and 20,000 tonnes of di-ammonium phosphate (DAP).
- 03Nepal's government has allocated โน28.82 billion for fertiliser imports this fiscal year.
- 04A shortfall in fertiliser supply could impact agricultural yields during the paddy transplantation season.
- 05Efforts are ongoing to renew a five-year agreement for steady fertiliser supplies between India and Nepal.
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Nepal has initiated a procurement of 80,000 tonnes of fertiliser from India, comprising 60,000 tonnes of urea and 20,000 tonnes of di-ammonium phosphate (DAP). This decision comes as global supply chains face disruptions due to geopolitical tensions in West Asia, which have led to soaring prices and threaten agricultural output. The Nepali government has allocated โน28.82 billion in subsidies for fertiliser imports in the current fiscal year, originally aiming for a total procurement of 550,000 tonnes. However, rising global prices have limited their purchasing capacity to approximately 440,000 tonnes. With the paddy transplantation season starting in June, there is increasing pressure to secure sufficient supplies, as a shortfall could adversely affect farmers and crop yields. Nepal heavily relies on fertiliser imports, particularly from the Gulf, while uncertainty remains regarding supplies from Russia due to banking decisions affecting trade. The two countries had previously signed a five-year Memorandum of Understanding (MoU) for fertiliser supplies, which expired on March 31, but efforts are underway to renew this agreement.
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This procurement will help ensure that farmers in Nepal have access to essential fertiliser for the upcoming paddy transplantation season, potentially stabilizing crop yields despite global supply challenges.
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