Agri ministry seeks Rs 30 billion in new budget for fertilizer procurement

KATHMANDU: The Ministry of Agriculture and Livestock Development has sought Rs 30 billion in the coming fiscal year to procure subsidized chemical fertilizers.

According to Shabham Shiwakoti, the spokesperson for the ministry, a budget ceiling of Rs 51.88 billion has been proposed for 2024/25. Nearly 60% of the ministry’s budget is allocated for fertilizer procurement.

“We might have to set aside Rs 35 billion for fertilizer procurement in 2024/25. We can procure 700,000 tons from this amount. Around 600,000 tons can be distributed to farmers, while 100,000 tons can be kept in stock,” Shiwakoti added.

In the fiscal year 2022/23, the government spent around Rs 38 billion on the procurement of chemical fertilizers. The ministry didn’t provide complete data for the current fiscal year, stating that procurements were still ongoing.

“Out of the Rs 30 billion allocated for the current fiscal year, Rs 16 billion went to procure fertilizers, while Rs 520 million was used to provide subsidies to sugarcane farmers,” Shiwakoti said. “We are in the process of procuring chemical fertilizers worth around Rs 14 billion.”

The ministry has proposed a budget ceiling under eight headings for the next fiscal year. These include chemical fertilizer procurement, the Prime Minister Agriculture Modernization Project, the One Municipality One Veterinary Doctor Program, the Agriculture Graduate Contract Program for 726 local units, the One Village One Technical Assistant Program for Agriculture and Livestock Services in 666 local units, and the Indigenous Crop Production Enhancement and Conservation Program.

According to the ministry, 99,035 tons of chemical fertilizers – 17,853 tons of DAP and 6,234 tons of potash – are in stock currently. Likewise, 51,000 tons of urea and 75,000 tons of DAP are soon arriving in the country from the Visakhapatnam Port of India, while 30,000 tons are being shipped from the Kolkata port.

Of the total fertilizer imports, 90% is distributed to farmers through different agriculture cooperatives, while 10% is kept in buffer stock.

Dr Govinda Sharma, secretary at the ministry, said there won’t be a shortage of chemical fertilizers in this plantation season as the government has already initiated the procurement process.

According to the ministry, there is a demand for around 500,000 tons of chemical fertilizers in the country.