Nepal Approves G2G Fertilizer Purchase from India
The Nepalese government has approved the purchase of 80,000 tons of chemical fertilizers (60,000 tons Urea, 20,000 tons DAP) from India through a Government-to-Government (G2G) deal. Education Minister Sasmita Pokharel announced the in-principle approval given to Agricultural Materials Company Limited. This decision aims to address delays and problems experienced with the current global tender system, ensuring a more efficient supply of essential agricultural inputs.
The government of Nepal has given its in-principle approval for the direct purchase of 80,000 tons of chemical fertilizers from India under a Government-to-Government (G2G) agreement. This significant decision was announced by Government Spokesperson and Education Minister Sasmita Pokharel following a meeting of the Council of Ministers. The Agricultural Materials Company Limited has been tasked with procuring 60,000 tons of Urea and 20,000 tons of DAP fertilizer through this new arrangement.This strategic shift comes in response to persistent issues and delays encountered with the existing system of procuring fertilizers through global tenders. Currently, both the Agricultural Materials Company Limited and Salt Trading Corporation are responsible for importing fertilizers via this tender process. However, the tender companies' delays have frequently led to supply chain disruptions, impacting the timely availability of crucial agricultural inputs for Nepali farmers. By opting for a G2G mechanism, the government aims to streamline the procurement process, reduce lead times, and ensure a more stable and reliable supply of essential chemical fertilizers. This move underscores the government's commitment to addressing agricultural challenges and supporting the farming sector by mitigating the problems associated with traditional import methods. The direct deal with India is expected to enhance efficiency and address the recurrent fertilizer shortages.
