Nepal allocates $115mn for fertilizer procurement ahead of 2024/25 season

The Nepalese government has allocated Rs 15 billion ($115mn) to kickstart the fertilizer procurement process for the fiscal year 2024/25. With the understanding that acquiring the necessary 260,000 metric tons of chemical fertilizers is a process that needs commencement in the current year, the allocation aims to streamline the purchase and ensure timely availability.

Dr. Govinda Prasad Sharma, Secretary of the Ministry of Agriculture and Livestock Development of Nepal, confirmed that the procurement process for the upcoming fiscal year is set to begin, backed by the secured funds. This initiative reflects Nepal’s strategic approach to agriculture, acknowledging the roughly six-month period required for procuring and delivering fertilizers.

The initiative is part of a larger budgetary framework where a total of Rs 30 billion ($230mn) will be dedicated to acquiring chemical fertilizers for the current year, with procurement activities already in motion. It was also announced that 70 percent of the fertilizer sales, valued at Rs 30 billion ($230mn) will be handled by the Krishi Samagri Company, while the Salt Trading Corporation will manage the remaining 30 percent.