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May 7
Increasing fertilizer smuggling worries Nepal government
Because of the high price of fertilizers sold in government agencies, Nepalese traders are smuggling fertilizers from India and selling at a lower price. Nepal does not have any fertilizer industry. It purchases all its fertilizers from India. This year, Nepal’s Agriculture Inputs Company (AIC) bought 10,000 tons of fertilizers but it could not sell more than 7000 tons because of high price rate.

The Hindu reports:

Out of Nepal's total annual demand of 350,000 metric tonne fertilisers, around 70 per cent are illegally brought into the country, said Govinda Bhattarai, a senior official employed with the govt-owned Agricultural Inputs Company (AIC).

The price difference is so stark that while Urea can be purchased at Rs 4,800 per tonne in India, it costs more than Rs 12,000 in the local market here.

"Nepal entirely depends on India to meet its demand for fertilisers as there is no single chemical fertiliser plant in the country. Traders purchase Urea at subsidised rates in India and sells it at half the price of what the government is charging here," he said.

Fertilizer 

In Nepal’s border areas, people bring in fertilizers and sell them at local market.

This is a serious problem. I think, the government officials of Nepal and India should talk about this matter. If arrangements can be made as such that India would sale fertilizers at a lower price then this problem can be solved.

Related article:

The Hindu

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2 Comments/Trackbacks




I agree with you in this regard. Both the countries should sit together and talk about the best possible way to get out of this problem because smuggling is not good for either government of the two neighboring countries. Rather, it may deteriorate the relationship between the two countries. So, it would be good if India could sell the fertilizer at a lower place to Nepalese government. Moreover, I think, Nepalese government should take initiative to have their own fertilizer industry in future.

Fertilizer is part and parcle of agriculture. Without proper use of fertilizer no one can grwo enough food. However, Nepal is suffering from lack of fertilizer and high price. Because of high price poor farmer can not effort to manage fertilizer. As Nepal has no fertilizer manufacturing industry so they have to bouth and sold it in a high price. Local traders are smuggling fertilizer from nearer country India and sell it in a cheap rate. I hope Nepal government can solve the problem if they deal with India or some other countries to buy fertilizer in a cheap rate.

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