Nepal spends $258 mln on subsidies as fertilizer supplies hit a record

Nepal’s fertilizer supplies reached a record 538.4 thsd tons in the past fiscal year. To support farmers, the government allocated 39.75 bln Nepalese rupees, or about $258 mln, in subsidies.

Between March and October, the country imported more than 257 thsd tons of fertilizer despite logistics risks and disruptions to global supply chains. For the current fiscal year, the government has allocated an additional 10 bln rupees and launched a procurement program worth about 42.46 bln rupees, or $276 mln.

Government support remains substantial. Urea costs the government around 84 rupees/kg, while farmers pay 15 rupees/kg. DAP is purchased at about 129 rupees/kg and sold to farmers at 44 rupees/kg.

Ahead of the wheat sowing season, no major urea shortage is currently expected. Availability for November–January is estimated at 177 thsd tons against demand of around 136 thsd tons. Nepal also plans to purchase an additional 25 thsd tons of DAP from India.

At the same time, the country remains heavily dependent on fertilizer imports, leaving both the budget and agricultural sector exposed to global prices and shipping conditions. The outlook will depend on timely deliveries and the stability of international supply routes.

Tags: fertilizers, Nepal