Chemical Fertilizer: How Much Has the Government Stockpiled and What Are the Implications of the Middle East Conflict?

Although the newly formed government has included chemical fertilizer distribution in its draft national commitments, ongoing conflicts in the Middle East have disrupted the import of these essential agricultural inputs. Officials report that the government has already contracted to purchase 94,000 metric tons of chemical fertilizer, but shipments have been delayed due to the conflict between the US, Israel, and Iran. Despite opening tenders for an additional 90,000 metric tons, experts warn that the Iran war, which has blocked the Strait of Hormuz, might cause shortages of fertilizer critical for timely agricultural production.

The Prime Minister’s Office stated in the draft national commitments released Tuesday that, “The fertilizer requirement data will be updated, procurement schedules will be prepared, and the existing mismanagement in purchase, sale, and distribution will be addressed.” The government imports chemical fertilizers through Agriculture Material Company Limited and Salt Trading Company Limited. According to customs data, private sector imports reached 50,000 metric tons last year, though officials believe the actual volume is higher.

Dr. Ram Krishna Shrestha, Chief of the Agriculture Development Division under the Ministry of Agriculture and Livestock Development, explained that the government had targeted the supply of 550,000 metric tons of chemical fertilizer this year. The ministry received a budget allocation of NPR 2.882 billion for this purpose. “So far, 525,000 metric tons have been imported. The quantity exceeding the tender amount is due to leftover fertilizer from tenders of the previous fiscal year arriving late,” Shrestha clarified.

The ministry also informed that out of the imported fertilizer, 420,000 metric tons have already been sold, with the remainder stored in warehouses. Various studies on fertilizer demand have been conducted. According to a National Agricultural Census study, Nepal requires 1,737,000 metric tons of chemical fertilizer based on the total arable land and crops cultivated. Agriculture expert Mahadev Prasad Paudel notes that since only 400,000 to 500,000 metric tons are imported annually, shortages every year are a common concern.