Nepal's Fertilizer Crisis: A Symptom of a Broken Agricultural Supply Chain
Summary
Nepal faces a persistent shortage of chemical fertilizers that disrupts agriculture, due to failures in procurement, logistics, and governance, forcing farmers to resort to black markets and increasing food imports.
Key Points
- Nepal's fertilizer shortage is caused by systemic failures in procurement, logistics, and governance affecting the agricultural supply chain.
- State-owned entities Agriculture Inputs Company Limited and Salt Trading Corporation handle fertilizer imports, but delays cause late arrivals, forcing farmers to reduce cultivation or buy from black markets.
- Nepal relies heavily on fertilizer imports primarily from India, with unpredictable export policies exacerbating supply issues and no strategic reserves to buffer disruptions.
- Long-term solutions include diversifying suppliers, improving infrastructure, enhancing border monitoring, promoting organic fertilizers, and adopting digital inventory systems to ensure timely delivery.
