Decades of delay: Fertilizer factories still a distant hope for Nepali farmers
Summary
Despite repeated budget promises and subsidy allocations, Nepalese farmers face persistent fertilizer shortages as planned domestic fertilizer factories remain delayed after decades of studies and political commitments.
Key Points
- Finance Minister Bishnu Prasad Paudel has repeatedly promised establishment of chemical fertilizer factories in budget speeches over the past nine years but progress remains elusive.
- Nepal imports chemical fertilizer worth about Rs 40 billion annually, with the government allocating nearly half of the Agriculture Ministry’s budget for subsidies to address shortages.
- Farmers report chronic fertilizer shortages despite subsidies and government assurances, often resorting to illegal purchases from Indian border markets.
- Decades of feasibility studies have confirmed challenges but a domestic factory has not been built due to lack of political will, resource issues, and infrastructural constraints such as electricity availability.
