STC to resume fertilizer trade

KATHMANDU, DEC 20 -

Salt Trading Corporation ( STC ) will be importing chemical fertilizers once again after a gap of 11 years. A cabinet meeting held on Wednesday decided to allow the semi-government owned entity to import 85,000 tones of chemical fertilizers to ensure adequate supply to farmers.  

The farmers were hit hard as they could not get adequate fertilizer during the paddy plantation season a few months ago.

As per the cabinet decision, the STC will be exempted of customs duty for the import of fertilizers and sell in local market.

Currently, the country’s salt monopoly deals in sugar and cooking gas. It had imported Diammonium Phosphate (DAP) fertilizer 11 years ago.

Urmila Shrestha, general manager of STC , said that the authority provided to the corporation would help reduce the shortage of fertilizers to some extent. “There is a demand for over 500,000 tonnes each year but state-owned Agriculture Input Company (AIC ) is only able to supply around 300,000 tonnes,” she added

The country’s annual demand for chemical fertilizers hover around 700,000 tonnes, according to Ministry of Agriculture Development. With the AIC only meeting less than half the demand, the farmers are forced to rely on fertilizer smuggled from India.

Shrestha said that the price of STC imported fertilizer would depend on the amount of government subsidy. The government at present provides a subsidy of Rs 12.71 per kg on DAP and Rs 7.18 per kg on Potassium fertilizers imported by the AIC. Private companies are not involved in fertilizer imports due to the high costs and risk factor.

Source: The Kathmandu Post