New Rule Affects Fertilizer Imports .

Imports of chemical fertilizers via Haldia, a major port used for its import, has become difficult after India changed clearance provisions, traders said.

Under the fresh provision, Indian port authority is clearing the consignments weighing them in palletized form - a bulk baggage - instead of small bags. This has made clearing process of chemical fertilizers lengthy and costly, said Pashupati Gautam, managing director of Agriculture Inputs Company (AIC), state-owned importer and supplier of chemical fertilizers.

“We have to weigh the fertilizers in a bulk baggage of one ton each time. This is not practical for Nepal that imports fertilizers in smaller quantity. This provision has added burden to suppliers and importers,” Gautam told Republica. Nepal has been importing fertilizers in a 50-kg bag from overseas countries.

Nepali officials have requested India not to impose the new provision for chemical fertilizer imported for Nepal. Gautam said AIC has already forwarded a request through the Ministry of Commerce and Suppliers (MoCS) to Indian government to continue the previous system along with priority for vessel berth so as to ensure easy clearance of fertilizers from Haldia Port.

He also said an alternative port at Vishakhapatnam is also not feasible for chemical fertilizer imports as delivering fertilizers by containers is costlier than by wagon, which is not available along Vishakhapatnam-Nepal route.

Meanwhile, Indian government, which has already agreed to sell 100,000 tons of chemical fertilizers, has sent a draft of contract to supply Urea at ICRs 17,000 ( Rs 27200) per ton. However, India is yet to send contract paper for the supply of 40,000 tons of Di-Ammonium Phosphate (DAP).

Govt caps fertilizer subsidy at Rs 3 billion

The government has put a ceiling of Rs 3 billion for the subsidy to the farmers for chemical fertilizer for the fiscal year 2011/12. The government had allocated Rs 2.5 billion for the fertilizer subsidy last fiscal year. Nepal has already imported 89,330 tons of chemical fertilizer and is making final preparation to import 57,500 tons from overseas markets with the last years´ budget.

“With the new ceiling we can import less than 200,000 tons of chemical fertilizers given the soaring rise in the price of fertilizers in the international market,” said Dr. Hari Dahal, spokesperson of the Ministry of Agriculture and Cooperatives (MoAC). Price of Urea and DAP has gone up to US$ 507 and US$ 714 per ton from US $354 and US$587 per ton in the international market over the year.

Source : myrepublica.com