Kathmandu, September 11
The government has temporarily suspended the sale and distribution of diammonium phosphate (DAP) fertiliser, citing disruptions in the international supply chain.
The Ministry of Agriculture, Forests and Environment said the decision was taken to prevent a shortage of fertiliser for the upcoming wheat season.
On Bhadra 16, the Agriculture Inputs Management and Technology Section under the ministry’s Agriculture Development Division issued a letter directing Agriculture Inputs Company Limited and Salt Trading Corporation to suspend the sale and distribution of DAP fertiliser.
The letter, signed by ministry soil expert Rajanish Mishra, states that the Strait of Hormuz had been closed due to the war involving Israel, the United States and Iran. The ministry has claimed that the resulting disruption to the international supply chain of chemical fertilisers has created a situation of “force majeure.”
“Since the prospects of timely supply of DAP fertiliser for which purchase agreements have already been concluded appear weak, it has been decided to temporarily suspend the sale and distribution of DAP fertiliser in view of the possibility of a shortage for the wheat crop,” the ministry’s letter states.
The suspension was implemented based on a ministerial-level decision taken on Bhadra 15. To enforce the decision, the ministry has also suspended, until further notice, the provision under Subsection 6 of Section 12 of the Fertiliser Distribution Management Procedure, 2082.
Bishnu Prasad Pokharel, managing director of Agriculture Inputs Company Limited, said DAP fertiliser had been reserved for the wheat season because paddy currently requires only urea fertiliser.
“DAP is not in much demand for paddy in Bhadra and Asoj. If DAP is distributed now, there is a risk that cooperatives could take it to agro-vets or unnecessarily hold it,” he told Onlinekhabar. “Therefore, this decision was made through mutual consultation between the ministry and our company to ensure that DAP, which is mainly needed during the wheat season, does not become scarce.”
He said demand for urea fertiliser is currently high in the Terai-Madhesh and other areas for top-dressing paddy, and supplies are being maintained.
According to Pokharel, the company currently has 22,910 tonnes of urea fertiliser in stock, while around 33,000 tonnes are in transit from India and other countries.
He said the company has 14,645 tonnes of DAP in stock, with around 18,000 tonnes yet to arrive. He said fertiliser supplies have been affected globally by tensions in the Middle East.
Pokharel said it had become difficult to bring fertiliser on time because Iran had tightened restrictions around the Strait of Hormuz and shipping routes had been affected by attacks by Houthi rebels in the Red Sea.
“Production capacity for DAP has not been able to operate at full capacity because sulphur production from natural gas has declined in the international market,” he said. “As a result, the price of DAP has risen to more than $1,000 per tonne, while the price of urea has fallen somewhat to around $530 to $550.”
He said urea is relatively readily available in the international market, whereas DAP is extremely difficult to obtain and remains in high demand.
