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Chemical fertiliser subsidy allocation grows as farming strains state funds

Rising subsidy requirements place intense pressure on state resource management while farmers face ongoing shortages during planting seasons.

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In short

  • Fertiliser subsidy commitments have grown significantly from initial outlays to 42 Arab 46 crore.
  • Spending on chemical fertilisers absorbs nearly the entire agricultural budget of 46 Arab 92 crore.
  • Future procurement requirements are projected to demand approximately 59 Arab rupees.

Government allocations for purchasing chemical fertilisers have reached historic highs over successive years, even as farmers continue to experience severe shortages during critical cultivation periods. Officials explain that initial outlays of 36 crore have expanded substantially, with total resource commitments for fertiliser procurement climbing as high as 42 Arab 46 crore, supported by additional financing approvals. This disproportionate focus on chemical inputs has absorbed virtually the entire agricultural budget of approximately 46 Arab 92 crore, creating extreme fiscal pressure on the Ministry of Finance and the broader administration. Consequently, critical agricultural priorities such as climate change initiatives, scientific research, commercialisation efforts, and sustainable farming promotion remain severely underfunded. Soil health specialists warn that chemical fertilisers supply nutrients exclusively to plants without contributing organic matter to the soil. This reliance has halted natural biological processes that allow soil to self-regulate and generate nutrients. Experts emphasize the necessity of restoring living soil through the balanced adoption of organic, green, and compost manures. Although a limited number of local levels and provincial governments have initiated green manure promotion, further expansion is required to meet future demands. Current market rates require subsidies of approximately 120 rupees per kilogram for DAP alone to manage distribution costs. Projections indicate that upcoming requirements will demand approximately 59 Arab rupees to sustain the current purchasing framework, illustrating the growing financial burden carried by the state.

From public sources and the WeNepal research team

https://wenepal.com/article/chemical-fertiliser-subsidy-allocation-grows-as-farming-strains-state-20261007

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