Cabinet Sets Minimum Support Price for Paddy for FY 2083/84

Nepal's agricultural sector is projected to grow by only 1.58% in the current fiscal year, a significant decrease from the previous year's 3.05% growth, according to the government's Economic Survey. This slowdown is attributed to unseasonal rainfall impacting cereal production, despite expected increases in other crop categories. The agricultural sector's contribution to GDP is estimated at 24%.

Nepal is seriously considering domestic production of chemical fertilizer (urea) by utilizing hydroelectricity and carbon dioxide byproducts from the cement industry to address annual farming season shortages. This initiative has gained prominence following the government's inclusion of green ammonia and chemical fertilizer factories in its policy and program, with research into hydrogen technology and its feasibility in Nepal being a key focus.

Dr. Rajendra Prasad Mishra, Secretary of Nepal's Ministry of Agriculture, Forest and Environment, has proposed involving the private sector in fertilizer trading to alleviate supply issues, stating the state-controlled system exacerbates the problem. He attributed the current chemical fertilizer shortage to a global supply crisis, not the ministry, and assured efforts are underway to prevent shortages until July, with additional supply expected from India. The ministry is also working to make the distribution system farmer-friendly and increase monitoring to curb black marketing.

Nepal's Minister for Agriculture, Forest and Environment, Gita Chaudhary, has assured lawmakers that the government is prioritizing the prevention of fertilizer shortages for farmers. She stated that the government is procuring 50,000 metric tons from India and has supplied a significant amount of chemical fertilizer in the current fiscal year, aiming for a record distribution by the end of Ashad.