Nepal Pays Significantly More for Chemical Fertilizer Than India Despite Same Supplier

Kathmandu. Even when importing from the same fertilizer, the price paid by Nepal and India shows a significant difference. The Singapore-based international company 'SS Aditya Birla Global Trading' has won the tender to supply chemical fertilizer to both India and Nepal. However, the company has provided the same fertilizer to India at $540 per metric ton, while it is providing it to Nepal at $900.75 per metric ton. Aditya Birla is supplying the fertilizer to Nepal from the same source it supplies to India. Employees of the Agricultural Inputs Company Limited have started questioning why there is such a large price difference. An employee of the Agricultural Inputs Company said, 'There is anarchy in Nepal; they are doing whatever they please. They avoid tenders by citing the West Asian conflict, repeatedly get tenders canceled, but later agree to supply at a higher price for the same fertilizer! This is the game of an international syndicate.' India, on the other hand, received fertilizer from Aditya Birla at $540 per metric ton when it issued its tender during the same period. Currently, the price of fertilizer in the international market has further decreased. According to international media, the price of chemical fertilizer has fallen sharply since China decided to ease its control over urea exports from March. This has almost certainly led to a price reduction of at least 50 percent. Due to geographical proximity, a large portion of the supply to India's east coast comes from China. With the West Asian conflict appearing to move towards resolution, a sharp decline in the price of chemical fertilizer is expected. However, Nepal is still purchasing fertilizer at $900.75. Aditya Birla has already secured a tender to supply 30,000 metric tons of fertilizer. The company has received a tender of $900.75 per metric ton to deliver fertilizer to Birgunj, Biratnagar, and Bhairahawa. At the current rate, this price is very high. An official said, 'Aditya Birla has cheated Nepal. If not, why $540 for India and $900.75 for Nepal?' According to the contract, Aditya Birla will receive 27,022,500 US dollars from the Nepal government. India, which purchased fertilizer at $540 per metric ton, is selling it to Nepal at $848. Even though India is buying at a lower price and selling to Nepal at a higher price, there are complaints that Aditya Birla is selling fertilizer to Nepal at an even higher price than India. Under the G2G agreement between Nepal and India, India will provide 50,000 metric tons of fertilizer to Nepal. Nepal had requested 80,000 metric tons of fertilizer for immediate needs, but will now receive only 50,000 metric tons. Nepal has already sent the payment to India for this. However, there is a provision for Nepal to receive the fertilizer only within 120 days (four months) from the date of receiving the payment. This means that even the fertilizer provided by India will not be available to Nepali farmers during the paddy planting season. If India provides the fertilizer through its process, it will only arrive in Nepal in October.