Strategic Fertiliser Deal: India Supports Nepal Amid West Asia Crisis

In response to Nepal's urgent request, India is processing a fertiliser supply under their existing cooperation framework, as confirmed by the Ministry of External Affairs. This gesture highlights India’s pivotal role in regional stability by supporting its neighbors with essential agricultural resources amid global supply challenges due to the West Asia crisis.

As the West Asia crisis unfolds, Nepal has sought fertiliser supplies from India, a request that is currently being facilitated under existing bilateral cooperation, according to the Ministry of External Affairs on Tuesday. External Affairs Spokesperson Radhir Jaiswal emphasized ongoing partnerships with Kathmandu, notably in agriculture, during a press briefing.

Nepal's request comes ahead of its crucial paddy transplantation season. India's prompt response underscores its commitment to regional stability by meeting the essential needs of its South Asian neighbors through steady agricultural and energy resource supplies.

Beyond fertilisers, India maintains a substantial energy partnership across the subcontinent. Spokesperson Jaiswal noted ongoing energy distributions, such as diesel shipments to Bangladesh through the high-speed diesel friendship pipeline, ensuring that India remains a key supplier in South Asia.

This energy cooperation extends across the Indian Ocean, reaching Sri Lanka, with plans underway for Mauritius. The Kathmandu Post reported on May 4 that in light of geopolitical tensions and rising global prices, Nepal aims to procure 80,000 tonnes of fertiliser under a government-to-government agreement with India, bolstering its strained agricultural input system.

Faced with significant procurement challenges, the unilateral import under a 2022 agreement includes 60,000 tonnes of urea and 20,000 tonnes of Di-Ammonium Phosphate (DAP). Despite originally seeking 150,000 tonnes, this procurement is crucial for the upcoming season, as noted by Ram Krishna Shrestha from Nepal's Ministry of Agriculture.

The ministry expedited action following a favorable response from Indian supplier Rashtriya Chemicals and Fertilisers Limited, with expected delivery by mid-August, crucial for paddy cultivation. Shrestha highlighted traditional procurement's risks due to prolonged tender processes, underscoring financial strains from surging global prices.

Although constrained by escalating costs, Nepal's government, having allocated Rs 28.82 billion in subsidies, faces reduced procurement capacity. Despite these hurdles, the existing G2G framework remains effective until 2026, with discussions ongoing for its extension, ensuring continued bilateral cooperation.