By Suresh Kumar Yadav, Kathmandu, Dec. 12: The Ministry of Agriculture and Livestock Development (MoALD) has demanded additional Rs. 13.5 billion from the Ministry of Finance (MOF) to purchase chemical fertilizer as the previously allocated budget has become inadequate.

The government had allocated Rs. 15 billion to purchase the chemical fertilizer in the fiscal year(FY) 2021/22.

As the allotted amount fell short to meet the current demand, the NoALD asked for an additional Rs. 13.48 billion to purchase the fertilizer as per the given demand.

The spokesperson of MOALD, Prakash Kumar Sanjel, said that only 250 thousand metric tons can be purchased for Rs. 15 billion at the current international market price while there is a demand for an additional 130 thousand metric tons.

The budget presently allocated for purchasing the feriliser even fell short to buy 250 thousand metric tons and the MoF has already provided a billion rupees.

The MoALD said that the MOF is positive to provide the additional Rs. 12.48 billion as demanded.

The agriculture ministry purchases approximately 5 lakh metric tons of chemical fertilizer every year. However, prices in the international market went up, therefore only 250 thousand metric tons could be purchased from the current budget.

The government meanwhile has been increasing annual grants to purchase fertilizer on a yearly basis 

In the current FY, additional Rs. 13 billion is demanded in addition to the initial allocation of Rs. 15 billion. The Krishi Samagri Compay Limited stated the current amount will not be sufficient.

The price of chemical fertilizer has increased by 300 per cent in the current FY

The spokesperson of the Krishi Samagri Company Limited Bishnu Pokhrel said that the price was recorded between $ 240 to $ 250 per metric ton two years back. It has now increased to $ 950 a metric ton.