Kathmandu, March 1:  Nepal and India have signed a Memorandum of Understanding (MoU) to supply chemical fertilisers to Nepal.
According to the agreement signed on Monday, Nepal will purchase chemical fertilisers with India in the government to government (G2G) model for the next five years.
A Memorandum of Understanding (MoU) was signed between the Government of Nepal and the Government of India to provide fertiliser to the former in G2G model for the next five years, according to the Ministry of Agriculture and Livestock Development.

Secretary at the Ministry of Agriculture and Livestock Development Dr. Govinda Prasad Sharma and Secretary at the Ministry of Chemicals and Fertilisers of India Rajesh Kumar Chaturvedi signed the agreement on behalf of their respective governments.
The agreement was signed virtually in the presence of the Minister for Agriculture and Livestock Development Mahendra Ray Yadav and Indian Ambassador to Nepal Vinay Mohan Kwatra.
Earlier, Nepal had submitted a proposal to India to purchase the fertiliser in G2G model for five years.

As per the MoU, the government of India will provide urea and DAP fertiliser under the Import Priority Price (IPP) model for five years.
India will provide around 935,000 tonnes of fertilisers in the G2G model in five years, the Ministry said. Accordingly, in 2021/22, Nepal will purchase a total of 150,000 tonnes of fertilisers, including 100,000 tonnes of urea and 50,000 tonnes of DAP.

Similarly, Nepal will purchase 170,000 tonnes of fertiliser (110,000 tonnes of urea and 60,000 tonnes of DAP) in the fiscal year 2022/2023 and 195,000 tonnes (115,000 tonnes of urea and 80,000 tonnes of DAP) in the fiscal year 2023/24.
As per the agreement, the government of India will supply 210,000 tonnes of fertiliser, including 120,000 tonnes of urea and 90,000 tonnes of DAP in each fiscal year 2024/25 and 2025/26.

As per the MoU, a joint steering committee will be formed on behalf of both the countries and the process of purchasing chemical fertilisers will start soon. Minister for Agriculture and Livestock Development Yadav and Secretary of the Ministry of Chemicals and Fertilisers of India Chaturvedi highlighted various dimensions of Nepal-India relations and hoped that the understanding would help in deepening the bilateral relations between the two neighbouring countries. According to spokesperson of the Ministry of Agriculture and Livestock Development Prakash Kumar Sanjel, the ministry has already started works to form the joint steering committee as per the MoU.

"The committee will be formed under the coordination of the joint secretary at the Ministry with members from other concerned ministries," he told The Rising Nepal.
He said that the fertiliser is expected to arrive in Nepal before the paddy plantation season by completing all required procedures.