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Nepal introduces first fertilizer control order bill

Source: Agribusiness Bulletin, Vol. 55, August 1999.

The Government of Nepal had recently introduced the Fertilizer Control Order - 1999 Bill, the first of its kind in the country. Increased supplies of fake and sub-standard fertilizers resulted in the government's decision to include chemical fertilizers under its Essential Commodities Control (Authority) Act, 1961. This would regulate the import, sale, distribution and production of chemical fertilizers in Nepal.
Salient features of the new Fertilizer Control Order Bill would include the following:
  • specifications of imported chemical fertilizers, as well as domestic sales, distribution and production of such products stipulated by the Ministry of Agriculture (MOA)
  • penalities for contravention of order with regard to chemical fertilizers
  • the role and responsibilities of the Fertilizer Unit of MOA in regulating and controlling the import, sale, distribution and production of chemical fertilizers throughout Nepal
  • requirements and obligations of importers with regard to dealers
  • role of independent surveyors with regard to quantity, quality, packing and labelling of imported chemical fertilizers
  • role of qualified inspectors in monitoring of the local chemical fertilizer market and supply situation for the provision of quality fertilizers to farmers
  • quality tests and analyses of chemical fertilizers
  • role of Chemical Fertilizer Advisory Board would be chaired by the Secretary or Special Secretary of the MOA, with representatives from the Ministry of Population and Environment, Nepal Agriculture Research Council, Department of Agriculture, Nepal Bureau of Standards and Meteorology, and Federation of Nepal Chamber of Commerce and Industry.
Although the government is expected to issue import licences for 60,000-70,000 tons urea, a source at the MOA estimates that around 100,000 tons would be required for September-December 1999 delivery. As such, the source said that there would be a possibility that import licences would be issued for up to 100,000 tons. Since mid-January this year, there had been no urea imports by the private sector.
Import licences were to be issued only after the new urea subsidy rate was finalized (this was due on 1 July). The urea subsidy rate was reduced in May 1998 to NRs. 2,728 per ton (US$ 39.65 per ton) from NRs. 4,198 per ton (US$ 61 per ton).