Nepal is facing a fertiliser subsidy burden of about Rs 59 billion for the coming season, a challenge the Ministry of Agriculture, Forests and Environment says will be difficult for the state to manage.
Ministry secretary Dr Rajendra Prasad Mishra said current market prices mean the government must provide a subsidy of up to Rs 120 per kilogram for diammonium phosphate (DAP) alone. He said the financial burden is hard for the state to bear.
Government seeks a way to manage subsidy costs
The ministry is seeking a new system to manage the subsidy burden, Mishra said. Coordination is under way with the Ministry of Finance as the government considers how to handle the costs for the coming season.
