Rising Global Prices and War: Nepal’s Agriculture Faces Imminent Supply Crisis.
International geopolitical tensions between the US, Israel, and Iran have halted the import of 94,000 tons of chemical fertilizer already purchased by Nepal. With global prices doubling, the government has made an urgent formal request to India for 150,000 tons via a Government-to-Government (G2G) mechanism to prevent a crisis during the upcoming rice-planting season.
Despite the government’s recent "National Commitment" to streamline chemical fertilizer distribution, the escalating conflict in West Asia has cast a shadow over Nepal's agricultural sector. Currently, 94,000 metric tons of pre-purchased fertilizer are stranded due to shipping disruptions caused by tensions involving the US, Israel, and Iran. Furthermore, as international fertilizer prices have surged, suppliers who had already signed contracts are now declaring Force Majeure, citing their inability to fulfill orders at previously agreed rates. In response to this looming shortage, the Government of Nepal has officially reached out to the Indian government to secure 150,000 tons of fertilizer through the existing G2G agreement. While the Prime Minister’s Office has drafted a new procurement calendar and data-driven distribution model to fix long-standing supply issues, the immediate challenge remains the physical arrival of stocks before the peak cultivation period. Agriculture experts warn that unless the G2G supply from India arrives on time, the country could face a significant drop in crop yields this year.