{"id":291561,"date":"2026-03-21T17:07:13","date_gmt":"2026-03-21T11:22:13","guid":{"rendered":"https:\/\/insurancekhabar.com\/?p=291561"},"modified":"2026-03-21T17:10:06","modified_gmt":"2026-03-21T11:25:06","slug":"gulf-war-threatens-to-reduce-farmers-yield-due-to-chemical-fertilizer-crisis-2","status":"publish","type":"post","link":"https:\/\/english.insurancekhabar.com\/gulf-war-threatens-to-reduce-farmers-yield-due-to-chemical-fertilizer-crisis-2\/","title":{"rendered":"Gulf War threatens to reduce farmers’ yield due to chemical fertilizer crisis"},"content":{"rendered":"

Kathmandu. The current global political instability, especially the tensions in the Gulf region, has caused a major uptick in the supply and price of chemical fertilizers. This will push an agricultural and import-dependent country like Nepal towards a serious crisis. <\/p>\n

Tensions in the Gulf region have disrupted global fertilizer supply chains. Countries in the Persian Gulf region account for about 49 percent of the world’s total urea exports and 30 percent of the world’s ammonia exports. <\/p>\n

The risk of the closure of the Strait of Hormuz, an important waterway for world trade, has added to the uncertainty in the market. Many large manufacturers have halted production and declared force majeure. The price of urea has increased by 26 percent compared to before the war began. The complete closure of the Hormuz waterway is considered to be the worst situation for the world fertilizer market. <\/p>\n

For the current fiscal year 2082. The government has set a target of importing 600,000 metric tonnes of chemical fertilizers in 83 years, for which Rs 28.82 billion has been allocated. Of this, international tenders have already been called for the import of 4,91,400 tonnes of fertiliser till March 15. <\/p>\n

A total of 471,511 metric tonnes of fertiliser has been imported so far. This includes 2,78,773 MT of urea, DAP 1,75,150 MT and 17,587 MT of potash. The Ministry of Agriculture and Livestock Development distributes chemical fertilizers on subsidized basis through cooperatives across the country with the support of Salt Trading Corporation and Agriculture Inputs Company Limited. <\/p>\n

About 250,000 tonnes of fertiliser is required for the main paddy planting season alone. However, the current stock is expected to reach only about 1,27,492 tonnes. <\/p>\n

The government provides urea fertilizer at Rs 14 per kg in subsidy, but due to the scarcity, it is being sold at Rs 130 per kg in the open market. Recently, the Agricultural Inputs Company had signed an agreement to buy urea at $ 585 per tonne. <\/p>\nFertilizer Import<\/a>\n

For the last two years, China has imposed strict curbs on urea exports. Since China is the world’s largest producer, it has a direct impact on the world market. As a result, Nepal has been forced to buy fertilizers from other distant countries at a higher price instead of China, which has increased the cost of transportation. <\/p>\n

The shortage of fertilizers will not only reduce agricultural production, but the stress in the Gulf will also take a big blow to remittances, which are the backbone of Nepal’s economy. More than 1.7 million Nepali workers are employed in the Gulf countries, which is more than 65 percent of the total foreign employment. The share of remittances in Nepal’s GDP is more than 25 percent, and it provides financial support to nearly 60 percent of Nepal’s households. <\/p>\n

The escalating tension in the Gulf has led to the risk of reducing production due to high fertilizer prices on the one hand, and the loss of jobs and reduced remittances on the other. Nepal needs to think about the guarantee of fertilizers and alternative destinations for employment through government-to-government agreement in time. <\/p>\n

Even as per the agreement signed with India for 5 years, the supply of fertilizers has been delayed, due to which the crisis has deepened. Due to the open border, the smuggling of low-quality fertilizers from India has long had a long-term impact on the fertility of the soil.<\/p>\n","protected":false},"excerpt":{"rendered":"

Kathmandu. The current global political instability, especially the tensions in the Gulf region, has caused a major uptick in the supply and price of chemical fertilizers. This will push an agricultural and import-dependent country like Nepal towards a serious crisis. Tensions in the Gulf region have disrupted global fertilizer supply chains. Countries in the Persian […]<\/p>\n","protected":false},"author":5,"featured_media":291543,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45060,45149,45159],"tags":[],"class_list":["post-291561","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-corporate-en","category-laghu-beema-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/291561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=291561"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/291561\/revisions"}],"predecessor-version":[{"id":291562,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/291561\/revisions\/291562"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/291543"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=291561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=291561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=291561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}