Fertilizer Markets and Finance

New Delhi: India will export 1.75 lakh tonnes of fertilisers in the current fiscal to Nepal via diplomatic channel in an effort to improve bilateral relations and curb smuggling of soil nutrients.

“We export fertilisers in small quantities to Nepal every year. In the 2012-13 fiscal, we have approved a shipment of 1.75 lakh tonnes of fertilisers like urea and di-ammonium phosphate (DAP),” a senior government official said.

Of the total fertilisers exports, urea would be 60,000 tonnes, while DAP and other soil nutrients would be 1.25 lakh tonnes, the official said, adding that these fertilisers will be exported to Nepal not at a subsidised rates but at the import parity price.

“The exports are being done to enhance bilateral relations and keep a check on smuggling of fertilisers through the India-Nepal border,” the official noted.

The exports would undertake through a diplomatic route, he said, adding that last year, around 1.2 lakh tonnes of urea and DAP was exported to the neighbouring country.

Barring Nepal, India does not export fertilisers to any other nation because the country meets its the domestic shortages, especially potash and phosphatic fertiliers, through imports.

India imports about six million tonnes each of potash and urea and seven million tonnes of Di-ammonium Phosphate (DAP) every year.