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About Us |
Nepal
is an agricultural country. Agriculture is the most important
sector in terms of income and employment generation Agricultural
sector accounts for about 27 percent of national GDP. About
65 percent of total population derive it’s livelihood
from agriculture and unallied activities. Krishi Samagri
Company Limited (KSCL) was established in 1965 as a public sector
enterprise to procure and distribute high quality and improved
agricultural inputs (fertilizers, seeds, agro-chemicals and
implements) at a reasonable price across the country.
Initially, AIC was named Agriculture Supply
Corporation (ASC) before it was merged with the Food Management
Committee under the new outfit, Agriculture Marketing Corporation
(AMC). AMC dealt with both agricultural inputs and food
grains for about two years. In 1974 the government decided
to split AMC into AIC for the management of agricultural
inputs and Nepal Food Corporation for the marketing of agricultural
produce.
On May 8, 2002 government converted AIC into
Krishi Samagri Company Ltd. (KSCL) and National Seed
Company Ltd. under Company Act 1997 as a state owned enterprises.
KSCL has been assigned by the government to procure and
distribute fertilizers across the country. As Nepal does
not have indigenous production of mineral fertilizers, demand
for fertilizers is met through importation. The government
has retained hundred percent equity of KSCL. Now, National Seed Company Limited has merged into the Krishi Samagri Company Limited. KSCL produces seeds and distributes all over the country through its own offices.
In a major policy decision to boost agricultural
production and to ensure smooth supply of mineral fertilizers,
the Government of Nepal has decided to reintroduce subsidy
on mineral and organic fertilizer on March 25, 2009. KSCL
has been entrusted with the procurement and distribution
of subsidized fertilizers across the country.
Fertilizer Policy
Until 1972, cost plus basis of fertilizer policy was adopted
owing higher price in the hills than in the terai plains.
The retail price of hills was made higher in proportion
to the actual transportation cost incurred. Following the
oil crisis of 1972 and rise in the international price of
fertilizers the government fixed the maximum retail price
across the country and introduced subsidy regime.
In 1997, the government announced policy reforms in the
fertilizer sector eliminating subsidy on non-urea fertilizers
and phase wise withdrawal on urea. Likewise, the government
established Fertilizer Unit under Ministry of Agriculture
and livestock development to facilitate favorable policy and institutional
environment for the participation of public and private
sector.
Deregulation policy largely failed to bring
desirable impact on improving supply situation and quality
control of fertilizer. External factors such as rise in
price in international market, heavy subsidy enjoyed by
the farmers across the porous border and inflow of illegally
traded fertilizers aggravated the situation. The government
finally decided to provide subsidy on mineral fertilizers
on March 25, 2009.
Silent features of current fertilizer Policy:
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KSCL will be
the sole agency to import fertilizers under subsidy
scheme. |
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Provision of a high level
“Subsidy Allocation Management Committee”
under the chairmanship of Secretary of MOAC. The committee
is mainly responsible for fixing retail price and subsidy
reimbursement to KSCL. |
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Subsidized fertilizers will
be available for up to 0.75 ha and 4 ha in the hills
and terai respectively for three crops a year. |
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Fertilizers will be retailed
through KSCL field offices and cooperatives. |
Fertilizer Pricing
Under the new fertilizer policy uniform retail price of fertilizers
is fixed for five entry points by the high level Subsidy Management
Allocation Committee chaired by the Secretary at Ministry
of Agriculture and livestock development. But at present as fertilizers
is being imported through three entry points so the retail
price of three entry points (Biratnagar, Birgunj and Bhairahawa)
is fixed with due consideration of import cost, transportation
cost, handling cost as well as effective retail price in India.
Actual transportation cost incurred from three entry points
to other districts will be added to determine the retail price
of fertilizers for all districts.
Ministry of Agriculture and livestock development advances subsidy amount to Krishi Samagri Company Ltd.
in three instalments and subsidy account is settled by the
high level committee at the end of the fiscal year.
Fertilizer Distribution
KSCL field offices as well cooperatives are involved in the
distribution of fertilizer across the country. KSCL administers
retailers under dealership regulation as approved by the Board
of Directors. At present 5,300 cooperatives and cooperative
shops are retailing fertilizers.
Fertilizer Supply and Distribution Management
Committee headed by Chief District Officer of the respective
districts is being empowered to look after the affairs related
to the supply and distribution of fertilizers at the district
level. It is believed that district based committee acts promptly
to ensure free, fair and smooth supply and distribution of
fertilizers.
Fertilizer Procurement
KSCL is being made responsible to procure
subsidies fertilizer from 2009. Fertilizer is being imported
from the international market through global tender on the
basis of CIF Kolkata/Haldia (India) port or CIF Nepal KSCL
border warehouses entry points. (I.e. Biratnagar, Birgunj,
Bhairahawa).
KSCL invites sealed tenders for the supply of fertilizer by
publishing global tender notice in the reputed national newspaper.
Invitation of global tender is based on seasonal demand. Normally
KSCL invites eight to ten global tenders in a fiscal year.
It takes four to five months to import fertilizer through
global tender. At present KSCL have imported fertilizer from
Turkey,Oman, Peoples Republic of China, Egypt, and India.
Beside global tender, KSCL is also importing fertilizer from
India on government to government basis on Import Parity Price
(IPP) of India. KSCL also procures as directed by the government
fertilizer received on grant/aid by the donor government as
buffer stocks and distribute it.
Objectives
The government of Nepal has re-introduced fertilizer subsidy
scheme from 2009 to boost up agricultural production and to
ensure food security, and KSCL is fully geared up to fulfill
the expectation of the government. Objectives of KSCL as set out
in the memorandum of association are as follow:
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Produce, procure
and import different types of mineral fertilizer and
distribute it across the country on the basis of local
demand. |
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Import raw materials for
the production of different product mix of fertilizers
and distribute and export as well. |
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Maintain buffer stock of
fertilizers received under grant/aid from the government,
donor countries and organizations to control supply
interruption. |
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Procure and distribute the
subsidized fertilizer across the country. |
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Conduct other business and
service oriented activities to ensure reasonable profit. |
Other Activities
Other Activities
To sustain and to meet the multipurpose objective , KSCL is going to involve following activities too:-
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KSCL is planning to diversify its business activities to ensure uninterrupted supply of essential commodities across the country. |
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To maintain the quality of soil company is introducing the agriculture limestone from F.Y 072/073. |
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The Company has got land and infra structures in Prime location through out the country. So the company has taken long term plan to utilize these unuse land and infrastructure by leased or sell out. |
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KSCL produces and distributes of seeds.(eg. wheat, maize, paddy through coperative and agrovet) |
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