The state-owned Agricultural Inputs Company Limited (AICL) is facing difficulties in transporting 1,300 metric tonnes of urea fertiliser, brought from China to the Tatopani customs point, for the upcoming seasonal crops.
The delay in transporting the fertilizer, in addition to China's export control measures on chemical fertilisers, has raised concerns about potential short supply of urea. The fertiliser has remained stuck at Tatopani customs for nearly a year due to disputes between AICL and the contractor companies.
Despite signing a joint contract, Silk Market Pvt. Ltd., Sinomac, Globalmatics, and Bidh Pvt. Ltd. failed to deliver the fertiliser on time. Consequently, AICL initiated action, halting the customs clearance process.
AICL's General Manager, Bishnu Prasad Pokhrel, stated that according to the contract, the importing companies were required to deliver the fertiliser within 107 days. "The contractors failed to deliver even after 300 days. As a result, we were compelled to reject the consignment and take action against the companies," Pokhrel told New Business Age.
Initially, the contractors were assigned to import 25,000 metric tonnes of urea. Despite multiple deadline extensions, they failed to deliver the remaining 1,300 metric tonnes. The contractors even filed a writ petition at the Supreme Court seeking an extension, but the court denied their request, leaving the future of the fertiliser import uncertain.
In response, the Finance Committee of the House of Representatives on Monday directed the government to expedite the management of the urea stuck at customs. The committee instructed the Director-General of the Department of Customs, Mahesh Bhattarai, and Finance Minister Bishnu Paudel to resolve the issue.
Surya Prasad Kafle, Information Officer at Tatopani Customs Office, mentioned that while the urea has not deteriorated yet, prolonged delays could risk its degradation. He added that, unlike other goods that can be seized and auctioned if left unclaimed at customs, chemical fertilisers fall under the responsibility of AICL and the government for management.
China's recent policy to enhance domestic food security has led to a surge in global urea prices and disrupted supply chains.
The Department of Customs has reported that around 400 electric vehicles (EVs) imported from China are also stuck at Tatopani. The vehicles include jeeps, microbuses, and some two-wheelers.
Information Officer Kafle explained that the EVs have been delayed due to pending customs clearance. He also suggested that Nepal Rastra Bank's recent monetary policy review, which introduced stricter auto loan regulations, might have influenced the reduced interest in customs clearance.
Importers appear less eager to proceed with clearance due to the new requirement mandating a 40% down payment for vehicle loans. EV businesses have expressed concerns, noting that customers who had previously booked EVs are now hesitant, affecting import decisions.
