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Assessment of Fertilizer Policy, Farmers’ Perceptions and Implications for Future Agricultural Development in Nepal

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  • Raut, Nani
  • Sitaula, Bishal K.

Abstract

This paper assesses the origins of and changes to fertilizer policy in Nepal over a period of time. It assesses farmers’ awareness of the recent changes to the subsidy policy and examines their perceptions of the extension services. This paper looks at the environmental implications of the concentrated application of chemical fertilizer, particularly as far as food security is concerned. Questionnaire surveys, group discussions, a workshop, soil analyses and archival materials were used to collect data for this study. Changes in fertilizer policy have occurred in four different phases: (i) without subsidy; (ii) with subsidy; (iii) with deregulation of fertilizer trade; and (iv) the current phase of subsidies for fertilizer. However, timely and effective fertilizer distribution by the government has always been a problem. Only few farmers (12 %) know about recent changes in the fertilizer policy; most of them (44 %) were satisfied with the new subsidy scheme. Valid proof of land ownership is a requirement for qualifying for subsidized fertilizer, and this makes it difficult for some small farmers who are tenant. The soil analysis indicated a significant decrease in the soil pH as a result of intensified agriculture. One reason is due to the intensive use of chemical fertilizers and the declining use of farmyard manure. The ineffectiveness of the extension services also influences farmers’ use of fertilizer as they are not aware of which fertilizer and how much to use. The use of fertilizer may increase yields in the short term, but in the longer term, it may worsen the food insecurity in the country.

Suggested Citation

  • Raut, Nani & Sitaula, Bishal K., 2012. "Assessment of Fertilizer Policy, Farmers’ Perceptions and Implications for Future Agricultural Development in Nepal," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 1(2).
    • Handle: RePEc:ags:ccsesa:231372
    DOI: 10.22004/ag.econ.231372
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    References listed on IDEAS

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    1. Tomoya Matsumoto & Takashi Yamano, 2010. "The Impacts of Fertilizer Credit on Crop Production and Income in Ethiopia," GRIPS Discussion Papers 10-23, National Graduate Institute for Policy Studies.
    2. Takashi Yamano & Keijiro Otsuka & Frank Place (ed.), 2011. "Emerging Development of Agriculture in East Africa," Springer Books, Springer, number 978-94-007-1201-0, January.
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    Cited by:

    1. B. Suresh Reddy, 2015. "Soil Health: Issues and Concerns - A Review," Working Papers id:7599, eSocialSciences.
    2. Ganesh Thapa & Yam Kanta Gaihre & Dyutiman Choudhary & Shriniwas Gautam, 2023. "Does private sector involvement improve the distribution efficiency of subsidized fertilizer? A natural experiment from Nepal," Agricultural Economics, International Association of Agricultural Economists, vol. 54(3), pages 429-446, May.
    3. Ward, Patrick S. & Gupta, Shweta & Singh, Vartika & Ortega, David L. & Gautam, Shriniwas, 2020. "What is the intrinsic value of fertilizer? Experimental value elicitation and decomposition in the hill and terai regions of Nepal," Food Policy, Elsevier, vol. 90(C).
    4. Paudel, Jayash & Crago, Christine L., "undated". "Fertilizer Subsidy and Agricultural Productivity: Empirical Evidence from Nepal," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258464, Agricultural and Applied Economics Association.
    5. Yali Zhang & Yihan Wang & Yunli Bai, 2019. "Knowing and Doing: The Perception of Subsidy Policy and Farmland Transfer," Sustainability, MDPI, vol. 11(8), pages 1-15, April.
    6. Sylvester Amoako Agyemang & Miroslava Bavorová & Tomáš Ratinger, 2025. "Do Perceptions of Rent-seeking Affect Farmers’ Attitude to Participating in Agricultural Input Support Programmes?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 37(4), pages 699-720, August.

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