Nepal is predominantly an agricultural country. Agriculture is the most important sector in terms of income and employment generation. Agricultural sector accounts for about 36% of GDP. About 80% of total population derive it's livelihood from agriculture and allied activities.

Agriculture Inputs Corporation(AIC) was established in 1965 under the Corporation Act to procure and distribute high quality and improved agricultural inputs at a reasonable price. Initially, it was named Agriculture Supply Corporation (ASC) before it was merged with the Food Management Committee under the new outfit-: Agricultural 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, the government converted AIC into Agricultural Inputs Company Ltd. (AICL) and National Seed Company Ltd. (NSCL) under Company Act 1997. AICL has been assigned to procure and distribute fertilizers across the country.The government has retained hundred percent equity of AICL at present and intends to divest it to the private sector in the near future. The authorized capital of AICL is NRs. 600 million and paid up capital is NRs 532.5 million.