Fertilizer is being imported from the international market through competitive bidding on the basis of either CIF Haldia ( India) or CIF Nepal. AICL invities sealed offer for the supply of fertilozers by publishing global tender in the national newspaper on the basis of seasonal demand. Normally it takes 4-5 months to import fertilizers from third countries.

In the past, AICL imported fertilizers under borrowings from international financing agencies as well as handled, grant/aid fertilizers received form Japan, Germany, Canada and Finland. Now Japan has been providing grant fertilizers to the tune of JY 400-500 million every year. The Ministry of Agriculture and Cooperatives is carrying out the administrations of grant fertilizers.

At present, AICL is importing fertilizers from India on the basis of direct negotation based on sealed offer price with the manufacturings units. A part from this AICL imports fertilizers from the designated agencies of India, on decided by the Government of India upon the request made by Government of Nepal to meet seasonal demand.

Distribution

AICL is involving in the wholeselling and retailing of fertilizers across the country. It has employed both private and cooperative retailers. AICL has established a network of about 1,200 trained retailers and intends to expand it in the near future by introducing aggressive marketing strategy. AICL retails directly to the farmers as well.


Pricing

A cost plus basis of pricing structure has been adopted after the deregulation of fertilizer trade in 1997. Before that, under subsidy regime, fertilizer price was uniform throughout the country. The government has been providing transport subsidy to 26 remote hilly districts to promote fertilizer use.