“Trade study series: A look at petroleum and fertilizer supply in Nepal” pursues two very important issues for the average Nepalese citizen. Concerning the state monopolized petroleum and fertilizer import industries, this research paper aims to bring to light the reasons behind the inefficiency in these sectors while providing achievable recommendations.
Part 1 of this paper introduces the reader to the fertilizer industry of Nepal and brings to light the role currently being played by the state monopolies involved in fertilizer import. The impact of Nepal’s subsidized fertilizer industry and the effect of India’s fertilizer subsidy policy on Nepali fertilizer policy are also brought to attention.
Part 2 then turns its attention to Nepal Oil Corporation (NOC), the state monopoly in charge of petroleum import. The paper introduces the history of the Nepal-India petro-trade relation and evaluates its impact.
Similarly, the working mechanism of NOC, its scope for improvement, and the importance of private involvement in petroleum trade is emphasized.