Krishi Samagri Company

    Nepal is an agricultural country. Agriculture is the most important sector in terms of income and employment generation Agricultural sector accounts for about 27 percent of national GDP. About 65 percent of total population derive it’s livelihood from agriculture and unallied activities. Krishi Samagri Company Limited (KSCL) was established in 1965 as a public sector enterprise to procure and distribute high quality and improved agricultural inputs (fertilizers, seeds, agro-chemicals and implements) at a reasonable price across the country. Initially, AIC was named Agriculture Supply Corporation (ASC) before it was merged with the Food Management Committee under the new outfit, Agriculture 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 government converted AIC into Krishi Samagri Company Ltd. (KSCL) and National Seed Company Ltd. under Company Act 1997 as a state owned enterprises. KSCL has been assigned by the government to procure and distribute fertilizers across the country. As Nepal does not have indigenous production of mineral fertilizers, demand for fertilizers is met through importation. The government has retained hundred percent equity of KSCL. Now, National Seed Company Limited has merged into the Krishi Samagri Company Limited. KSCL produces seeds and distributes all over the country through its own offices. In a major policy decision to boost agricultural production and to ensure smooth supply of mineral fertilizers, the Government of Nepal has decided to reintroduce subsidy on mineral and organic fertilizer on March 25, 2009. KSCL has been entrusted with the procurement and distribution of subsidized fertilizers across the country.