Kathmandu, Feb 28 (IANS): India and Nepal on Monday concluded an MoU for long-term supply of urea and DAP fertilizers from India to Nepal under a government-to-government arrangement.

The MoU was signed by India's Secretary, Chemicals and Fertilisers, Rajesh Kumar Chaturvedi, and Nepal's Secretary, Agriculture and Livestock Development, Dr Govinda Prasad Sharma.

The virtual ceremony to sign and exchange the MoU was held on Monday in presence of Nepal's Agriculture and Livestock Development Minister, Mahindra Ray Yadav, and India's Ambassador Vinay Mohan Kwatra, and officials of the ministries and embassies of both India and Nepal.

Nepal has been looking for supplies of chemical fertiliser from India since long but this could not materialise so far due to some technical reasons.

The life of the agreement is five years, and under it, India will supply 150,00 metric tons of chemical fertiliser by the end of June, out of which 60 per cent would be urea and 40 per cent would be DAP.

In his remarks, Chaturvedi highlighted the close and multi-faceted nature of India-Nepal ties and hoped that the MoU will further boost bilateral cooperation in the agriculture sector by supporting Nepal's economy and food security, according to the Indian Embassy in Kathmandu.

The signing of this MoU is expected to help address the recurring fertiliser shortages in Nepal and enable to improve agricultural productivity for the direct benefit of Nepali farmers, the embassy said.

"The MoU is yet another milestone in the bilateral economic cooperation and also an important reflection of the priority attached by India to its partnership with Nepal."

As per the agreement, Nepal will procure 150,000 metric tons of chemical fertiliser from India for four years which will fulfil 30 per cent of its fertiliser needs. In the fifth year, Nepal will procure 200,000 metric tons, as per the pact.