The government has decided to continue subsidies on chemical fertiliser.

A Cabinet meeting held on Monday morning decided to that end, according to Minister for Communications and Information Technology Rekha Sharma, who is also the government spokesperson.

Minister Sharma said the meeting also decided to make subsidies more systematic and scientific after a detailed study.

The government on March 13 had jacked up the prices of chemical fertiliser after 10 years to rein in the subsidies following the stress on the treasury.

Ministry of Agriculture and Livestock Development had said in a press statement that prices had been raised to prevent smuggling to India where the soil fortifiers cost more.

The practical demand for chemical fertilisers hovers at 520,000 tonnes annually, according to the ministry.

Nepal’s chemical fertiliser subsidy bill is likely to shoot up to a record Rs38.50 billion this fiscal year as import prices have swelled tremendously, officials said.