The study focuses on the review of existing programs and policies regarding input subsidy in Nepal especially in seeds and fertilizers. The study aims to review timeline in subsidy programs, budget details and progress based on the gleaning of the secondary information available in the Ministry of Agricultural Development. The assured budget allocation for chemical fertilizers subsidy has led to increment in consumption over the years. Nepal spent 52.29 billion Nepali Rupees in importing chemical fertilizers and 23.19 billion in subsidy in last seven years. Nepal Government has also been promoting organic fertilizers however, the subsidy allocated to this program has not been able to take the pace. Seed subsidy program has been found to be impressive; however, it is confined to wheat and paddy only. The subsidy program is targeted mainly to the small and marginal farmers. The seed subsidy program should be expanded to pulses and oilseed crops as well. The organic fertilizers should be promoted to maintain long-term soil health. Inputs subsidy policy and programs should cover all farmer categories.

Unilateral use of chemical fertilizers, devoid of organic sources, has led to gradual deterioration of soil health, exacerbating the agricultural productivity. This study focuses on the review the performance, effectiveness and modality of organic manure promotion programmes intervened by MoAD, using secondary datas. Major programmes intervened are: Vermi-compost production, cattle shed improvement, organic fertilizer industries establishment and price subsidy to farmers purchasing organic fertilizers. Study shows that these programs are effective to reduce soil health deterioration by making nutrient rich manure available at local level. Moreover, it has helped to reduce dependency of fertilizers on other countries and to promote sustainable agriculture. Altogether 1495 vermi-compost pits were constructed and 33746 cattle sheds were improved all over the country till FY 2072/73. Converting farm and household organic wastes into organic manure, improvement of the nutrient content of FYM, utilization of cattle urine for plant protection measures were the benefits of these programs. Furthermore, in long run it helps to create green economy by reducing pollution by keeping environment safe and clean.

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