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 Agriculture Inputs Company Ltd. (AICL) and National Seed Company Ltd. under Company Act 1997 as a state owned enterprises. AICL 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 AICL and intends to divest it to the private and cooperative sector in the near future.