The cross-sectional survey was conducted in Shuklaphanta municipality, Kanchanpur, among 124 households during April 2023. Data was collected using a random sampling technique with semi-structured questionnaires, complemented by focus group discussions to validate the survey findings. Results showed that the use of farmyard manure (9.6 tons/ha) was 1.6 times more than the recommended dose (6 tons/ha), but the efficiency of manure was decreased due to poor preparation and improper application in the field. With regards to chemical fertilizers, diammonium phosphate (83 kg/ha) was used in higher amounts than recommended dose, while urea (99kg/ha), muriate of potash (32 kg/ha) and zinc sulfate (5kg/ha) were used less by farmers (recommended dose of Urea, DAP, MOP and zinc sulfate is 192, 65, 50 and 9.5 kg/ha respectively). The use of fertilizers varied significantly by ethnicity and farm size, with p < 0.05 in both conditions. Tharu farmers used the highest quantities of urea and Diammonium phosphate among ethnic groups, while the Brahmin community favored farmyard manure. Farmers lacked awareness regarding the benefits of using micronutrients, leading to fertilizer imbalance. Problems were ranked using a problem matrix, and the lack of timely fertilizer availability was ranked as the most severe problem, followed by the higher cost of fertilizers and the low subsidy on fertilizers. Hands-on training related to correct fertilizer application can be the best option for rice-producing farmers to enhance production.