Farmers deplore increase in fertilizer prices By Shahzad Anwar Tuesday, March 20, 2007, Safar 30, 1428 A.H.
KARACHI: Farmers have criticised the fertilizer manufacturing companies, importers and dealers for increasing prices of phosphoric and other fertilizers prior to the start of Kharif season.
They said that fertilizer companies and dealers have made a nexus in order to fleece them on the pretext of price hike in Diammonium Phosphate (DAP) and other fertilizers in the international market when early Kharif season is due to start by April.
The have also urged the government to take immediate steps to remove uncertainty about fertilizers and evolve a clear-cut and timely policy in this regard. The fertilizer manufacturers and importers have increased DAP prices by Rs520 per bag from current level of Rs802 per bag ex Karachi to Rs1,322 per bag of 50 kg.
While MAP price has risen by Rs535 per bag and is now being priced at Rs1,277 per bag of 45.5 kg as compared to the previous price of Rs742 per bag. Chairman Agri Forum Pakistan, Ibrahim Mughal claimed that around 2 million bags of DAP were lying in the country which were imported at low rates of $300 to $310 per tonne during the last season and now dealers and manufacturers were exploiting farmers by marketing this fertilizer at exorbitant rates of Rs1400 per bag.
He maintained that previous record of the country’s total DAP consumption showed that a total of 15 million bags of DAP were consumed during last Kharif season of which 1.6 million bags were used in March, 1.3 million bags in April, 1.2 million bags in May, 1.9 million bags in June, 3.3 million bags in July and 2 million bags were used in August.
It may be noted that government had introduced a subsidy of Rs250 per bag on DAP, MAP, MOP, SOP & NPKs for the purpose of improving the balanced use of fertilizers so that crop productivity and quality may be increased. This subsidy was allowed to all the importers till December 2006 with an assurance to the farming community to continue with the same so that the most contributing sector to GDP plays its part in the desired way.
However, the government did not announce continuation of subsidy so far and importers and companies increased prices of phosphatic ferltilzers by 66 per cent which prompted farmers to seek government intervention. It is learnt that the ministry has given verbal assurances to the importers for continuation of subsidy for coming Kharif season but importers seek written commitment.
The sowing season for sugarcane, one of the major cash crops of the country, has begun and about 2 bags of Di Ammonium Phosphate (DAP) or Mono Ammonium Phosphate (MAP) per acre is to be used during February to April. While in April, the season for cotton plantation will begin which will require the phosphatic fertilizers during the April to June period.
The fertilizer importers have sought increase in subsidy on DAP from pervious Rs250 per bag to Rs520 in order to keep prices of phosphatic and potassic fertilizers at the current level. Since the international prices for potash (MOP & SOP) have not seen any significant increase, the subsidy on potassic fertilizers may be maintained at the same level of Rs250 per bag.
Importers sources said that the volumes of phosphatic and potassic fertilizer required for Kharif sowing was calculated at 670,000 tonnes of DAP / TSP besides of 80,000 tonnes MAP, 40,000 tonnes of MOP and 20,000 tonmes of SOP.
