Rs27b subsidy; DAP to be sold at Rs3,050/bag

ISLAMABAD (APP) - The government would provide subsidy of Rs.27 billion on DAP to ensure supply of fertilizer to the farmers at Rs.3050 per bag, Advisor to Prime Minister on Industries and Production, Mian Manzoor Wattoo said. "Now onwards the farmers would purchase DAP at the rate of Rs.3050 per 50 kg bag," Wattoo said while addressing a press conference here on Friday and warned that those involved in black-marketing would be dealt strictly. He said that Ministry of Industries and Production have had detailed meeting with the manufacturers and importers who agreed to provide DAP at the rate of Rs.3050 per bag to the farmers, adding that it would be subsized by Rs 2200 per 50 kg bag. "The government would provide subsidy of Rs.27 billion to the manufacturers and importers who would pass it on to the farmers," he said adding that prices of DAP would remain the same till December and would be reviewed in January next. He said that wheat cultivation season was beginning and the potato cultivation season was continuing in full swing adding that both the crops need DAP. October and November are the most consuming months of DAP, he said and assured that country has sufficient stock of fertilizer for the season. Commenting about the increase in DAP prices, he said that government in the consultation with the stakeholders had decided to provide DAP at the rate of Rs.3050 per bag, however, due to some technical reasons, the manufacturers and importers enhanced the price up to 5400. "However, during the previous day's meeting all issues concerned were resolved and the manufacturers and importers agreed to provide the fertilizer on subsidized rates," Wattoo added. He said government would evolve a comprehensive mechanism to ensure that DAP is sold on government decided rates and appealed to farmers not to purchase fertilizers on higher rates. He said that total DAP consumption in the country was about 1.4 million tons, of which Pakistan produces 0.65 million tons and imports about 0.8 to 0.9 million tons. To a question he said that government had decided to provide subsidy of Rs.27 billion on DAP, however, formal approval would be given in the upcoming meeting of Economic Coordination Committee of the Cabinet (ECC), scheduled on October 14. About the increase in the prices of Urea, the advisor said, "its unfortunate that dealers have not honoured the commitment and are involved in black-marketing of fertilizer which has led to price hike," adding that the Urea would be provided on Rs.635 per bag. To a question about enhanced wheat support prices, the advisor said that this would encourage farmers to produce more wheat, hence lead the country towards wheat self sufficiency. He assured that people would have not to stand in queues for wheat and flour next year. To a question, he said that it was share violation of agreement by India which stopped water share to Pakistan through Baglihar project, however, added that it would have less impact on wheat production as the country was having alternative water resources. Speaking on the occasion, Additional Secretary MiNFAL Raja Shahid told journalists that Pakistan was having sufficient stocks of DAP adding that even after the most consumption season of October and November, the country would have balance of 0.25 million tons DAP. He said Pakistan would be making contract of US $ 400 million for the import of Urea from Saudi Arabia in January 2009 to meet the requirement.

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