LAHORE Following a recent hike in urea prices, the local fertilizer companies have increased the price of DAP by Rs150 to Rs4,200 per 50-kg bag. As per industry sources, the companies increased the DAP prices on the plea that DAP rate in the international market has reached $650-655 per ton. It is to be noted that the local manufacturers just one week back increased urea prices by about Rs125 to Rs1,325 per 50-kg bag. According to experts, this raise would bode well for FFBL, the sole manufacturer of DAP in the country, as this has provided enough room to pass through its cost pressures, thus, leaving primary margin to remain intact at around $240-$250 per ton in 3Q2011. Recently, contract price of phosacid (raw material) was revised upward by $70 (Rs150 per bag) to $1050 per ton for 3Q2011. It is to be noted that at the end of March, following the imposition of General Sales Tax on agriculture inputs the DAP prices jumped by Rs779 to Rs 4,059 per bag while the rates of urea skyrocketed by Rs110 to Rs1,150 per bag. Market sources stated that before the imposition of 17 percent GST on agri inputs the urea was available in the market at Rs1,040 per bag while the DAP was being sold at Rs3,280 per bag. Experts said that the surge in urea and DAP rates is actually a conspiracy of the fertilizers companies against the national export. They said pesticide companies are befooling the farmers and stressed need for taking stern action against them. They rejected the withholding tax on agri produce, urging the government to mention weight and price on urea sacks. They said around 200 million bags are sold annually in the country but neither the price nor the weight is mentioned on any sack of DAP or urea.