ISLAMABAD - Despite provision of subsidy to the farmers on DAP fertilizer; its sale has declined by 14 per cent during period of January 2021 to August 2021 mainly due to its exorbitant price and subsidy issues.
The exorbitant prices discourage the farmers to use DAP fertilizer in the absence of reliable and uniform subsidy disbursement system, Fertilizer Manufacturers of Pakistan Advisory Council said in a letter to the Federal Minister for National Food Security and Research Fakhr-e-Imam here Thursday.
The copy of letter available with The Nation said the fertilizer industry has recommended the government that subsidy may be increased to Rs. 2,000 per bag of DAP.
The letter said that the fertilizer industry appreciates federal government efforts to provide subsidy to the farmers on DAP and other Phosphatic fertilizers like SSP, Nitrophos, MAP, NP/NPKs and SP to make it affordable to the farmers in view of unprecedented price hike in rates of fertilizers and the Phos Acid and rock Phosphate in the international market.
However, the DAP sales during the period of Jan-Aug has shown a visible decline to the tune of 14% (984 Kt vs 1,144 Kt). Citing the major reasons for this decline in use of phosphatic fertilizers the letter said that at present, the subsidy on Phosphatic fertilizers is being extended by the government of Punjab and other three provinces are currently working to develop a model for subsidy disbursement, but it has yet to be implemented.
The Kissan Card initiative is proceeding slowly due to the limited supply of machines to the dealers and non-issuance of Kissan Card to the registered farmers. The exorbitant prices discourage the farmers to use DAP in the absence of reliable and uniform subsidy disbursement system.
The current subsidy rate on DAP being Rs. 1,000 per bag w.e.f. April 29, 2021, maximum limit of 20 bags, is not encouraging the farmers to use the fertilizer requirement and land holdings/cultivated land.
The delays in announcement and disbursement of subsidy also discouraged the farmers, thus resorting to under dosing and use of other cheaper fertilizers in Iieu of Phosphatic fertilizer.
Social media is also propagating use of cheaper fertilizers in lieu of Phosphate fertilizers, and it may impact the upcoming wheat crop.
The Fertilizer Manufacturers of Pakistan Advisory Council recommended that the government may encourage the remaining three provinces to expedite the implementation of the subsidy, to effectively increase wheat cultivation during the incoming Rabi season.
The subsidy for Rabi season should be announced well in time, to ensure that it reached all farmers across the country.
In view of the current international prices of Phosphatic fertilizer, subsidy may be increased to Rs. 2,000 per bag of DAP and subsidy on all other Phosphatic fertilizers should also be increased with the same parity on “P” nutrient-ha upcoming wheat crop.
The subsidy should not be restricted to a limited number of bags but should be as per land holdings and recommended dose for the farmer.
It was recommended that in view of slow progress on Kissan cards, for the upcoming Rabi season, the already in place mechanism of disbursement of subsidy through stickers/vouchers is recommended to be continued for the benefit of the farmers. Complete substitution of this mechanism with instant subsidy through Kissan Cards should be deferred until next season (by the time every dealer/sub dealer has swipe machines and Kissan Cards are issued to the entire farming community of Punjab). The government may launch a “Grow More Wheat Campaign” to ensure food security in the country with a clear depiction of optimum use of Phosphatic & Potassic fertilizers for better yields and overall production along with support price incentive.