Subsidy on fertilizer to stay

Published November 10, 2006

HYDERABAD, Nov 9: Federal Food and Agriculture Minister Sikandar Hayat Bosan has indicated that the subsidy on Phosphate and Potash fertilisers will not only continue but its rate will be raised to Rs400 from Rs250.

Addressing a select gathering of growers at a dinner hosted by Sindh Abadgar Board Secretary Mehmood Nawaz Shah here late Wednesday night, the minister dispelled the impression that there was any shortage of fertilisers and added that presently 400,000 tons of DAP stocks were available with the government.

He further said that import of more quantities had already been ordered to avoid any shortage of fertilisers in Kharif season and to ensure that benefit of subsidy reached the growers.

He said the government was also taking action against some sub-dealers who were not fully passing on the subsidy benefit to the growers.

He said the government was encouraging growers to use Potash and Phosphate fertiliser instead of urea to get increased per acre yield. The urea’s bag was being sold at subsidised rate of Rs500 against its actual price of Rs1,200 per bag because the country was producing 85pc of total urea demand while only 15 per cent was being imported, he added.

The minister ruled out any increase in prices of fertilisers and disclosed that magistrates were asked to continue check any rise in prices.

He also issued directed the officials of the agriculture departments to check black-marketing of fertilisers and said that provincial and district governments should also play their role in stopping this bad practice.

Answering a query of a grower, the minister said the government was not opposing the production of BT cotton but would allow only that variety whose gene was virus-free and compatible with local environment.

For lining up water-courses, he said that so far no changes could be suggested as far as length of these courses was concerned because the government was interested in bringing all growers into the net to have their channels lined.

About non-availability of sunflower seeds, the minister said the multinational companies were not interested in making investment in this sector because they needed protection.

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