March 19, 2007	Monday	Safar 29, 1428

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LAHORE, March 18: Farmers on Sunday reacted sharply to a 66 per cent increase in the price of phosphatic fertiliser (DAP), terming it disastrous for the agriculture sector.

It is government’s inaction that is resulting in an another disaster for the growers, they said.

According to them, the government knew that the DAP price in the international market was increasing and it would ultimately reflect in the domestic market as well, but it did nothing to save this vital sector.

The fertiliser manufacturers also maintained that they had been warning the officials of the impending increase through a regular correspondence, but the government did nothing. They neither stopped importers from importing fertiliser at new price nor did they announce any subsidy as they had been promising.

“Our company has been writing letters to the ministry, warning it of massive increase in the international price and asking for remedial measures — the government position on the continuation of subsidy,” says an official of a fertiliser importing company.

“The ministry gave us a verbal commitment that it would arrange a subsidy, and the company should in the meanwhile import the DAP. The company imported the fertiliser and wrote a letter to the ministry, informing it about the latest position. But the ministry neither got any decision from the cabinet nor responded to the letter. Thus, the importers were left with no option but to increase the price.” The new price, he said, reflected last year’s subsidy and increase in the international price.

“There is no instant threat to farmers because of increase in the DAP price as there is no immediate demand for fertiliser,” says Hamid Malhi of the Basmati Growers Association. He said the need would arise in May and June for cotton and rice sowing. Hopefully, the officials would come up with a subsidy before that as the government had promised to continue with subsidy regime. But, he said, the government must not forget the psychological impact of 66 per cent increase in DAP price, and that in one go. If the government delayed decision on fertiliser, the farmers would be in for a disaster, he warned.

Ibrahim Mughal of the AgriForum said the government must realise that cotton and rice would shortly be sown on 140 million acres. Both these crops needed DAP. At present, the fertiliser was not available in the market as the importers and local manufacturers, in a run-up to increasing price, had taken it off the market.

According to him, the sowing of sugarcane is already under way on 2.5 million acres, and it needs two bags of DAP per acre. This means that five million bags are required right now. In these circumstances, leaving farmers at the mercy of fertiliser importers hardly makes any sense. The government should immediately call a meeting of all stakeholders and try to formulate a long-term fertiliser policy.