MULTAN, March 31: The federal government has decided to increase the subsidy on phosphate fertilisers by Rs150 per bag, says Federal Minister for Food, Agriculture and Livestock Sikandar Hayat Khan Bosan.

He was addressing a press conference here at the Central Cotton Research Institute on Saturday.

The overall subsidy would now amount to Rs400 as the government was already providing a subsidy of Rs250 per bag since last year.

The minister said that the government had been paying Rs7 billion in subsidy on fertili-ser since the previous Kharif season.

The government had decided to give Rs15 billion in subsidy on phosphate fertilisers alone next year, adding that the policy would remain unchanged in the future.

Referring to the shortage of DAP and other phosphate fertilisers in the market, he said a consignment of 30,000 tons phosphoric was on way to Pakistan by ship.

The minister termed the recent increase in the DAP price by Rs530 bag by a manufacturer – Engro -- was unjustified and claimed that the government had taken a strict notice and made the company reduce the price.

Company’s dealers in Multan said that the price increase had not been withdrawn as yet.

Reports from other districts in Punjab also suggested there was a shortage of phosphate fertiliser.

The increase in subsidy comes at a time when fertiliser companies had already increased prices.

The same trend was witnessed last year when fertiliser companies had increased the DAP price before the government had announced Rs250 per 50kg per bag subsidy.