MULTAN, April 6: The recent increase in subsidy on phosphate fertilizers has failed to bring down their prices or improve their availability in the market. The most sought-after DAP is not easily available in the entire southern Punjab.

The government has already paid Rs250 per 50kg bag subsidy to fertilizer companies for the rabi season and enhanced it by another Rs150 for the coming kharif season.

The price throughout the rabi season remained below Rs 900 per bag. But on March 17, Engro Chemicals, one of the companies marketing the commodity, increased DAP price by Rs530 per bag —from Rs855 to Rs1385.

Federal agriculture and livestock minister Sikandar Hayat Bosan had told local newsmen earlier this week that the Engro had withdrawn the price increase on the government warning. However, company’s local dealers and stockists said they had not yet received any withdrawal notice.

An Engro representative in Multan said the price would be notified after the arrival of fresh DAP stocks from abroad.

At present, he said, the company had no DAP in its stocks. “The retailers are selling their own stocks,” he said in reply to a question on the market situation.

Doctor Khawar Ali Shah, a former MPA, said the dealers had hoarded their DAP stocks and farmers were facing difficulties in purchasing the commodity even on inflated price.

He said that farmers needed DAP for their orchards, vegetables and just-cultivated sugar cane.

Syed Muddabir Shah, an agriculture consultant, said the price increase was unjustified considering the government had paid the subsidy on phosphate fertilizers for the rabi season.

Mian Muneer Bodla, a Kiasan Board leader, said farmers were facing difficulties in purchasing phosphate fertilizers due to the monopoly of some companies.

He said the cultivation of cotton had started in Sindh which needed DAP application.

He said that companies had announced the new price of Rs997 at Karachi that meant the price of a bag in Punjab would be more than Rs1,100, after the inclusion of carriage.

According to a local fertilizer dealer, the companies were not entertaining their fresh orders.

He said the government should bound the companies to give fertilizer to dealers without any conditionalities.

He said that some companies made the dealers to buy their other products, including pesticides, along with DAP.

He said that today every investor wanted to invest his money on the purchase of phosphate fertilizers and a large number of people were visiting the market to make purchases.

He said that people who had no concern with this business wanted to purchase DAP and even a grocery owner had visited him on Friday in search of a big consignment.

Another dealer said that all companies had suspended advance booking.

Atif Gilani, regional manager of Jaffar Brothers, told Dawn that his company had neither suspended the booking not was it attaching any strings to the DAP sale. “We are giving full supply on a short booking notice.”

On Friday, the DAP price in different towns was: Jalalpur Pirwala Rs1,325, Kotaddu, Rahim Yar Khan, Multan and Muzaffargarh Rs1,250, Rajanpur Rs1,430 and Jampur Rs1,300. Even at these prices, the availability was not easy, said farmers.