MULTAN, Oct 7: As fertiliser companies on Tuesday increased the DAP prices per bag by more than Rs2,000, the farming community lashed out at the companies, saying the current raise will demoralise farmers and cause harm to agriculture.

Prior to the current increase, a 50kg bag of DAP was available at Rs3,100 to Rs3,200 to farmers in the retail market.

Various fertiliser dealers told Dawn on condition of anonymity that they have been informed by companies about the new rates that have been implemented with immediate effect.

Dealers quoted Engro and Pak-American fertiliser companies who took decision to fix the market rate at Rs5,500 per bag with an average increase of about 80 per cent.

Khawaja Mohammad Shoaib of Farmers’ Vision Forum said that the farmers were not getting the subsidy being provided by the government. He said that agricultural inputs were already too expensive, and the increase in DAP fertiliser prices would demoralise the farming community.

Quoting the price of DAP, he said it was less than $850 per ton in the international market and costs less than Rs3,200 per bag in the country, including transportation charges, and after the subsidy, the rate should be about Rs2,200 to Rs2,300.

Kisan Board Multan President Fayazul Hassan Bhutta said that it was an attempt to undermine the efforts of the government to improve agriculture prospects by increasing the procurement price of wheat to overcome food crisis.

He said that the government may not meet its target of 25 million tons of wheat production as growers cannot afford new DAP fertiliser rates.

He said that the community is already facing multiple problems, like water shortage, substandard wheat seed, delay in disbursement of loans by various banks, diesel price-hike, unfit climatic conditions and use of old, outdated agriculture technology with low per acre yield.

He said that there was no justification of hike in DAP rates as government did not announce withdrawal of subsidy on fertilizer, and the companies should have a proper dialogue with concerned authorities prior to taking such a drastic decision.

Marketing official Farrakh Nadeem of the Pak-Arab Fertiliser said that no such increase in rates of DAP had been made by them so far, but delay in the provision of subsidy by the government is creating complications for fertiliser companies. Minfal secretary Ziaur Rehman was not available for comments.

The increase has been made at a time when wheat is likely to be sown in most part of the country, and it cloud affect sowing, and the targets set by the federal government may not be achieved.

Amir Shafaat Khan adds from Karachi:

Two companies have increased the DAP prices by Rs2,400-2,500 to Rs5,570 per 50 kg bag, industry sources said.

They said the companies had increased the rate amid reports about withdrawal of Rs2,200 per bag subsidy by the government.