The significant reduction in cost of subsidised urea and DAP fertiliser, coupled with improved seed cotton rate in lower Sindh for the initial one to two pickings, has increased farmers’ demand for urea.

The subsidy took effect on July 1, but by that time growers had at least applied one doze of urea each to cotton and paddy crops. The two crops still needed some doses of fertiliser.

The sugarcane crop had taken almost all the required fertiliser doses until June.Normally it gets five doses of fertiliser. Many apply seven doses as well to get maximum yields. Current sugarcane crop would be ready for harvesting in October. Until June for sugarcane — sown in autumn season of October-November last year — growers had bought fertilser at a rate of Rs1800-Rs1900 per bag before it was reduced to Rs1400 in July. The crop, sown in February 2016 (spring sowing), would still need some doses of fertiliser.

There are some complaints that a urea bag is being sold for Rs1,450 instead of Rs1,400

in districts like Tando Allahyar as dealers are adding transportation charges to the

post-subsidy price

It is helping farmers use more fertiliser for their crops as well as build stock for Rabi sowing. However, there are some complaints that a urea bag is being sold for Rs1,450 instead of Rs1,400 in districts like Tando Allahyar as dealers are adding transportation charges to the post-subsidy price.

Urea is applied after each picking of crop. Cotton crop gives multiple picking until October-November.

Around 70pc of paddy cultivation target has been met and agriculture officers expect the sowing to exceed the target. Ameer Bux Pahore from Shikarpur says if weather conditions permit the reduced urea prices would help raise per acre productivity by 20pc in an acre.

The federal and Sindh governments share fertiliser subsidy, the provincial government contributing Rs1.63bn (19pc) against the federal government’s share of Rs8.58bn for urea fertiliser as per official figures of ministry of national food security and research. An agriculture officer while quoting National Fertiliser Development Center (NDFC) said its opening inventory stands a 1.2m tonnes and domestic production for the current season is estimated at 2.80m tonnes. Summer crops off-take in the country is estimated at 2.9m tonnes. Around 1.10m tonnes of stock would be carried forward for Rabi crops.

Sindh Abagdar Board president Abdul Majeed Nizamani and Nabi Bux Sathio of Sindh Chamber of Agriculture consider the drop in urea prices will improve farmers’ income. Nizamani roughly calculates that if cotton field is gets 1.5 bag an acre, it would result in a saving of Rs600.

Paddy crop would get at least two doses of urea now. Growers also tend to give right doses of urea to onion crop for improved productivity. The crop is now being sown in riverine area as well.

“Growers are set to get due advantage of the subsidy. Theyy are willing to buy urea as much as possible because of improved cash flows in shape of adequate prices of cotton crop that is being paid to them now”, contends Nadeem Shah, a paddy and cotton grower.

Published in Dawn, Business & Finance weekly, July 25th, 2016