LAHORE, Dec 29: Federal Agriculture, Food and Livestock (Minfal) Minister Sikandar Hayat Bosan said on Friday that the government planned to continue subsidising fertiliser in the country, as the current subsidy regime was bringing in desired results.

Talking to newsmen after inaugurating a new fertiliser brand here, he said that the government had initially announced subsidy on DAP and nitrogenous fertiliser for the current season only. But after receiving encouraging results, he said it had decided to continue subsidising both the fertilisers.

The government, he said, is monitoring the situation after receiving reports that some dealers are not passing on subsidy to growers. Those found guilty are being punished as per law, he said, adding the government would continue monitoring sale of fertiliser to make sure that subsidy reached the intended target.

The minister claimed that the fertiliser off-take had increased by 30 to 35 per cent after the government announced subsidy on it. It should improve wheat yield next season, he said.

He also said the government would start a national-level programme soon to improve meat supply. He said the plan would help private sector establish 3,000 cattle farms throughout the country in the first phase. The government will bear 15 per cent cost of such farms, he said, adding the plan was part of the national effort to increase milk and meat supplies in the country.

Replying to a question, the federal minister said that the government had decided to export wheat after a careful assessment of the domestic market. Dispelling the impression that such step could lead to increase in flour price, he said that the government still had sufficient stocks to keep the market stable. These stocks can be released any time if flour price starts rising, he said.