ISLAMABAD, Oct 10: Delay in disbursement of subsidy to manufacturers and importers of fertilisers because of procedural requirements of the finance division caused an increase in DAP price to Rs5,400 per bag from Rs3,050 this week.

The issue was raised at a meeting between the Prime Minister’s Adviser on Industries and Production, Mian Manzoor Wattoo, and importers and manufacturers on Friday after the government faced criticism from farmers.

Speaking at a press conference, Mr Wattoo said DAP would be sold at Rs3,050 per 50kg bag all over the country from Saturday. He warned that the government would take action against profiteers. He said Rs27 billion allocated in the budget for subsidy on fertilisers was being passed on to manufacturers and importers.

Mr Wattoo said dealers were involved in black-marketing urea fertiliser, which led to a price hike, but the government would ensure that farmers received it at Rs635 per bag. According to a notification issued last month, DAP price was to remain at Rs3,050 in the Rabi season.