ISLAMABAD, April 9: The Cabinet Committee on Fertilizer on Wednesday approved a proposal submitted by the manufacturers to reduce prices by Rs20 per bag, official sources told Dawn.

The committee would now submit the proposal to the prime minister for formal approval and implementation, the sources said.

The fertilizer manufacturers had promised a few days back in writing that they could reduce prices by Rs20 per bag provided the government offered them Rs10 per bag concession in taxes and duties coupled with a freeze on fertilizer feedstock for a year instead of a proposed 7.5 per cent increase with effect from July 1, 2003.

The sources said the manufacturers had also advised the government to check import of fertilizer because cost of the production was the highest in Pakistan when compared with its competitors, including those in the Middle East and Bangladesh, mainly because of low and subsidised gas prices in those countries.

An official statement said the meeting, held here with Minister for Industries and Production, Liaquat Ali Jatoi in the chair, finalized measures to make fertilizer accessible and affordable to the farmers.

The minister said the main objective of the committee was to provide relief to the farmers to encourage them in order to enhance the agriculture production.

The minister said the present government was committed to providing relief to the common man to improve their economic conditions and efforts were being made in this respect. Provision of fertilizer at cheaper rates to the farmers will reduce their cost of inputs, and the fertilizer manufactures have already assured their full cooperation in this national endeavour, he added.

The committee considered various options and recommendations of the manufacturers to bring down the prices of fertilizer and to provide maximum relief to the farmers.

The meeting was attended by members of the committee, Minister for Privatization, Dr Abdul Hafeez Sheikh, Chairman NRB, Danyal Aziz, Minister of State for Food and Agriculture, Sikandar Hayat Bosan, Secretary Ministry of Industries and Production, Dr Akram Sheikh and senior officials of the Ministry of Industries and Food and Agriculture.