LAHORE, Nov 17: Denying reports of DAP (diamonium phosphate) fertilizer shortage, agriculture officials say the price hike is due to ‘speculative pressure’ on import.
Farmers on the other hand insist that the DAP, a vital input needed at the time of wheat sowing, is not only short in supply in the Punjab but also very costly.
According to an official of the Kissan Board Pakistan, a 50kg DAP bag is being sold at Rs900 to Rs920 in different parts of province, against the last year’s Rs800.
“The price rise has come at a time when farmers are facing cash crunch mainly because of delay in cane crushing,” he said.
According to him, if a grower manages some cash, the fertilizer is not easily available. “The situation may affect the final yield (of wheat),” he feared.
The government, says a member of the Farmers Associates Pakistan, is expecting wheat sowing at 20 million acres. One bag per acre (recommended by experts) would mean 20 million bags, which are not available in the market. Since all but 100,000 tons being produced by the Fauji-Jordan is imported, the government is fully dependent on import mafia. Only four or five big importers importing the entire quantity of the DAP control its marketing and price. “It does not need a genius to calculate how the profit-driven import mafia behaves at the time of need.”
But the government officials have explanation to offer. An employee of the Ministry of Food, Agriculture and Livestock says that the DAP price had gone up because of increase in international prices. Last year, DAP was sold at $188 per ton against current year’s $210, which naturally affected price in local market.
The government appointed a commission to reduce prices of inputs of agriculture which suggested deemed price of $166 per ton for sales tax purpose. This could have provided a relief of Rs23 per bag to farmers but the SRO in this regard was delayed, creating a speculative pressure on the market.
Right now, he claimed, the market was stabilizing. Price had come down by Rs10 per bag in certain areas and would dip further in the coming days as SROs had taken affect.
He denied reported shortage. “Some pockets (of shortage) may be there, but overall situation is not bad,” he insisted.