LAHORE, Nov 23: The Punjab government’s belated move to control fertiliser prices in different districts of the province is meeting resistance with dealers either going on strike or removing the much-needed DAP, a vital input for wheat, from the market.
Through a subsidy worth billions announced last month, the government fixed the DAP price at Rs 850 per 50kg bag. But the stockists and dealers, who indulge in DAP hoarding almost each year at the time of wheat sowing, did not pass on the relief to growers accordingly. They rather blame manufacturers and importers (75 per cent of DAP used in Pakistan is imported) for the price hike.
According to them, the manufacturers and importers are making them to purchase their surplus urea stocks along with DAP. “Hence, we have no option but to pass on the same the burden to the growers,” says a fertliser dealer from Rahim yar Khan.
He said each grower was asked to buy a urea bag along with a DAP bag if he wanted the latter at the control price of Rs 850. “Since urea is not needed right now, the growers are not ready to but it,” he said, adding the dealers then sell the DAP between Rs 950 and 1,000 to “cover their loss due to a dead investment on urea purchase.”
VEHARI: A survey by Dawn correspondent suggests that the DAP shortage is affecting wheat sowing in the district. Growers say that the district administration has not taken any action against the dealers who create the artificial shortage every year.
A farmer of Chak 75/WB said that he could manage purchase of DAP from a local dealer by using his connections in the district administration.
Tahir Sharif, a local representatives of grain market traders, said that a majority of Vehari traders had stocked the DAP a few months back when its price was Rs1,000 per bag, before the official announcement of cut in the price. He said that most of the DAP dealers had hidden their stocks in rural area godowns.
Vehari DCO Baber Hasan Bherwana however said there was no shortage of DAP in the district and adjoining areas. He claimed at a seminar on `productive sowing of wheat, held recently in Burewala, that the administration would use its resources to end the black marketing of the fertilizers.
A repsentatives of a fertilizer company warned the dealers that they might be the losers in the end because bulk stocks in various company stores could affect their business.
TOBA TEK SINGH: All fertlizer dealers observed strike here on Tuesday and Wednesday to protest official raids.
Local fertlizer dealers association president Ch Ashiq Hussain said the district administration was pressing the dealers and shopkeepers to sell a DAP bag at Rs850 which was not possible. He said they had purchased DAP at Rs848 per bag from manufacturers/importers. After adding the transportation cost and their profit margin, he said, they could not sell it at less than Rs 900.