Importers demand Rs 520 per bag subsidy for DAP

Fertiliser importers have ruled out cut in DAP prices without Rs 520 per bag subsidy against Rs 250 per bag granted currently, sources told Business Recorder on Saturday. Recently, the fertiliser importers have raised the prices of Dia Ammonium Phosphate (DAP) and Mono Ammonium Phosphate (MAP) prices by Rs 520 and Rs 535 per bag respectively.
In the wake of no extension of subsidy by the government, and soaring prices in the world market. They increased DAP price from Rs 870 per bag to Rs 1,390 per bag (of 50 kg) and MAP price from Rs 810 to Rs 1,345.
Importers said that the rationale behind the price increase was non-availability of Rs 250 per bag subsidy and phenomenal increase in international prices of all phosphatic fertilisers which have moved up from $300 per ton to $440 per ton during last three months.
Although the government has announced continuity in subsidy but no written notification has yet been issued, which has forced the importers to increase the prices on fresh imports, they said. After the recent price rise by Rs 520 per bag of DAP, importers have requested the government to raise the amount of subsidy.
"If the government wants us to keep the prices of phosphatic and potassic fertilisers at the current level, it should increase the amount of subsidy on DAP from pervious Rs 250 per bag to Rs 520 per bag," the exporters said.
They said that new raise by Rs 270 per bag in existing subsidy to Rs 520 of DAP would balance the increase in prices of the commodity in the international market. "Since international prices for potash (MOP & SOP) have not recorded any significant increase, the subsidy on potassic fertilisers may be maintained at the current level of Rs 250 per bag," they added.
Importers also said that as Muriate of Potash (MOP) contains 60 percent potash as compared to 50 percent in the Sulphate of Potash (SOP), the amount of subsidy on MOP should be increased to Rs 300 per bag to promote use of this vital nutrient for better crop production.
"If the government does not act in time it will prove to be another catastrophe for the growers and will badly hit the planned GDP growth target set by the government," they said. Importers linked the decrease in prices of DAP with the increase in the subsidy by the government, saying that "if the government failed to announce Rs 520 per bag subsidy and continued the existing subsidy for DAP, then it would be impossible to reduce DAP price".
"In case of Rs 250 per bag subsidy, we will reduce the price only by Rs 250 per bag. After that, the price will not be lowered from Rs 1100 per bag against Rs 870 per bag previously," they added.