72 percent DAP price hike to badly hurt poor farmers

The poor farmers, already feeling the pinch of dry weather, will be hit hard by the 72 percent increase in DAP prices this year as compared to corresponding period of last year, sources told Business Recorder here on Friday. The DAP price in the local market is Rs 1600 per 50 kg bag, while last year it was around Rs 1150-1200.
The private sector imported 1.7 million tons DAP in 2007. When Business Recorder contacted a senior official of Food and Agriculture Ministry (Minfal), he said that the increase in DAP price in the world market was the main reason behind the price hike in the country. The commodity has now gone up to $660 per ton from $400 in the world market.
The government, even after giving a subsidy of Rs 10-12 billion, could do nothing to reduce its price in the local market, the official added. The farmers have no alternative as DAP is one of the basic inputs for wheat crop, but subsidy of Rs 470 per 50 kg bag can not help the farmers for using the required amount of DAP.
Earlier, the National Assembly standing committee had recommended that if the government wanted to achieve the wheat production target of 24 million tons, set for 2007-08, it should give subsidy of more than Rs 600 per 50 kg bag of DAP.
The main reason behind the increasing prices of DAP in international market is that it is used as an important input in maize production also. As the prices of maize are increasing by each passing day, demand for DAP is increasing, while supply is limited.
In India, the price of 50 kg DAP bag is about Rs 600, while here it is being sold at Rs 1600. This is a big difference. The Indian government is giving subsidy of more than Rs 600-700 per 50 kg bag, only to facilitate its farmers, but what Pakistan government is doing in this regard?
There lies a big question mark, as the government itself finds no answer to this bitter reality. Pakistan''s economy is based on agriculture, but non-implementation of land reforms and ill-conceived policies are badly hurting the farmers, whose livelihood is based on agriculture!