A total of Rs 230.51 billion have been provided as subsidy on fertilizer products in the last nine years, from 2008-09 to 2016-17, while price of urea and DAP fertilizers have increased recently due to price hike in international market. Minister for National Food Security and Research, Sikandar Hayat Khan Bosan informed this to the National Assembly on Monday in a written response to questions asked by the members.
He informed the House that urea and DAP are major fertilizers used by the farming community while urea is locally manufactured, whereas 60 percent of DAP requirement is imported by the private sector. In case of urea, a slight price increase has been reported but that increase is within the level allowed by the government ie Rs 1400 per bag, he said.
The minister told that in case of DAP price, an increase has been observed because of price hike in the international market from $370 per ton as on 01 December 2017 to $409 per ton on 01 January 2018. Dollar exchange rate has also risen from Rs 105.204 on 01 December 2017 to Rs 110.91 on 18 January 2018, constituting an increase of 5.10 percent, he said, adding that consequently, the local prices of DAP have risen from Rs 2752 per bag in December 2017 to Rs 2894 per bag in January 2018 (4.9 percent increase), he said.
The minister informed the House that wheat is the major Rabi crop, accounting for 90 percent of fertilizer consumption during this season, he said, adding that as wheat sowing is almost complete throughout the country, the peak demand time for both urea and DAP has passed. He, however, claimed the recent price increase will have small impact on the farming community. To another question, the minister informed the House that a total subsidy of Rs 230.51 billion has been given on fertilizers since June 2008.
Giving a year-wise breakdown of the subsidies, he informed the House that a total of Rs 41.3 billion subsidy was given in 2008-09; Rs 19.9 billion in 2009-10; Rs 9.2 billion in 2010-11; Rs 50.5 billion in 2011-12; Rs 12.7 billion in 2012-13; Rs 11 billion in 2013-14; Rs 4.1 billion in 2014-15; Rs 20.3 billion in 2015-16 and Rs 61.51 billion in 2016-17. To a question about water shortage in the country, Minister for Water Resources Syed Javed Ali Shah informed the House in written response to a question that the government is well aware of the water shortage and taking cogent steps to deal with the issue.
He informed the House that different water storage projects of 2.188277 million acre-feet are under implementation; 8.15341 MAF are ready for implementation and 13.813 MAF are under planning. Earlier, shortly after recitation of the Holy Quran, PTI member Dr Shireen Mazari pointed out the quorum and proceedings of the House were suspended till its completion.
Later, Deputy Speaker Murtaza Javed Abbasi adjourned proceedings of the House without taking up any agenda item for the lack of quorum.