The government and fertilizer industry have mutually agreed to increase prices of fertilizer by Rs 10 per 50 kg bag.
The Adviser to the Prime Minister on Commerce, Textile, Industries and Investment, Abdul Razak Dawood said the decision is a win-win for both fertilizer manufacturers and the growers.
The rise in prices of fertilizer due to the increase in the price of gas was Rs 210 per bag, but the impact of reduction in the Gas Infrastructure Development Cess (GIDC) was Rs 200 per bag, therefore the net increase would be Rs 10 per bag.
He was of the view that there was sufficient stock of Urea available in the country to cater to the demands of Khareef season, however, he attributed the Rs 10 price hike in the fertilizer prices due to increase in gas prices.
He assured that there would be no shortage of fertilizers in the market, adding that the government had maintained fertilizer prices at Rs 1800 while its ex-factory rate would be Rs 1890 after transferring to dealers and commission.
Dawood said the government had allowed the import of one ton of urea 4-5 months ago to maintain supply and demand equilibrium.
Subsidy on Fertilizer Imports
Dawood said that the government would provide a subsidy of Rs 1 billion on import of fertilizers to facilitate the farmers and promote the agriculture sector.
About 100,000 tons of fertilizer would be imported to overcome the shortage in the local market besides containing its rising price.
Replying to a question, he said that government would provide relief to farmers by ensuring availability of agriculture inputs including fertilizers on affordable prices in order to boost agriculture yield.
The adviser reiterated that the current government was cognizant of problems being faced by the farmers adding that it would address the issues on priority.
He said that the agriculture sector was playing a significant role in promoting the economy of the country and was creating employment opportunities for more than half of the country’s population.