ISLAMABAD: The government has urged fertiliser manufacturers to reduce the price of di-ammonium phosphate (DAP) by Rs3,000 per bag to ease financial pressure on farmers facing high inflation and escalating input costs.
The request was made during a Fertiliser Review Committee meeting led by Federal Minister for Industries, Production, and National Food Security, Rana Tanveer Hussain. The session focused on evaluating the availability of DAP and urea for the Rabi crop season of 2024-25.
Minister Hussain appealed to fertiliser firms to lower DAP prices from Rs12,000 to Rs9,000 per bag, stating it would significantly benefit farmers struggling with soaring costs. However, fertiliser company representatives hesitated to commit, noting that the proposal would require further consultation with their management.
Agriculture, a cornerstone of Pakistan’s economy, has shown that sectoral growth positively impacts the overall economy, as seen in the previous fiscal year.
It was reported that urea supply for industrial and non-agricultural consumption totaled 22,000 tonnes during FY 2023-24. Since local production often falls short of demand, imports are required to bridge the gap.
Participants recommended restricting local urea sales to agricultural use, suggesting industrial demand be fulfilled through imported supplies. They proposed allocating domestic urea for industrial purposes only during the less active months of April, May, and October, while maintaining a buffer stock of 300,000 tonnes.
In Punjab, the provincial government launched a program promoting balanced fertiliser consumption. DAP demand in October 2024 surged by 44%, reaching 309,000 tonnes against the projected offtake of 215,000 tonnes. This rise was attributed to Punjab’s Rs75 billion interest-free loan initiative via Kissan Cards, granting farmers Rs30,000 per acre to purchase seeds, phosphorus, and nitrogen.
To date, farmers have withdrawn Rs18 billion for fertiliser procurement under this scheme. The trend of increased DAP usage is expected to continue through November and December.
Rana Tanveer Hussain assured stakeholders that sufficient fertiliser stocks are available to meet demand during Rabi sowing. He stressed the importance of supporting farmers to achieve better yields and called on provinces to crack down on hoarding and price gouging.
Key officials, including Saif Anjum (Secretary of Industries) and Ali Tahir (Secretary of National Food Security), as well as provincial representatives, participated in the meeting.
