Consensus finally: Impasse ends as fertiliser makers agree to print price

Government will now go ahead with Rs20b subsidy package for farmers


Peer Muhammad August 20, 2015
The government was insisting to print the price of urea on the bag, but it was not accepted by the manufacturers. PHOTO: AFP

ISLAMABAD: Negotiations between the government and fertiliser manufacturers reached a consensus, which now means fertiliser makers will print the price on urea bags. The move is aimed at maintaining transparency, as the government also wants to implement the Rs20-billion subsidy package as announced for farmers in budget 2015-16.

The agreement was reached at the meeting of fertiliser manufacturers and government authorities held in Islamabad with National Food Security and Research Minister Sikander Hayat Khan Bosan. However, the manufacturer said that it would take at least six to eight months to fully implement the subsidy package for farmers.

The meeting was attended by senior officers of the Ministry of National Food Security and Research, Ministry of Industries and Production and representatives of Engro Fertilizer, Fauji Fertilizer, Fatima Fertilizer and Bin Qasim Fertilizer.

It was decided that the government would directly transfer the subsidy amount to fertiliser companies and, in return, they would provide fertiliser to the farmers at lower rates.

An officer who attended the meeting said that fertiliser manufacturers have agreed to print the price to avoid misuse of this subsidy.

The government had announced subsidies for farmers, which would be shared equally by the federal and provincial governments.

The federal government had announced a similar package of Rs14 billion in the last budget, which could not be implemented and ultimately lapsed due to the inability in evolving a consensus.

The government was insisting on printing the price on the bag, but it was not accepted by the manufacturers and many meetings held throughout the fiscal year failed to reach a conclusion.

Published in The Express Tribune, August 21st,  2015.

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