Punjab food and agriculture department rejected the proposal of the fertiliser manufacturers for the provision of subsidy without fixing the price and printing them on DAP bags. PHOTO: APP
“It is informed that since the amount earmarked for the subsidy on phosphatic fertilisers has been exhausted, the competent authority has decided to discontinue the subsidy with immediate effect,” stated the notification issued.
However, officials in the ministry revealed that a sum of Rs17 billion of the Rs20-billion subsidy package had been disbursed. Under the government policy, adopted for implementation, certain fertiliser companies were allowed to import DAP and distribute it among farmers at a reduced rate of Rs500 per 50 kg bag. The companies were also allocated certain geographical zones.
Opposing the decision, some fertiliser producing companies had approached the Supreme Court against government’s policy of allowing import of DAP instead of letting local companies produce the product domestically.
The Supreme Court during its hearing of the petition showed serious concerns and reserved judgment in this regard on Friday.
The ministry had earlier written to the Prime Minister Secretariat in favour of continuation of the subsidy package, justifying its positive effects on the farming community.
Published in The Express Tribune, May 28th, 2016.
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