DAP fertiliser import: Food ministry irked by inflated import claims
Officials were shocked to receive claim of over Rs1b for just four days
Officials were shocked to receive claim of over Rs1b for just four days. PHOTO: FILE
ISLAMABAD:
The Ministry of National Food Security and Research has not taken inflated import claims from certain fertiliser companies kindly.
A source in the ministry told The Express Tribune that authorities were shocked to see the leading fertiliser company showing an import of DAP fertiliser of over Rs1 billion.
Due to the dismal performance of the agriculture sector last year, the federal government announced a subsidy of Rs20 billion on DAP import with fixed rate of Rs2,500 per 50 kg bag to be available in the local market.
Since DAP fertiliser is not manufactured locally in Pakistan, a notification was issued later on June 25, 2016 allowing import of the product for Rabi season.
An officer in the ministry said that they are shocked to see huge claims of over Rs1 billion by a single company showing the import of DAP during just four days from June 26 to June 30, 2016 so soon after the notification.
The officer said that the ministry, instead of forwarding the claims to the State Bank of Pakistan for payment, has written letters to the Federal Board of Revenue and provincial governments for verifying whether such a huge quantity of import of this product was made by the same company.
“Though they have received the bills, they will clear them once the provincial governments and FBR verify the claims,” said the officer.
Another officer noted that if they received claims in such a manner then the subsidy allocated for the entire year would be exhausted much sooner.
“That’s why we have to be extra-vigilant as the ministry faced serious embarrassment before the court last year.”
Published in The Express Tribune, July 31st, 2016.
The Ministry of National Food Security and Research has not taken inflated import claims from certain fertiliser companies kindly.
A source in the ministry told The Express Tribune that authorities were shocked to see the leading fertiliser company showing an import of DAP fertiliser of over Rs1 billion.
Due to the dismal performance of the agriculture sector last year, the federal government announced a subsidy of Rs20 billion on DAP import with fixed rate of Rs2,500 per 50 kg bag to be available in the local market.
Since DAP fertiliser is not manufactured locally in Pakistan, a notification was issued later on June 25, 2016 allowing import of the product for Rabi season.
An officer in the ministry said that they are shocked to see huge claims of over Rs1 billion by a single company showing the import of DAP during just four days from June 26 to June 30, 2016 so soon after the notification.
The officer said that the ministry, instead of forwarding the claims to the State Bank of Pakistan for payment, has written letters to the Federal Board of Revenue and provincial governments for verifying whether such a huge quantity of import of this product was made by the same company.
“Though they have received the bills, they will clear them once the provincial governments and FBR verify the claims,” said the officer.
Another officer noted that if they received claims in such a manner then the subsidy allocated for the entire year would be exhausted much sooner.
“That’s why we have to be extra-vigilant as the ministry faced serious embarrassment before the court last year.”
Published in The Express Tribune, July 31st, 2016.