Farmers demand fertiliser subsidy, predict losses in wheat production

Federal and provincial finance ministries have indicated they cannot afford to pay a support price

LAHORE:

With the devastation caused to crops by the floods, experts predicted that food insecurity would increase in the country.

The prediction seems to be turning into reality as agricultural experts have sounded the alarms that Punjab is likely to fail in meeting its targets of wheat cultivation and production - however, this is due to an increase in fertiliser costs.

Di-ammonium phosphate (DAP) fertiliser, a key component used to boost wheat production, is retailing for Rs 14,000 a bag in the market, which has made it difficult for farmers to use it in the required quantity.

As per sources privy to the matter, the high fertiliser prices are bound to impact the cultivation target for this season, which has been set at 16.5 million acres and the production target, which is set at 21 million metric tons.

Furthermore, the federal government, which was working on a package for farmers to help with their present ordeal by giving a subsidy on the DAP fertiliser, has been expressly told by the Federal Ministry of Finance that it cannot afford to give such a subsidy, as per officials familiar with the matter.

The federal ministry’s refusal then led to the provincial governments also shying away from a positive response on whether they would give subsidies on fertilisers to farmers. Khalid Mehmood Khokhar, Head of Pakistan Kissan Ittehad, commenting on the matter, said that the federal and provincial governments’ refusal to announce a support price on fertilisers had put farmers in a precarious position.

“There is now a risk of a significant reduction in wheat cultivation and production. However, the federal and provincial governments are oblivious to this as they are busy fighting their political wars,” he remarked. Khokhar was of the view that the government’s callousness would not only increase food insecurity but also dent the public exchequer.

“If production decreases, the government will have to import wheat worth billions of dollars next year,” Khokhar explained. Moreover, according to market sources, since urea is significantly cheaper at Rs 2,600 a bag, fertiliser dealers have stopped selling it to get rid of their stock of expensive DAP fertiliser, and many have subjected their sale of urea to the sale of DAP fertiliser.

In most areas, traders of fertilisers are selling one bag of DAP fertiliser to those who buy two sacks of urea fertiliser. In such schemes, the price of DAP fertiliser has been fixed at Rs 12,500 while a bag of urea fertiliser has been priced at Rs 2,500.

However, a senior official of the Punjab Agriculture Department, said that even such schemes would do little to help farmers. He was of the view that the government would have to step in sooner or later to help farmers because of the current economic conditions.

“Otherwise, agriculturists are now considering cultivating mustard, peas and other crops which are low-cost and have a quick turn-around time, instead of cultivating wheat,” the official informed while talking to The Express Tribune.