Fertiliser manufacturers, government: Dispute ends in subsidy withdrawal

Food minister Bosan says disagreement over printing price led to development.

ISLAMABAD: The government has revealed that the Rs14-billion subsidy allotted to the agriculture sector in the federal budget 2014-15 has lapsed due to a disagreement between the Ministry of National Food Security and Research and manufacturers over the price mechanism of urea.

This was stated by the Federal Minister for National Food Security and Research Sikandar Hayat Khan Bosan at a press conference here on Tuesday.

The minister said the subsidy could not be implemented because the fertiliser sector and the ministry failed to reach a consensus.

The dispute revolved around the ministry’s condition to print the urea price on the bag and the manufacturers’ subsequent disagreement.

“We will give this subsidy in the next fiscal year with a clear-cut pricing formula as we realise that without printing the price on the bag it will not benefit the farmers,” said Bosan.

The minister said that his ministry tried its best to evolve a transparent mechanism for implementing the subsidy.

On the other hand, fertiliser manufacturers were reluctant print the prices since they said the prices are constantly fluctuating and there is a constant change in the dollar that affects the import of the commodity.

Moreover, the minister said that the recently passed Seed (Amendment) Bill 2014 has proved to be beneficial for the agriculture sector as most of the seed companies were providing substandard product in the market.

Published in The Express Tribune, March  18^th,  2015.

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