ISLAMABAD: Speedy distribution of Kissan Card is essential to end general subsidy on urea, three federal ministers said on Thursday at a fertiliser policy review meeting.

Presided over by Minister for Industries and Production Makhdum Khusro Bakhtyar, the first ministerial meeting held to upgrade the fertiliser policy was attended by Minister for Energy Hammad Azhar and Minister for National Food Security and Research Syed Fakhar Imam, a press release said.

Mr Bakhtyar regretted that the number of eligible farmers was quite high in Punjab but less than half a million Kissan Cards had been disbursed in the province. “If we cannot provide subsided essential raw material to the farmers, [then] there is no value of Kissan Card,” he said.

Fertiliser manufacturers in the country have been demanding a new policy, with the aim to abolish gas subsidy for urea production. In return, the industry has been asking the government to allow sale of urea at international market rates in the country, while maintaining that the farmers be given subsidised urea through Kissan Card.

The existing fertiliser policy was introduced in 2001, but new challenges, including depleting gas reserves in the country, have called for an upgradation of the policy.

The meeting noted that due to gas shortages reliance on imported gas was increasing but this was creating a huge burden of gas subsidy on the government. The initial framework of fertiliser policy prepared by senior officials of the three ministries was discussed in detail. The new policy is based on three broad areas, including urea demand, supply and pricing of soil nutrients.

The meeting also discussed the issue of rationalisation of gas sale agreements with the fertiliser manufacturers and the supply-chain maintenance by the companies across the country.

It decided to constitute three subcommittees to work on the supply side, demand issues and pricing strategy of fertilisers within the existing agronomic practices.

The subcommittees will consist of officials from the Ministry of Industries and Production, Ministry of National Food Security and Research and Ministry of Energy (Petroleum Division). One representative from the Ministry of Planning as well as technical experts from the field will also be part of the subcommittees.

The subcommittees will present collaborative policy drafts in the next meeting.

It was decided that after the review of reports presented by the three subcommittees, other stakeholders, including the representatives of the fertiliser industry and farmers’ associations, would be called to give their input on the upcoming policy.

Khusro Bakhtyar said the local industry had witnessed record production of 6.3 million tonnes of urea in 2021.

Published in Dawn, February 11th, 2022