THIS is with reference to the report ‘Fertiliser makers call for direct subsidy scheme’ (Aug 11) wherein Fertiliser Manufacturers of Pakistan Advisory Council (FMPAC) executive director has advised the government to extend direct subsidy facility to the farmers.

As one of the representatives of the growers of Sindh and a practical field farmer, I can say with certainty that none of the farmers has gained in any meaningful way by the subsidies extended to the manufacturers for passing out to the farmers. The installed capacity of the urea fertiliser manufacturing is 6.5 million tonnes, while the total consumption demand across the country round the year is 6 million tonnes.

This means urea fertiliser is produced more than the requirement, but every other year the farmers face shortage and fertiliser has to be purchased at a ‘premium’ — black market — price by the dealers. During the last Rabi season, wheat-growers faced unprecedented difficulties for obtaining urea fertiliser for their crops.

While, on the one hand, the whole country faced severe shortage of urea fertiliser, on the other, the product was available to those who were ready to pay the premium of Rs700 to Rs1,000 per bag, a price most of the farmers could not afford to pay.

As a consequence, the country faced 1.5 million tonne shortfall in the expected production of wheat. A few weeks ago, the Ministry of Industries and Production organised a Zoom meeting for fixing the urea fertiliser price to ensure its availability to the growers during the current Kharif season.

I, as a representative of the growers of Sindh, also attended the meeting. The urea price was fixed with consensus at Rs1,950 per bag and the notification was issued the same day. The manufacturers committed that the commodity would be available to the farmers across Pakistan. But after two weeks, the manufacturers unilaterally increased the price by Rs400 per bag, making it Rs2,350 instead of the agreed upon price of Rs1,950.

No official notification was issued by the ministry concerned or the federal government on this increase. The delay in the payment of the last year’s subsidies by the government to the manufacturers was given as an excuse by the FMPAC.

Even if one accepts this unjustified excuse, why have the farmers been made a victim and are being exploited by increasing the price? If the manufacturers wanted to exert pressure on the government, it would have been better had the FMPAC declined to pay government taxes unless all their dues were cleared.

But, here it seems owing to the mutual understanding, rather I should say the nexus between the FMPAC and the authorities that are supposed to regulate the affair, has been exploiting the sector. If such illegal and unlawful acts by FMPAC continue without any check, not only the farmers will suffer, but the agro-economy of the state will also suffer.

Nabi Bux Sathio
Senior Vice-President, Sindh Chamber of Agriculture
Hyderabad

Published in Dawn, August 21st, 2022