Fertiliser price hike poses threat to crop yields

LAHORE: Unabated surge in prices of fertiliser is compelling farmers to cut down on application of nutrients on crops, posing threat to the yields of ongoing winter and upcoming summer, people in the know said on Saturday.

“It seems that no one is bothered on this worrisome state,” Ibrahim Mughal, chairman of Agri-Forum Pakistan said, while ranting the government’s apathy to non-stop increase in fertiliser prices.

“Anti-farmers steps would not be in the interest of the country. The high cost of production would also mean increase in food inflation in the country,” Mughal said.

Surging prices annoyed and demoralised farmers to the extent that they might not continue to apply farm nutrients at pace achieved in the first half of this year, they said.

Owing to multiple factors, price of DAP in general and Urea, potash and other fertilsers have shown tremendous increase in recent past, potentially lowering their offtake in the remaining rabi season and early kharif.

Taking cue from the international market, where an unprecedented upsurge in diammonium phosphate (DAP) prices have been witnessed, not only DAP prices have gone through the roof but other farm nutrients are becoming dearer for the farmers, according to market sources.

There has been an increase by approximately Rs1,000 per 50kg bag of DAP in a month alone in the retail market. The potash rate also soared Rs500 per bag while urea prices were jacked up Rs100 per bag in the retail market.

A dealer said DAP price that has been hovering around Rs3,988 per bag on January 1 jumped to Rs4,538 on February 2. Similarly, sulphate of potash (SOP) price was raised to Rs4,950 per bag from Rs4270 during the same period. SOP is sold at Rs4,975 per bag which saw spiraling its rates from Rs4,270 per bag since 1 January.

Pakistan import DAP to meet its requirement, direct impact of high prices is seen in the market. There has been a massive increase in global DAP price. The price rally has been mainly due to product shortage, said a, official at fertilizer maker. The price of DAP expanded to $480 to $500 from $350 per ton and product are available in limited volumes, he added.

Pakistan Kissan Ittehad President Khalid Khokhar asked the government to take steps for reducing adverse impact of high fertiliser prices on farmers. The government needs to increase subsidy on fertiliser in order to encourage use of fertilizer. Such a step would result in increasing yields of crops, he said.

Fertiliser Manufacturers of Pakistan Advisory Council Executive Director Sher Shah Malik upward trend in local prices of DAP is due to the fact that its prices in international market have jumped to very high level.

Another official said urea price may further increase due to possible shortage in second half of financial year 2021. Urea shortages are also occurring with January stock in the country below 50,000 level and farmers have to pay higher prices and may lead to more price increases. This is mainly due to the fact that two urea manufacturing plants have been closed and the government has to operate them to avoid shortages, he observed.

Malik said urea fertiliser prices did not increase much as compared to the impact of inflation. The recent increase has primarily been to adjust some of the inflation impact, he said. He continued to say that the price increase in urea was just 3 percent against 10 percent inflation.