Food Ministry directed to prepare a subsidy plan for provision of DAP

February 8, 2022 (MLN): Federal Minister for Industries and Production Makhdum Khusro Bakhtyar on Tuesday, directed the Ministry of Food Security to chalk out a subsidy mechanism along with the Ministry of Industries and Production for the provision of Di-ammonium phosphate or DAP fertiliser to farmers at affordable prices, said a press release issued today.

The minister while chairing a high-level fertilizer review meeting said that global prices of phosphoric acid and ammonia used for DAP production as well as the prices of DAP-finished products had also gone up unprecedentedly in the international market.

The meeting discussed the availability and demand of DAP and its substitutes for the coming Kharif season. The Chair was briefed that DAP is reliant on imports as local production of DAP clocked around only 30% whereas demand for DAP stands at 2.2 million tons in Rabi and Kharif season.

The forum was told that due to the high price differential, DAP applications witnessed a 17.7% decline as compared to urea in this Rabi season.

The Minister also emphasized that the incumbent government is committed to the welfare of farmers and would make all efforts to ensure that the farmers didn't have to face the burnt of price rise. The meeting concluded with guidelines for the subsidy framework to be submitted to the forum in the next meeting.

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