Summary Farmers had delayed purchase of urea fertilizers in hope of revision of prices
LAHORE (Dunya News) – Farmers seem to be slipping financially as rice price has fallen and wheat production is not up to the mark.
Fertilizers sales dropped to half compared to last year in October. National Fertilizer Development Centre stated that fertilizers prices have surged due to gas hike. Moreover, lessened production of wheat due to weather shift has added to the hiked prices of fertilizers.
In October, fertilizers sales stood at 2 lac tonne which in comparison to last year’s period is at least 52 percent less. In October 2014, fertilizers sales were up to more than 4 lac tonne.
On the other hand, the government had given Rs 500 subsidy over each DPA fertilizer bag in the fiscal year (FY) 2015-16 budget. The development resulted in a new sales record after eight years. At least 5.36 lac tonne DPA fertilizer has been sold so far.
Earlier this month it was reported that farmers had delayed purchase of urea fertilizers in hope of revision of prices leading to at least 70 percent drop in sales in October.
Statistics show that urea sales stood at 1.2 lac tonne in the last month. Industry sources said that the stocks were abundant as purchase was deferred.
On the other hand in September, urea producers had assured the government of cutting down prices for farmers if gas tariff was revised in their favour.
However, gas prices remained unchanged despite the apparent workable proposal by the manufacturers.
