Pakistan plans to raise DAP subsidy to aid farmers

20 August 2008 15:47  [Source: ICIS news]

LONDON (ICIS news)--The Pakistan government looks set to cap phosphate fertilizer prices at rupees (PRs) 3,050/50 kg bag ($41/50 kg bag) ex-Karachi to aid farmers, importer sources said on Wednesday.

 

It was expected that a subsidy of PRs2,200/50 kg bag would be applicable to all diammonium phosphate (DAP) fertilizer imports arriving after 1 July, an importer added.

 

So far, import arrivals after 1 July totalled around 190,000 tonnes.

 

However, whether the subsidy would apply to any further DAP imports would be decided on a case by case basis, the source added.

 

Fresh import demand was estimated at a further 100,000 tonnes for the rest of 2008.

 

The Pakistan government earlier raised the subsidy on a 50 kg bag of DAP from PRs 470/50 kg bag to PRs 1,000/50 kg bag in June in response to rising international DAP prices.

 

A formal announcement on the subsidy was expected in the next few days.

 

($1 = PRs74.56)

 

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By: Mike Nash
+44 20 8652 3214

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