Federal Minister for Food, Agriculture and Livestock (Minfal) Sikandar Hayat Bosan Saturday said that the government has decided to give Rs 400 per bag subsidy on phosphatic fertilisers during the fiscal year 2007-08.
Addressing a press conference at central cotton research institute (CCRI) here he said the Prime Minister Shaukat Aziz has asked him to announce this facility for the farmers.
He said in view of the price spiral of phosphatic fertilisers at the international level the government has increased the subsidy from Rs 250 to Rs 400 per bag.
Bosan said in this way the federal government would bear a burden of Rs 15 billion as against last year's Rs 7 billion on this count.
He said for the Rabi crops the government had offered a subsidy of Rs 250 per bag on phosphatic and potassium fertilisers which has resulted in 40 per cent more consumption of these fertilisers, leading to substantial increase in per acre yield.
The federal minister for agriculture said last year subsidy on urea fertilisers worth Rs 6 billion was extended to the growers. As a result, a bag of Rs 1200 is available for Rs 500 only, he observed.
He said at the moment 33 per cent DAP is produced locally while the remaining bulk is imported. More fertiliser factories are being set up in the country which will help to minimise our dependence on imported fertilisers.
Bosan said the incumbent government has formulated agriculture-friendly policies which have led to record production of cotton, wheat and rice during the last five years.
He said in 2001 Minfal's budget stood at Rs 290 million which has now shot up to Rs 13 billion. All this reflects that agriculture is one of the top priorities of the incumbent government.
He said use of modern husbandry techniques and balanced fertilisers etc by the farmers has resulted in better agricultural production.
The minister said Pakistan used to be the wheat importing country but now it is exporting 0.8 million tons from the last year's stocks.
He expressed the hope that this year the country would have a record wheat production. It may exceed the target of 22.5 million tons, he added.
Bosan said WTO challenges are ahead which can be met only by increasing our per acre yield and hence total higher output.
He said the federal cabinet has approved the Plant Breeders' Rights law. It will help in producing qualitative seeds.
To a question he said at international market the DAP fertiliser rates have increased up to $400 per ton. That is why the government has also increased the subsidy, he added.
Additional secretary Minfal, Shahid Raja, said there is a great demand for our qualitative wheat. Egypt has placed an order for 0.6 million tons, Bangladesh and Vietnam for 0.2 million ton each.
Director CCRI Muhammad Arshad was also present on the occasion.