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Fertiliser boost for farm sector

Prices of non-urea group slashed by 36pc

Staff Correspondent
Following a price fall on the international market, the government yesterday cut domestic prices of non-urea fertilisers by 36 percent to boost cultivation of winter crops and boro rice.
"We have reduced the prices of the fertilisers, so fanners may produce crops for less," Agriculture Minister Matia Chowdhury said in her ministry while disclosing the price cut to the media.
According to the rescheduled prices, a kilogram of triple super phosphate (TSP) is Tk 20 at dealers' level while Tk 22 at farmers' level compared to the existing farmers' level price of Tk
40.
The new dealers' level price of a kilogram of muriate of potash (MOP) isTk23 and the farmers' level price isTk25 which wasTk35.
The price of a kilogram of diammonium phosphate (DAP) was also cut down byTk 15. The fertiliser will now be sold at dealers' level forTk 28 and at farmer's level for Tk30.
Agriculturalists lauded the price cut saying it will be a boost to the agriculture sector as farmers' production cost will go down.
National Consultant for Food and Agriculture Organisation (FAO) Dr Shahidul Islam said the price cut will reduce production cost of winter crops, especially for potatoes and boro rice, while increasing yield.
"There is a tendency among farmers to use urea which is cheaper. The reduction in the prices of non-urea fertilisers will bring a balance in use of fertilisers," he told The Daily Star.
This is a second price cut of non-urea fertilisers within 11 months under the present government's high priority attention to the agricultural sector.
The present government in its first cabinet on January 14 had slashed the prices of the three non-urea fertilisers by a half.
Matia believes production of boro rice will be enhanced due to the price cut, which will ultimately reduce the price of the rice next year. "It will also be a boost for production of winter vegetables," she added.
The new prices go into effect today.
"Our government is farmer friendly ... we've decided to slash dowm the prices for the interest of farmers," Matia told reporters, adding that the government will have to spend Tk 500 crore in subsidies due the price cut.
The government had earlier earmarked an allocation of Tk 2,500 crore for subsidies in the agriculture sector. After the price cut of non-urea fertilisers, the total subsidy will now stand at Tk 3,000 crore.
Before announcing the price cuts, Matia held a meeting with Industries Minister Dilip Barua in her ministry.
The agriculture minister said the immediate-past interim government purchased a large amount of fertilisers hoping all would be sold, but that did not happen.
About smuggling of fertilisers to neighbouring countries, she said the home ministry is giving necessary instructions to the border force regarding the matter.
Presently, 1,73,310 tons of TSP, 49,454 tons of MOP, and 29,943 tons of DAP imported last year are remaining in warehouses.