KARACHI (March 27 2007): Market movers have further raised the price of Dia Ammonium Phosphate (DAP) by Rs 60 to Rs 1,450 per 50-kg bag in the wake of rising demand and short supply in the country, traders said on Monday.

"DAP is currently in short supply, as importers are avoiding to import it due to rising prices in the international market, and government has not given subsidy on its import after December 2006," they said. With the current upsurge of Rs 60, the DAP price has gone up to Rs 1,450 per bag in a week.

Many dealers have stopped selling DAP, while others are selling at Rs 1400-1450 per bag in the different parts of Sindh including Nawab Shah, Dadu, Sanghar, said Abdul Majeed Nizamani, Chairman, Sindh Abadgar Board (SAB).

He said that as sugarcane sowing has started in different parts of the country, including Sindh, DAP demand is moving up gradually for summer crops including sugarcane and mango.

Importers said: "We have demanded of the government to provide us with the subsidy to protect the growers, and to stabilise DAP prices. But, despite several times commitments the government has made no announcement."

Nizamani said that major crop's growth is already going down by 3.9 percent and if the government did not take any action to reduce the DAP price, the growth rate would further decline. Some dealers said that importers were not regularly releasing DAP stocks in the market, which has pushed the prices of the fertiliser upward in different parts of the country.

It may be mentioned here that around 670,000 tons phosphatic and potassic fertiliser--DAP and MAP--is required for Kharif sowing. This quantity should be made available timely to suit the application time for sugarcane, vegetables, cotton and other crops between March and September. The consignments have to be staggered in a fashion that the market does not show any pocket shortages.

Copyright Business Recorder, 2007