The price of Dai Ammonium Phosphate (DAP), an essential crops nutrient, has increased by Rs 100 per 50-kg bag across the country due to rising prices in international market. Market sources said on Thursday that price of DAP like other commodities was on the rise in international market, therefore, to rationalise its local price, the local producers and importers have increased DAP price by Rs 100 per 50-kg bag.
"Local producers and importers on Thursday announced to increase the price of DAP by Rs 100 per 50-kg bag and with current surge price of the fertiliser have reached Rs 3,100 per bag, as compared to Rs 3,000 per bag previously," they added. However, they said, the fertiliser price is till lower than 2008, when its price hit Rs 3,300 per 50-kg bag in domestic market.
"In 2008, DAP price reached Rs 3,300-3,400 per 50-kg bag excluding Rs 2,000 per bag subsidy by the federal government, while cumulative price of DAP was over Rs 5,000 per bag in calendar year 2008," said an importer. He said that DAP price was increasing gradually in international market as it price reached $640-650 per ton from $580 per ton in fourth quarter of CY2010. "Local price will further go up in future, if the trend in world market continue," he hinted.
He rejected the perception that shortage of the fertiliser has pushed its price, saying that at present there is no shortage in domestic market and massive stock of the fertiliser is available to meet the local demand. The country's annual consumption of DAP stood at 1.3 million tons, out of which some 0.7 million ton is being produced by FFBL, while the remaining gap is being filled though import, he informed.
"Government has no pricing formula to fix DAP price in the local market, therefore its prices are still unstable, which may hit the crops production targets in the upcoming Kharif season," a dealer said. He said importers and producers were constantly increasing DAP price, due to which its consumption is on decline.
He asked government to introduce a price fixing formula in order to protect the growers' interests and stabilise the DAP price in the domestic market. Meanwhile, National Fertiliser Development Centre (NFDC) has revealed that consumption of Urea and DAP was on decline and as per the data, Urea offtake in CY10 was recorded at 6.123 million tons showing a five percent decline as compared to CY09.
In addition, DAP offtake also recorded decline of 22 percent to 1.32 million tons in CY10 against 1.691 million tons in CY09. Urea offtake through ENGRO recorded two percent growth whereas DAP offtake posted five percent decline. FFC's urea offtake recorded one percent growth whereas DAP offtake posted a rise of 66 percent. Similarly, FFBL's urea sales have posted a decline of 16 percent whereas DAP offtake also plunged by seven percent.