DAP Fertilizer has again started to sell far above Maximum Retail Price, crossing Rs 14,000 per 50kg bag as the demand increases due to wheat sowing.
Well informed sources told ProPakistani that DAP prices across Bahawalpur, Muzaffargarh, Faisalabad and Rajanpur are being sold for more than Rs 14,000 per bag while prices in Multan and Okara regions have also reached Rs 13,900 per bag.
Earlier in September, DAP Prices had declined sharply to around Rs. 12,500 bag after crossing Rs. 13,000 per bag because of administrative action against hoarding but the action has already started to lose its charm.
Fertilizer companies also hiked DAP prices in the last week of October by Rs. 240-510 in line with the gas price hike notified by the government after much debate. But the price differential between notified Maximum Retail Price and on-ground prices has widened up to Rs. 1,300 per bag.
Ensuring price of fertilizers within notified limits has always been a challenge but during wheat season, even the mere availability of the essential input comes in question as that’s what enables certain elements in the supply chain to rake up that differential in illegal profiteering.
“DAP black marketing is being done even by the primary dealers, while the ones are buying in black themselves, are also taking their cut. Yes, prices have been increased by the companies as well but the price hike on the ground has been out of the bounds”, stated a dealer while talking to ProPakistani
These developments have again put a question mark on the historically massive wheat production target of 32.2 million tons set by the federal government.
Phosphorus availability is essential for wheat from root formation to grain filling but most of its application is done at the time of sowing so even a delayed action by the government may not have the vital effects essential for even coming close to the production target.