Non-payment of arrear subsidy irks private fertiliser importers

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FE Report
The country's fertiliser importers are found reluctant to import triple super-phosphate (TSP) and muriate of potash (MOP) fertilisers following the government's failure to pay arrear money against subsidy to private importers.
The government owes about Tk 1.0 billion to private fertiliser importers, sources claimed.
The importers are likely to give a written representation to the agriculture adviser explaining their inability to run their business.
The private importers, numbering around 50, are also planning to issue legal notices upon the government for the unrealised money for long.
The government provides 25 per cent subsidy to the import of fertiliser by private sector mainly to keep the manure affordable by the farmers.
The private sector imports fertiliser after the government sets the target. The government earlier pledged to release the subsidy money within a reasonable time.
Chairman of Bangladesh Fertiliser Association Mohammed Kafil Uddin Ahmed told the FE that the importers had been showing reluctance to import fertilisers due to government failure to release the subsidy money.
"I think, if the importers decide to go slow on fertiliser import, definitely there would be fertiliser crisis in the country during the ongoing Aman and the next Rabi season," he added.
The government has asked the private importers to procure only TSP and MOP for the 2007-08 fiscal year.
The import of Di-Ammonium of Potash (DAP) is not allowed because the local production of the same during last two years.
The government had commissioned two DAP factories in Chittagong two years back to meet the demand of the manure locally.
It has also set target for purchasing 0.475 million tonnes of the TSP and 0.40 million tonnes of the MOP for this season mainly to meet Aman and winter crops. Out of that quantities, the private sector will procure 0.177 million tonnes TSP and 0.262 million tonnes of the MOP.
About 50,000 tonnes of triple super phosphate (TSP) and 50,000 tonnes of muriate of potash (MOP) imported by the private sector are now in the pipeline.
Apart from this, the government-run Bangladesh Agricultural Development Corporation (BADC) is allowed to import 50,000 tonnes each of TSP and the MOP this season.
Importers said fresh fertiliser import by them had become impossible as they are heavily indebted to the banks.
Faizur Rahman Bakul, a leading fertiliser importer told the FE that they had urged the government several times in the past to release the subsidy money but to no effect.
Importers also said the prices of fertilisers in the international market increased sharply over a period of last one year.
They said the prices of TSP at international market stood at US$ 513 each tonnes and the MOP at $ 426 each tonnes.
The private sector imported 250000 tonnes of MOP and 225000 tonnes of TSP in 2006-07 fiscal year.