Govt sanctions Tk 4.66b as fertiliser subsidy

Ministry of Finance (MoF) has sanctioned Tk 4.66 billion as subsidy to the private sector and two government organisations against their import of fertiliser, officials said.
Bangladesh Agricultural Development Corporation (BADC), Bangladesh Chemical Industries Corporation (BCIC) and the private importers who are members of Bangladesh Fertiliser Association (BFA) will get the amount from the Ministry of Agriculture's (MoA) non-development budget where Tk 90 billion has been allocated for fertiliser and other agricultural activities.
"The subsidies will be provided against their import of 186391 tonnes of urea and 360682 tonnes of non-urea fertiliser including TSP, DAP, MAP (Mono-Ammonium Phosphate) and MOP," an agriculture ministry official said Sunday.
He said Tk 2.367 billion has been sanctioned for BCIC for fulfilling its 'trade gap' in importing 0.186 million tonnes of Urea fertiliser during July-September period of FY'14.   
He also informed that BADC will get Tk 667.17 million subsides for import of 131030 tonnes of TSP (Triple Super Phosphate) and 159721 tonnes of MOP (Muriate of Potash).
BADC imported MOP from Belarus. It imported TSP in the current financial year (FY'14) from Morocco and Tunisia under an agreement signed in FY'13.
The private importers who are members of the BFA will get subsidies of Tk1.62 billion against their import of 39250 tonnes of TSP, 29576.55 tonnes of DAP(Diammonium Phosphate) and 1096 tonnes of MAP in FY'14, the official said.
However, private importers expressed their concern over delay in releasing subsidy which has put them into a difficult situation.
When contacted, chairman of BFA Kamrul Ashraf Khan Poton said the government provides us the incentives considering our bank interests of four months.
"But it takes eight to twelve months to get the subsidy. The importers count the interest of additional months," he said.
He urged the government to release subsidy in time to avoid losses.
"And it would also help boost the fertilizer trade which is necessary for the farmers," he said.
According to the Department of Agriculture Extension (DAE), demand for chemical fertiliser in the country is nearly 4.0 million tonnes of which urea accounts for 2.8 million tonnes.
More than 80 per cent of the fertiliser demand is met through import.