A peasant-friendly move

THE ministries of agriculture and industries certainly deserve kudos for slashing prices of non-urea fertiliser by 36 percent on an average. The newly fixed prices are way below the previous levels which themselves carried a 50 percent cutback in prices effected by the AL government barely a week into its first week of power.

At that time it was felt though, had the price cut come about in December when the boro season peaked it would have been ideal. Even so, it impacted positively on boro output in the end, for all we know. This time around the price reduction is more timely as the boro and potato seasons, winter crops, so to speak, are peaking to benefit from.

There are likely to be three-fold benefits to accrue from the latest move: price per kilogram of Triple Phosphate (TSP) drops to Taka 22 from Taka 40; that of Muriate of Phosphate (MOP) to Taka 25 from Taka 35 and that of Diammonium Phosphate (DAP) cut down by Taka 15 per kilogram. First of all, cost of production should fall by that extent; secondly, a balance would likely be struck between use of urea which the farmers are more inclined to and the use of non-urea fertilisers which become quite affordable now. Above all, by one broad stroke, the agriculture ministry gives a robust signal to the farmers that: (a) whenever the international prices are down the government is ready to pass on the benefit to farmers; and (b) for this if an additional subsidy is entailed, the government is ready to provide it. Actually, in spite of the falling international price, the government would still add Taka 500 crore to Taka 2500 crore package for the slash back.

Such a timely and well-intentioned move will have to be implemented through a fair and efficient distribution network that reaches out to the farmers in times of their need. The ministries count on a dealership system that will have to work completely free of the middlemen's or faria classes' intrusions. It has worked well so far, as the minister has indicated, but still the need for supervision is there.

One more important point: supply sufficiency and lowering of prices carry a possibility for opportunist elements to try and smuggle fertiliser into neighbouring countries. A closure surveillance needs to be mounted in the border districts to prevent this happening.