The government and fertiliser importers are yet to resolve the nagging discord between them on how the Tk 271-crore agricultural subsidy would be channelled to make three types of imported fertiliser -- Triple Super Phosphate (TSP), Murate of Potash (MoP) and Di-Ammonium Phosphate (DAP) -- cheaper to farmers.

Against this backdrop, DAP is selling at Tk 1050 a 50-kg bag since the beginning of Rabi season in mid-November compared to Tk 650 last year in the northern region of the country.

Potash is selling at Tk 750 a bag against Tk 450 last year. TSP and Potash Mix is selling at Tk 850 against at Tk 550 a few months back.

Reports received from our correspondents across the country said the farmers now fighting to recoup the flood-losses are having a hard time in growing Rabi crops due to skyrocketing prices of most chemical fertilisers excepting urea.

Bangladesh Fertiliser Association (BFA), federating body of fertiliser importers and dealers, admitted the steep rise in fertiliser prices but blamed it mainly on the government for non-settlement of the subsidy disbursement issue.

High prices of fertilisers are also attributed to price hike of fertilisers in international market and enhanced freight charges of shipping lines.

According to BFA records, wholesale price of DAP is Tk 900 a 50-kg bag now compared to Tk 700 and that of MoP is Tk 650 now against Tk 430 in November last year.

BFA Chairman Kafiluddin Ahmad told The Daily Star yesterday prices of most chemical fertilisers have gone up by 40 percent over the last six months due to the price increase by their manufacturers in China, Tunisia, US, Jordan and CIS countries, and also because of enhancement of freight charges.

"Ships carrying our fertiliser consignments to Chittagong Port also charge us more because of the delay in unloading cargo due to congestion at the port," claimed Kafiluddin.

Amidst high prices of fertilisers in international market, the government in a major policy decision on August 1 this year approved a Tk 271-crore agricultural subsidy to make three types of imported fertiliser available to farmers at 25 percent reduced price.

Prime Minister Khaleda Zia approved the subsidy on the basis of recommendation of a five-member committee headed by State Minister for Agriculture Mirza Fakhrul Islam Alamgir.

Four months into the decision, the government and fertiliser importers failed to reach a settlement over modus operandi of the subsidy disbursement. A government-constituted body suggested importers to release imported fertilisers at a rate $15 higher a tonne than the import-price. The rate would be lower than the current price in the market but the government would offset the loss by giving 25 percent subsidy on it.

The BFA however did not agree to the government suggestion, saying the price it fixed was arbitrary. "Fertilisers that have been in our stock for five to six months, and that are being imported now are not of the same price. This is why we wanted the government to take the price that we are now paying to import fertiliser as the benchmark," it said.

Talking to The Daily Star yesterday, sources at the Ministry of Agriculture said the committee concerned would meet again within a day or two, and a BFA representative would be present there to discuss how to move forward with the subsidy issue.

Experts noted that further delay in resolving the problem would greatly affect Boro production as the country expects a good Boro harvest after massive losses of Aus and Aman crops due to the floods.