Why fertiliser price hike despite there being sufficient stock

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Farmers in different districts are buying fertiliser at prices higher than rates set by the government even though the authorities insist there is no fertiliser crisis in the country. Fertilisers are needed to prepare the seedbeds for the cultivation of vegetables. Their prices have been hiked despite there being an adequate stock. A section of unscrupulous dealers and retailers is charging extra under the pretence of hiked prices in the international market. As per the government-fixed rates, a 50 kg sack of Triple Super Phosphate (TSP) should sell for Tk 1,100, Diammonium Phosphate (DAP) for Tk 800 and Muriate of Potash (MOP) for Tk 750. In reality, each sack of TSP is selling for Tk 1,400 to Tk 1,700, DAP between Tk 950 and Tk 1,050, and MOP for Tk 950-1,000.
The present stock of TSP is 1.92 lakh tonnes against the demand for 1.14 lakh tonnes. The stocks of DAP and MOP are more than adequate against the demand, sources say. The prices have been hiked even though field-level officials have been directed to keep a close watch on the ground so that no one can sell fertiliser at prices higher than the government-fixed rates. There is a sufficient supply of fertilisers in the country and the government would not increase prices even though those have almost tripled in the international market. Dealers and retailers have hiked the prices on the plea of higher prices in international markets.
Dealers said they are facing a supply crisis and this has led to the price hike. They bought fertiliser from importers at higher prices and are not able to follow the government rates. The higher price of fertiliser is not logically acceptable because the stock is more than adequate. We would say the government should tighten vigilance to stop the price hike and ensure adequate supply so that no one can make a plea to increase fertiliser prices. Besides, the borders should be sealed off to stop out-smuggling.

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