Finance Minister AHM Mustafa Kamal has said that he is not aware of any proposal placed by the Agriculture Ministry to raise the fertilizer price. “I am not aware of any such proposal of the agriculture ministry on fertiliser price hike proposal”, he told reporters responding to a question of a reporter during the briefing on the outcomes of two consecutive meetings of the Cabinet Committee on Economic Affairs and the Cabinet Committee on Public Purchase held virtually on Wednesday. Read: Govt in a fix over subsidy on fertilizer amid price spiral in internal market The finance minister was asked by a reporter about his response to an indication from the agriculture minister that this year the ministry needs Tk 28,000 crore as subsidy for fertilizer against an allocation of Tk 9,000 crore. But the additional fund is not available with the agriculture ministry and it is now under pressure from the finance ministry to raise the fertilizer rice.

Agriculture Minister Muhammad Abdur Razzaque on Monday said the government is in a dilemma over the subsidy in fertilizer when the price of fertilizer increasing in international market. “The price of fertilizer has risen abnormally in the international market pushing up its import cost. As a result, this year Tk 28,000 crore will be needed on subsidy,” he told reporters at a press briefing over fertilizer stock, subsidy and other issues at the conference room of his ministry. He said that the government is in a dilemma as there is a need of Tk 19,000 crore more on subsidy with the budget providing only Tk 9,000 crore for it. Read: Restaurant owners want reduction in VAT & NBR’s one-stop service In the current FY2021-2022, the government has not hiked the price of fertilizer nor reduced subsidy despite a three-hold rise in its price in international market, Razzaque said.   The minister said that increased cost of production due to high price of fertilizer will push up the price of food grain too.