Engro fertilizers has published this advertisement in the Urdu Daily “Roznama Jang” on October 21, 2015. It declares the following: “Good News: A subsidy has been announced on fertilizers.”

Engro declares that it is are very thankful to the Prime Minister Mian  Mohammad Nawaz Sharif and the Federal Minister for National Food Security and Research Mr Sikander Hyat Bosan for announcing a subsidy on fertilizers. This step will result in prosperity for all farmers in the country.

The advertisement read: “ We are announcing that because of the subsidy the cost of various Engro fertilizers will be reduced.” The advertisement then provides a list of six engro products with their reduced price list.  However, the list only provides a reduction amount, for example that DAP will now be sold at Rs 500 less for each bag. The original cost of the DAP bag is missing. Hence the corporation can easily raise the price and then declare a subsidy – otherwise why did this advertisement not provide the cost per bag – which would make it easy for farmers at the retail stores to demand a particular price for the products.

It quite clear that this package is hoodwinking not only the farmers but the entire nation. The subsidy will only be truly beneficial to the big land lords and of course Engro itself. According to the news in The Express Tribune 23 September 15, the subsidy is given directly to the fertilizer companies and they will set the price according to the subsidy given to them. So, the subsidy ensures that Engro retains its high profit margin – which for the last three-months profits ending June 2015 was declared to be Rs.4.05 billion after taxes – or an increase in profits by 109%.

The small farmer will lose on many accounts: First, even after the subsidy the cost is astronomicalfor purchasing various chemical fertilizers including urea and DAP. In addition, pesticides, hybrid seeds, tube well charges, diesel are all very expensive for the small and landless farmers. So, this chemically-intensive farming methods will only lead to massive debts for farmers which has been the pattern now for many many years. Second, this chemical intensive agriculture production is extremely hazardous for the environment: leading to contamination of our farmlands, water sources, livestock, and the entire food chain. The productivity and fertility of our lands are decreasing day by day. Third: the impact of fertilizers and pesticides is extremely harmful to the health of the communities across the nation, whether urban or rural.

So, no doubt the subsidy is for the rich and powerful!