Sunday January 23, 2022

Fertiliser supply up 10pc in 10 months

November 10, 2021
Fertiliser supply up 10pc in 10 months

LAHORE: Fertiliser industry sold 5.1 million tonnes in the first 10 months of 2021 as compared to 4.6 million tonnes in 10 months of 2020, fulfilling the increasing domestic demand by supplying 10 percent additional urea as compared to last year.

Fertiliser industry of Pakistan is providing urea at 83 percent discount, equivalent to Rs8,500/bag as compared to the international prices enabled by the Fertiliser Policy 2001.

Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC) Executive Director Sher Shah Malik said the local fertiliser industry continued to ensure adequate and affordable supply of urea. However, an unprecedented level of discount to international prices has led to market manipulation and significant black marketing by middlemen/dealers.

“The urea industry MRP is currently at Rs1,768/bag, farmers are being sold urea in excess of Rs2,000/bag in various parts of the country as a result of abnormal gains being pocketed by dealers,” he added.

“The perception of shortage of urea in the market is not grounded in reality as the fertiliser industry has already sold over 5 million tonnes in the first 10 months of the year, which is highest ever sold quantity of urea during the last 10 years.”

Furthermore, with continued operation of RLNG plants and adequate inventory levels, the fertiliser industry would be able to meet the full year demand of 6.3 million tonnes urea, which would be a record high in the decade on the back of improved farm economics.

It should be mentioned that the government of Pakistan has recently issued an import tender of 100,000 tonnes urea, while C&F prices were in the range of $900-1,000/tonne.

The FMPAC said imports of urea would have led to significant depletion of foreign exchange reserves and a sharp rise in current account deficit.

“Had the local industry not played its role in ensuring adequate and affordable urea?” FMPAC questioned.