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July 24, 2008
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Thursday
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Rajab 20, 1429
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Urea prices shoot up by Rs115
By Muzaffar Qureshi
KARACHI, July 23: Urea prices shot up by Rs100-115 per 50 kg bag in rice growing districts of Sindh to Rs750 from Rs635 (ex-factory) due to shortage of fertiliser caused by hoarding and black-marketing by the dealers and the middleman.
The urea prices rose to Rs730-750 in areas, like Shikarpur, Larkana, Tando Allah Yar, Kashmore, Kandhkot, Jacobabad, Ghotki and Sanghar.
The Sindh agriculture department has taken stringent measures to ensure availability of urea for cotton and rice crops, whose sowing has reached an advanced stage. The cotton crop has achieved 89 per cent sowing while rice has seen 70 per cent sowing till now.
The department has enforced Section 144 in some districts, especially in rice growing areas, to give special powers to police and checking squads to intercept movement of truckloads of urea and arrest hoarders.
Agriculture Secretary Subhago Khan Jatio told Dawn on Wednesday that special teams have been formed to check hoarding and ensure availability of the commodity to genuine growers.
Giving details of the measure taken to ensure urea availability, Mr Jatoi said that the supply situation was more serious in Larkana district where a squad of 70 persons from the agriculture department and district government has been formed to keep vigilance on urea movement and check every consignment and its destination.
It has been reported that urea consignments change hands on the way when owners sell the commodity purchased on the government fixed price on a high price.
The traders active in the area lure growers to sell their quota on a much higher rate.
The dealers also have a hand in the shortage as they, instead of supplying urea, hoard the commodity for sale at a time when the prices run high.
He said that there was no justification for the shortage as the local factories were producing in full capacity while a ship carrying 30,000 tons of urea is discharging at the Karachi Port. Two more ships are expected shortly.
The country’s urea requirement is estimated at 5,000 million tons against the local production of 4.880 million tons.
The secretary has written to the heads of fertilisers firms -- Fauji Fertilizer and Engro -- who have assured him that they would maintain the supply chain to meet the needs of the growers.
Letters have also been sent to the district coordination officers (DCOs) in various districts to ensure uninterrupted supply of fertiliser to the growers.
The secretary also expressed concern over rising prices of DAP, which have touched Rs3,032 per bag. The ministry is taking step to control the prices which are feared to reach Rs5,000 per bag in the near future.
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