LAHORE: Engro Fertilisers on Thursday called upon the government to devise and announce fertiliser policy 2022, withdraw gas subsidy, enable the industry’s move to Weighted Average Cost of Gas (WACOG) and help exports of urea and other fertilisers to various countries.

“Prior to 1980-81, Pakistan imported well over 50 per cent of its annual fertiliser requirements and had been a net importer till 2012. However, thanks to the Fertiliser Policy of 2001, which led to investment in new plants and increase in production capacity,” Engro Fertilisers’ Chief Financial Officer Imran Ahmed told a press conference. “Since we believe that increased reliance on imported gas is dangerous to the economy, we suggest the government for devising and announcing a revised Fertiliser Policy 2022 which should aim at eliminating the subsidy on gas for the fertiliser sector and enable the much-needed transition towards WACOG,” he said.

Responding to a question, he dispelled the impression that the shortage of urea and its sale on higher rates (Rs600 above or so) existed on the part of millers. The problem seems to be on the part of dealers and the officers (respective district administration), he said. “We are ready to show our entire sales record with invoices to anyone as the per bag wholesale price we received is Rs1,730 that is supposed to be sold in retail in Rs1,768 per bag. The same is reported as being sold for Rs2,300 or so in the country’s open market. We have also learnt that urea bags were smuggled to Afghanistan,” he explained.

Mr Ahmed questioned since the millers did not sell urea beyond demand of the dealers (as per area under cultivation), how it became short in the market. “It means the dealer stocked it and created artificial shortage that needs to be checked by the government’s enforcement departments concerned and not us.”

Published in Dawn, December 24th, 2021