ISLAMABAD: The Ministry of Industries has called a meeting of fertiliser manufacturing companies on Wednesday to decide on a unified price of feed gas to streamline fertiliser production.

As per the directives of the Economic Coordination Committee (ECC) of the Cabinet, three federal ministers co-chaired a meeting on Monday and decided to convene a meeting of the manufacturing companies on Wednesday to decide on the pricing of feed gas.

Federal ministers Tariq Bashir Cheema, Syed Murtaza Mahmud and Dr Musadik Malik co-chaired the meeting which was of the view that fertiliser companies should be supplied gas at a unified rate, and there should be a level playing field. Food Security Minister Mr Cheema highlighted the importance of the welfare of farmers and said “we aim to give direct subsidy to the farmers.

It was suggested that a track and trace system of fertiliser bags can help in this regard.

“Food security hinges on agricultural production, and to ensure food security, all of the relevant ministries and departments should sit together to work coherently”, Cheema said.

During the ECC meeting held on July 28, the industries and production ministry submitted a summary on issues faced by two SNGPL-based fertiliser plants operated by provisioning of RLNG on a cost-sharing basis. The gas rate for the operation of these plants is worked out based on the Variable Contribution Margin (VCM).

Due to increases in fuel prices and other factors, both plants have approached the industries ministry for revision of VCM and capping of GST at the price paid by the plants. The ECC had approved the proposal to ensure compliance with the earlier decision of the ECC and the federal cabinet of shifting both the plants to indigenous gas.

Published in Dawn, August 2nd, 2022