ISLAMABAD: Amid continuously rising domestic prices, the government on Thursday decided to import at least 200,000 tonnes of urea to meet ongoing kharif requirements.
Subject to the proverbial endorsement by the Economic Coordination Committee (ECC) of the Cabinet in its upcoming meeting, a decision to import urea was taken at a meeting of the Fertiliser Review Committee (FRC) presided over by Minister for Industries and Production Rana Tanveer Hussain.
In recent days, the local producers have increased the urea prices, one after the other, by Rs500 to Rs700 per 50kg bag during the current month alone without any noticeable movement in input costs amid estimates that urea consumption could be 18-20pc higher this season.
The relevant authorities are already reported to have sought explanations from the urea producers, who have also been holding back hundreds of billions of rupees collected from consumers on account of Gas Infrastructure Development Cess (GIDC) for more than a decade.
The Ministry of Industries and Production said in a statement that it had “recommended the import of 200,000 tonnes of urea to stabilise prices and supply in the country during kharif.”
It said the decision was taken in the FRC meeting after analysing consumption patterns, available stock, and future needs during the kharif season.
The meeting was told that demand for urea increased by 3.6 per cent compared to the previous year. The anticipated demand for the kharif season is approximately 3.442 million tonnes. The available stock in the country stood at approximately 3.192m tonnes. The shortfall will be met by importing 200,000 tonnes, and the rest will be met by increasing production in the local fertiliser plants.
“All local urea plants will remain operational at full capacity to meet the demand,” the statement said, adding that the government was ensuring smooth gas supply to the fertiliser industry.
The minister said the timely arrival of imported urea would help ensure food security by increasing farmers’ productivity and stabilising local prices.
Published in Dawn, April 26th, 2024
