Urea makers link price cut with gas supply

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ISLAMABAD: Fertiliser manufacturers have linked the reduction in urea prices with the supply of gas from the Mari gas field.

The unanimous decision of the Fertiliser Manufacturers of Pakistan Advisory Council (FMPAC) was conveyed by Fauji Fertiliser Company Managing Director and CEO Jhanagir Paracha to federal Minister for Industries and Production RanaTanveer Hussain during a meeting on Wednesday.

Mr Paracha, who led a delegation of the fertiliser industry during the meeting with the minister, said all fertiliser plants should be supplied gas from the Mari field under bilateral arrangements in accordance with the applicable gas pricing policies.

Mr Paracha also presented FMPAC’s proposal to the minister, demanding that the government ensure uninterrupted gas supply to the fertiliser industry for the next 10 years from the Mari gas field.

“This will ensure availability of affordable urea for our farmers and would also save the foreign exchange on import of urea,” the FMPAC has said, adding that if the proposal was agreed by the government, the fertiliser industry do not require any subsidy in the future.

It said that if the proposal was implemented by the government, it will attract further investment in fertiliser production capacity and energy efficiency.

The FMPAC has said the government should fix uniform price of urea all over the country to discourage hoarding by middleman and agencies.

However, the minister informed the delegation that the proposal submitted by the FMPAC will be taken up with the Economic Coordination Committee of the cabinet as it was a relevant forum to make a decision in this regard.

The minister expressed concern over high urea and fertiliser nutrient prices in the country and said the government was committed to taking every step to facilitate farmers during the kharif season.

Published in Dawn, May 16th, 2024

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