RAWALPINDI, Feb 28: Pakistan beset with problem of population growth with limited reserves of good farm land, remains one of the main fertiliser consuming countries in the sub-region of South Asia, says the “Current World Fertiliser Trends and Outlook 2011-12” released by the UN Food and Agriculture Organisation on Wednesday.

Improving crop productivity and the use of nitrogen efficiency, simultaneously is one of the greatest challenges facing Pakistan together with India and Bangladesh, the FAO report says.

The need to increase food production to meet the requirements of a large and fast growing population, limited land and water resources, rising incomes and policies supporting self-sufficiency in food, provide incentives for increasing productivity per land area.

The report says the grain production is anticipated to increase steadily over the next five years in India though more modestly in Pakistan and Bangladesh. Cotton output is also expected to rise in Pakistan and India.

Fruit and vegetable production is also expanding quickly to supply both the domestic and international markets. It is forecast that during the outlook period the South Asia region will use 58.6 per cent of fertiliser consumed globally.

Demand will increase by 10.4 million tons growing at 2.1 per cent annually for all fertilisers, at 1.6 per cent for nitrogen, at 2.4 per cent for phosphate and at 3.5 per cent for potash.

Fertiliser prices stabilised by the government subsidies, programmes promoting balanced fertiliser use, and self sufficiency policies should contribute to strong sub-regional fertiliser demand.

Fertiliser use is forecast to grow annually at a high 2.8 per cent over the outlook period with corresponding increases for nitrogen (2.2pc), phosphate (3.5 per cent) and potash (4.2 per cent).

The report estimates that the supply of nitrogen, phosphate and potash nutrient will increase by some 34 million tons, representing an annual growth rate of 3 per cent between the biennia of 2007-2008 and 2011-2012, comfortably sufficient to cover demand growth of 1.9 per cent annually. Enough fertilizer will be produced in the next five years to cover world demand and support higher levels of food and bio-fuel production.

The FAO report estimates that the world fertiliser supply (nitrogen, phosphate and potash nutrient) will increase by some 34 million tons representing an annual growth rate of 3 per cent between 2007-08 and 2011-12, comfortably sufficient to cover demand growth of 1.9 per cent annually.