Fertilizer offtake declines

Published July 2, 2002

ISLAMABAD, July 1: The offtake of chemical fertilizers dropped to the level as low as 2,196,000 tons during 2001-02 and about 26 per cent less than the previous year, according to official statistics.

It was also the lowest in the past five years. During 2000-01, fertilizer offtake totalled 2,966,000, which was the highest in the past five years.

Official sources attribute the dramatic reduction in fertilizer use to a sharp decline in availability of irrigation water. Apart from this reason, a major factor was the increase in prices of fertilizers over the past year, as indicated by an analysis of statistics released by the Federal Bureau of Statistics.

Of the ten varieties of fertilizers, the prices of nine soared by 5.15% (Urea Sona)/5.26% (Urea Kisan) to 13.96% (C. Ammonium Sulphate) within one year.

With the imposition of sales tax, this vital input is going to become even more expensive. In conditions of persistent drought, experts point out, the hike in prices of inputs such as fertilizers is likely to further discourage farmers from making optimal use of fertilizers.

In 1997-98, it was 2,646,000 tons — denoting a growth rate of 9.7 per cent over the previous year. In 1998-99, its use declined slightly by 2.3 per cent mainly due to logistical problems.

But then in the following year, it jumped to 2,833,400 tons — an increase of 9.7 per cent, peaking at 2,966,000 tons in 2000-01.

Another feature of the poor fertilizer offtake is the stagnancy in domestic production. It had grown from 1,728,000 tons in 1997-98 to 1,886,000 — 2.1 per cent less than in the preceding year. But then in 1998-99, it jumped by 9.1 per cent to 1,886,000 tons and further by 20 per cent to 2,263,000 tons in 1999-2000. It increased further to 2,298,000 tons in 2000-01.

The out-going year (2001-02) stands out as the period when the production of fertilizers was the lowest in five years — 1,716,100 tons — a drop of 25.32 per cent.

Small wonder, one comes across little euphoria among the knowledgeable quarters about any improvement in the use of fertilizer and, consequently, in per acre yields of various agricultural commodities.