KARACHI, April 23: Local fertiliser manufacturers have urged the government not to spend millions of dollars on import of urea when it can procure the commodity locally at almost half of international price.

In a letter to the finance ministry on Monday, they said the government’s decision of importing 300,000 tons of urea to meet demand in Kharif would cost the country $170 million (Rs66,788 per ton).

They offered to provide the fertiliser at Rs35,900 per ton inclusive of general sales tax (GST). “Procuring local urea will not only save foreign exchange but it will also reduce the burden of subsidies by Rs9 billion on the national kitty,” they maintained.

“The fertiliser industry was given some hope at the highest level that the government may postpone urea import decision if the domestic fertiliser industry offers the commodity at a reasonable price.”

“Considering the current market situation and low demand, the domestic fertiliser sector offered to sell 300,000 tons at low price costing Rs10.77 billion against the imported urea which would cost Rs20.36 billion,” the letter added.