Fertiliser sector urges govt to take action against hoarders, smugglers

ISLAMABAD: The fertiliser sector has said that it is not responsible for the shortage in the country, as it had already sold 11 per cent more fertiliser, compared with the last year.

To address the shortage of fertiliser, Adviser to the Prime Minister on Finance Shaukat Tarin and Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar held a meeting with the delegation of fertiliser industry at the Finance Division on Monday.

During the meeting, the delegation apprised the adviser about various issues in the industry and sought help from the government to address these issues.

They thanked the adviser for providing a coordination platform to the fertiliser sector for the resolution of the industry’s issues and highlighted the positive role of the government in keeping the prices of urea in Pakistan at low level, compared with the international market for the benefit of the farmers.

The adviser assured the delegation that the fertiliser industry’s problems will be resolved on top priority, as the government appreciates the critical role of the industry in the economic progress of the country.

Tarin; however, emphasised that the industry should continue to play its due role in providing urea at the most reasonable prices to the farmers.

He listened to all the issues keenly and issued orders for resolution of the problems indicated by the delegation to enable the fertiliser industry play its due role in fostering the national economy.

Engro Fertilizer chief financial officer Imran Ahmed, while talking to BOL News said that the urea offtake this year increased 11 per cent.

He admitted the farmers are facing problems in getting the urea at the government’s fixed rate of Rs1,768/bag. Because of the wheat sowing season, the appetite for fertilizer increased significantly and the farmers were forced to pay Rs500 to Rs1,000 extra to buy a urea bag.

However, even by paying additional amounts to the profiteers and black marketers they are not getting the desired quantity of urea from the market, which eventually affects the wheat crop.

The Engro Fertilizer official; however, said a government’s timely action has ensured adequate availability and significant reduction in urea prices, as they have reduced close to the prescribed level of Rs1,768/bag.

On the back of agriculture-friendly policies of the government and significantly lower prices, the urea demand has increased this year. This year record volumes of 5,768,000 tonnes were sold in the first 11 months, 11 per cent higher than the same period of the last year.

It means that approximately 600,000 tonnes of urea has been sold so far for the consumption of farmers this year, compared with last year.

Imran Ahmed said despite increased supplies and higher availability of urea, the market sentiment was that the prices may increase due to a hefty delta between the local and the international urea prices coupled with the rumours of an increase in the general sales tax (GST) on fertilisers. This got overplayed by the market, resulting in overcharged prices.

The government took notice of the situation and ordered strict action against hoarders and profiteers.

They started monitoring daily dispatches along with the industry and sales numbers were aligned with the agronomic demand to manage supplies in various regions.

Over 200 FIRs were lodged, and significant fines were levied on the culprits. Timely and decisive action by the government has led to a significant reduction in retail prices of urea in the country, which are now around Rs1,800/bag in Punjab and R1,900/bag in Sindh.

Throughout the year, when the farmers across the world were suffering from supply disruptions of fertilisers and resultant hike in urea prices, the Pakistani farmers continued to benefit from urea at a discount of 85 per cent over imported urea that would cost Rs11,000/bag.

On the back of supportive policies of the government for the agriculture sector, there has been a significant improvement in farm economics.

Through effective monitoring and specific interventions, the government has ensured robust growth of the agriculture sector of Pakistan with the farmers’ income increasing in double-digits. This has been on the back of timely and active engagement of the government against market manipulators.

A fertiliser dealer said that because of the subsidised rate, the smuggling of fertiliser is going on to Afghanistan. He said after the shortage in the local market, the government has realised the gravity of the situation and is taking measures to stop fertiliser smuggling.

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