They say the gap between urea production and consumption has
widened, raising fears of nitrogenous fertilizer shortage up to 500,000 tons
during Rabi season, especially between the critical period of October 2023 and
March 2024, when wheat and other crops are sown.
The market has also begun to see price distortions, the industry
is providing urea as usual but the middlemen are selling it at higher rate.
Farmers are being fleeced by middlemen, who are charging a
premium up to PKR1,000 per bag above the retail price.
According to the National Fertilizer Development Center
(NFDC) projections, total urea availability as of October 01, 2023, is expected
to be only 69,000 tons, compared to 294,000 tons during the same period last
year. During the last Rabi season, around 300,000 tons of urea was imported,
but no plan has been set by the government to meet the critical requirement of
farm nutrients for this season.
Some groups are asking the government to immediately import
at least 500,000 tons urea and ensure its arrival in November 2023 to avoid a
shortage and also ensure uninterrupted supply at full capacity keep the plants operating
simultaneously.
Every year around this time Pakistan is forced to import
urea. However, this year the government should continue gas supply to the
fertilizer plants as the gas prices are attractive level in the international
market.
For those, who may not be aware, Pakistan has an installed
capacity to produce 7 million tons urea, but the manufacturers produce 6
million tons.
There is also the responsibility of the ruling junta to also
take concrete steps to stop the smuggling of fertilizer through the Western
borders.
