Fertilizer industry fulling domestic demand, said FMPAC

by index360

ISLAMABAD: Fertilizer industry has sold 5.1 million metric tons in in the first ten months of 2021 as compared to 4.6 million metric tons in ten months of 2020, fulfilling the increasing domestic demand by suppling 10% additional urea as compared to last year, said Fertilizer Manufacturers of Pakistan Advisory Council on Tuesday.

In a statement they said that the fertilizer industry of Pakistan is providing urea at 83% discounted price which is equivalent to Rs8,500 per bag as compared to the international prices enabled by the Fertilizer Policy 2001.

Executive Director FMPAC, a representative body of the fertilizer manufacturers in Pakistan, Sher Shah Malik said the local fertilizer industry continued to ensure adequate and affordable supply of urea.

However, an unprecedented level of discount to international prices has led to market manipulation and significant black marketing by middlemen/dealers. “The urea industry retail price is currently at Rs1,768/bag, farmers are being sold urea in excess of Rs2,000/bag in various parts of the country as a result of abnormal gains being pocketed by dealers”, he added.

“The perception of shortage of urea in the market is not grounded in reality as the fertilizer industry has already sold over 5 million metric tons in the first ten months of the year which is highest ever sold quantity of urea during the last ten years”.

Furthermore, with continued operation of RLNG plants and adequate inventory levels, the fertilizer industry will be able to meet the full year demand of 6.3 million metric ton urea which will be a record high in the decade on the back of improved farm economics.

It is worth mention here the government of Pakistan has recently issued an import tender of 100000 ton urea while C&F prices are in the range of $900-$1,000 per ton.

The FMPAC said imports of urea would have led to significant depletion of foreign exchange reserves and a sharp rise in current account deficit. Had the local industry not played its role in ensuring adequate and affordable urea, FMPAC questioned. 

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