ISLAMABAD: The new government declared on Monday that it will follow over the PTI predecessor’s observations and import 200,000 tonnes of urea as buffer stocks before peak Kharif demand in June.
The fertilizer review committee resolved to send the summary of urea imports to the Economic Coordination Committee, which was led by Federal Minister for Industries and Production Makhdoom Syed Murtaza Mahmud.
The meeting was told that the country has an adequate supply of urea. The group examined domestic fertilizer output and demand for the Kharif season.
The participants were informed that domestic urea production is expected to be 3.2 million tonnes from April to September 2022, while urea offtake is expected to be 3.4 million tonnes over the same time.
The meeting was also informed that agronomic demand for fertilizers will grow by 2% this year. Urea sales increased by 17 pc last year, according to the report.
The body decided to take strict measures in cooperation with law enforcement agencies, the Federal Board of Revenue, and the Ministry of Interior to thwart cross-border urea trafficking to curb hoarding and profiteering that leads to urea smuggling across the border due to the high price differential.
Mr. Mahmud stated that the government has made arrangements to provide a continuous, adequate, and timely delivery of key soil nutrients to farmers throughout the Kharif season, and those appropriate choices would be made.
The meeting noted that the price of urea had recently increased from Rs1,768 per bag to Rs1,933 per bag, but fertilizer industry officials responded that the price increase was due to the financial cost of holding inventory and the pending payment of subsidies and refunds from the government exchequer.