Fertiliser manufacturers criticised

Chairman Pakistan Cotton Forum (PCF), Seth Muhammad Akbar has strongly criticised fertiliser manufacturers for fleecing cotton farmers on the pretext of gas shortage. The chairman PCF said that the fertiliser manufacturers have increased fertiliser prices and are also blackmailing cotton farmers on the pretext of gas shortage.
The fertiliser sector is the second largest gas consumer after power sector in the country, he added. He said that PCF pointed out that the Gas Load Management Programme (GLMP) has affected gas supply of only four fertiliser plants with total consumption of 240MMCFD, 20 percent of total 600MMCFD gas supply to fertiliser sector. He said loadshedding in fertiliser sector is actually affecting only 8 percent of total production therefore rising prices by 50 percent on this pretext is completely irrational.
The fertiliser price has reached Rs 1360 per bag in July 2011 from Rs 900 per bag in corresponding period, he said, adding that the fact of the matter is that the fertiliser is being made available in black-market at Rs 2000 per bag. The fertiliser manufacturers have secured fattening net profits swelling up to 80 percent in first quarter 2011, he added.
He said it is irony that the fertiliser manufacturers were counting closure of units for annual maintenance under the head of GLMP, which is totally unfair. Interestingly, he pointed out that the fertiliser manufacturers were increasing prices abnormally in a situation when fertiliser sector is already benefiting from huge cross subsidy at the cost of other sectors of economy including export-oriented textile industry. The fertiliser manufacturers were not only fleecing the cotton farmers but other sectors of economy as well, he added.
The chairman PCF also said that fertiliser (urea) production has registered dramatic growth of 23 percent in May 2011 against last year therefore the industry's stance of production loss due to short supply of gas is out of place. Also, he added, the area under cultivation has not increased in agriculture sector that again proves that the fertiliser industry should not be short of production in any case.
Akbar said gas prices for fertiliser industry vary from Rs 60/MMBTU to Rs 100/MMBTU against an average cost of Rs 400/MMBTU for other consumers of gas. The chairman PCF has urged the government to intervene immediately to help cotton farmers.