Urea prices up by Rs 202 per 50kg bag

The prices of urea has increased by Rs 202 per 50 kg bag due to gas curtailment to fertiliser plants, officials told Business Recorder. According to officials, the federal government has curtailed gas supply to four fertiliser plants namely Engro, Dawood Hercules Fertiliser, Pak Arab Fertiliser and Agri Tech, which were being supplied gas by Sui-Northern Gas Pipeline Company (SNGPL) Limited.
Farmers would face severe shortage of the urea in Rabi season, which would start from October 15, they said. The country would face nearly 1.3 million tons of urea shortage, an official of Punjab Agriculture Department said. At present urea price has registered an increase of Rs 202 per 50 kg bag.
Wheat is the most important crop of the Rabi season in Pakistan, which is cultivated across the country. Last year Pakistan's wheat production was over 25 million tons due to favourable weather conditions and timely provision of necessary inputs including urea, but this year national wheat output would decrease by 2 million tons, Nabi Bux, General Secretary Sindh Chamber of Commerce said.
The shortage of urea would have negative impact on output of sugarcane and sunflower, which are among the most important crops of the country, he added. He said that last year the government provided a number of incentives including provision of free of cost seeds to the farmers of sunflower, which resulted in record production of 1.2 million tons.
If the federal government did not ensure timely import of urea the price of the commodity would cross Rs 2000, he said adding that the federal government has neglected the agriculture sector by curtailing gas provision to fertiliser plants. Recent devastating floods in Sindh province have damaged most of the major crops including cotton, Irri-6 paddy, onions and vegetables, if the issue of urea shortage remained unresolved the country would not be able to register even 3 percent GDP growth, the official warned.
He said that the federal government has projected national GDP growth target for 2011-12 at 4.2 percent and sound agriculture sector's growth is vital for achieving this target.
When this correspondent contacted an official of Pak-Arab fertiliser, he confirmed that urea price have increased by Rs 202 per 50 kg bag a few days ago. The situation would improve by October 30, he said adding that the government has diverted fertiliser industry's gas quota to power sector which would be restored by the end of October. He said local fertiliser production would be around 5 million tons against total demand of 6.3 million and the government would have to make timely arrangements to import urea. The official said that if gas supply to fertiliser plants is restored by the end of the October, local urea production for Rabi would be 0.7 million tons.