ECC to consider urea import of 1.2 million tons

ISLAMABAD: Among several other issues, the Economic Coordination Committee of the Cabinet (ECC) would consider a summary for the import of urea to cater to the increasing demand of the fertilizer during the Rabi season.

The Ministry of Industries has prepared a detailed summary and submitted to ECC for approval, recommending import of 0.7 to 1.2 million tons of urea, said an official of the ministry.

The official said that the import order has been prepared keeping in view of increasing demand and low local production.

The official said that owing to the low gas supply to the fertilizer plants, urea production is likely to go down in winter season.

However, he added that the demand would be met with imports of urea fertilizers for which the ministry has prepared the comprehensive summary.

The Economic Coordination Committee is scheduled to meet here on Wednesday October 12.

Meanwhile, an official of National Fertilizer Development Corporation (NFDC) told APP that import of 0.8 million tons of urea would be required to cater to the increasing demand of the fertilizer during the Rabi season this year.

The timely import of urea would help to ensure increased wheat crop production this year, the official said adding that otherwise lack of fertilizer would definitely result in less production by about 10 percent.

"The wheat production could decline by 1.2 million tons worth Rs28 billion if adequate fertilizer is not provided," he said and maintained that import of 0.8 million tons of the fertilizer would be required for the season to prevent the losses.

The official said that production of other crops including sugar cane, potatoes could also be affected if urea is not provided timely.

He said that out of the total 0.8 million imports, 80 percent would be required for wheat crop in rabi season while 20 per cent for other crops.

He said that the government plans to import 65,000 tons during the month of October 2011 through Trading Corporation of Pakistan (TCP).

He said that the process for importing urea during next month (November) is yet to be finalized.

The official said that the urea demand has increased because the local units of fertilizer industry were not operating at full capacity owing to non-availability of gas supply.

Reportedly, the urea shortage is imminent as major fertilizer plants have reduced production due to gas shortage.

Copyright APP (Associated Press of Pakistan), 2011