Hike in fertilizer prices disastrous for farmers, food security: PKI

LAHORE: Expressing concern over reports of hikes in Urea prices after the recent government decision to revise gas prices upward, Pakistan Kissan Ittehad (PKI) said any fresh increase in the fertilizer prices will prove totally disastrous for the farmers and the national food security.

“Affordable MRP of urea for farmers should not be more than 3,800 per bag. To create competitiveness, India is providing urea at MRP Rs. 900/bag by investing USD 24 billion/annum as fertilizers’ subsidy. To avoid a huge increase in Urea pricing, alternative plans should be reviewed by the government instead of abnormal gas price increases for the fertilizer industry,” said PKI President Khalid Mahmood Khokhar.

Based on revised gas prices, estimates suggest an increase of around Rs 1,700 per bag. Such a steep price hike is likely to have far-reaching consequences, small farmers constituting 90% of the farming community may not be able to cultivate their lands, and the plight of maize and cotton growers in 2023, who have suffered significant losses due to low prices of their produces, demands the urgent need for effective support measures, Khokhar added.

On the other hand, wheat price during 2022 was Rs, 3,900/40 kg viz-e-viz, per bag urea price of Rs 2,300/bag. However, with the current increase, urea prices will jump up to Rs. 5,500/bag, while there is no change in wheat support price.

Due to such a disproportionate equation between expense and income, farmers may not be able to cultivate their entire piece of land. To make the farming business economically viable, rationally urea price should not be more than Rs. 3,800 per bag.

This urea price hike may ignite the sentiments of farmers and if the government tried to procure wheat at the current support price (Rs. 3,900/40 kg); the situation can lead to protests and civil unrest across the country.

Khalid further said that the farming community, striving to enhance wheat production from the current 34 maunds per acre to 40 maunds per acre; encounters obstacles when essential inputs like urea become scarce or unaffordable.

“Considering the current political situation, we the farmers of Pakistan, humbly request the policymakers to revisit the urea price increase decision in the larger interest of the country and urea price should remain at the affordable limit of Rs 3,800/bag to ensure national food security and economic sustainability of the country”, he concluded.

Copyright Business Recorder, 2024