Fertiliser manufacturers and dealers raised price of urea by 25 percent within a week. This increase would push up the input cost of Rabi crops, especially wheat, according to sources. Urea fertiliser manufacturers have jacked up the price of urea from Rs 850 to Rs 1040 within one week, which would result in Rs 15 billion financial burden on the growers.
Sources in the Ministry of Food and Agriculture told Business Recorder that last week per 50 kg bag of urea fertiliser was being sold at Rs 850, but in five days the manufacturers increased the price by Rs 190. Sources said farmers have sown wheat on 17.2 million acres of land, adding that 3 bags of urea per acre for wheat crop are required. Sugarcane crop was still standing on around 2.5 million acres where annually per acre urea required is 9 bags. Sources said farmers would also cultivate sunflower crop on over 0.8 million of acres, where per acre urea consumption is around 4 bags.
Pakistan's annual urea fertiliser utilisation is around 3.14 million tons and total availability of the commodity is 3.22 million tons out of which 2.7 million tons is locally produced and the rest is being imported, sources added. Sources said DAP estimated demand is 0.94 million tons and stocks available are around 1.03 million tons out of which 0.315 million tons is local production along with carry forward stock of 0.112 million tons, while the remaining 0.600 million tons will be imported.
Increment in the price of urea fertiliser will have a further negative impact on the production of wheat and sugarcane crop with farmers are already facing energy crises, water shortage and ever-increasing price of other inputs. This, in turn, will lead to a further increase in the price of food and non-food items.
Ibrahim Mughal, Chairman Agri Forum Pakistan commenting on the issue urged the government to immediately withdraw all kind of subsidies on urea, saying that the urea manufactures were not passing on the benefit of the subsidy to farmers. He accused the government of deliberately allowing urea producers to fleece the poor farmers at a time when they have cultivated wheat and other Rabi crops.
The federal government has left the farmers at the mercy of fertiliser manufacturers, who have increased the price of urea by 25 percent within a week, which would increase the input cost of new crops, he added. He said the urea manufacturers would manage to earn Rs 15 billion by increasing the price of the commodity. On a question, he said certain government officials by accepting bribes have allowed the manufacturers to exploit growers, especially in far-flung areas. He urged the government to play its due role in compelling the urea producers to bring down the price of the commodity.