Urea arrives to bridge demand-supply gap

Another 72,000 tons to reach soon.

KARACHI: The Trading Corporation of Pakistan (TCP) has imported 35,988 tons of urea in order to bridge the gap between demand and supply ahead of the Kharif crop season.

According to TCP, a ship carrying this consignment has berthed at the Port Qasim. Two more vessels – MV Aquilla Voyager carrying 31,000 tons and MV Aifanorou carrying 41,000 tons – are scheduled to reach Karachi on March 1 and 2, respectively.

“These shipments are being received in response to the tender awarded to Gavilion Fertiliser,” said a TCP spokesperson. The US-based firm had secured the contract for the supply of 100,000 tons of urea by offering the lowest rate of $287.89 per ton in an auction held in July 2010.

Another 125,000 tons are expected to arrive from Saudi Arabia in coming days. The imported urea will be distributed among farmers by the National Fertiliser Marketing Limited.

Earlier, the Economic Coordination Committee (ECC) of the cabinet had instructed TCP to import 225,000 tons of urea to cover the shortage caused by a decline in production by local fertiliser plants due to gas load management.

Every fertiliser plant in the country shuts down for 45 days per annum. The Ministry of Industries and Production had sought a reduction in this period to 30 days, but ECC has so far been unable to take a decision on this recommendation.

Published in The Express Tribune, February 27^th, 2011.