Urea shortage may slash wheat output by 30%

Fertiliser being sold at Rs2,100 against actual price of Rs1,600 per bag.

FAISALABAD:

Farmers have expressed fears that wheat production may fall by 30 per cent because of continuous hike in urea prices, which has kept an important input out of their reach.

Against the actual price of Rs1,603, a urea bag of 50kg was available at Rs2,100 to Rs2,200 in the black market, complained farmers.

“Prices of urea, electricity, fuel, pesticides and seeds increase many times every year, making them unaffordable for the farmers,” said Arshad Mahmood, a farmer. Wheat sowing has already started and farmers were facing difficulties in purchasing urea, he said, adding they were worried that high urea prices would reduce their margins.

They apprehended that prices may increase up to Rs2,400 per 50kg bag by next week. “Black marketing and over-charging have become a routine and the government seems to have failed to address the problem,” a farmer said.

“Suspension of gas supply to fertiliser plants has caused shortages, pushed prices up and encouraged black marketing,” said Hameed Ahmad, District Officer Agriculture Department Faisalabad while talking to The Express Tribune.

However, he said if Sui Northern Gas Pipelines Limited (SNGPL) fully restored gas supply to fertiliser plants, urea crisis may be resolved.

Ahmad said urea demand was increasing, resulting in its shortages and in order to bridge the gap the government was importing 700,000 tons of urea. The agriculture department has registered 70 cases of black marketing and over-charging in Faisalabad and monitoring teams were trying to stop the practice, he added.

“Energy crisis is continuing to damage the economy as suspension of gas supply has led to severe urea shortage this Rabi season, badly affecting wheat cultivation,” said Tariq Gill, a grower.

He sought government’s subsidy and cited the example of India where urea price was at a maximum Rs600 per bag.

Last year, urea price stood at Rs1,000 per bag, showing a hike of more than 60 per cent this year. “Farmers usually use two bags of urea per acre and their cost of production will increase compared to last year,” said Gill.

Published in The Express Tribune, November 20^th, 2011.