Turf wars: Local urea sales decline 63%

Overall sales of urea including local and imported fell 38% to around 300,000 tons in April 2012.

KARACHI:

Locally manufactured urea sales fell by 63% to approximately 140,000 to 160,000 tons in April amid heavy reliance on foreign fertiliser as the government is unable to provide gas to local manufacturers, according to a Topline Securities research note issued on Friday.

Overall sales of urea – the most widely used fertiliser – including local and imported fell 38% to around 300,000 tons in April 2012. Local fertiliser manufacturers came second best to their imported counterparts during the period under review as price of imported fertiliser stood much lower due to partial payment made by the government for them in the form of subsidies. It is estimated that the government has sufficient imported urea stock of around 150,000 tons which would be available to the farmers at subsidised rate.

Published in The Express Tribune, May 5^th, 2012.