Fertiliser demand-supply situation reviewed

Meeting, chaired by Asad Umar, sees no reason for price hike

ISLAMABAD: Federal Minister for Planning, Development and Special Initiatives Asad Umar chaired a meeting on Friday to review the demand and supply situation of fertiliser in the country.

The meeting was informed that sufficient stocks of urea and di-ammonium phosphate (DAP) were available and there was no shortage of commodities in the market.

It was noted that fake news was being spread regarding the likelihood of increase in urea prices. It was observed that there was no reason for any hike in prices and the speculation was being made by vested interests.

Ministry, fertiliser industry discuss urea price reduction

The minister stated that the government was planning to take measures to further reduce fertiliser prices in the days to come.

Umar gave directives that all the relevant departments should keep a close watch on the demand and supply situation and the prices of products to prevent price manipulation.

It was reported earlier that the Oil and Gas Regulatory Authority (Ogra) was seeking a nearly 214% hike in gas prices. In this regard, the regulator has sent a summary to the federal government which, if approved, will come into effect from January 2020.

According to a fertiliser industry official, if the recommendation is approved, it will increase the burden on all industrial sectors and consumers of the country. The proposed hike in gas prices may even trigger an increase in urea prices.

If the prime minister approves the proposal, it will push up urea prices by Rs600-700 per bag, according to market sources.

"With demand for phosphorous-based fertilisers largely catered to by the local players, any increase in gas prices will cause a surge in prices of DAP and other fertilisers as well," said the industry official.

Published in The Express Tribune, December 21^st, 2019.

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