Delayed import decision led to urea shortage: Solangi

Farmers say despite imports, country might still face shortfall of 0.6 million tonnes

LAHORE:

In response to the ongoing shortage of fertiliser in Pakistan, Minister for Information, Broadcasting, and Parliamentary Affairs, Murtaza Solangi, highlighted that the delay in the cabinet’s decision to import fertiliser contributed to the current scarcity. He informed the Senate on Friday that the government has recently imported around 220,000 tonnes of urea to alleviate the shortage and stabilise prices.

Solangi assured the Senate members that the imported urea would help reduce the scarcity and impact the commodity’s pricing positively. He underscored the availability of ample stock in the country to meet local demands. However, farmer lobbies suggest that despite fresh imports, the country might still face a shortfall of 0.6 million tonnes, as the domestic urea production in 2023 reached only 6.4 million tonnes against an annual demand of 7 million tonnes.

The minister shared projections for the Rabi season, indicating that urea supply was estimated to be 3.5 million tonnes, with an initial balance of 770,000 tonnes and local production of 3.28 million tonnes. He acknowledged challenges, including the closure of two urea fertiliser plants and reduced gas availability for Fauji Fertiliser, contributing to a shortfall of 1.8 million tonnes in urea production.

Read Sindh govt imports urea worth Rs4.5b

Urea shortages in Pakistan have become routine, leading to increased prices and difficulties for farmers. Middlemen are blamed for creating artificial shortages, charging farmers above prescribed maximum retail prices. Farmers demand that urea prices remain reasonable, not exceeding Rs3000 per bag, to make farming economically viable.

Solangi acknowledged the artificial scarcity and accused hoarders and speculators of attempting to create shortages. Governments at federal and provincial levels are taking action against such culprits, with fines imposed on hoarders. Despite these measures and recent urea imports, the minister acknowledged the need for additional imports to stabilise prices and ensure uniform pricing nationwide.

While Solangi stated that urea is currently available at Rs4,451 per bag, farmers argue that Rs3000 per bag is a reasonable price for sustainable farming. They advocate for additional imports as a buffer stock to stabilise prices and deter middlemen from exploiting price differentials, ensuring food security in Pakistan.

Published in The Express Tribune, January 6^th, 2024.

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