The farming community of Pakistan is still facing issues related to the availability of urea, claiming that the situation is worsening with each passing day. The delay in the distribution of imported urea is creating further chaos among them.
Addressing a press conference on Tuesday, President of Pakistan Kissan Ittehad, Khalid Mahmood Khokhar expressed grave concerns regarding the delayed distribution of imported urea to farmers.
Reiterating that 150,000 MT of imported urea has already arrived in the country, he underscored the impediments in its distribution arising from a delayed decision by the federal government. He pointed out that the wheat crop needs immediate application of urea; otherwise, seed setting and grain formation will be adversely hampered, impacting the per-acre yield of the crop and the profitability of the farmers.
He highlighted that, following the Economic Coordination Committee’s decision, a substantial quantity of around 150,000 metric tonnes of urea has been successfully imported into the country. However, it is a disheartening paradox that farmers are being deprived of its benefits due to unnecessary delays in the timely distribution of the product to the field. This delay is poised to exert far-reaching consequences, casting a negative shadow on the anticipated productivity targets for not only wheat but also other crucial Rabi crops.
He pointed out that the government is mulling over increasing urea prices over Rs5000/bag. He feared that this decision will seriously impact the entire agriculture sector. He urged the relevant authorities to ensure the availability of urea at the current MRP prices set by the manufacturing industry to maintain an affordable cost of crop production.
He highlighted that during last year, the wheat support price was Rs3900/maund, and the support price has been maintained at the same level for 2023-24, whereas the urea per bag price during the same period has doubled. This unprecedented increase in urea price is solely because of an imbalance in demand and supply. Resultantly, the cost of crop production has significantly increased for the farmers.
Read DAP fertiliser sales surge 31%, urea stagnates
"This unprecedented spike in urea price has rendered the farming business economically unviable. On the other hand, farmers booked heavy losses in cotton crops as they sold their produce at Rs6500 per maund vs the indicative price of Rs8500 per maund by the government," Khokhar claimed.
This disgruntled the cotton growers, especially of Punjab, contributing to around 70% of national cotton productivity. Resultantly, they stopped investing in standing crops due to a 24% drop in raw cotton prices, hence cotton bales production in Punjab reduced to 50%, i.e., 4 million bales vs the target of 8 million, he added.
Similarly, prices of maize also crashed substantially, i.e., a 35% decline in the price of produce was observed during a single cropping season. He reiterated that, considering the current costs of crop production and commodity prices, rationally, urea prices should not exceed the current MRP prices set by the industry.
Khokhar highlighted that agriculture is the sole hope to ensure food security and economic prosperity for the country. He urged that agriculture should be given due priority to make it a viable proposition for the farming community.
Published in The Express Tribune, January 26th, 2024.
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