Urea smuggling risk alarms minister

Closing stock at 800,000 tonnes for Kharif as concerns raised over buffer adequacy at peak demand

ISLAMABAD:

Federal Minister for National Food Security Rana Tanveer Hussain chaired a high-level meeting of the Fertiliser Review Committee to review the supply-demand situation of urea and other key fertilisers, with a special focus on the ongoing Rabi season, Kharif 2026 projections and preparedness for Rabi 2026-27, according to a statement issued by the Ministry of National Food Security & Research on Thursday.

The meeting was informed that the urea situation during the Rabi season remained largely stable. The opening inventory stood at approximately 1.15 million tonnes, while domestic production reached around 3.23 million tonnes, bringing total availability to 4.38 million tonnes. Offtake remained steady at 3.56 million tonnes, with no signs of panic buying. The closing stock is estimated at around 800,000 tonnes, which will serve as the opening inventory for the upcoming Kharif season.

However, serious concerns were raised regarding the potential for smuggling along the western border due to a significant price differential between domestic and international markets, with local prices around Rs4,500 per 50kg bag compared with approximately Rs14,000 internationally. The minister emphasised strict vigilance and monitoring to prevent illegal movement and ensure domestic availability.

Looking ahead to Kharif 2026, the meeting reviewed the overall fertiliser supply-demand outlook. The minister directed all stakeholders to take proactive steps to enhance production efficiency and maintain adequate availability, particularly through consistent gas supply to fertiliser plants.

For DAP fertiliser, no imports have been planned for Kharif 2026 due to global uncertainties and logistical challenges. The minister informed participants that the Ministry of Maritime Affairs has been engaged and has agreed to facilitate vessel availability through the Pakistan National Shipping Corporation.