Government mismanagement in the gas sector has continued to support fertiliser companies that have a free hand in determining fertiliser prices. Fertiliser companies cite gas shortage for price increase while farmers say high prices, little or non-availability of urea have been affecting Rabi crops this year.
Sindh Abaadkar Board President Abdul Majid Nizamani said that urea shortage is affecting the sowing season of Rabi which had started from October 1, while the rising price is also a headache, making it difficult for farmers to cope with the situation.
Urea prices have already touched Rs1,800 per 50 kg bag and are expected to go up further after the price increase of other urea companies on Tuesday, he said.
“What farmers want is availability of urea at stable prices. The ground reality is that there is little or non-availability of urea, while prices are continuously increasing not only in Sindh but also in Punjab,” Nizamani said.
It’s the government’s weakness because urea prices are not in its control neither has it tried to improve urea availability in different parts of country, he said.
Invest Capital Market Analyst Asad Siddiqui said there is little to expect from the Competition Commission of Pakistan (CCP) because of the ongoing gas load management in the country.
It is clear that urea shortage will grow in December and January because of the non-availability of gas in winter – a basic raw material in fertiliser manufacturing.
Published in The Express Tribune, October 12th, 2011.
COMMENTS (4)
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FFC and FFCL increasing prices without any reason.They both are getting uninterrupted gas supply from Marri which is also serving Engro.
The plants on SNGPL; Pakarab, Dawood Hercules and Agritech got a jam to their gas supples. Engro's new plant is on Qadirpur which got a hit too.
At the same time government is providing them with discounted gas rates and the companies every time increase prices when ever there is a gas cut. If the 4 latter companies are increasing prices due to gas cut, then why did the 1st two did?
Why dont they reduce price when they are supplied gas with ful pressure.
Any eye opener for the govt and the authorities????????????
Blame the government for cutting gas supply every now and then. Fertilizer makers have no other option but to increase the prices. They have to import urea from abroad to meet farmers demand.
playing with poison.