Urea producers on Saturday announced a raise in the price of urea, an essential crop nutrient, by Rs 20 per 50 kg bag across the country due to rising cost of production, followed by gas and power prices hike, market source said. They said almost all urea producers have announced an increase of some 3 percent in the prices to pass on the current price hike in the utility tariff.
"Some six local urea producers unanimously have increased the urea price by Rs 20 per 50 kg with the aim to rationalise their cost of production after increase in power and gas prices," sources said, and added that with current surge official urea price in the domestic market has reached Rs 770 per 50 kg bag from Rs 750.
"We are compelled to increase the price of urea after the increase in power and gas tariff by the government," said a urea producer. He said that urea-producing companies have just passed on the burden of increase in tariff and in the future if the government raised the tariff it would be definitely transferred to the consumers.
The first stage of Rabi season's crop has almost started, in which farmers need huge quantity of urea for a better crop. Urea shortage and its high price is a very serious issue, which requires serious attention of the government to increase the supply, besides action against the hoarders and market manipulators, they added.
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