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After privatisation and disinvestment of production units under government decision, downsizing of NFML (a marketing company of NFC) commenced. Employees were relieved on voluntary retirement/golden handshake schemes except an infrastructure of 62 kept on role to maintain necessary record and documents.
Furniture equipment gadgetries and allied paraphernalia were either disposed of or being readied to do so. During this period, privatised industry, in alliance with sister manufacturers, raised the fertiliser prices in the market to a record high level. Fertiliser became a precious commodity meant for elites, a nightmare for farmer suffering and an excruciating embarrassment for the government.
As an pre-emption, the government decided to resuscitate NFC/NFML in the general interest of public. To overcome the monopolistic attitude of manufacturers and break their cartel, the government decided to intervene and assigned the TCP to import urea and NFC to market and sell it. Orders to acquire stores all over Pakistan within 3 days were received and successfully implemented.
Six bulk stores were supplemented with 42 temporary stores and about 120 utility stores extended their co-operation to help provide relief to farmers. This all was accomplished in a very limited time on an incredible speed with due efficiency. NFML was once again operational in the market to meet old challenges. Fertiliser availability was ensured in area where private sector was reluctant to deliver due to high transportation cost and low return.
CARTAGE CONTRACTORS To begin afresh tent amounted to incarnating a new life in the body of organisation. It was beginning of new efforts for the survival of downsized organisation in the market saturated with tough competitors. Tenders were invited and qualified transporters were appointed as cartage contractors achieving the lowest freight rates in the market. Eight contractors signed agreement to operate in the field under tough environments.
OPERATION FROM KARACHI Karachi as usual was very busy and active port specifically since Nato forces operation on our west and north-west. Long waiting periods for ships to berth, low discharge and dispatch rates were not compatible to meet high fertiliser demand in the field. In view of peak demand period of Rabi 2008-09 expected bunching of scheduled ships, perhaps operation was not manageable at Karachi port.
To overcome these limitations after arrival of 16 ships at Karachi, the government decided to import impending quantity of urea through Gwadar port. This, besides fulfilling demand of Balochi people for activation of Gwadar Port, helped somewhat in easing the pressure of fertiliser demand for balance Rabi period.
OPERATION AT GWADAR It was a head start for the NFML and a new experience for field stall to operate under new environments. Non-availability of administrative support and high operational demand of dispatches was a race against time. Staff took it as a challenge and put in their best and proved themselves equal to challenge.
By virtue of hard work, record urea dispatch rate of 1400 tons a day was achieved. However, problems, like those of inter-professional rivalries amongst contractors, prevalence of environment of unhealthy competition, illogical demand of locals, irrational rifts among workers, rivalries among vested interests egoists struggling for domination, all cropped up one after another and some simultaneously but were handled with skill and eliminated with acumen without causing any hindrance in continuity of port operation.
Grounding of cargo at port near Eid-ul-Azha and delayed berthing of MV Delphuns, carrying 51,000 M. Tons fertiliser were two major problems the NFML faced. Zeal and enthusiasm of cartage contractors and the NFML staff made new record of dispatching 15,000 tons of Urea a day - a quantity work capacity of port is not compatible with.
Grounding of vessels Delphuns, in fact, had raised a conflict between Singapore Port Authority (SPA) and ship staff, claiming losses caused by mishandling of ship by the port staff. Thanks to the flexibility shown by the captain of the ship, who earlier was adamant to stay back in sea and not to deliver cargo till reimbursement of cost of recovery of his grounded ship by SPA, now amicably berthed the ship and started discharge on the eve of new year day as a "good omen".
HUMAN RESOURCES Company started its operation with depleted strength of 62 persons, but was lacking of requisite infrastructure facilities due to release of 102 persons, including 63 skilled persons, earlier under voluntary retirement scheme.
They were, however, re-selected on merit and inducted to meet the skilled manpower requirement partially. In good old days, the company used to market 15-16,000 tons of fertiliser with 750 strong work team, having diversified field establishment to support distribution and marketing.
This was an unusual incident wherein zealot employees of the company braved the heavy odds and successfully handled distribution of 633,000 M. tons urea during Rabi 2008-09; 652,000 tons during Kharif 2009; and 582,000 M. tons during current Rabi 2009-10 season (till 14th January 2010), in every nook and corner of the country to fill the fertiliser shortage and thwart the over-looming threat of food shortfall. Credit of bumper wheat crop in Rabi and that of rice in Kharif, undoubtedly, has worthwhile element of contribution of NFC/NFML.
QUANTUM OF WORK Long working hours and high output of people in the field were unparalleled tasks in the history of the organisation's commitment. During month of June 2009, more than 74,000 demand drafts received in the head office account branch, were handled and processed by just a two persons.
One can well imagine the volume of work and quantum of stock delivered against these drafts. It was an astonishing performance of employees at stores - just two of them managing a store. Apart from sale and distribution, work of allied staff, including accounts representatives, too was appreciable.
Scene at each store was like a place under open public attack. Store Incharges faced MPAs, MNAs and local authorities bullying. Wrath of general public and annoyance of shortage victim farmers were to high to bear. A few were physically lifted from stores, their life threatened and later released, while others were dragged, boxed on and locked in stores. Incidents of sheltering of stores staff in local police lock-up for their lives are unique events in the history of marketing.
FINANCES Urea import from abroad costs about Rs 1500 per 50-kg bag. The government has sold it for Rs 630 to Rs 750. Balance amount, apart from bearing the cost of handling and transportation was subsidised by the government. Under the situation of financial crunch in the country, the government has also borne a high freight cost for lifting fertiliser from Gwadar to upcountry @ Rs 200 per bag on average.
Freight cost increases attributed to shift of terminus, from Karachi to Gwadar, though has its own pains in, but it has its own pleasure in terms of benefits to general public of Balochistan under abject poverty. Estimate for maintenance of bulk stores is about Rs 14,150,000 to keep their storability, serviceability and shape in tact after abandoning once.
Budget provisions have been made to do the needful indicative determination of government to maintain fertiliser supply to farmers against shortage, though very dear, but inevitable, may be as an atonement to previous negligence.
HANDLING STORAGE AND SALE Handle stores and sell such a large quantity of fertiliser on such a long line of communication, to during crisis ridden era, was a colossal task. One lac or more tonnage in transit needs a handling skill to reckon with. Storing of 150,000 tons in stores as a strategic reserves along with the sale is another demanding task.
A total of 380,000 tons of sales from stores during peak sale month of December 2009, without any stock shortage at supply points is a hallmark in success. Lifting of 143,000 tons grounded cargo under low supply tempo of transport at the port, was no less than a miraculous performance against a formidable task. Cost on sale of goods is not avoidable, but losses under wastage head has been incredulously minimal rather negligible against volume of the project undertaken.
DEALERS NETWORK After March 2009, bitter direct sale experience forced the government to review the policy and restart the fertiliser distribution by NFC/NFML through dealers' network. A network of fresh dealers, including some old ones, was re-established. This infers to the government resolve to extend its reach to ease the farmer excess to fertiliser.
New procedure eased the farmers, but the job of storage incharge became more complicated. Move of transport to more than 900 agents all over Pakistan was an arduous task. Anyhow, establishing dealer network with in very short time and space frame, added another feather to the cap of government.
Dealer network opened a new vista of additional business opportunities for business community. Hundreds were engaged on to perform major and minor work. Besides, activation of Gwadar port provided an opportunity of earning livelihood to local Balochs.
In transportation from port to upcountry, which is a business of large mechanical cargo fleet and heavy investment of big money, Baloch transporters with small vehicles and meagre resources were provided a special opportunity of transportation to the upcountry.
UREA A WHITE GOLD In the population versus food race, urea goes to soil to spur plant growth and enhance eventual yield as bumper crop. This would not happen if fertiliser does not reach the right people at a right place at a right time. And for this righteousness, credit goes to the government and organisations involved to accomplish it.
NFC HAS CONTRIBUTED IN:
-- In supply of fertiliser to make up shortfall and stabilise prices in market. Achieving lowest per ton transportation rates.
-- Employment of hundreds of employees providing the opportunities to earn livelihood.
-- Dealers and store owners additional income by providing them business opportunity.
-- Establishing dealers' network which eased farmers access to fertiliser and provided additional income opportunity to dealers and allied labour.
-- Gwadar Port activation has proved a boon to locals specially to Baloch transporters.
-- It is not a sardonic boost but reality that in fact an excellent work has been done by NFC/NFML to accomplish the assigned task.

Copyright Business Recorder, 2010

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