In a bid to foil hoarding by the local manufacturers and dealers, the Economic Co-ordination Committee (ECC) of the Cabinet has fixed price of imported urea for the growers at Rs 450 per bag. The first vessel carrying 15000 tonnes urea arrived at the Karachi port on Saturday last, and landed cost of a bag of urea is being estimated at Rs 1300.
The differential on imported and locally made urea price that ranges between Rs 800 and 850 a bag will be borne by the government, reliable sources told Business Recorder on Monday.
The ministry of food and agriculture had informed the Committee that local manufacturers and dealers were hoarding huge stock of urea deliberately to take advantage of its high rates in the international market.
The local manufacturers and dealers believed that high import cost of urea would ultimately push-up the prices.
Sources said the Minfal officials had suggested to the ECC that it should provide imported urea to the growers at the fixed rate of Rs 450 per bag to foil the manufacturers and dealers bid.
The Committee accepted the proposal and directed the concerned authorities to take all possible steps to ensure that sufficient stock of urea remain available to the growers during peak months of the Rabi season.
Sources said the Minfal also informed the ECC that it was apprehending artificial shortage of urea in December 2004 and January 2005.
It may be noted that the government had ordered the TCP to import 170,000 tons of urea to ensure its smooth supply to the farming community during Rabi season.
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