The government is confronting urea fertiliser shortage of about 0.3 million tonnes for the current Rabi season 2008-09, a senior government official disclosed here on Tuesday. Such a huge shortage of urea would badly affect the government in achieving higher wheat production target of 25 million tonnes in the current season.
Total requirement of urea fertiliser for the entire Rabi season 2008-09 (October to April) is 2.35 million tonnes. The urea fertiliser stock position on October 2008 is 72,000 tonnes and the expected local production of the product (from October 08 to January 09) is 1.617 million tonnes. The data shows total shortfall of urea fertiliser for the entire season is 0.661 million tonnes.
However, there is expectation that the import of about 0.3 million tonnes would be held in this month (November 08) with a cost of $100 million, which would help the government to reduce the shortfall to above 0.3 million tonnes. In order to meet the expected urea fertiliser shortfall of about 0.3 million tonnes, the officials said the government is considering import of urea fertiliser from China by an amount of $200 million.
A summary has been prepared for Prime Minister, Yousaf Raza Gilani, to approve the same amount for urea fertilisers import from China. Negotiations were already in progress between Pakistan and China and in this regard Additional Secretary-II Ministry of Food and Agriculture held a meeting with Chinese Economic and Commercial Counsellor, Zhou a few days ago.
Both the leaders discussed in detail the import of urea fertiliser from China, the modalities including price mechanism, the freight and other requirements. The officials of China told the ministry official that the matters would be discussed in Beijing. The counsellor expressed willingness to import vegetable and other agricultural productions from Pakistan.
The ministry sources further told that bidding for import of urea fertiliser from Saudi Arabia worth $100 million would be held on 15th of this month. However, officials further said that the availability of other types of fertilisers like DAP, TSP/MAP and SOP/MOP were comfortable and their availability was more than its demand.
The officials further said that the government had sufficient quantity of urea fertiliser before starting of the current season, but when the price of urea started rising in the international market and reached to about $800 per tonne while in local market, the price was below $200 per tonne, smuggling of the commodity started followed by hoarding at the hand of local dealers. Another senior official of the ministry said that the government had not imported sufficient quantity of urea due to financial constraints.
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