With severe shortage of urea in the domestic market, the government will have to import 0.3 million tons of the fertiliser before September in addition to 0.125 million tons for which deal is in the pipeline.
Well-placed sources told Business Recorder here on Thursday that despite tall claims by the government about the import of 0.125 million tons urea by July 22, only 25,000 tons has reached Karachi Port that is not sufficient to overcome the shortage of urea in domestic market while it is being anticipated that the government would have to import additional 0.3 million tons urea in September otherwise the production of the major Kharif crops can face a low production leading to the widening of trade deficit in 2011-12.
Sources said, "In the domestic market, the price of urea has increased to Rs 1600 per bag while before the shortage, the commodity was being sold at Rs 1250/50 kg. The government has lost its control on hoarders that is encouraging them to increase their profit manifold".
Sources told this scribe that in 2010-11, the closing stock of urea till the end of Kharif (September 30) was 0.8 million tons but even then the government had to import 0.130million tons in March-April 2011, however now it forecast that till the end of Kharif, the closing stock would be 'zero'. "Imagine, how much amount of urea the government would have to import for Rabi", they added.
Sources said that within the next few days, the government may decide to establish 'Research & Development and Food Security' departments at Ministry of Food, and Agriculture (Minfa) and the officials who are working in Minfa, may be shifted to the new departments.
Ibrahim Mughal, Chairman Agri-forum told Business Recorder that there are two main factors that can contribute to the less production of the major Kharif crops cotton, sugarcane and rice. The factors include; non-availability of fertiliser at appropriate time and shortage of pesticides in the local market due to dearness.
"There are three; one international and two local pesticides manufacturing companies who have created monopoly in the market and are selling their product at a price three times more than the original price of the pesticides. " The farmers have to spray five-six times on the crop and per-acre cost of pesticides' spray has reached 9000-10000 rupees instead of Rs 5000-6000 ast season", Ibrahim informed.
He said that in 2011-12, the country's trade deficit can increase to $20 billion, if these major crops failed to bring the desired results due to ill-planned government policies.
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