Fertiliser industry has opposes ministry of industries' proposal to import 0.6 million tons as they believed that sufficient stocks will be available in the domestic market for Kharif season. For the first time in the history of Pakistan, urea inventory will cross one million mark end of April 2012.
The further import of urea is on the cards as the ministry of industries has proposed government to import an additional quantity of 0.6 million tons to avoid any shortage in the local market during Kahrif crop season. While, the industry sources believed that there will be no shortage of commodity in the domestic market and sufficient urea socks will be available in the market.
Sources in fertiliser sector told Business Recorder on Wednesday that urea import proposal was unjustified at that time, when gas to the all fertiliser plants had restored and they had started production. According to industry statistics, during the current Kahrif season not only sufficient but also surplus urea stocks, included local production and opening inventory, will be available in the market to meet the growers demand during next five months.
Opening inventory as on April, 2012 is stood 0.85 million tons of urea stocks. During the Kharif season (April-September) a production of some 2.53 million tons has estimated by the industry, as a result some 3.38 million tons of urea will be available for domestic consumption as against the demand of 3.1 million tons. "We are confident that despite gas curtailment, domestic industry will produce about 2.53 million tons of urea during the current Kharif season", they added.
They said that at the end of first month of Kharif, for the first time in history the country, will have a record inventory of over one million tons of urea, comprising an opening inventory of 0.85 million and domestic production of 0.412 million tons, as against expected sales of 0.3 million tons.
With opening inventory of about one million tons, local production and sales stood at 0.394 million tons and 0.5 million tons in May 2012. While, during June local production has estimated 0.446 million tons as compared to 0.6 million tons expected sales with an opening inventory of 0.9 million tons. In July this year, urea sales have estimated 0.7 million tons and production 0.382 million along with 0.744 million opening inventory. During August and September Urea production has estimated 0.450 million tons and 0.446 million tons respectively as against expected sales of 0.6 million tons and 0.4 million tons.
Sources said that currently urea prices in the world market are at higher side and any mismanagement and urgent buying can emerge in billion of rupees losses to the national exchequer. Urea prices are veering $460-470 per ton in the international market, while Trading Corporation of Pakistan had finalised last deal at $431 per ton in January this year. Government needs around 270-280 million dollars for the import of urea for Kharif season, they added.
While, after importing a huge subsidy on the imported have to also pay by the government to sell imported and expansive urea at reasonable rates. Imported urea will cost around Rs 2250 per 50kg bag as against the government's price of Rs 1,600 per ton and domestic produce urea price of Rs 1700 per ton. The government has already spent over Rs 50 billion on urea subsidy during the last one year aimed to provide cheap urea to the growers. It may be mentioned here that following the directives of federal government, TCP is already engaged to import urea to meet domestic demand as during the Rabi season local production of urea was on decline because of gas curtail to the fertiliser sector.
Comments
Comments are closed.