Import of urea from China allowed on G2G basis

ISLAMABAD: In order to address the shortage of urea in Rabi Season 2021-22, a meeting of the Economic Coordination Committee (ECC) of the Cabinet has allowed the import of 50,000 metric tons of urea from China on a government-to-government (G2G) basis after both bidders submitted regret letters.

Sources said a summary was submitted by the Ministry of Industries and Production to the ECC for import of urea to address the shortage of urea fertiliser during Rabi Season 2021-22, contending that import of 100,000 metric ton of urea was allowed earlier and subsequently, the Trading Corporation of Pakistan (TCP) opened a tender on November 22nd, 2021 but both the bidders submitted regret letters.

The Ministry of Industries and Production has informed the meeting that Chinese supplier, (Chinese National Agricultural Means of Production Group Company Holding Limited) has offered 50,000 metric ton of granular urea in bulk for shipment by February 10, 2022 at the rate of US$ 556 (FOB) and US$ 606 (CFR Karachi) per metric ton.

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The supplier also offered another shipment of 50,000 metric ton of prilled urea in bulk for shipment by March 5, 2022 at the rate of US$ 548 (FOB) per metric ton (PMT) and at the rate of USS 598 (CFR Karachi) per metric ton.

The ministry further stated that, according to the TCP, an offer was also received from China, but that would require and so far no permission is there for acceptance of this offer from Chinese authorities.

The TCP had also approached the Chinese supplier, China National Agricultural Means of Production Group Company (CNAMPGC), which is a state-owned company and is authorised by the Chinese government to supply urea to Pakistan but the urea being supplied by them is slightly different from the specifications of the PSQCA.

The Ministry of Science and Technology was requested to contact Chinese supplier (Chinese National Agricultural Means of Production Group Company Holding Limited) to share the quality and availability of urea on an emergency basis for supply to Pakistan on government-to-government (G2G) basis.

As urea available with the Chinese company is slightly different from specifications set by the PSQCA in Pakistan, the TCP approached the Ministry of National Food, Security and Research for indicting whether the quality of urea from China is acceptable for use in the domestic crops.

ECC approves import of 50,000MT of urea from China

The Ministry of NFS&R informed that subject specs from China have a minor deviation from standard specifications/requirements and stated that the TCP to approach the PSQCA and the provincial authorities for viewpoints/comments before placing any order of import to prevent any loss to the national exchequer.

The ECC was told that Chinese supplier has offered 50,000 metric ton of granular urea in bulk for shipment by February 10, 2022 at the rate of US$ 556 (FOB) and US$ 606 (CFR Karachi) per metric ton.

They have also offered another shipment of 50,000 metric ton of prilled urea in bulk for shipment by March 5, 2022 at the rate of US$ 548(FOB) PMT and at the rate of USS 598 (CFR Karachi) per metric ton, Ministry of Industries and Production requested the ECC allow import of 50,000 metric ton of urea on government-to-government basis from China on an immediate basis subject to the clearance from the PSQCA and further allow the TCP to negotiate price with Chinese supplier authorised by the government of China for further import of 100,000 metric tons of granular urea.

Copyright Business Recorder, 2022