Imported fertilizer for Rabi season: Subsidy to be borne by provinces

ISLAMABAD: The subsidy on imported fertiliser for Rabi season will be borne by provinces as per recommendations finalised by the Ministry of Industries & Production after coordinating with the Ministries of Finance, Petroleum and National Food and Security.

Sources said the Ministry of Industries and Production has informed the Economic Coordination Committee (ECC) of the Cabinet for extension in operations of SNGPL-based fertiliser plants beyond 15th October 2023 to 31st March 2024, as well as, import of 200 metric tonnes of urea fertiliser and provision of maximum gas volume pressure to Fauji Fertiliser Bin Qasim (FFBL).

The summary was considered by the ECC in its meeting dated 03 October 2023; however, decision on it was still awaited. Therefore, the ministry approached the Prime Minister’s Office for the decision in this regard.

Import of 200,000 MT of urea fertiliser allowed: ECC approves increase in gas tariff

The Prime Minister’s Office directed that due to the seriousness and urgency of the matter, the summary to be placed before the ECC for its consideration, at priority, and it may be reviewed by the prime minister on the 24th October 2023.

The ECC meeting was further informed that a meeting on the same matter was also chaired by the finance minister on 22nd October 2023, wherein, the Ministry of Industries and Production was directed to coordinate a meeting with finance, petroleum and national food security and research and submit viable recommendations to the ECC for meeting the demand of urea fertilizer for the Rabi season 2023-24.

On 23rd October 2023, a meeting in this regard was convened, wherein, after detailed deliberations, recommendations have been finalised, which included (i) uninterrupted gas supply to all fertiliser plants (SNGPL-based plants and FFBL);(ii) Petroleum Division to firm up the proposal on uniform gas pricing with either on full RLNG or blend and submit a summary to the ECC afterwards; (iii) immediate import 200 to 500 KMT urea; (iv) subsidy on imported fertiliser to be borne by provinces; (v) a federal committee be constituted by the ECC to get justification from manufacturers on increase in minimum retail price (MRP) over time; (vi) Finance Division suggested that due to the absence/ depletion of system, gas RLNG may be supplied to Fatima Fertiliser (Sheikhupura) and Agri-tech in the short term at the OGRA’s prescribed price and differential on account of provision of RLNG to SNGPL-based plants may be built in the revenue requirements of SNGPL and may be recovered from other consumers.

Copyright Business Recorder, 2023