The Economic Coordination Committee (ECC) in its meeting today will reportedly discuss a recommendation by the Petroleum ministry to divert gas from the Urea fertilizer manufacturing plants to other sectors.
"If this proposal of the Petroleum ministry is approved by the ECC, then this will have disastrous impact on the agriculture of the country and the farming community and will increase Urea fertilizer price to around Rs 2,000 to 2,200 per bag from the current 1,850 per bag and Rs 1,370 per bag of December 2017," claimed Pakistan Kissan Ittehad (PKI) President Khalid Mahmood Khokhar in a statement issued here on Monday.
He said that the price of Urea in India is equal to PKR 536 per bag. Urea fertilizer is already short in the main Rabi season and farmers are suffering badly due to its shortage. The current wheat crop is already suffering due to lack of Urea for application. Closure of Urea plants due to diversion of gas to other sectors will reduce the production of wheat and Pakistan will be forced to import wheat, he added.
Pakistan Kissan Ittehad strongly protesting the closure of Urea plants and demands that all plants be kept operational throughout 2019. Wheat is the most important food crop which uses more than 50% of the Urea off-take in the country.
Any shortage of Urea fertilizer during current Rabi season will bring disaster not just for the farmers of Pakistan but also food production in the country. In India the price of 50kg Urea bag is INR 268, which is equal to PKR 536 per bag. In Pakistan it is almost 3.5 times higher at Rs 1850 per bag.
In many countries fertilizer is subsidized to allow farmers to produce more crops so the country can prosper. But this is going in opposite direction in Pakistan. Allowing Urea to be sold at higher than maximum retail price and then shutting down plants is negligent towards the farmers of the country. Also, availability of Ammonium Sulphate and Ammonium Nitrate is important. Calcium Ammonium Nitrate plant which is closed should be re-started also.
Pakistan is focusing on exports. But no exports of wheat, cotton or any other crop will take place if the price of Urea fertilizer is not controlled. When Urea and other fertilizer prices were low, Pakistan was able to export wheat and earn foreign exchange. Cotton is an even more important crop for exports. The entire Textile sector will shut down if cotton is not produced in the country. It is important to prioritize subsidy and increased availability for fertilizers. This will allow farmers to produce more cotton and produce raw material for the Textile sector.
Today the cotton crop is in deep trouble due to the fact that the farmer is not making money on the Cotton crop. Gas supply to all Urea plants must continue throughout 2019. The government must also make sure that Urea fertilizer is not black marketed to farmers which is happening today due to its shortage, Khalid Khokhar concluded.
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