Ministry of Food and Agriculture and Livestock (Minfal) spokesman said that government has purchased about 0.3 million tons of urea from Saudi Arabia and if the need arises for more, the government would import quickly so that the agriculture production is not affected particularly in Rabi 2008-09 season.
In case of necessity, he said the government could also distribute urea through the Utility Stores Corporation of Pakistan. The government in close co-ordination with the provincial governments would ensure the supply of urea through warehouses at the rate of Rs 625 per 50-kg.
Spokesman said the prices of urea have increased in the international market and the local dealers hoard the commodity with a view to gaining colossal profits, he maintained. He said this decision was taken in a meeting with fertiliser producers held on Thursday attended by ministers of Minfal, finance and other high officials and fertilisers' manufacturers including Engro Chemicals, Fauji Fertilisers, Dawood Corporation, Pak American fertilisers, Jaffar Brothers and Pak Arab fertilisers.
Spokesman said the fertiliser dealers were selling the urea in the black market on higher prices about Rs 800 per 50-kg bag. This black marketing not only harmed the growers directly but the whole nation through reduction in agri-production along with higher prices.
He said the urea shortage would badly affect the production of wheat and rice of the Rabbi production; however, he assured that the problem would be resolved at any cost. The government was planning to establish two new units of urea manufacturers and by 2010 the country would be self-sufficient in the urea production. In a bid to discourage fertiliser hoarding and ensure its smooth supply, the government on Saturday directed the manufacturers to provide their 50 percent production to government warehouses at a retail price of Rs 625 per bag, while the remaining half to farmers through dealers.
Adviser to prime minister Mian Manzoor Ahmad Wattoo at a press conference disclosed that the half of the imported urea (0.15 million tons) would arrive the country at the end of this month or earlier in next month. About DAP production he said the country meets its local demand through 80 percent imports and only 20 per cent local production.
During the Thursday's meeting, the participants were informed that productivity of agriculture's sector was endangered due to inadequate/disproportionate use of fertilisers, which was due to short supplies and high prices. Modalities were agreed to give appropriate amounts of subsidies in case of DAP to have a check on price and to maintain it at present level. Spokesman of Minfal told journalists the ministry of industry and production also held the meeting with manufacturers and Federation of Pakistan Chamber of Commerce and Industry for having a brainstorming session with industrialists to formulate an effective strategy to promote industry and enhance industrial growth.
They discussed in detail the issues pertaining to bad law and order situation in the country, increasing energy prices, unscheduled load-shedding, taxation issues (withdrawal of 6 per cent R&D and subsidy on textile, automobile manufacturing complained about GST as well 1 per cent excise duty, sales tax refund issues, cotton cess at the rate of Rs 5 per bale.