The government is in a fix over a widening shortfall in urea for Rabi season as difference in demand and supply stood at 2.3 million tons against last year's 1.8 million tons. Sources said the industry has estimated local urea demand for Rabi season at 5.6 million whereas production is likely to be around 3.3 million tons for Rabi season, showing a 2.3 million tons shortfall.
They said that the government has to move quickly to make arrangements to import 2.3 million tons of urea to avoid any panic like situation, which can lead to black-marketing sky rocketing price of the fertiliser during peak season. The local manufacturers have conveyed to the government that total 3.3 million tons of urea will be available for Rabi season against its consumption of 5.6 million tons.
They also said that the government should make import of 2.3 million tons on fast-track basis so that farmers could have urea in time. Pakistan heavily depends on import of urea for both seasons-Rabi and Kharif. Urea demand is steadily on the rise whereas local production is either stagnant or coming down with each passing year.
The urea price has been fixed at Rs 860 per bag, but during peak demand its rate goes up to Rs 1000 per bag and the farmers are forced to get fertiliser at higher prices. Now with 2.3 million tons shortfall for Rabi season, the Ministry of Industries and Production will take the case for import of urea to the Economic Co-ordination Committee (ECC) sometime next week.
Repetition of the last year's saga can remind the consumers of their agony when they were short of urea even in December. And those in the government were distributing quota to their friends and relatives to make money by selling urea at irrationally higher rates.