Ministry of Industries and Production (MoI&P), has taken a serious note of increasing unilaterally the urea price of Rs 190 per 50 kg bag by Engro Fertilisers Ltd.
"This is indeed alarming. Only one urea manufacturer has introduced this price increase. The manufacturer has been asked to explain this increase immediately to the Fertiliser Price Review Committee (FPRC)," says a press release issued by the Industries Ministry.
According to the Ministry, government fully believes that, when sufficient stocks of urea are available in the country then there is no justification, at all, for increasing urea prices by one manufacturer.
It is pertinent to mention here that, as per commitment made by the manufacturers in the last meetings held in the MoI&P, the manufacturers/dealers were bound to print retail price on the urea bags. But the manufacturers/dealers have not so far implemented the decisions and thus committed a clear-cut violation of the decisions and CCP Rules and Regulations.
The government is fully aware of the domestic need to make urea available and affordable to the growers. Furthermore, the government has provided free of cost imported urea to all flood-affected farmers. Whereas, at present, one lac tons of urea is also available with NFC for Rabi crop and more than 2 lac tons of urea is being imported by TCP which is arriving well in time next month ie in January, to cater to shortages in domestic urea production foreseen due to energy crunch leading to 20% gas curtailment since May 2010 and the extended winter gas loadshedding for 45 days in 2010-11.-PR