Urea sales drop by 21 percent due to price hike in January

07 Feb, 2011

Fertilizer sales have dropped by 21 per cent in January 2011 as compared to corresponding period of last year due to Rs350 per 50-Kg bag increase in the price of Urea and profiteering in the country, agronomists told Business Recorder here on Sunday.
The government increased price of 50kg sack of urea from Rs750 to Rs840 in July 2010, then from Rs840 to Rs1050 per bag before the end of the year which is now being sold at Rs1200 per bag.
Director General Punjab Agriculture Extension services Dr. Anjum Ali told Business Recorder that in Punjab farmers had applied about 13 million tons (26 million bags) of urea till December 31, 2010. However owing to increase in prices and black marketing of the fertiliser, there is now less application of urea over the crops in January.
Ibrahim Moghal, Chairman Pakistan Agri-Forum said that farmers applied about 4.5 million bags of 50kg for sowing and growing of winters crops, especially wheat till 31st January last year, whereas total sales of urea Fertilizer from December 2010 to 1st February 2011has not been more than 3.4 million bags. Farmers apply three to four times urea over these six monthly seasonal crops, he informed.
He said though the government had fixed price of 50kg bag at Rs1050, about Rs300 more than the last year's price, yet the retailers are selling it at Rs1200 per bag without any fear of government check or action notwithstanding the fact that natural gas is supplied to the fertilizer manufacturers at subsidised rates so that this necessary input is available to the farmers at comparatively lesser rates than that of international market.
He said if this trend of hoarding and profiteering was not checked, the total fertilizer application over 2010-2011 winter crops would not be more than 4.5 million bags as compared to 6 million bags of last year.
He apprehended that the lesser use of urea especially in the fields of wheat, would decrease the crops' yield by at least 10 percent which would be a major set back to agriculture sector and rural economy.
However, senior government officials said, "if we launch any anti-price hike campaign or take strict measures, the retailers and distributors would take their stocks off the market which would be more detrimental to the farmers' interests."
According to the fertilizer use survey, five major crops: wheat, cotton, sugarcane, rice and maize account for about 87 percent of fertilizer consumption. Wheat accounts for about 45 percent followed by cotton with a share of 23 percent. Sugar cane is the third crop; nutrient use per hector is highest on this crop. The share of fruit and vegetables is 5.6 percent.
The yields of the major crops are below their agronomic and genetic potential. There is a consensus among researchers, extensionists and policy planners that, given the necessary resources and inputs, yields could be increased by 30 to 40 percent.
About the affect of the current rain spell in the upper regions of the country, Dr. Anjum said that the winter crops specially wheat, grams, lentils, oilseeds, vegetables, maize, fodder etc have reached a critical stage of maturity where they need good rains and conducive environment. He said the current spell of rains in the upper regions have benefited the crops in the Barani (rain fed) areas. However moderate rains in the western Punjab would help the grams crops which need urgent watering at this moment.
Dr Anjum said the condition of crops was better this year since there was less irrigation water shortage though wheat crop has been sown over 0.8 million less acreage this season owing to multiple reasons.
Meanwhile the Meteorological department reported on Sunday rain /thunderstorm with snowfall over the hills at scattered places in Khyber Pakhtunkhwa, upper Punjab, Gilgit-Baltistan, Kashmir, and North Balochistan.
There is a prediction of rain with snowfall over the hills at sattered places of Khyber Pakhtoonkhawah, Gilgit-Baltistan and Kashmir during next 24 hours.
Rainfall in (mm) recorded at 1700PST during last 24 hours:
Pattan, 53, Kakul, 35, Balakot, 33, Malam Jabba, 32, Muzaffarabad & Kalam, 27(each), Dir, 25, Chitral, 23, Saidu Sharif & Garhi dupatta, 18(each), Lower Dir, 11, Murree, 09, Drosh& Risalpur, 08 (each), Rawlakot & Kamra, 07(each), Chilas, 06, Skardu, 05, Jhelum & Gilgit, 02(each), Bunji, Islamabad A/P, Peshawar city & Quetta, 01(each).
Met-Office warned that under the influence of this weather system some upper parts of KPK (including Swat, Shangla, Dir, Mardan, Swabi, Charsada, Bunair, Kohistan, Abbottabad, Mansehra, Batgram, Haripur districts) and Kashmir (including Muzaffarabad, Neelum, Kotli and Bagh districts) may receive more rain of moderate to heavy intensity with heavy snow over the hills on Monday.
The peoples who are planning to visit Murree and other hilly areas on Monday have been advised to remain careful due to the risk of landslides along major roads caused by prolonged rainfall and blockage of link roads due to heavy snowfall.

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