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Pakistan maintains adequate fertilizer supplies for Rabi season

The average retail price of urea and DAP in the domestic market is PKR 4,523 and PKR 12,064 per 50kg bag

Pakistan maintains adequate fertilizer supplies for Rabi season

A farmer sowing corn saplings in the field

Photo by EqualStock on Unsplash

Pakistan's Fertilizer Review Committee (FRC) has expressed satisfaction with the country's current fertilizer reserves, ensuring adequate supplies of both DAP and urea for the upcoming Rabi season during fiscal year 2024-25.

The committee, chaired by Federal Minister for Industries, Production, and National Food Security Rana Tanveer Hussain, met to assess the stock position of these essential fertilizers.

In October, urea offtake reached 358,000 tonnes, with an actual availability of 1,212,000 tonnes, including an opening inventory of 622,000 tonnes and domestic production of 590,000 tonnes. For November, the estimated urea offtake is 589,000 tonnes against an availability of 1,402,000 tonnes.

The estimated urea offtake for the following months is as follows: December: 687,000 tonnes (availability: 1,354,000 tonnes), January: 612,000 tonnes (availability: 1,186,000 tonnes), February: 523,000 tonnes (availability: 1,045,000 tonnes), and March: 556,000 tonnes (availability: 1,017,000 tonnes).

For DAP, the offtake in October was 309,000 tonnes against a total availability of 616,000 tonnes. The estimated DAP offtake for the upcoming months is as follows: November: 299,000 tonnes (availability: 380,000 tonnes), December: 162,000 tonnes (availability: 156,000 tonnes), January: 81,000 tonnes (availability: 89,000 tonnes), February: 91,000 tonnes (availability: 61,000 tonnes), and March: 92,000 tonnes (availability: 45,000 tonnes).

As of November 7, the average retail price of urea and DAP per 50 kg in the domestic market was PKR 4,523 and PKR 12,064, respectively.

Use of domestic urea

The meeting also highlighted that the total urea offtake for industrial/non-agricultural use was 22,000 tonnes during 2023-24. To address the supply-demand gap, it was proposed that domestic urea sales be restricted to agricultural use only, with industrial demand met through imports.

Additionally, domestic urea may be provided for industrial use during lean months at import parity prices, provided buffer stocks exceed 300,000 tonnes.

The minister emphasized the increasing demand for DAP fertilizer, with a 44% surge in offtake attributed to the Punjab government's Kisan Card initiative. This initiative has disbursed PKR 75 billion as interest-free loans to 500,000 farmers, each receiving up to PKR 150,000 for seeds, phosphorus, and nitrogen.

Tanveer assured that additional fertilizer stocks are available to meet farmers' needs, helping them achieve higher yields during the Rabi season.

He stressed the importance of farmers' prosperity for the country's progress and urged provinces to take strict action against hoarding and price manipulation.

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