Urea Fertilizer Sale | Agritech, Fatima Fertilizer, Gas Supply

Ibn-e-Ameer

Islamabad: The sale of urea fertilizer is likely to increase 5 percent over the average of the last three years during Rabi season 2021-22.

The government had projected a shortage of 142000 metric tons of urea fertilizer in the Rabi Season following a sale increase.

Now, the Sui Northern Gas Pipeline Limited (SNGPL) has resumed supply of gas to AGL and Fatima Fertilizer Plants. Therefore, there will be surplus stock of 33000 metric tons following the resumption of these power plants.

In a meeting of the economic coordination committee (ECC), the Ministry of Industries and Production had submitted the following proposals for consideration and approval of the ECC. The ministry also briefed about the sale of urea fertilizer in Rabi season 2021-22.

It had proposed economic coordination committee to allow operations of Fatima Fertilizer (Sheikhupura plant) and Agritech for a further period of two months i.e. December 2021-January, 2022 and may direct Petroleum Division for immediate supply of gas to the two northern Urea plants.

In order to meet the demand for Urea fertilizer during Rabi season 2021-22, it further proposed the import of 200,000 Metric tons (MT).

During the ensuing discussion, the Chairman ECC invited comments from the forum.

Minister for Energy agreed to provide the requisite gas to the plants after four days. Minister for Planning & Development commented that in addition to the supply of gas to the plants, the stock position of urea after January 2022 may also be ascertained.

He stated that there might be shortages in the winter months, even after the supply of gas to the plants as requested in the summary. It may cause price association in the future.

He further added that some buffer stocks must be built in to ensure supply in case of an unexpected breakdown of any gas field.

The Ministry of Industries and Production agreed to hold a meeting with the industry to see the possibility of an increase in the production capacity of plants and furthermore, options of import if needed. Minister for National Food Security and Research invited the attention of the house on the availability of Urea and DAP during the coming season.

Minister for Finance and Revenue stressed the need for proper apply stability, valuation of demand and supply, and the possibility of import to ensure price.

The Economic Coordination Committee (ECC) of the Cabinet considered the summary submitted by the Ministry of Industries and Production regarding “Urea Fertilizer requirement for Rabi Season 2021-22″ and approved the operation of Fatima Fertilizer (Sheikhupura plant) and Agritech for a further two months i.e. December 2021 – January 2022 with direction to Petroleum division to supply requisite gas to said fertilizer plants for the said period.