Islamabad August 3 2024: Economic Coordination Committee approves import of 100,000 MT of Urea to meet shortfall in the market and ensure prices stability during the cropping season.
The Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division yesterday.
The meeting was attended by the Minister for Industries & Production Rana Tanveer Hussain, Minister for Petroleum Mr. Musadik Masood Malik, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister for Economic Affair Mr. Ahad Khan Cheema, Governor SBP, Chairman SECP, Dy Chairman Planning Commission, MD PASSCO, Chairman TCP, Federal Secretaries, and other senior officials of the relevant ministries.
The Cabinet Committee approved the proposal of Ministry of Industries & Production for import of 100,000 MT Urea. This decision is aimed at ensuring sufficient supplies of urea in the market. This will also ensure stability of prices of fertiliser during the cropping season.
Ex-Karachi price of imported urea ranged between PKR 5,946 and PKR 6,542 per 50 kg bag, while average price of Sona urea and other urea was PKR 4,744, Rs. 4,630 per bag.
Cumulative urea offtake for April to June was 1,210 thousand tonnes against projected demand of 1,741 thousand tonnes i.e. 30.5 % less, according to NFDC report. Decline in offtake during 1st half of Kharif 2024 may be attributed to substantially lower wheat prices than minimum support price and delayed sowing of Kharif crops due to climate change. Nonetheless, it is hoped that urea offtake will recover during remaining period of Kharif.
Total availability of urea is estimated at 3,378 thousand tonnes with domestic production of 3,204 thousand tonnes and 174 thousand tonnes of carryover stock. Urea offtake estimates for Kharif 2024 are 3,100 thousand tonnes with closing balance around 261 thousand tonnes. Expected imports of 150 thousand tonnes urea in September 2024 will improve its availability during Rabi 2024-25.
