LAHORE – The Fauji Fertilizer Company (FFC) has slashed urea prices by Rs70 per bag to Rs1,650/bag effective from Friday.

Analysts observed that the price cut is due to slowdown in sale of locally manufactured fertilizer due to availability of cheaper subsidised urea in market.

It is to be noted that government has imported 300,000 tons of urea which is being sold at Rs1,600/bag against the locally made urea of Rs1700 per bag. Market sources said that the company has decided to clear inventories as quickly as possible to hedge against the risk of additional import of urea beyond 300,000 tons as this being an election year and the government may decide to sell additional urea at 1,450/bag, leading to temporary inventory pile ups for local players.