ISLAMABAD - The Economic Coordination Committee (ECC) of the Cabinet on Monday has fixed the price of imported urea at Rs 1712 per 50 kg bag for National Fertilizer Marketing Limited dealers.
The ECC meeting, chaired by Finance Minister Asad Umar to consider proposal from the Ministry of Industries and Production, approved the price of imported urea at Rs 1712 per 50 kg bag for National Fertilizer Marketing Limited dealers.
Market sources informed that price of imported urea is high in the market due to shortage of urea in market. They informed that urea is retailing for around Rs1800 in main Punjab markets of Multan, Gujranwala and others. Imported urea sale price had not been issued by government/National Fertilizer Marketing Limited, which resulted in its artificial shortage in the market.
However, the ECC has directed to ensure supply of urea in the market at price of Rs. 1712 per 50 kg bag. “There is adequate supply of the urea in the country,” said adviser to the Prime Minister on commerce, textile, industries & production and investments Abdul Razak Dawood while chairing a meeting of the Fertilizer Review Committee prior to the ECC meeting. He said that the 50,000 MT urea stocks of the National Fertilizer Marketing Limited are being released to cater the demands of the Rabi season. “Another 50,000 MT of imported urea has reached Karachi port on December 14, 2018” he added.
Earlier, the government had given approval for importing 150,000 tons of urea fertilizer to address its shortage in the country. Of the approved quantity 50,000 tons arrived on December 2, 2018 and another 50,000 tons is expected to arrive on December 18. According to a report, 50,000 tons which has already arrived has been shifted to the National Fertilizer Marketing Limited (NFML) warehouses and is not being shipped to the farmers. The main reason for this is the lack of issuance of the price for the commodity by the government. This inaction on the part of the government is amplifying the already existing shortage of urea in the country. The price of urea yesterday in the Punjab market is Rs 1780 per bag of 50 kg, versus company to dealer selling price of Rs. 1712 per bag which implies urea is being sold at around Rs 55 per bag over the company recommended price to the farmers.
The current urea demand in the country stands at 5.833 million tons compared to 5.862 million tons during last year.
The ECC has also discussed and approved proposal of the Ministry of Commerce to amend the Export Policy Order (EPO) 2016, to the effect that the export of ethanol and other products manufactured from cane molasses shall be subject to the condition that cane molasses used in production of ethanol and other products manufactured from cane molasses being exported is either produced in-house by the exporter or purchased directly from a sugar mill. Proper recording of production and sale of molasses can be used as an indicator to gauge the production of sugar thus assist in collection of due taxes. The ECC was informed that due consultation had been carried out with FBR as well as the sugar manufacturers, on the proposal.
