ISLAMABAD: An inter-provincial meeting presided over by Additional Secretary Ministry of Industries and Production (MoI&P) has confirmed adequate stock of urea for crops of Kharif 2018 and rejected a proposal of corruption tainted NIFL regarding import, well informed sources told Business Recorder.

According to details, a Deputy Secretary of the MoI&P briefed the meeting that on December 29, 2017, the ECC of the Cabinet had decided to export 0.035 Million Metric Tons (MMT) of urea in addition to the remaining quantity of 0.041 MMT from already allowed quantity specifically to Sri Lanka even though it had been decided not to proceed with the exports in the last FRC meeting.

The Additional Secretary, Iftikhar Ali Shallwani sought viewpoint of participants on the demand and supply situation of urea expected in Kharif 2018.

The Chief NFDC explained that no shortage of urea is expected in the upcoming Kharif season. Demand is expected to be around 3.00 MMT. Accordingly, there should be a minimum of 0.200 MMT in stocks. Available stock of urea currently stands at 0.307 MMT therefore, there is no shortage.

The urea manufacturers stated that they agreed with the Chief NFDC that the expected stocks stood at around 0.300 MMT. The Deputy Director gas from Petroleum Division explained that the industrial units on SNGPL network have closed due to non-supply of natural gas in Kharif and they expected to have natural gas supplied in summer.

The representative of Fauji Fertilizer Bin Qasim Limited (FFBL) stated that minimum 0.200 MMT of stocks will be available even if closed plants do not operate in the summer. The representative of National Marketing Fertilizer Limited (NFML) said that if Pak Arab, Agritech and Fatima plants remain closed there might be a chance of shortage of urea in July-August 2018. However, it has been agreed unanimously that at present there is no shortage of urea/fertilizer in the country and the same is expected in the near future.

The sources said it was generally agreed that there is no need to import urea as available stocks were adequate. Moreover, as international prices are high the government would need to subsidize imports therefore it would be better to devote resources to provide gas at reasonable rates to enhance domestic production than depending on import of urea. It was decided to provide forecasts till the 3rd quarter and periodically review the situation and focus on expanding the production base and enhance exports instead of imports.

The representative of the Ministry of National Food Security and Research maintained that prices would remain stable as supply would be sufficient. He also explained that the annual production capacity of urea is 6.3 MMT which needs to be utilized. DG Agriculture KPK stated that prices are stable in most areas of the province but in some districts of KPK prices are high (Rs 1500 - Rs 1600 per 50 kg bag) due to transportation costs. Other participants stated that this happened due to instability in the region and the situation is likely to improve.

The Additional Secretary raised the question whether there is a difference between granular and prilled urea. According to the representatives of private manufacturers, granular urea is urea where 90% or more of the grains are of 3 mm or more. Different technology is used to manufacture it however, nitrogen content/ingredients of both kinds of urea are the same.—MUSHTAQ GHUMMAN