KARACHI : Urea producers on Tuesday raised the price of urea by Rs 30 per 50-kg bag across the country due to rising cost of production and short supply, market sources said. They said almost all urea producers had announced an increase of around 5 percent in the urea prices to pass on the impact of hike in the utility tariff and petroleum products' prices.
"Six urea producers have unanimously increased the urea price by Rs 30 per 50-kg bag with the aim to rationalise their cost of production after the increase in petroleum and gas prices," they said and added with current surge official urea price in the domestic market had reached Rs 750 per 50-kg bag as compared to Rs 720 per 50-kg previously.
Slow supply was creating tremendous shortage of the commodity in the local market, especially in the Punjab, compelling growers to pay more money for an important component of crop, they said. They said, due to massive shortage and delay in the import of the commodity by the Trading Corporation of Pakistan (TCP), the urea was being sold at Rs 800-850 per bag in the black market.
"If the government does not make necessary arrangements for better supply then the urea price may move up to Rs 900 per 50-kg bag in domestic market," they added. On the directives of the federal government, the TCP is importing urea from Saudi Arabia and a consignment has already reached Gwadar, which is still not unloaded due to some quality issues.
"The final stage of Kharif season's crop has started, in which farmers need huge quantity of urea for a better crop, while urea stocks are believed to be insufficient to meet the rising demand of domestic market and right now urea companies are getting orders with one month delivery time," sources said.
"Kharif crop sowing across the country has been completed, which has led to increase in demand for urea for the final stage of production," growers said. "Urea shortage and its high price is a very serious issue, which requires serious attention of the government to increase the supply, besides action against the hoarders and market manipulators," growers demanded.
Copyright Business Recorder, 2009
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