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Wednesday, March 05, 2014

Kharif season: fertiliser makers not in favour of urea import

Domestic chemical makers don't seem to be in favour of giant import of carbamide for Kharif season as they believe that spare stocks are obtainable for the approaching crop season. The Ministry of Industries & Production within the last meeting of the chemical Review Committee (FRC) had determined to import zero.125 million tons for Kharif season and therefore the chemical business supported the choice.

This acquisition are created against a $50 million loan facility recently approved by the Asian Development Bank (ADB) specifically for the acquisition of carbamide fertilizer.

Kharif season fertiliser makers not in favour of urea importAs per estimates of chemical makers of West Pakistan consultive Council (FMPAC) - a representative body of native fertilizer makers - around three.01 million heaps of carbamide stocks, as well as domestic production and carryover stocks from Rabi season, are obtainable within the country for the approaching crop season against a most demand of two.8 to 2.9 million tons.

The country would have some zero.370 million heaps of carbamide stock at begin|the beginning} of Kharif season that may start from Gregorian calendar month one, 2014. calculable production from domestic fertilizer plants throughout the Kharif season can stay a pair of.64 million tons (with gas offer on SNGPL in line with the last year) which means there would be around three.01 million heaps of carbamide obtainable within the country against a requirement of two.8 to 2.9 million tons. As a result, the carryover stock at the tip of Kharif 2014 is probably going to be zero.21 to 0.110 million tons, a political candidate of FMPAC aforesaid.

He aforesaid recent demand of two.9 million tons continues to be more than needs reported  by provinces. "Fertiliser plants will manufacture the specified and spare carbamide for domestic consumption by guaranteeing the required gas offer. The domestic production won't need precious interchange and billions of rupees grant, being spent on import on carbamide," he added.

The business sources aforesaid the govt call to import carbamide and distribute it through National chemical selling restricted (NFML) has additionally been politically motivated  within the past so this observe ought to be discourage by the PML-N government. The centralized is already considering shifting the foreign carbamide distribution from NFML to non-public sector so as to confirm clear and timely distribution of foreign carbamide, they added.

Sources aforesaid some quarters ar proposing an enormous import of zero.7 million heaps of carbamide import for Kharif season. However, they believed that the planned conceive to import zero.7 million heaps of carbamide is contrary to the fact on ground and therefore the call can drain around $266 million from the funds, that is already facing a crisis of depleting forex reserves.

According to sources, this estimate of foreign carbamide has been calculated at a median $380 per ton price and Fright (C&F). On this basis, the landed price involves Rs a pair of,900 per fifty kilo bag as well as port incidentals and native freight, etc. To sell this foreign carbamide at a fix value of Rs one,786 per bag, the govt would ought to offer a further grant of roughly Rs sixteen billion on zero.7 million tons foreign carbamide.

Domestic fertilizer makers urged the govt to require any call on carbamide import whereas keeping in sight this stock handiness position. carbamide is foreign to supply profit to farmers, however in point of fact, farmers don't get any advantage of foreign carbamide and later grant by the funds, they added. Despite the country's current carbamide production capability of six.9 million tons, that is world's seventh largest, West Pakistan spent over $1.5 billion on carbamide import in last three years and additionally paid a grant of over Rs sixty billion on foreign carbamide.

Source: Business Recorder