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Govt Considers Importing 500,000 Tons Urea Amid Shortage Concerns

The Ministry of Industries and Production has proposed importing 500,000 metric tons of urea fertilizer for the upcoming Rabi Season amid growing concerns of shortage.

Well-informed sources told ProPakistan that an initial import of 200,000 metric tons of urea fertilizer is under consideration. This import is intended to cater to the local consumption demand during the quarter season. The proposal will soon be presented to the Economic Coordination Committee (ECC) for approval.

In the event that the local demand is insufficient, an additional 300,000 metric tons will be imported. This strategic import is designed to address the demand for the critical wheat crop spanning from December to January.

If the fertilizer is not imported, there may be a shortage of fertilizer during this season, the sources added. The fertilizer manufacturing plants will also be in full production by March 2024 with an uninterrupted gas supply.

To ensure the equitable distribution of fertilizer and to meet the consumption needs, both the federal government and provincial authorities will collaborate on urea imports. This aims to safeguard the agricultural sector and ensure a steady supply of fertilizer to farmers across the nation.

The Fertilizer Review Committee (FRC) meeting held in July 2023 had warned of the possible urea crisis as the production has been hit by lower natural gas supplies with reportedly an estimated shortfall of 0.2-0.6 million tons for the Rabi Season 2023-24.

Ministry of Industries and Production had proposed 200,000 tons of urea, but since provinces had made no commitments to lift imported urea on the off-cost basis, ECC had deferred the matter till October 2023.

Source: Pro Pakistani

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