Increase In Urea Price Brings Losses To Farmers
Increase In Urea Price Brings Losses To Farmers: Farmers face shared annual losses of over Rs.30 to 40 billion on account of persistent increase in urea prices.
The retail prices of urea hover around Rs.1,600 across the country, showing a marked improvement since October-November 2017. In about eight months, the price of urea fertilizer has registered up to 30 percent growth or an increase of Rs.250-Rs350/bag when compared with October-November 2017 level of Rs.1,250-Rs1,300.
According to an analysis, increase of Rs.100/bag in one year would mean Rs.12 billion additional spending on fertilizer. Hence, on full year consumption basis, the financial impact on growers has been estimated at Rs.30 to Rs.40 billion.
It has been a double whammy for the farming community on account of spiraling cost of fertilizers in recent past, as diammonium phosphate (DAP) prices increased in addition to soaring urea rates as well. During rabi, DAP sold at Rs.2,600-Rs.2,800/bag. But, now its prices are at Rs.3,300 showing a jump of about Rs.500 to Rs.700.
“The DAP fertiliser bag is also as high as Rs3,300/bag, which is too much for a farmer Consequently, instead of applying DAP, they prefer NPK, which is a better option in water shortage as it does not require immediate watering.
Wary of the ascending cost of inputs, Farmer Association Pakistan’s President blamed fertilizer manufacturers for arbitrary increase in urea price. He said the interim government has shown no interest in curbing price escalation of this major agriculture input. “The mute Competition Commission of Pakistan (CCP) is acting as a silent spectator in this regard,” he observed.
FAP leader stressed the need to check the cost of production of urea manufactures and they were only allowed to fix the price of urea accordingly.
As per media sources fertilizer manufactures have unreasonably been given full liberty in fixing the prices of urea. Certain manufacturers raised price to around Rs.1,800 a few years back due to gas non-availability issues.
For More Information & Videos Subscribe To Our YouTube Channel