stern action against those involved in profiteering and hoarding fertiliser — causing food inflation —there was a need to dispel the impression that there is a shortage of urea in the country.
Chairing a follow-up meeting to review the supply and demand situation of fertiliser in the country, the PM Office quoted him as saying that hoarding fertiliser could adversely affect crop production in the Rabi season.
The meeting was informed that 92,845 smuggled bags of urea had been confiscated by the governments of Punjab, Khyber Pakhtunkhwa and Balochistan, while a dedicated monitoring cell in the Ministry of Industries was keeping an eye on the fertiliser situation and helping in urea tracing and price control.
The meeting was told that an average supply of 19,000 tonne per day was ensured during the last week.
It was also revealed that the federal cabinet had approved the import of 100,000 tonnes of urea from China at almost half the current international market rate.
PM Khan vowed to show no leniency to elements involved in profiteering and hoarding, adding that supply of fertiliser to farmers must be ensured.
Federal Ministers Shaukat Tarin, Khusro Bakhtiyar and Syed Fakhar Imam, Minister of State Farrukh Habib, SAPM Shahbaz Gill, executives from fertiliser manufacturing companies and other senior officials attended the meeting, while the chief secretaries of Punjab and Khyber Pakhtunkhwa joined via video link.
“If urea is being smuggled, then the PTI government is responsible. The allegation on Sindh is a lie,” he said In response, Energy Minister Hammad Azhar told the National Assembly that a temporary and artificially created shortage of urea fertiliser did occur, but production remained at peak levels during the current year, adding that around 20,000 to 25,000 tons of urea was being produced daily. Even reports of nearly 343,000 tonne urea ‘vanishing’ from the market — presumed to have been smuggled out of the country — failed to budge the authorities. No effective measure was taken to stop smuggling to Afghanistan despite evidence. When raids began to be carried out on urea dealers’ premises to release ‘hoarded’ stocks, the crunch worsened as it spread panic in the market. In short, the urea crisis — similar to the sugar and wheat flour troubles in 2019 — is the outcome of the authorities’ inability to correctly forecast the demand-supply situation and take timely action. The urea crunch will ease in the next few weeks. But there are ample chances of it resurfacing if supply chain reforms are not implemented and governance not improved.