Fauji Fertilizer Company (FFC), one of the leading fertilizer manufacturing companies has raised the price of its 50 kg urea bag to Rs 1,934.
The hike in price is around 0.26% higher than last week’s price and 10.59% higher when compared to last year. Now the farmer will get the 50 kg bag of fertilizer worth Rs 1,900 or more. Other players of the field are also expected that they would increase the price of fertilizer.
One of the decision-makers in Fatima Fertilizer commented that the other manufacturers have no choice but to follow the increase as there can be no disparity in prices in the country as it would create harmful market distortions.
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Therefore, the rest of the manufacturers would follow the present trend soon and the new booking of the fertilizer would be on the basis of the new prices.
Another manufacturer says that there could be no disturbance in the market with the new prices in the market as at present, the demand for urea is very low and it will increase in June and July when the cotton, cane, and coarse rice would be grown.
He said that the government had instructed the fertilizer industry to maintain the stocks of 200,000 tons of the product so as to tackle any unexpected situation in the market.
Moreover, JS Global said over the present rise in the price of fertilizer in the words, “Inflationary pressures, demand-supply situation and global fertilizer prices have long created expectations of urea price hike and recent development i.e., commodity price boom along with local urea inventories dipping to 7,000 tons as of end February have further reinforced the same.”
Urea manufacturers have been patient over the years when it comes to price increments. As a result, a price increase was naturally long overdue as prices were last increased by the sector in August 2021.
Khalid Khokar of Pakistan Kissan Ittehad said that they have been raising the voice at different levels that there could be urea crises, but nothing was done and now when the Russia-Ukraine war is at peak, things will aggravate and the world demand for fertilizer would rise, creating the fear of smuggling from Pakistan. All this may create bad effects on the Pakistani farmers.
