September 24, 2012

Due to availability of sufficient stocks in the country, Pakistan's fertiliser industry has strongly opposed further import of urea for upcoming Rabi season saying there is no fear of any shortage of the commodity.

Industry sources claimed that urea demand for this Rabi season will be easily fulfilled with domestic production and already planned import of some 0.3 million tonnes. During Rabi 2012-13, going to start from October 2012, some 2.93 million tonnes of urea stocks will be available for domestic consumption as against the demand of 2.8 million tonnes, which based on higher estimation.

Despite the fact that same decline is expected in upcoming months, they said and added that total availability during Rabi season includes opening inventory of 630,000 tonnes, local production of two million tonnes and an import of 0.3 million tonnes in Rabi 2012-13.

Our estimates always based on actual statistics as last year government officials were expecting a consumption of three million tonnes during Rabi, while our projection was 2.8-2.9 million and finally 2.755 million tonnes urea was consumed during Rabi 2011-12, they said.

Although, last year Sui Northern Gas Pipeline Limited (SNGPL)-based urea plant produced some 0.2 million tonnes of urea during Rabi season, however current demand and supply scenario of urea is worked out on assumption of no gas supply to SNGPL-based plants in Rabi season 2012-13, industry sources said. The fertiliser availability situation would ease significantly in coming months and urea would be available in surplus if the government provides gas to fertiliser industry even on rotation basis, they added.