Urea import to cost government Rs 700 extra per bag

LAHORE: The government will import urea of around 100,000 tons worth $59.09 million, which is far higher than prevailing prices of locally produced urea.

According to sources, the government would pay an additional Rs 700 per bag as the local urea prices hover at around Rs 1,328 per bag while the imported urea bag would cost the government Rs 2,029 per bag.

They said though the prices of locally produced fertilizer have shown an exceptionally exorbitant trend, yet they are cheaper. As per NFDC data, per bag price of both urea and DAP were hovering around Rs 1,328 and Rs 4,049 per bag respectively. With an assumption of Rupee/Dollar parity of Rs 85.83, per bag price would be Rs 2,029 which is far higher than prevailing prices of locally produced urea.

According to market experts, the TCP has finalized the deal and awarded two separate contracts to two different fertilizer exporting firms for the import of 100,000 tons urea to meet the rising demand. The TCP has established two Letters of Credit (LCs) worth $59.09m for the import of 100,000 tons of urea which is scheduled to arrive during the first two week of July 11.

Government is working on all options to ensure availability of the fertilizers especially urea which is most used fertilizer product of the local farmers, sources concluded.

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