Urea prices up from Rs1300 to Rs1600/bag

KARACHI: National Fertilizer Marketing Ltd (NFML), in a bid to minimize the subsidy burden of the government on urea import, has raised urea prices from Rs1300 to Rs1600/bag.

According to market sources here Thursday, the NFML was selling urea at 27 percent discount to the domestically produced urea. Trading Corporation of Pakistan (TCP) has been importing urea to ensure that growers get the input in time at reasonable prices.

Senior analyst at KASB Securities Shagufta Irshad said difference between domestically produced urea and imported urea has now been
reduced to Rs 190 per bag (11%) compared to Rs 490 per bag (27%)
during January and early February and Rs 280 per bag (18%) in December
2011.

This slash will reduce pressure on the sale of domestically produced urea in the country, she noted.

She said that the government had to either lower imports or raise urea prices in the wake of rising fiscal pressure.

According to KASB Securities and Economic Research, TCP had already incurred a subsidy of Rs 26 billion during July-February compared to the budget allocation of Rs 12 billion for financial year 2012. (APP)