The Ministry of Industries and Production said that the government has decided to import a total 225,000 tons of Urea aimed at controlling urea prices in the country.
According to the Ministry, urea price has increased from Rs. 841 per 50 kg bag in October 2010 to Rs. 1060 per 50 kg bag in January 2011 by manufacturers claiming it to be a consequence of the gas supply curtailment and loss in production.
However, owners of local fertilizer industry have also made commitment that increase in urea prices would be revoked if gas was restored to the fertilizer industry as committed in the Fertilizer Policy.
This commitment was made by the representatives in a meeting held in the Ministry of Industries and Production last month to discuss the price situation of urea in the country, the official said.
Regarding import of fertilizer, a senior official of the Ministry said that the country would be self sufficient in urea production after coming into production of the under construction Engro Urea Plant having a total capacity of 1.3 million tons.
Meanwhile, a study was conducted for planning to meet the country’s future needs which recommends establishing a new Urea/DAP plant based on the findings of Arthur D. Little study by 2015, Such a plant would be most viable if located at port, the official said.