Dawn Business
ISLAMABAD: Expressing satisfaction with the availability of fertilisers for the coming kharif season, the federal government said on Thursday that a buffer stock of about 500,000 tonnes has been maintained. The Fertiliser Review Committee met on Thursday for a comprehensive review of the supply-and-demand situation for urea and other key fertilisers, with a focus on kharif projections and preparedness for rabi 2026-27. The meeting was attended by senior federal and provincial officials, along with representatives of leading fertiliser companies, including Fauji Fertiliser, Engro Fertiliser, Fatima Fertiliser, and Agritech. The meeting noted that urea demand may trend upward during kharif due to improved farm economics compared to last year. However, serious concerns were raised about potential smuggling along the western border due to a significant price differential between domestic and international markets, with local prices at around Rs4,500 per 50kg bag compared to approximately Rs14,000 internationally. Govt reviews demand for kharif amid smuggling concerns The meeting, chaired by Minister for National Food Security and Research Rana Tanveer Hussain, was informed that the urea situation during the rabi season remained largely stable and well-managed. The opening inventory stood at approximately 1.15 million tonnes, while domestic production reached around 3.23m tonnes, bringing total availability to 4.38m tonnes. Offtake remained steady at 3.56m tonnes, with no signs of panic buying, reflecting market stability and effective supply chain management. The closing stock is estimated at around 8 lac tonnes, which will serve as the opening inventory for the upcoming kharif season. However, concerns were raised about its adequacy during peak-demand months, particularly December and January. It was also noted that Agritech faced gas supply constraints, which impacted optimal production levels. The situation of DAP fertiliser was also discussed in detail. For kharif, no imports have been planned due to global uncertainties and logistical challenges in securing vessels. The minister informed participants that the Ministry of Maritime Affairs has been engaged and has agreed to facilitate vessel availability through the Pakistan National Shipping Corporation. He also emphasised the need for strict price monitoring and directed that all possible measures be taken to ensure smooth supply and prevent further price escalation. The minister directed all stakeholders to take proactive and practical steps to enhance production efficiency and maintain adequate availability in the market. Emphasis was placed on ensuring uninterrupted operations of fertilizer plants, particularly through consistent gas supply, so that supply pressures can be effectively managed and market stability sustained. The meeting also reviewed pricing dynamics and market behaviour in the urea sector. Concerns were raised about price variations across brands, leading to market distortions and a preference for lower-priced products. The industry representatives clarified that prices are largely market-driven and that value-added products cater to specific segments. They assured the minister that there would be no artificial shortages or exploitative practices, and that supply would remain uninterrupted. Published in Dawn, April 10th, 2026
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