Following the directives of the federal government, the Trading Corporation of Pakistan (TCP) has completed 0.15 million tons of urea import to avert shortage in the domestic market. Sources told Business Recorder Friday that cumulatively, the country has spent approximately $46 million on urea import ensuring timely supply in the domestic market to facilitate growers.
Final consignment of the commodity, under the recent import, reached Pakistan in the last week of September and with the arrival of this consignment, the TCP has completed the urea import operation successfully. Under the recent import, first ship namely MV Sinar Kapuas with 50,478 tons arrived at Gwadar Port on September 15, 2015. Second consignment of 52,700 tons through MV Jiarun reached FAP terminal (Port Qasim) on September 26, 2015. While, third and last ship namely MV Dubai, carrying 54,300 tons of urea berthed at Karachi Port on September 27, 2015 and accordingly sailed in second week of October after completing the urea discharge.
Sources said in July this year, the Economic Co-ordination Committee (ECC) of the Cabinet approved 150,000 tons of urea import from international market through tendering process to fill the demand and supply gap in the local market and the state-run grain trader was asked to import urea. Following the ECC directives, the state-run grain trader conducted multiple tenders and finalised deals for the import of 150,000 tons of urea to avert the commodity shortage in the domestic market.
Sources said under the recent urea arrival, some 157,000 tons of urea has arrived at an average price of some $293 per ton. Overall, Pakistan imported some 0.35 million tons of urea during this year (CY15). This includes 0.15 million tons recent import and some 0.2 million tons in the first half of this year. Industry sources said the country”s total urea production capacity stood at some 6.5 million tons against the consumption of 5.8 million tons annually. However, the domestic industry is unable to produce sufficient commodity due to gas shortage. Sufficient gas supply to the domestic urea plants can reduce import, while in case of further curtailment, the country would require importing more urea from international market for domestic consumption, they added.
Copyright Business Recorder, 2015