Pakistan: Pakistan’s agriculture sector is facing a dire situation as the nation grapples with a severe urea fertilizer shortage. Urea is a crucial input for crop production, and its scarcity is causing significant concerns for farmers and the overall agricultural output, reported The News International quoting an industry official.
The shortage has been exacerbated by a natural gas crisis, as 70 to 80 per cent of the cost of producing urea relies on natural gas.
The Fertilizer Review Committee (FRC), responsible for monitoring fertilizer availability and costs, issued a warning that Pakistan would run out of urea during both the current Kharif season and the upcoming Rabi season. The main reason cited for the urea shortfall is the lack of access to natural gas in the fertilizer industry, leading to low domestic production capacity.
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According to The News International, a stakeholder who attended the FRC meeting emphasized that the warning about the persistent urea shortage is becoming increasingly evident. The main cause of concern is the scarcity of natural gas, which serves as the primary input for the fertilizer industry. “This lingering issue is now clearly visible, indicating the severity of the situation and its impact on the availability of urea in the country,” he said.
The impact of the urea shortage is being felt across all provinces in Pakistan. Urea prices have surged, making it challenging for farmers to obtain the agricultural input at the official price. Instead, urea is being offered in the market at significantly higher rates, putting additional financial strain on farmers.
Rainy weather has provided temporary relief by reducing the immediate demand for chemical fertilizers, but market sources warn that if corrective actions are not taken promptly, major issues may arise in the coming months. There are concerns that the price of urea could rise even further if supply is not guaranteed, potentially reaching up to PKR 4,500 to PKR 5,000 per bag.
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Moreover, the artificial price increase and shortage of urea have already impacted the seeding of paddy and other standing crops. However, the situation may become even worse if urea is not made available from November or December, potentially affecting wheat seeding and its productivity.
Stakeholders have raised an alarm about a projected shortfall of 0.2 million tonnes of urea in high demand during December 2023. This would have serious implications for the agricultural sector and the overall food security of the nation.
