Providing Agricultural Services

Tanveer Brothers Zafarwal, Punjab, Pakistan.
Mon-Sat: 09:00 AM - 07:00 PM
01 Aug 2024

Engro Fertilizers Engages Dealers to Ensure Fair Urea Pricing

March 15, 2024, Karachi – In a proactive effort to align with government directives and ensure fair pricing and availability of urea, Engro Fertilizers has initiated a series of discussions with its dealers. This initiative underscores the company’s commitment to adhering strictly to pricing guidelines and supporting the agricultural sector.

Key Highlights:

  1. Dealer Conferences:

    • Engro Fertilizers organized conferences in major cities including Lahore, Multan, and Hyderabad. At these events, Atif Muhammad Ali, Vice President of Marketing at Engro Fertilizers, reaffirmed the company’s dedication to maintaining urea prices at the official Maximum Retail Price (MRP). Ali emphasized the crucial role of dealers in ensuring that urea remains available at government-mandated prices. He also confirmed that Engro Fertilizers has not increased the price of imported urea, in alignment with its support for government efforts to aid farmers.
  2. Gas Price Surge and Market Impact:

    • The conferences addressed the recent surge in feedstock gas prices, which have risen from PKR 580/mmbtu to PKR 1,597/mmbtu for manufacturers on the SNGPL and SSGC networks. This increase has created a disparity in gas prices among different manufacturers. While 60% of manufacturers face higher gas costs, those on the Mari network, making up 40% of the total capacity, continue to benefit from subsidized gas prices at PKR 580/mmbtu. This disparity has led to market distortions and varying urea prices across the industry, with middlemen exploiting the situation and accumulating excessive profits estimated between PKR 80 to 100 billion.
  3. Call for Uniform Gas Pricing:

    • Mr. Ghulam Ahmed, Patron in Chief of the All Pakistan Fertilizer Dealer Association, highlighted the need for uniform gas pricing among all fertilizer manufacturers. He argued that standardizing gas prices would help stabilize urea prices, reduce market speculations, and ensure fairness within the industry. Ahmed noted that equalizing gas prices could also generate significant revenue, which could be redirected by provincial governments towards direct fertilizer subsidies or investments in modern agricultural practices.

Moving Forward:

Engro Fertilizers’ engagement with its dealers illustrates its commitment to ethical business practices and its dedication to supporting sustainable agricultural growth. As discussions continue, stakeholders are hopeful for outcomes that will benefit farmers and contribute to a more equitable fertilizer market.

Published in Pkrevenue.com, March 15, 2024

Published in International the News, March 16, 2024

31 Jul 2024

From Subsidies to Solutions: The Promise of Kissan Card

Ghulam Ahmad, Pattern-in-Chief, APFDA

Pakistan is endowed with rich natural resources, among which agriculture stands as a cornerstone of its economic landscape. With the change in government, new oaths have been taken, and a government has also been formed in Punjab, with Maryam Nawaz becoming the Chief Minister of Punjab. The best part is that Punjab, being the largest agricultural producer in Pakistan, not only fulfills the country’s agricultural needs but also, due to its fertile lands, is capable of exporting. It’s a great prospect that the new government has shown keen interest in overseeing the welfare of farmers and agriculture in Pakistan. In this regard, the government has decided to take numerous steps for the betterment of farmers, such as replacing electricity with solar panels for tube wells and providing interest-free agricultural loans to small farmers.

These are significant initiatives, along with improving the transmission of agricultural inputs, which are included in the Chief Minister’s priority list. However, the most commendable step being taken is the issuance of farmer cards. Although farmer cards have been issued on a limited scale before, their broader implementation implies that farmers will be registered through them, and with the help of these cards, they will continue to benefit from various government schemes and initiatives. For obtaining subsidies on seeds and fertilizers, as well as accessing pesticides, seeds, and agricultural machinery, farmers will need to be registered. It would be much better to improve this system and make it transparent because, while farmer cards already exist, there has been a lot of ambiguity surrounding them. The most significant thing is to address the farmers’ grievances, as when the Punjab government started subsidies last time, farmers did not receive them. Moreover, stickers began to be sold in the market, leading to evident exploitation of farmers with their cards and stickers.

The most crucial aspect of these initiatives is that the farmer cards need to have implemented policies that address farmers’ grievances. Due to the farmer cards, it will be much easier to provide proper assistance to farmers across Pakistan. The best quality seeds can be subsidized through these cards, whether hybrid, imported, or local, allowing farmers to benefit from them. This can help fulfill our agricultural needs. For example, if the government decides not to import oil seeds, subsidies can be provided on a large scale for oil seeds, which can boost their cultivation and increase motivation. Moreover, it can also facilitate activities like cotton sowing. Through the assistance of the Agricultural Extension Department, areas suitable for oil seed cultivation and those where certain varieties yield better can be identified. Subsidies or assistance can be provided to registered farmers in these areas. This will not only bring transparency but also ensure that resources are allocated where they are most needed. Furthermore, with modern techniques being adopted worldwide, farmers can improve their practices with proper guidance and support, ultimately enhancing Pakistan’s agriculture sector.

Previously, various forms of subsidies have been provided for agriculture in Pakistan, such as reducing taxes or duties on inputs like gas for producing urea or sometimes reducing taxes on fertilizers. However, those who oppose it often claim that subsidies are becoming a burden and farmers are not benefiting from them. Therefore, farmer cards are an excellent means through which farmers can receive direct subsidies into their accounts. Once a farmer is registered, their bank account and land can be verified. If a farmer intends to sow wheat, they can receive subsidies according to government-defined policies.

These changes are expected to upgrade the entire system and make it better because the current systems have become outdated. Although there are no shortages in terms of the need for inputs, subsidies are being misused, so it’s crucial to address this issue immediately. The government’s initiative of farmer cards should be managed effectively, and instead of providing indirect subsidies, funds should be deposited into farmers’ accounts so they can purchase inputs according to their needs. This support for farmers is ultimately essential for supporting our economy. The Punjab government’s initiative of the farmer card should be welcomed, and we should register ourselves as proud supporters of the government. We request the Punjab government to also introduce a farmer-friendly app along with the farmer card, which includes all agricultural information for farmers.

This app should contain information about agricultural land and its analysis, prices of agricultural inputs locally and internationally, and the current and future prices of crops. This analysis and prediction will help farmers to manage their crop sizes effectively. It would be excellent if we could provide farmers with weather forecasts, in addition to this, information about the prices of agricultural inputs, crop prices within markets, and the prices of seeds, pesticides, fertilizer, and future demand and supply of crops can be shared. Furthermore, any complaints or grievances from farmers can also be addressed through the Kissan Dost App, and farmers can receive updates through this app. If there are any complaints, they can also be lodged through the app. We must support farmers by providing them with information and bringing them together so that they can contribute to the country’s progress. We firmly believe that if the Punjab government successfully implements this initiative with dedication, it can serve as a guiding light for other provinces as well. Farmers from other provinces can also benefit, not only in terms of national development but also in their personal progress. We fully support the Punjab government’s initiative and believe that it will bring significant improvements to Pakistan’s agriculture and farmers.

 

Published in NEWSMAN,  Apr 03, 2024 

31 Jul 2024

APFDA Welcomes Direct Subsidy to Farmers

Ghulam Ahmad, Pattern-in-Chief, APFDA


The All Pakistan Fertilizer Dealers Association (APFDA) has expressed strong support for the government’s initiative to implement a direct subsidy mechanism for farmers. This new policy is anticipated to alleviate difficulties faced by farmers and enhance the progress within the fertilizer industry.

Benefits of the Direct Subsidy Mechanism

APFDA highlights several key advantages of the direct subsidy approach. According to the association, this policy will significantly reduce government interference in the fertilizer sector, thereby addressing long-standing issues of corruption. By removing these interventions, the mechanism is expected to create a more transparent and efficient environment for both farmers and businesses.

Economic and Operational Improvements

The association predicts that the move will not only benefit farmers but will also positively impact the fertilizer industry by eliminating subsidies that have been a financial burden on the economy. The policy aims to align better with the demands and needs of farmers, allowing them to access fertilizers more competitively. This change is seen as a step towards fostering a more dynamic and healthy market environment.

Encouraging Competition and Business Growth

APFDA stresses the importance of healthy market competition, which is expected to result from this policy shift. By reducing government oversight and promoting competition, farmers will have more choices and better opportunities to select fertilizers that meet their specific needs. The association also emphasizes the necessity for government support to be in line with business support to achieve optimal outcomes.

Addressing Corruption and Ensuring Fair Distribution

The APFDA calls for the incorporation of an automated system to facilitate direct payments to farmers, aiming to minimize corruption opportunities. They advocate for mechanisms to address any issues related to fertilizer subsidies and urge the elimination of any existing consequences and loopholes in the subsidy system.

Conclusion:

The APFDA’s endorsement of the direct subsidy mechanism underscores its commitment to improving the agricultural sector and supporting farmers. By reducing government involvement and promoting competition, this policy is expected to drive positive changes in both the fertilizer industry and the farming community.

 

Published in NEWSMAN, Mar 15, 2024

31 Jul 2024

Renewing Hope on Pakistan Day: Empowering Agriculture for National Sustainability​

A farmer working in a fertile field in Pakistan, highlighting the importance of agriculture on Pakistan Day

Pakistan Day: A Reflection on Past Achievements and Future Responsibilities

Today, March 23, marks Pakistan Day—a significant date commemorating the 1940 Lahore Resolution when the Muslims of the subcontinent aspired for a separate homeland. This pivotal moment laid the foundation for Pakistan’s creation on August 14, 1947. Celebrating this day acknowledges the indomitable spirit of Quaid-e-Azam Muhammad Ali Jinnah and Allama Iqbal and their vision of a free and independent nation.

As we celebrate 76 years of independence, it’s vital to evaluate our journey. While we cherish our sovereignty, we must reflect on our progress and shortcomings. Our commitment extends beyond mere celebration; it demands a thorough assessment of whether we have met the expectations set forth by our predecessors and the global community.

The Crucial Role of Agriculture in Pakistan’s Development

Agriculture remains the backbone of Pakistan’s economy, given our fertile land and agricultural potential. Yet, despite this advantage, we are heavily reliant on imported machinery, seeds, pesticides, and fertilizers. Our agricultural sector suffers from outdated practices, inefficiencies, and corruption, which hinder our ability to compete globally and contribute meaningfully to the economy.

A Call for Agricultural Reform

On this Pakistan Day, it is imperative to reassess our agricultural priorities. We must establish robust institutions dedicated to research and development in agriculture. Farmers, who are the unsung heroes of our nation, need modern technology, quality seeds, and effective pesticides to thrive.

Addressing the Gaps in Collaboration

Currently, there is a noticeable disconnect between research institutions, the corporate sector, and agricultural stakeholders. Research facilities, while present, often operate in isolation, leading to limited practical implementation of findings. The fertilizer industry, in particular, has seen little progress due to a lack of integration with research outputs.

To foster growth, we must create policies that encourage collaboration between commercial entities and research institutions. Research should inform practical applications, and commercial organizations must invest in and benefit from research innovations.

Enhancing Food Quality and Export Policies

Improving the quality of our food grains and developing effective export policies is crucial. By focusing on value addition and adhering to international standards, we can enhance our competitiveness in the global market. Elevating grain quality and streamlining export processes will directly benefit farmers and bolster our national economy.

The Path Forward

Our journey toward agricultural advancement requires collective effort. We need to connect research institutions with the corporate sector, improve policy frameworks, and strive for excellence in food production. By restoring our commitment to agricultural development and fostering collaboration, we can secure a prosperous and sustainable future for Pakistan.

Conclusion

As we commemorate Pakistan Day, let us renew our resolve to support and empower our agricultural sector. By taking decisive steps today, we can build a stronger, more self-sufficient nation. Together, we can transform our agricultural landscape and reclaim our global standing.

Ghulam Ahmad
Pattern-in-Chief, APFDA

18 Jan 2024

Fertilizer Subsidies: A Major Hindrance For Agricultural Growth

With in Pakistan, there’s a diverse nation with an approximate population of around two hundred and fifty million. The population is steadily increasing, and one of the significant challenges faced in Pakistan is food security. Among the upcoming challenges, tackling food security is so crucial. The government needs to formulate long-term policies to address the challenges posed by food security in the coming days
effectively.

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13 Sep 2023

Infinite Glitches Of Fertilizer Business In Pakistan

Urea is a widely used nitrogen fertilizer that plays a crucial role in supporting agricultural production and food security in Pakistan. The country has a significant domestic production of urea, with several manufacturing plants located across the country. In 2023, the fertilizer industry faces a challenging situation as the opening stock of urea stands at a drastic figure of 2 lakh tons that was alarming for the planners so the anticipated production for the entire year is projected to be 6.2 million tons depending upon continuous production, summing up to a total of 64 lakh metric tons. On the other hand both LNG based plants of Urea “DHL and Agritech” remain closed for 100 days each due to suspended gas supply. Once again there is a gap of 6 lac tons due to robust growth witnessed in the agriculture sector, which has driven the demand for urea to 7 million tons per year.

This significant gap between supply and demand has resulted in a noticeable shortage, casting a shadow over the agricultural landscape and highlighting the urgent need for strategic solutions to ensure an adequate and sustainable supply of this vital agricultural input. The agricultural sector’s complexity is very obvious, as the demand for urea soaring due to trending urea consumption & practices like double rice cropping in a single season, which necessitates additional applications of urea-based fertilizers such as Arri 6 and
Super. Here are some recommendations based on current circumstances to overcome the upcoming challenges:
1. The urea manufacturing industry in Pakistan is currently facing an uneven playing field, as different manufacturers receive different rates for feed gas and power has led to disparities in production costs and prices, with some plants struggling to stay afloat while others enjoy significant benefits. Uniform gas prices for all plants, coupled with a stable supply that ensures operations for an entire year, can play a pivotal role in promoting industrial and agricultural sustainability.
2. The current gas subsidy granted to Urea manufacturing plants has raised concerns about its effectiveness in benefiting the farming community & this subsidy system should be promptly discontinued because farmer is still buying expensive urea from market. Redirecting these resources towards more direct and efficient support mechanisms for farmers could lead to a more equitable and impactful agricultural policy, ultimately benefitting the backbone of our agricultural sector. One proposed solution is to redirect these subsidies towards the production of other essential fertilizers like phosphate. Additionally, stretching the urea price to align more closely with international rates could help deter smuggling. This shift could result in a fairer distribution of resources within the agricultural sector, discourage black-market activities, and promote sustainable agricultural practices.
3. Maintaining a buffer stock equivalent to 10% of the annual fertilizer demand can be a prudent strategy to mitigate price volatility, ensure a steady supply during planting. seasons, and address any unexpected supply disruptions. This approach can also provide a safety net for farmers and help stabilize the agricultural sector.
4. The government has recently boarded an embarking journey to revive barren lands, aiming to convert them into fertile and productive agricultural hubs. In this start up, they should recognize the crucial importance of timely management and distribution of essential agricultural inputs to empower farmers. Furthermore, the government have to launch a comprehensive agriculture policy containing unveiling of new fertilizer manufacturing plants to overcome the shortage & to strengthen domestic production and reduce dependency on imports. This policy will not only enhance the livelihoods of farmers but also strengthen the agricultural sector, ensuring sustainable growth and food security for the nation. By prioritizing these initiatives, the government is taking significant strides towards a more prosperous and resilient agricultural landscape.
5. The Government of Pakistan should prioritize timely imports of phosphate, in doing so, it should consider classifying phosphate as an essential item to streamline the importation process and ensure it is readily available to farmers when needed. Additionally, it is crucial for the banking sector to extend its support by facilitating the financing and logistics involved in phosphate imports.
6. The recent imposition of 5% GST, 5% federal excise duty, and 3% value added taxes on DAP fertilizer in Pakistan has a significant impact on the prices of the commodity. These taxes have extended the price Rs. 12,000/- per bag of DAP fertilizer may led to concerns about a decrease in its consumption resulting in drop in crop yields and an increase in the cost of food.
7. The temporary halt in the import of phosphate in Pakistan due to international market conditions, shortage of dollars and the production slowdown by FFBL is indeed a serious cause for concern. Particularly as the upc Rabi season approaches and Phosphate is a critical component in wheat sewing, and its availability is essential to ensure successful crop yield. To maintain a sufficient stock of phosphate for the upcoming season and support the agricultural sector, it is crucial for relevant authorities to resume import operations promptly. Timely action in this regard will help ensure that farmers have access to the necessary fertilizers, contributing to the nation’s food security and the prosperity of the agricultural community.
8. Putting an end to the harassment of fertilizer dealers is of paramount importance for the smooth functioning of the agricultural sector. Fertilizer dealers play a crucial role in ensuring that farmers have access to essential agricultural inputs, and any harassment they face can disrupt the supply chain and hinder farmers’ ability to access these vital resources. Harassment can come in various forms, such as unnecessary regulatory hurdles and unfair treatment. To support the agricultural industry and promote food security, it is vital that authorities take immediate action to halt such harassment.

 

 

06 Mar 2023

APFDA Scheduled To Meet Chief Secretary Punjab Today As Fertilizer Dealers Strike Enters In Second Week

LAHORE : March ,6,2023: As strike of the fertilizer dealers enters in the second week All Pakistan Fertilizer Dealers Association (APFDA) is meeting with the Chief Secretary Punjab and his team today to present its demands to end the strike to resume sale of urea and other fertilizers in the province.

The fertilizer dealers are on strike since February 23 against harassment and blackmailing of the authorities of the Punjab Agriculture Department (Extension) and they are demanding a conducive environment to carry out their businesses of sale of fertilizers in the Punjab.

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