Providing Agricultural Services

Tanveer Brothers Zafarwal, Punjab, Pakistan.
Mon-Sat: 09:00 AM - 07:00 PM
30 Jan 2025

Beyond farming: Non-agricultural forces shaping Pakistan’s economic future

In Pakistan, there are numerous discussions and research conducted regarding agriculture.
People continuously talk and write about agriculture, especially regarding the import , production and distribution of fertilizers, their usage, and demand and supply issues in Pakistan. For the past
three years, there has been a persistent concern that the fertilizer distribution system in Pakistan has deteriorated and requires significant reforms. It’s a situation where the fertilizer, meant for
distribution, is either being hoarded or not reaching its intended recipients. We have raised this issue with various government departments and forums, highlighting the mismanagement in
fertilizer distribution, which is causing immense distress and losses to our agriculture and farmers. Unfortunately, despite the severity of the situation, there hasn’t been much attention
or action from the government. Moreover, with the unfortunate end of one government term and the incoming of another, the issue seems to have been left unaddressed, with no concrete
steps towards its resolution. In the past 10 years the cultivation of hybrid crops has increased significantly in Pakistan, especially in relation to rice and maize. In all the central regions of
Punjab, hybrid rice cultivation has been rapidly increasing. Similarly, it is also gaining momentum in Sindh, and maize cultivation is particularly prominent in Pakistan’s Sahiwal divisions, where
hybrid varieties are extensively grown. As we all know, farmers in hybrid crops typically use double doses of urea. Additionally, the traditional non-agricultural land in Pakistan, which was
previously fallow, has been converted into cultivated areas, and agricultural activity is now underway there.
Furthermore, especially in the last four years, farmers have been pleasantly surprised as they have received better rates for their crops, and worldwide, the prices of grains have improved.
This phenomenon has also been observed in Pakistan, where farmers have actively participated in agriculture and utilized all available resources to ensure the best quality of their crops. With
diligence, they have enhanced their economic condition. Unfortunately, instead of boosting the morale of the farmers in this situation, we insisted on sticking to the outdated system. We neither imported timely fertilizers nor did we maintain the existing plants within the country.
Consequently, farmers faced tremendous difficulties in obtaining urea fertilizers, which hindered
their cultivation activities. Our entire point is that due to hybrid crops and farmers’ participation in aggressive agricultural activities, the demand for urea has increased. According to government claims, urea sales remained at 6.5 million tons in 2023, but according to our estimates, this figure
is incorrect because the existing stock of urea was already at 6.5 million tons. According to our estimates, the minimum capacity should have been 6.8 million tons, and ideally, to ensure timely
availability and continuous support to farmers, there should have been at least a 0.7 million ton buffer stock. We believe that for the improvement of agriculture in Pakistan, timely and
continuous availability of urea is crucial Another challenge that will be a significant concern for the new government is the fluctuation in
urea prices over the past three years. This has also contributed to the deterioration of the fertilizer distribution system and its infrastructure. Currently, similar to urea, there is a single type
of fertilizer in the market with at least six different prices, which creates confusion for farmers and puts pressure on their pockets. We firmly believe that as long as urea prices remain
inconsistent, it will continue to pose challenges for farmers. It is imperative for the new government to address this issue immediately and implement all necessary measures to stabilize
urea prices, as it is essential for ensuring food security not only for Pakistan but also for the regional countries. This can be achieved by immediately unifying urea prices and ensuring its availability well in advance, so that Pakistan not only resolves its food security issues but also becomes a food basket for regional countries.

Ghulam Ahmad Pattern -in -Chief APFDA

Published on Mar 7, 2024

30 Jan 2025

Uniform gas rates: appreciable govt decision

All Pakistan Fertilizer Dealers Association appreciates the Cabinet’s decision to uniform the gas price on urea fertilizer plants It believes that the unified price for gas on urea fertilizer plants will improve the efficiency of urea production and availability of urea in Pakistan. Previously, due to varying rates of urea, farmers had to purchase urea at higher prices, causing inconvenience. With a single price for urea, farmers will find it easier. Therefore, the All Pakistan Fertilizer Dealer Association not only welcomes this decision but also suggests its effective implementation in phases to avoid sudden price hikes. Additionally, it requests that where gas prices affect urea prices, dealer margins should also be increased accordingly. Furthermore, to improve urea availability, urea plants should operate throughout the year, and gas supply should remain consistent.The rationalisation in urea prices within Pakistan will also lead to a decrease the misuse of urea fertilizer Similarly, there will be a move towards balanced usage of other fertilizers in Pakistan, which is crucial. According to the All Pakistan Fertilizer Dealer Association, the balanced distribution of urea is more important than its prices. The association consistently advocates for and promotes initiatives that benefit the country’s agriculture and economy. According to our understanding, once urea prices stabilize, the usage of other fertilizers such as phosphate and potash will increase, resulting in improved agricultural productivity and better food quality. This will enhance our agricultural exports as well. However, due to the misuse of urea, the subsidy on urea is not proving beneficial, and the quality of our crops is not improving. Therefore, it is imperative to promote the balanced use of fertilizers within the country at this time. Regulatory authorities should focus on their responsibilities rather than solely monitoring urea usage. Thank you

Ghulam Ahmad

Published on Newsman Feb 19, 2024

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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