Providing Agricultural Services

Tanveer Brothers Zafarwal, Punjab, Pakistan.
+923-028-432-007
Mon-Sat: 09:00 AM - 07:00 PM
TBZ GROUP

News

Read all the news about our company

TBZ GROUPNews
30 Jan 2025
0 Comments By Imran Khan Gardening, Landscaping

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
0 Comments By Imran Khan Gardening, Landscaping

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

30 Jan 2025
0 Comments By Imran Khan Uncategorized

Fertilizer dealers, The rescue boat for all stakeholders

Ghulam Ahmad Pattern in chief APFDA
In Pakistan, agriculture plays a vital role at different times. The use of fertilizers is crucial for increasing
crop yields. Therefore, the transportation and production of fertilizers in Pakistan are of great importance.
Monitoring fertilizer prices is not only a political issue for every government but also plays a significant
role in food security. Every government in Pakistan prioritizes efficient management of fertilizer
transportation, import, and production. This ensures the availability of fertilizers at the lowest possible
prices. The goal is to empower farmers, enabling them to use fertilizers for enhanced crop production.
This not only serves as a political advantage for the government but also plays a crucial role in improving the overall economic conditions by boosting agriculture.

Pakistan extensively uses fertilizers, with significant quantities of urea, DAP (Di-Ammonium Phosphate),
Nitro Phosphate, and calcium ammonium Nitrate being employed. Effective management of fertilizer
production, import, transportation, and timely delivery to farmers is crucial. Unfortunately, challenges
like mismanagement, policy fluctuations, and insufficient sensitivity to market dynamics often lead to
shortages. Sensible policies and adept micro-management are essential to overcome these hurdles and
ensure a steady supply of fertilizers at the grassroots level. This should remain a top priority for every
government in Pakistan.

The management of urea in Pakistan faces challenges due to gas shortages, affecting plants like the Sui
Southern Gas Company (SSGC) and SNGPL, when these gas-dependent plants don’t receive gas, they shut down and the areas across the country suffer from a lack of urea. This imbalance leads to a shortage, prompting the need for imports. Failure to timely import creates panic in the market , impacting Pakistan’s economy. The urea crisis has persisted with intensity over the past three years. Despite continuous alerts from the All Pakistan Fertilizer Dealers Association about the increased use of urea fertilizer , and decrease in DAP, suggesting the need for timely importing urea to balance, no action was taken. When the shortage became apparent nationwide, blame was placed on dealers, hinting at hoarding, later it was revealed as smuggling. Despite efforts like introducing the Portal System by the government and adherence by all dealers, the responsibility for all the flaws was laid on the dealers. Even in 2022 and then in 2023, but the only solution was to run it planned, import it timely so that the All Pakistan Fertilizer Dealer Association always kept saying that its buffer stock should be taken to ten percent levels so that once and for all this issue could be resolved in Pakistan. But unfortunately, this was not done in 2022, and here we are in 2023, and the entire government machinery and all stakeholders connected to this field kept blaming dealers that dealers are behind all this, although we must understand that dealers are neither policy makers nor importers nor producers, but they are just the mediator and facilitator who lifts goods from the company’s point and sell to farmers. This desire is to earn a modest livelihood, but unfortunately, despite being such, the blame for all the flaws is still on the dealers. Apologies for the oversight but let me provide you with the English translation of what I said earlier.

The whole world stabilizes the prices of anything by fulfilling its demand, improving the supply but here,
we don’t seem to understand this concept. For three years, we’ve been trying to control prices without
fulfilling the demand, and we also want to make it formal. In all these actions, when the government
started taking action in 2021, there was only about a hundred to one hundred fifty rupees of over pricing in urea, but with continuous misfortune, for two continuous years, there were interventions, checkposts, and interference from both governmental and non-governmental people difference goes up from 400- 500 between main market and secondary markets. However, the solution was to immediately import it, and give it to farmers. The poor farmer is already giving more money than this entire mess, and if the same product was imported and kept according to the farmer’s needs, he would get it at least a thousand rupees cheaper so he will get subsidy/ extra benefit via surplus supply. Short supply has the problem to reach it’s destination’s so we still request that sensitivity should be understood be estimated according to the increasing demand. The urea demand has increased by more than seven million tons annually, so it should be arranged before time with 10% of buffer stock. The world operates on another principle that when there is a shortage or limited supply of something, the supplier dictates its terms and conditions to the buyers.

Unfortunately, over the past three years in our country, only one stakeholder, a dealer, has been held
responsible for all shortcomings and issues. However, we want to clarify that for the past three years,
dealers has become a rescue boat for all stakeholders. Now, maintaining this scapegoat role for him is
becoming difficult. We should respect the dealer and ensure that those who left the business after the
tumultuous action of the past three years are not only brought back but also provided with a platform for the ease of business for more people. This will create opportunities for Pakistani farmers, contribute to the growing needs and interventions, and play a role in Pakistan’s burgeoning agricultural sector.
Thank you.

Published in NEWSMAN, Jan 15, 2024

27 Jan 2025
0 Comments By Imran Khan General

Engro urges fair urea pricing

KARACHI: Engro Fertilizers has called on its dealers to strictly adhere to the official pricing guidelines to ensure urea availability for farmers, the company said on Friday.

During dealer conferences held in Lahore, Multan, and Hyderabad, Engro Fertilizers’ vice president marketing, Atif Muhammad Ali, emphasised the company’s commitment to integrity and its expectation for dealers to support farmers’ prosperity by maintaining urea prices at the government-mandated rates.

“Engro Fertilizers has always adhered to the highest standard of integrity and holds the same expectations from its dealers. To support the prosperity of farmers, Engro dealers must ensure urea availability at official prices. Further, Engro Fertilizers has not increased the selling price of imported urea to facilitate the government in providing support to farmers,” Ali said

At the conference, the dealers were also updated on the recent gas price hike and the disparity of gas prices that exists among different fertilizer players. Feedstock gas prices for fertilizer manufacturers on the SNGPL and SSGC network, which produce 60 percent of the total capacity, have increased from Rs580/mmbtu to Rs1,597/mmbtu. On the other hand, the remaining fertilizer manufacturers on the Mari network, which produce 40 percent of total capacity, are still on the subsidized price of Rs580/mmbtu.

As a result of this discriminatory gas tariff, price distortion has been created in the market with multiple urea prices existing in the market based on different gas input costs for the fertilizer manufacturers. This price distortion has provided the middleman with an opportunity to earn excessive profits of Rs80 – 100 billion.

Ghulam Ahmed, Patron in Chief of the All Pakistan Fertilizer Dealer Association, advocated for a uniform gas price for all fertilizer manufacturers to eliminate market speculation and normalize urea prices.

“It is in the country’s wider interest that a uniform gas price should be set for all fertilizer manufacturers. This will allow a single urea price to prevail, end market speculations and normalize the urea prices.”

By equalizing gas prices for all fertilizer manufacturers, the government can help stabilize urea prices for the farmers and earn Rs80 – 100 billion in revenues that would otherwise be pocketed by the middlemen. This can further be used by the provincial government to issue direct subsidies on fertilizer to farmers or develop modern farming practices to uplift overall agricultural productivity.

Published on thenews.com.pk (March 16, 2024)

01 Aug 2024
0 Comments By Imran Khan Uncategorized

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
0 Comments By Imran Khan Uncategorized

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
0 Comments By Imran Khan Uncategorized

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
0 Comments By Imran Khan Uncategorized

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
0 Comments By Imran Khan Gardening, General ,

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.

READ MORE
13 Sep 2023
0 Comments By Imran Khan Gardening, General ,

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.