ISLAMABAD: Oct 25: The fertilizer industry has dispelled the impression that the farmers were not getting benefit of low priced feed gas and claimed that the fertilizer industry is providing more than due benefit of low priced feed gas.
In a letter addressed to Energy minister, Mr Mohammad Ali, FMPAC noted that there is a perception rather misperception that the farmers in Pakistan were not getting benefit of low priced feed gas. Since fertilizer industry is the government’s top priority it gets feed gas at subsidized rates.
Executive Director Fertilizer Manufacturers Pakistan Advisory Council (FMPAC) has written a letter wherein he said the fertilizer industry is saving Pakistan’s hard-earned foreign exchange of $ 2.7 billion annually besides ensuring smooth supply of fertilizers to the farming community.
Mr Shah noted in his letter that the farmers in Pakistan are getting benefit more than the low priced feed gas and it is high time to understand that the misperception that the farmers in Pakistan were not getting benefit of low priced feed gas was totally incorrect.
Mr Shah noted that annual impact of lowered feed gas prices approximately amounts to Rs 90 billion (20%) whereas the fertilizer industry is passing on an annual benefit of Rs 395 billion every year. He said the fertilizer industry is playing a vital role in ensuring stable supply of fertilisers to the farmers and safeguarding them from quick and unexpected fluctuation of the international market.
Mr Shah further added in his letter that average price of imported urea is around Rs 7000 whereas due to low priced feed gas the farmers in Pakistan were getting urea at Rs 3200 per bag. The letter said “ To put it for consideration , the farmers in Pakistan are getting a benefit of Rs 1150 on each urea bag and its sole reason is low price of feed gas. The fertilizer plants are getting prioritized price of feed gas of Rs 302 per MMBTU for which other consumers like industrial and commercial consumers are paying Rs 1260 per MMBTU”.
It noted that low priced urea has profound impact on the farmers’ lives as this community’s earning is growing fast due to judicious use of the fertilizers, besides increasing the agricultural out[put of Pakistan to a optimum level.
