ISLAMABAD: The Economic Coordinating Committee (ECC) has directed the Ministry of Industries and Production (MoI&P) to formulate a streamlined policy to ensure supply of fertilizer to farmers without any market distortion, official sources said company registrar.
These instructions were issued at a recent ECC meeting when a summary from the MoI&P regarding the continued operations of Fatima Fertilizer (Sheikhupura plant) and Agritech was discussed.
The Ministry of Industries and Production said that a meeting of the Fertilizer Review Committee (FRC) was held on March 8, 2022 during which the National Fertilizer Development Center (NFDC) found that the two SNGPL-based plants, namely Fatima Fertilizer (Sheikhupura plant) and Agritech, are to remain operational from March 31, 2022 to meet the country’s urea needs.
ECC expected to accept fertilizer subsidy today
The Petroleum Division has informed the ECC that it is in the process of submitting a summary to the ECC for the conversion of the two SNGPL-based plants to native gas.
The Ministry of Industries and Production, given the seriousness of the situation with reference to rising RLNG prices and high international urea prices, fully supported the proposal to shift urea plants based on SNGPL on native gas.
Moreover, if the two plants in the SNGPL network were allowed to operate on RLNG at the gas rate of Rs 839/MMBTU for the period April-December, then according to NFDC, a total of Rs 23.53 billion would be required against a total of Rs 58.03 billion required for the same amount if imported from overseas.
Copyright Business Recorder, 2022