"Urea be made available to farmers by mid-November": ECC asks TCP to use Gwadar Port

[Naveed Yaseen]

RECORDER REPORT
ISLAMABAD (October 03 2009): The Economic Co-ordination Committee (ECC) of the Cabinet has directed the Trading Corporation of Pakistan (TCP) to use preferably Gwadar Port for the import of urea to be provided to growers by November 15. Sources in the Agriculture Ministry said the ECC also directed the authorities to ensure the availability of imported urea to growers by November 15, but not later than November 30, preferably through Gwadar Port.

The Ministry of Finance would ensure facilitation for opening of Letters of Credits (LCs) in time and Subsidy of Rs 750/- per 50 kg bag as decided by the ECC on September 15 would remain intact and distribution would be ensured by National Fertiliser Marketing Limited (NFML) expeditiously.

While considering the summary, the ECC in its meeting held on September 29 on "Approval to Import 0.6 Million Tons of Urea Through TCP and its Distribution by NFC/NFML for Rabi 2009-10" allowed to import 0.6 million tons of Urea fertiliser instead of 0.4 million tons by TCP on fast track basis. ECC was informed that since the earlier decision taken on September 15, regarding import of 0.4 million tons of urea through private sector, the fertiliser situation/demand for Rabi crop 2009-10 in the country was further reviewed.

It was explained that the representatives of provincial governments, National Fertiliser Corporation (NFC) and fertiliser manufacturers had re-assessed quantity of urea required to be imported at 0.6 to 0.7 million tones in view of prevalent trend of intensive use of fertiliser in Bt cotton.

Moreover, it was observed that private investors are not willing to participate in the import of urea. The earlier decision for import through private sector was, therefore, not viable. TCP showed reservations about adherence to the timelines given for import of urea because of procedural limitations.

Sources said the ECC expressed concern over the situation and advised TCP to adopt proactive approach and prioritise completion of due process to ensure that the imported urea reaches the farmers by mid November 2009.

It was emphasised that timely import was critical in view of the incoming sowing season and consumption of urea which was almost double. Finance Division agreed to facilitate TCP to open LCs in time so that shipments may arrive within the aforesaid timelines. The requirement to ensure expeditious transportation and distribution of fertiliser through National Fertiliser Marketing Limited (NFML) was also emphasised, sources said.

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