Federal Government decides to maintain existing price of Urea

Islamabad: The Federal government has decided to maintain the existing price of Urea of Rs.1659/- per bag per 50 Kg due to availability of sufficient stocks in the country.

This decision was taken at a high level meeting held under the chairmanship of Prime Minister Raja Pervez Ashraf at the Prime Minister’s House on Friday to review the situation of availability of fertilizers in the country.

During the meeting, the increase in support price of wheat by the government was appreciated. The meeting noted that this would have a salutary effect both in the increase in the income of the farmer as well as agricultural production.

The Prime Minister said that the increase in support price of the wheat is a part of the strategy of the government to achieve the objective of food security in the country.

He expressed satisfaction over the fact that sufficient stocks of fertilizers were available in the country. The meeting was told that the stock position of fertilizers was far better as compared to the last year due to timely import of fertilizers as well as local production.

The Prime Minister said that the availability of fertilizers would further improve with the finalization of contract to import 200,000 tons of Urea from Saudi Arabia which is expected by the middle of January 2013.

The meeting was informed that a subsidy of Rs.1650/- per bag of 50 Kg is being provided by the federal government which translates into Rs.80 billion of subsidy on this account.

The Prime Minister also expressed satisfaction that there was stability in the market because of adequate availability of fertilizers in the country.

He directed that the price of fertilizer should be printed on each bag and the local administration should ensure that farmers can purchase them on factory price.

The meeting was attended by Dr. Abdul Hafeez Sheikh, Minister for Finance, Mir Israrullah Khan Zehri, Minister for National Food Security and Research, Mr. Muhammad Basharat Raja, Advisor to Prime Minister on Industry, Mr. Abbas Khan Afridi, Minister of State for Commerce and other senior officials of the government.