Fauji Fertilizer Company Limited (PSX: FFC) has increased urea prices by Rs. 633 per bag.
According to JS Global, FFC has increased urea prices by Rs. 633/bag to Rs. 4,400/bag effective from 9 April 2024.
For FFBL, urea price stands at Rs. 4,450/bag, a decrease of Rs. 1,039/bag. Meanwhile, Engro Fertilizer Limited (PSX: EFERT) rates for urea remain at Rs. 4,649/bag.
Vice President at JS Global Waqas Ghani told ProPakistani,
FFBL has lowered its urea prices in an effort to narrow the gap that historically existed between its Urea and FFC’s. FFBL specializes in the production of granular urea, typically priced at a Rs. 50 premium compared to prilled urea, which is produced by FFC. However, due to market anomalies, urea prices had deviated significantly.
This revision comes just a week after the Competition Commission of Pakistan (CCP) issued Show Cause Notices to the Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC) and six leading fertilizer companies for allegedly fixing urea prices but the company has increased the prices just to bridge the gap.
Urea prices play a crucial role in determining the prices of essential food commodities. Any arbitrary increase in urea prices by fertilizer companies can lead to higher costs for farmers, ultimately resulting in more expensive food prices for consumers.
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Even at the enhanced factory rates farmer will not get urea. Fake dealers obtain major share of District quota of the urea on the recommendation of the Area Sale Officials, hoard it and release at rate of their of their choice. Solution to the problem is with Fert Co, they can if so desire stock the products at their existing warehouse and sell to farmers directly.