Fertilizer Manufacturers Agree to Reduce Urea Prices

Fauji Fertilizer Company Managing Director and CEO Jahangir Piracha called on the Federal Minister for Industries and Production Rana Tanveer Hussain on Wednesday.

Piracha informed the minister that the Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC) has unanimously agreed to reduce the prices of urea in the country.

He said that all fertilizer plants should formally be allocated and supplied gas exclusively from Mari Gas Field under bilateral arrangements in accordance with applicable gas pricing policies.

As per the proposal submitted by the FMPAC, the government should ensure uninterrupted gas supply to the fertilizer industry for the next 10 years from Mari Gas Field. This will ensure the availability of affordable urea for our farmers and would also save foreign exchange on the import of urea.

If the proposal is agreed by the government then the fertilizer industry does not require any subsidy in the future. This will also attract further investment in fertilizer production capacity and energy efficiency. The government should fix uniform prices of fertilizer urea all over Pakistan to discourage hoarding by middlemen and agencies.

The minister stated that the proposal submitted by the FMPAC will be taken to relevant forum of the Economic Coordination Council for a decision on the matter. The government is committed to taking every step to ensure the facilitation of the farmers in the Kharif season, he added.


  • Fertilizer is a deregulated sector and prices are driven by demand supply principle, therefore, government must not intervene to fix the prices.it should ensure operation of all plants thus assuring supply of urea. Mari gas suggested for fertiliser is low BTU gas, which is being used for value additions by fertiliser manufacturing. It has no linkage with national grid, which suffers from huge circular debt and UFG besides other inefficiencies. It is a great step for future of agriculture and food security.

  • The Govt should be keen regarding the issues and miseries of its farmers. Such a bilateral agreement will create a win-win situation and will lead to a prosperous farmer.

  • Fertilizer manufacturers r real thiefs beca not only they bt thier agents also create demand/supply manipulation and earn over100biln from farmers and then they share with fert comp sales exec,thats why i think gov should make a fertilizer utility stores to make sure supply and fair price of all basic fert products


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