Urea import to cost government Rs700 extra per bag

LAHORE: The government will import around 100,000 tons of urea worth $59.09 million, which is far higher than the prevailing price of locally produced fertilizers.According to sources, the government would pay an additional Rs700 per bag as the local urea prices hover around Rs1,328 per bag while the imported urea bag would cost the government Rs2,029 per bag.They said though the prices of locally produced fertilizers have shown an exceptionally exorbitant trend, yet they are cheaper.As per NFDC data, per bag price of both urea and DAP were around Rs1,328 and Rs4,049 per bag, respectively.With an assumption of rupee to dollar parity of Rs85.83, per bag price would be Rs2,029, which is far higher than the prevailing price of locally produced urea.According to market experts, the Trading Corporation of Pakistan (TCP) has finalized the deal and awarded two separate contracts to two different fertilizer exporting firms for the import of 100,000 tons urea to meet the rising demand.The TCP has established two Letters of Credit (LCs) worth $59.09m for the import of 100,000 tons of urea which is scheduled to arrive during the first two week of July 11.The government is working on options to ensure availability of urea which is the most used fertilizer by the local farmers, sources concluded. – Brecorder