February, 23, 2024
Fertilizer Crisis Hits Farmers Amid Surging Prices

Fertilizer Crisis Hits Farmers Amid Surging Prices

Infostani Sources- A fertilizer crisis is worsening in various cities across the country, causing farmers to encounter difficulties in accessing fertilizer. The cost of fertilizer has surged by 1500 in just 15 days, with black market prices reaching 5 thousand rupees. Farmers in Nankana, Rajanpur, and other districts in South Punjab attempted to purchase fertilizer. Authorities fined numerous dealers in Hafizabad Rs. 285,000 for selling fertilizer at inflated prices. The Deputy Commissioner stated that Union officers have taken on responsibility for guaranteeing the supply of fertilizers at controlled rates.

NFDC data reveals a 5% year-on-year increase in urea consumption in November, while DAP consumption declined by 11%. The country consumed 583,000 tonnes of urea in November last year, and in the first 11 months of the calendar year, it consumed 6,014,000 tonnes. In November, DAP fertilizer consumption recorded 230,000 tonnes, an 11% decrease from the previous year. The first 11 months of the calendar year saw a consumption of 1,370,000 tonnes of DAP.

The selling price of a sack of fertilizer has risen to 5 thousand 200 rupees across Punjab. Farmers allege that dealers and stockists are engaging in black market sales, exploiting an artificial shortage. In response, the caretaker Minister of Industry and Commerce, Gohar Ejaz, instructed fertilizer manufacturing factories not to decrease production and supply. The government has also placed orders for imported fertilizers. Farmers in Punjab anticipate that the urea fertilizer crisis will affect wheat yields.

Economic Snapshot: Fertilizer Crisis, Remittance Rise, Cotton Surge, and Pulses Price Decline in November

Fertilizer Crisis Hits Farmers Amid Surging Prices

Simultaneously, remittances from Pakistanis working in the UAE increased by 8% annually in November. State Bank data indicates that Pakistanis sent $409 million in foreign exchange in November, an 8% increase from the same period last fiscal year. However, remittances recorded a 14% monthly decrease, dropping from $474 million in October to $409 million in November. In the first five months of this fiscal year, Pakistanis sent $1.907 billion in foreign exchange from the UAE. Total remittances for Pakistanis amounted to $11.045 billion, reflecting a 16% decline compared to $13.281 billion.

Furthermore, cotton arrival in the country’s ginning factories increased by 81.1% on an annual basis. According to the data from the Pakistan Cotton Ginners Association until November 30, the arrival of 7,753,000 bales in the ginning factories is a record, marking an 81.1% increase from the previous year. The war factories in Punjab recorded an arrival of 3,737,000 bales, marking a 48.6% increase from last year. Ginning factories in Sindh reported an inflow of 4,017,000 bales until November, a 127.5% increase from the previous year.

In contrast, November witnessed a general decline in the price of pulses. According to the Department of Statistics monthly report, the average retail price of dal masoor in November was a record Rs. 320.98 per kg, which is 0.63% lower than in October. The average retail price of moong dal was Rs. 276.47 in November, a 1.11% decrease from October. The average retail price of dal mash per kg was Rs. 520.96, 1.68% lower than in October. Pulses and chickpeas’ average retail price in November was Rs. 229.43 per kg, a 2.31% decrease from October’s average price of Rs. 234.86.