Urea smuggling hits farmers

Published August 2, 2008

MULTAN, Aug 1: The smuggling of urea fertiliser to Afghanistan via Taunsa Barrage has created the shortage of the commodity in the local market critically affecting the cotton crop, Dawn has learnt. Farmers complained that dealers forced them to buy phosphatic fertilisers to get urea bags.

The smuggling of urea to Afghanistan is on the rise through Taunsa Barrage, according to a security official deployed at the barrage. It is peak time when farmers need urea fertiliser for cotton crops.

A dealer from Rahim Yar Khan said that fertiliser manufacturing companies were forcing the dealers to buy phosphatic products along with urea.

He said he had ordered a fertiliser plant for 600 urea bags, but the company refused to take the order unless he also bought 200 DAP bags as well.

He said that farmers avoided buying DAP bags due to its sky-rocketing prices and they were only dependent on urea because of its comparatively lower prices.

He alleged fertiliser manufacturing companies delayed the supply of urea for two months, which otherwise could have supplied in 12 days. He said that earlier all manufacturing companies bore transportation charges. Now, dealers were told to get the supply from the plant.

Another dealer from Khanewal said that the controlled price of a urea bag was Rs665 but it was being sold at Rs750 to Rs760. He said smuggling was the major factor behind the shortage of urea which had hurt both the farmers and the dealers.

He said even though DAP was a key component for the growers to get good output, but it was an out-of-reach commodity because of its higher prices.

Fayazul Hassan Bhutta, Multan Kissan Board president, said even though the government had withdrawn General Sales Tax and provided a subsidy on the fertiliser, dealers were still fleecing the farmers.

He said that the abolition of GST must decrease the prices of urea and DAP but the government had allowed the manufacturers to further increase the prices of fertilisers.

He said the Pakistan People’s Party-led government would criticise the policies of the former regime but it also had failed to take action against those creating problems for farmers. He said the exploiters’ knew the art of wining the heart of those in power who mattered. —Shakeel Ahmad

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