F.P. Report
KARACHI: Led by Engro Fertilizers, the fertilizer industry has announced a reduction in urea prices to support the agricultural sector and ensure food security for Pakistan in the aftermath of COVID-19 pandemic.
The COVID-19 outbreak, which is being described as a black swan event, is likely to pose unprecedented challenges to the country’s agricultural sector that contributes 20% to the national GDP.
On Wednesday, Engro Fertilizers became the first fertilizer company to announce a further reduction in urea prices by Rs 240/bag. According to Imran Ahmed, Chief Financial Officer, “For over 50 years, Engro Fertilizers has been a trusted partner of Pakistan’s farmers and has ensured the availability of locally manufactured, affordable urea.
This latest price reduction is in line with the Company’s purpose as articulated in its Central Idea of addressing the most pressing issues of our time. Covid-19 is a national crisis and Engro Fertilizers is responding to it by supporting the Government’s priority of sustaining the agriculture sector of Pakistan”.
Meanwhile the competition has also slashed the price of urea by Rs 23 per bag.
With a cumulative price reduction of Rs 400/bag since the beginning of this year, the dealer transfer price has now been brought down to a level of around Rs 1600 per bag. The current price reduction of Rs 240 alone would result in an annualized benefit of Rs 28 billion that would be passed on to the farmer community without any impact on the national exchequer.
According to analysts, the industry-wide urea price reduction will help to sustain the agri sector which is expected to witness a significant downturn in the wake of this unprecedented nationwide pandemic.
The urea price reduction will complement the government’s efforts to extend support to all sectors of the economy, particularly the agricultural sector, in the wake of COVID-19 disaster.
The government has already announced Rs100 billion for SMEs/agriculture sector with mechanisms to be finalized in collaboration with the SBP. The government relief package also includes Rs 280 billion as payment to wheat farmers.
As one of Pakistan’s most responsible companies, Engro Fertilizers remains committed to alleviation the adverse impact of this global pandemic on our nation, in particular the agriculture sector which remains the largest driver of employment in our country.
