Gas disruption caused urea shortage, Senate panel told

ISLAMABAD: A parliamentary committee on Thursday noted that the gas supply disruption to fertiliser plants during the June-September period had caused a shortage of 200,000 tonnes of urea.

Discussing the urea shortage, the Senate Standing Committee on National Food Security and Research also observed that the Economic Coordination Committee (ECC) of the Cabinet had decided that urea plants would remain operational from March to November. But the plants were non-operational between June 28 and Sept 16 denting the urea production by 200,000 tonnes.

“We are suffering today due to a shutdown of urea plants. Why has a responsibility yet not been fixed? Why have people in the Ministry of Petroleum not been held accountable?” asked committee chair Syed Muzafar Hussain Shah.

The committee observed that this lapse will result in urea hoarding, price hike and an artificial shortage. It insisted on knowing who was responsible for keeping the urea plants shut between June and September. However, the response from the Ministry of National Food Security and Research was that no responsibility had been affixed.

“The committee recommends that inquiry be held why urea plants were shut despite the decision taken by the ECC, which has resulted in a grave crisis in the agriculture sector leading to rising prices of urea, shortage, black marketing besides the adverse effects on yield of wheat,” said Mr Shah.

The committee was informed by the food security ministry that the matter of gas shortage was taken up on various forums to ensure the supply to urea plants.

It complained that due to the urea shortage the production of other crops such as cotton had also suffered. Many members of the committee complained non-availability of urea and wheat in their localities.

Another member drew the attention towards smuggling of urea to other countries where producers could fetch a much higher price than Rs1,767 per 50kg bag at home.

However, the ministry officials informed the committee that urea was short the world over, including India. China and Russia had stopped exporting urea. Pakistan was self-sufficient in the production of urea had the gas shortage not occurred.

According to the ministry officials, the prime minister presided over two meetings on the matter and directed an uninterrupted supply of gas to the industry. There were technicalities involved in the pressure of gas supplied to the plants.

In response to observations made regarding the smuggling of urea through Khyber Pakhtunkhwa and Balochistan into Afghanistan, officials from the ministry stated that the law enforcement agencies were monitoring borders to prevent urea from being smuggled outside Pakistan.

Expressing concern, the standing committee maintained that the highest priority should be given to the availability of gas to urea plants to avoid shortages in the future.