For the first time in urea fertilizer plants based on indigenous gas, the highest quarter urea production of around 1.43 million tons have been recorded for 2020. As without the operation of LNG-based plants, the market has sufficient inventory levels in excess of 600,000 tons entering into the Kharif season. This increasing catalogue levels and improved local production of urea will provide relief for the farmer community. The latest industry estimates for the first quarter of 2020 depicts that Fauji Fertilizer Company (FFC) produced around 744,000 tons of urea, much higher than last few years. Likewise, Engro Fertilizers recorded its highest ever quarterly production of 572,000 tons as well. At this speed, the indigenous gas-based urea manufacturers will be able to produce up to 6 million tons of urea during the full year, which is more than enough to meet the local demand and maintain sufficient levels of safety stock. With around 200,000 tons of opening industry inventory and 400,000 tons of channel inventory at start of the year, the urea supplies are adequate to meet the country’s agronomic demand of around 5.8 million tons. The Fertilizer Policy of 2001 has played a significant role in encouraging investments in local fertilizer manufacturing to ensure availability of affordable urea in the local market. This has engrossed urea manufacturers to make investments to enhance production capacity, that now stands at 7 million tons exceeding the annual domestic demand.
Menu
