Abstract:
The fertilizer supply chain is the essential part of the Pakistan agriculture. it constitutes approximately 24% of the GDP and provides approximately a 37% of the employment of the people employed in this sector. We have been still crazed with additives such as urea and DAP, and that keeps it on the increase, as they have a significant effect on the fertility and yields of soils. The chain basically is that of production, imports, distribution and finally retail. Its production aspect essentially is a local monopoly: the large producers of urea include Fauji Fertilizer Bin Qasim Limited, Fauji Fertilizer Company Limited, Fatima Fertilizer Company Limited, and Engro Fertilizers Limited producing 95% of the urea, or about 6-7 million metric tons each year. In 2021-2023 alone it was down to approximately 6.1-6.4 million tons because of hiccups in gas supply and plant closures. FFBL has the capacity of pumping out 650,000 tons over and above that yet we still get more 1.5-2 million tons imported, in order to meet demand. Operational works starts from Raw materials include natural gas (to make urea) and imported phosphoric acid (to make DAP). Punjab and Sindh have plants, which tend to be close to gas fields or ports. Distribution is massive It has more than 12,000+ registered dealers who purchase the products in bulk directly at the producers and subsequently resell them to farmers. The government intervenes in the form of pricing gas to producers (that is also happening but not recently) and sometimes with a direct feed-stock subsidy to maintain prices low.
