Govt may further extend concessional RLNG supply to urea plants till Feb 2021

ISLAMABAD: The federal government is likely to extend concessional RLNG supply to urea plants till February 2021, it was learnt on Monday.

Sources said that the Ministry of Industries and Production has sent a summary to the Economic Coordination of Committee (ECC) seeking extension of subsidized gas supply to Agritech Ltd and Fatima Fertilizer. The ministry opined that local production would help the government overcome any possible shortage of urea.

The ECC, in its last meeting, had constituted a three-member committee under the chairmanship of industries & production minister to prepare a proposal for the further operation of above-mentioned plants.

It may be noted that the government in August this year had operationalized Agritech Ltd and Fatima Fertilizer for three months through provision of RLNG at subsidized rates. The supply period was then extended till December 31 by the ECC during its October 21 meeting.


Last week, the Ministry of Food Security & Research and National Fertilizer Development Centre (NFDC) had conveyed to the government projections of a 10pc increase in urea offtake during the ongoing Rabi season.

Sources said the ministries had made the projection based on the recent increase in minimum support price for wheat and governments’ (federal and provinces) plan of subsidizing urea to farmers.


Moreover, the government is finalizing a Rs37 billion Fertilizer subsidy package, under which the center and provincial governments will give subsidies to farmers on fertilizer purchases.

Sources said that the Punjab government has agreed to provide a subsidy of up to Rs200 per bag of urea to farmers; however, Sindh and KP were asking the federal government to provide the subsidy from the central government’s kitty.

The federal government is currently negotiating the issue with these provinces.

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