Karachi, August 30, 2011 (PPI): The prices of fertilizers are on a rising trend due to lack of production and its non-availability among farmers as the middlemen have stored the commodity in godowns to get extraordinary prices.
According to Alfalah Securities Limited, Prices of a bag of Di-ammonium Phosphate (DAP) have increased from PkR 2,200 to a range between PkR 4,000-4,200 in CY11 whereas, its offtake in July has stood at 132,000 tons due to early buying ahead of the Rabi season.
Fertilizer prices on the other hand, have reached to a level of PkR 1,600 per 50-kg bag from PkR 820 per bag at the start of CY11. The increase in fertilizer prices is witnessed on account of removal of subsidy to the manufacturers and enhanced gas curtailment particularly on the Sui Northern Gas Pipelines (SNGP) network which has hampered the fertilizer production. Fertilizer production is expected to slow down on account of current annual maintenance at the Qadirpur gas field on the SNGP network and the upcoming gas load shedding in winter.