Ensure Guarantee of supply all year before allowing fertilizer to be exported
The fertilizer manufacturers of Pakistan are requesting the Government to allow them to export fertilizer, as they estimate, that with increased gas supply and increased fertilizer production, they will manufacture fertilizer in excess in 2016. But it was the same fertilizer manufacturers, who had estimated a shortage of fertilizer, last year, which enabled the government to import 600,000 tonnes last year, while more than 550,000 tonnes of fertilizer was left remaining as carryover stock at end of the year, meaning that the decision of importing fertilizer at high rates was wrong.
We have seen similar situation with Sugar industry, where at the start of the year the Sugar manufacturers convince the government to export sugar, but at the end of the year there is a shortage, creating a situation where the manufacturers can charge higher prices and forcing the Government to import sugar at higher rates.
Therefore if the government of Pakistan allows the fertilizer manufacturers to export their production, then they should also get price and stock guarantee from these manufacturers for the entire year of 2016. Because based on their past history, the fertilizer manufacturers estimates might be incorrect, creating a shortage of fertilizer, and forcing the prices to increase. It should be ensured that if shortages are created, than the government would impose heavy financial penalties on all the suppliers through a special tax on the fertilizer manufacturers.
Engr. Shahryar Khan Baseer