Post by Queue on Nov 21, 2011 6:52:11 GMT -5
KARACHI - Skyrocketing increase in urea and DAP prices is leaving almost no option for the farmers. Hence, eventually, the crops grown would be sold at high prices transferring the burden onto consumers. Therefore food inflation would be the product of this vicious cycle.
Gas curtailments are continuing and subsequently fertiliser companies are countering their losses from gas shortages by increasing their per bag fertiliser prices. One company that has very frequently used this policy is Engro Fertiliser which had increased its prices many times in the past to make up for its production loss owing to gas stoppages to its plant Enven.
Govt opposition agitated: ‘Adding fuel to fire’
If fertiliser companies like FFC matches Engro price then it may create further agitation against the government. Pakistan Peoples Party is traditionally a feudal based rural party and continuous increase in fertiliser prices on account of gas curtailments would deteriorate its holding in the rural areas. Therefore, it is very important at this point in time, that in order to save their leadership, government officials make appropriate, well-balanced and effective policies regarding gas supply to the fertiliser plants and the fertiliser prices so that farmers could have some relief from the present government.
Complete News
pakagri.blogspot.com/2011/11/urea-price-hike-causing-food-inflation.html