Engro increases urea prices by Rs145 per bag

Post Source: DailyTimes




KARACHI: Engro Fertilizer has increased the price of urea by Rs 145/bag to Rs 1,360/bag at dealer’s level from Rs 1,215/bag earlier.

The international urea prices against the locally produced one fell from almost 90% earlier to 70% now. This increase is believed to have been for 20 days (15-day gas shortages plus 5-day that the plant takes for start-up). Engro’s management hinted at a price increase in first week of Jul-11. However, immediately after that, the whole episode regarding the gas charges increase for fertilizer sector unfolded itself.

This is the 4th time in the last 7 months that the price of urea has been increased. It was done on three occasions to curtail production losses while one was to incorporate increased taxation impact. Better farmers’ economics had enabled Engro to increase their prices in the past due to bumper Rabi crop during 2010 and exceptional prices in the international markets. However, with cotton prices falling from above the level of Rs 12,000/mound (down 45% since peak), and taking a breather at Rs 6,700/mound, as it could be seen the farmer economics taking a hit. staff report


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