January 03, 2024 (MLN): Fauji Fertilizer Limited (PSX: FFC) and Fauji Fertilizer Bin Qasim Limited (PSX: FFBL) have increased the market retail price of Urea by Rs187 per bag with effect from January 04, 2024.
Post the price adjustment, FFC's new Urea price is now reported at Rs3,596 per bag, bringing it in line with the pricing set by Engro Fertilizers Limited (PSX: EFERT).
Meanwhile, FFBL's Urea price has risen to Rs3,981 per bag, reflecting the impact of this market change on the company's pricing structure.
During December 2023, the sale of Urea by EFERT, FFC and FFBL combined and FATIMA reduced by 4% YoY, 9% YoY and 30% YoY to stand at 211,000, 254,000 tons and 109,000 tons, respectively, according to the report by Arif Habib Limited.
In addition, reports and industry insights suggest that the Urea market is currently facing the concerning practice of hoarding, leading to potential supply disruptions and market instability.
Earlier this week, the Caretaker Prime Minister Anwaar-ul-Haq Kakar directed the relevant authorities to initiate legal proceedings against those involved in the hoarding of Urea and illegal profiteering.
Those exploiting farmers by urea fertilizer hoarding would not be spared, he warned.
He also directed the relevant federal ministries to ensure their assistance to the provincial governments in the action taken to control the issue of hoarding by providing details about the demand and supply of fertilizer.
