Professional Documents
Culture Documents
Source: Economic
Survey
Types Of Fertilizer
Eight different fertilizer products which falls into three
categories.
2. Nitrogenous Category:
Urea
Calcium Ammonium Nitrate (CAN)
Ammonium Sulphate (AS)
4. Phosphatic Category:
Di-Ammonium Phosphate (DAP)
Triple Super Phosphate (TSP)
Single Super Phosphate (SSP)
Nitro Phosphate (NP)
6. Potassic Category:
Sulphate of Potash (SOP)
SPOT Analysis Of Fertilizer Sector
Budget Overview Regarding Fertilizer
Budgeted Measures
Subsidy of PKR 10bn on urea imports
Carbon
Dioxide
Urea Product
Ammonia
Ammonia Urea Plant Handling &
Plant
Shipment
N
A
T P S
P S U O T
O T R Water W E
W E A E A
E A L R M
R M G
50 Kg Urea
A
Bag
S
DAP Product
Ammonia
Ammonia DAP Plant Handling &
Plant
Shipment
N
A
T P S
P S U O T
O T R Water W E
W E A E A
E A L R M
R M G
50 Kg DAP
A
Bag
S
According to NationMaster
Pakistan ranks 46th in the world in terms of fertilizers
consumption, where its fertilizer usage per hectare is
115 kgs.
Price Trend
Source: Industry
Reports
International Vs Local DAP Prices
Source: NFDC
Business Model Of Industry
There are two types of business model operational in
fertilizer sector.
2. Manufacturing Model:
Two types of fertilizers are produced in Pakistan
which are Urea & DAP.
4. Distribution Model:
Import fertilizer and sell them in association with
the local dealer network.
Industry Structure:
Eight fertilizer companies.
The fertilizer sector in Pakistan is overseen by the
Ministry of Food, Agriculture & LiveStock.
Oligopolistic Structure
The four largest firm are price setters. However, subsidy
on feedstock to firms prevent these firms from exploiting
their marketing power.
Share of listed companies in Urea and DAP.
Source:
NFDC
Fertilizer Policy 2001
The last fertilizer policy was announced in 2001.
The Policy had been divided into two
segments:
3. Providing feedstock gas to companies at subsidized
rates.
4. Providing feedstock gas to new plants at a fixed
price of US $0.77 per mmbtu for a period of 10 years.
Source:
IFA
Recommendations
Strict quality control and monitoring should be there to
prevent import of sub-standard products and to curb
adulteration and other malpractices prevailing in this
sector.
The problem of logistics should be looked into.
Transportation through railway (being cheaper)
especially during peak seasons should be made
available.
There is a need to educate the farmers on balanced
fertilizer use so as to neutralize the adverse impacts of
constant use of nitrogenous fertilizers.