Saudi Arabia Basic Industry Corporation (Sabic) has ensured supply of 78,500 tons urea during March 2012 on account of $100 million credit facility of Saudi Fund for Development.
Sources in urea sector told Business Recorder on Monday that with federal government efforts to import urea on deferred payment/credit, Sabic was committed to supplying urea against $100 million credit facility of Saudi Fund for Development.
However, due to already finalised foreign deals with international buyers, it was not possible for Sabic to supply complete quantity of urea on urgent basis and in the first phase Sabic supplied 85,000 tons of urea through Trading Corporation of Pakistan (TCP).
Following the directives of federal government, TCP is importing about 1.2 million tons of urea including approximately 200,000 tons from Sabic to fill supply and demand gap in the domestic market.
Sources said under the urea import operation, the state run grain trader has completed 85 percent of import, through urea from international suppliers as well as partial supply from Sabic.
Under the urea import arrangement, federal government also planned to import about 200,000 tons of urea against $100 million credit facility of Saudi Fund for Development and besides this, about 45-50 percent of credit facility has already been consumed through import of 85,000 tons of urea in January this year, they added.
In the recent development, Sabic has ensured further supply of over 78,000 tons of urea against remaining credit limit.
"Sabic has committed to supply a quantity of 78,500 to Pakistan, which will arrive in the last week of March, while remaining quantity of some 37,000 tons will be supplied during second quarter of current calendar year," they said.
According to Sabic shipment scheduled, sent to TCP, two consignments will reach Pakistan by the end of this month and one in the first week of next month.
First ship carrying approximately 25,000 tons of urea will reach Pakistan on March 25, 2012 and second between March 28-30 with a consignment of about 25,500 tons, sources said.
The TCP is importing urea under the directives of the Economic Co-ordination Committee (ECC) of the Cabinet to meet farmers' needs of Rabi crop.
As per past practice, the onward transportation and distribution of urea to farmers is to be handled by M/s.
National Fertilizer Marketing Limited (NFML).
In addition, urea prices are on surge in the international market due to rising demand and less production.
The prices range between $450 per ton to $470 per ton.
