ISLAMABAD (March 24 2004): Urea price has gone up by Rs 5 a bag, which would take the dealers' delivery price from Rs 428 to Rs 433 for Rabi crops. However, for the end users the prices may range between Rs 445 and Rs 450 a bag.

The new rates would be effective from April 1, the beginning of Rabi season, Business Recorder learnt on Tuesday.

The manufacturers have increased the price effective from April 1, on the presumption that possible upward revision in gas feed rates in July next would add Rs 12 to a bag of urea and the increase in April would help them absorb the difference in July.

To the manufacturers, it could be a novel way to get the difference absorbed but such excuses could hardly be accepted by any civic society.

As per fertiliser policy, gas feed rates will increase the industry by 10 percent on July 1. The industrialists say that any increase in cost would be passed on to growers.

It is a hard fact that the increase would give severe below to the agriculture sector, and farmers may find difficulty in digesting the increase.

Courtesy Business Recorder