The Ministry of Finance (MoF) on Sunday assured the state-owned company that it would arrange required fund to import fertilizers.
The government took the initiative after AIC officials warned that chemical fertilizers would be in short supply in the summer if the government failed to release budget in time.[break]
“We will immediately initiate the process of procuring 90,000 tons of Urea as directed by the government. The country won´t face shortage of chemical fertilizers if we succeeded in procuring fertilizers within two months,” AR Khai, manager of AIC´s Procurement Department, told Republica.
Khair said AIC was preparing to procure 30,000 tons Urea from India´s Mineral and Mine Trading Company and another 60,000 tons from other international suppliers. The total import is estimated to cost Rs 2 billion.
“If things go as planned, we will be able to complete the procurement process by mid-March - ahead of the maize and paddy plantation season,” added Khair.
Farmers across the country took to the streets last year after the government failed to arrange sufficient chemical fertilizers during paddy plantation season last year.
Though farmers in some districts complained of fertilizers shortage in winter, Khair claimed no such situation has occurred so far.
“We have sufficient fertilizers in stock. But I agree that there might be problems in distribution in some districts,” he added.
In a bid to strengthen the supply network, the government has recently decided to allow Salt Trading Corporation (STC) to import and distribute 85,000 tons of chemical fertilizers in coordination with the Ministry of Agriculture Development.
Though the government has promised Rs 5 billion for AIC to procure additional 135,000 tons of fertilizers this year, it has released only around Rs 2.5 billion so far.
According to Khair, AIC has 30,000 tons of Urea, 25,000 tons of DAP (Diammonium Phosphate) and 5,000 tons of potash in its stock.
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