In Hyderabad, the Sindh Abadgar Board (SAB) has alleged that urea dealers are exploiting farmers, causing an annual loss of Rs130 billion, while the government and fertilizer companies, responsible for regulating prices, seem to be colluding.
During a press conference at the Hyderabad Press Club on Tuesday, the president of the board, Mahmood Nawaz Shah, expressed frustration over the board’s year-long efforts to prompt authorities to take action against this evident hoarding practice. Despite a few local-level administrative measures, Shah stated that no substantial progress has been made.
Shah highlighted that both urea and Diammonium Phosphate (DAP) are being excessively stockpiled. He recalled that in 2021, a bag of urea was sold for Rs1,700, and DAP for Rs4,700. Presently, these prices have surged more than threefold, reaching up to Rs5,200 for urea and Rs14,500 for DAP.
The SAB president pointed out that hoarders accumulate urea well beyond their actual requirements before the crucial sowing season for major crops like wheat. When farmers attempt to purchase the fertilizer, they are informed of shortages and then charged significantly higher prices than the company-fixed rates, constituting what Shah described as extortion.
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