General

The enhanced productivity in agriculture sector can be achieved by improved and efficient crop
husbandry. Applying fertilizers in required quantity and quality at appropriate times with the
using of other inputs can improve yield per healthcare of agriculture crops. In the article, the
production of fertilizers, factors that affect on it and other relevant aspects have been analyzed.
Introduction
The fertilizer industry has played a significant and responsible role in the development of both
the agriculture and industrial sectors of economy. Fertilizer Industry is in turmoil due to 70% rise
in gas prices in the year 1999.
Agriculture sector occupies the dominant position but failed to give due attention to Economic
Development. The yield per hectare is low in our country due to various reasons. Using Fertilizer
in required quantity and quality at appropriate time is best hope to improve per hectare yield if
irrigation water and certified seeds are provided according to requirement and weather conditions
are favourable, because fertilizer provides essential nutrients which are required for the smooth
growth of a plant.
At the time of independence of Pakistan, there was no any fertilizer factory but at present eleven
fertilizer units work both in private and public sectors. The Government imports fertilizers by
investing huge foreign exchange every year in order to meet the requirement of farmers which
results in balance of. payment crisis and shortage of food. In England in 1842 Sir John Lawes
treated bones with sulphuric acid and began producing a product he called superphosphate. In
1685, or the first time, potassium was Detected in the rock salt mined at stassfurt, Germany. This
discovery led to the foundation of the potash industry.
In Pakistan, Fertilizer is produced since 1957, at present five types of fertilizer i.e. N, CAN, AS,
NP, and SSP are produced and marketed besides imported Fertilizers, by both Public and Private
Sector.
Fertilizer Production Trend

There was no fertilizer plant at the time of independence of Pakistan. In 1957. First fertilizer
factory was set up at Faisalabad with a capacity of 25 thousand tonnes of SSP product and during
the year 1958 second fertilizer plant namely, Pak-America set-up at Daudkhel with a capacity of
50 thousand tonnes of (AS) which enhanced to 90 thousand tonnes in 1968.
At present there are Eleven fertilizer factories in public sector and private sector (Five in private
sector and Six in public sector) producing various types of fertilizers.
The production of various types of fertilizers in Pakistan has been passing through the ups and
downs due to various reasons.
Factories that Affect the Production of Fertilizers
Natural calamities, floods and bad weather conditions. Pest attack on the crops mainly on major
crops such as cotton wheat rice and sugarcane.
Change in the prices of crops and other agricultural products (fruits and vegetables) brought by
the farmers to the market.
Modernization of old fertilizer plants and introduction of latest technology in existing fertilizer
plants:
- Setting up of new fertilizer factories.
- Provision of Government Incentives.
- Shortage of raw material.
- Fertilizer marketing system.
- Price (Increase/decrease) of various types of fertilizers.
This has been completed recently and after undergoing trial production has commenced
successfully to make DAP fertilizer. The capacity of the plant is to produce 450,000 tonnes of
DAP per annum as well as 550,000 tonnes of granular urea production. This is the first time that
granular urea will be produced in the country.
Fertilizer Imports
In Pakistan, fertilizer imports constitute an important component of the overall supply of
fertilizer, variation in its components is likely to create fluctuation in the marketing of fertilizer.
The Government spends a sizeable amount every year in spite of scarcity of foreign exchange as
balance of trade statistics of Pakistan reflects continuous adverse balance. Availability of foreign
exchange can ultimately be used for other economic development projects of the country.
Marketing channels of imported fertilizer are much more complex in comparison with the
indigenously produced fertilizers. Imported fertilizer generally arrives in bulk at Karachi port
and bagged at the port and then transported by train and road to their next destination.
Our country is not self-sufficient in the production of fertilizers and various types of fertilizers
are being imported to supplement the domestic production.
The imports of fertilize registered a negative grant of 25.5% amounting US$167.6 million as
compaired to US$265.1 million in financial year 1999.
Fertilizer is the major item of chemical imports Di-Ammonium phosphate remains the main item
of imports amongst the fertilizer urea is the record target item of imports the largest suppliers of
DAP was USA which claimed 71% share of the imports of DAP second largest was Jordan
having a share of 11%.
Conclusion
Appropriate measures are required to be taken to protect the domestic fertilizer industry from
unfair competition.
The active involvement of private sector in the import and marketing and improving the
efficiency of public sector may help in keeping the fertilizer prices reasonable and ensure their
regular availability to farmers.
Obsolescence is a big problem in the fertilizer industry some units like Lyallpur Chemicals is
now 46 years old. Pak-American fertilizer was established in 1959. There is urgent need to
revamp and modernize old plants, the replacement of old and economically obsolete and high
energy consuming and high maintenance cost fertilizer plants should be given priority rather than
new schemes.
The Government should take efforts by making responsible persons efficient and make them
responsible for any fraud, misappropriation and also looked-after them and watched properly
The private sector should be encouraged to flourish, appropriate steps should be taken for
privatizing fertilizer factories, maximum incentives for fertilizer factories should be provided and
efficient, experienced and trained persons should be encouraged and they may be provided with
direct and indirect fringe benefits. Such rules should be framed and followed strictly so that
political pressures and political instability should not affect the quantity, quality and price of
various types of fertilizers.

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The enhanced productivity in agriculture sector can be achieved by improved and efficient crop

Fertilizer Production Trend

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