As per specifications, the company was to provide shipment by January 15, but it failed to meet the deadline. The company approached the corporation with a request to renew its deadline till February 15.
Sources said the TCP rejected the request for extension in deadline on the ground that time and deadline for the delivery were vital for importing urea, as delay could cause shortage and hit Pakistan's agricultural production.
An official told Business Recorder that on expiry of the deadline the TCP cancelled the contract, confiscated the earnest money and informed about its decision to the federal government so that it could make alternative arrangements for the import of fertiliser from any other destination.
The matter was taking up at the appropriate level which resulted in issuance of direction by the economic co-ordination committee (ECC) of the cabinet to the TCP to import 30,000 tons of urea to ensure its continuous supply to the farming sector at reasonable rates for Rabi crops.
The TCP has already imported 180,000 tons urea and supplied stocks to farmers through fertiliser marketing companies at subsidised rates.
The country lacks the system to deliver imported fertiliser directly to farmers, hence, the government was selling stocks to farmers through marketing companies, ie, FFC and NFC.
Imported urea costs the government over Rs1000 per bag but it is being provided to growers at Rs450.
The government is absorbing the differential so that farmers could use urea - an important input for high crop yield.