# Government decides to reduce VCM on urea - Business Recorder

> Pakistan's government has reportedly cut the variable contribution margin on urea by 20%, from Rs 294 to Rs 234 per bag. The decision follows projections that national urea stocks would fall below the 200,000 MT buffer level by December 2020.

- Date: 2020-06-19 · published 2020-06-19T12:00:00.000Z
- Category: policy · region Pakistan · magnitude low
- Page: https://feedsoft.ai/events/52919-government-decides-to-reduce-vcm-on-urea-business-recorder
- Commodities: [Urea](https://feedsoft.ai/c/UREA.md)

## Why it matters

Lowering the margin supports domestic urea supply and reduces the risk of shortages, which trims the need for imports and is mildly bearish for urea.

## Read by commodity

- UREA: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| UREA | 2023-04-11 | [Fertiliser prices rise by Tk5 per kg as govt reduces subsidy \| The Business Standard](https://feedsoft.ai/events/36724-fertiliser-prices-rise-by-tk5-per-kg-as-govt-reduces-subsidy-the-business.md) | +4.6% | +6.6% |
| UREA | 2022-01-27 | [Lower use of fertilizers could adversely affect wheat output: official - Markets - Business Recorder](https://feedsoft.ai/events/43444-lower-use-of-fertilizers-could-adversely-affect-wheat-output-official-markets.md) | -5.6% | -7.4% |
| UREA | 2025-06-26 | [China to Relax Urea Export Ban, Easing Global Price Pressure - Bloomberg](https://feedsoft.ai/events/24142-china-to-relax-urea-export-ban-easing-global-price-pressure-bloomberg.md) | +5.4% | +11.3% |
| UREA | 2024-04-24 | [Global fertiliser prices set to drop but gas risks cause concern \| Farm Online \| ACT](https://feedsoft.ai/events/5022-global-fertiliser-prices-set-to-drop-but-gas-risks-cause-concern-farm-online-act.md) | -0.7% | -6.4% |
| UREA | 2021-06-28 | [State planner investigates fertilizer market, following record urea prices](https://feedsoft.ai/events/46503-state-planner-investigates-fertilizer-market-following-record-urea-prices.md) | +2.9% | +1.2% |

## Sources

- brecorder.com: https://www.brecorder.com/news/1005885

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.