ISLAMABAD: Prices and stocks of fertilizers, including DAP (Diammonium Phosphate) and urea, remain stable in the country due to streamlined local production and the off-season for major crops such as rice, officials and industry sources told Business Recorder.
Internationally, DAP prices have risen by about 14 percent to USD 825 per ton from USD 725 per ton, driven by the ongoing conflict in the Middle East. However, Pakistan remains largely unaffected due to adequate inventories and consistent local production, with M/s Fauji Fertilizer producing around 75,000 tons of DAP per month.
Responding to a query regarding DAP imports from Saudi Arabia, industry sources confirmed that supplies from the Kingdom have been disrupted due to the conflict. Nevertheless, DAP imports are continuing from alternative sources.
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“There are ample stocks of both DAP and urea in the country, and I do not foresee any shortage in the coming days,” said Samad Khan. Saudi Arabia accounts for roughly 20 percent of Pakistan’s total DAP requirement of about 1.4 million tons annually.
Current inventories are sufficient until June-July, when rice cultivation peaks.
Domestic DAP production stands at approximately 0.75 million tons annually, with FFC PQ being the only DAP manufacturing facility in the country. This underscores the importance of uninterrupted gas supply to the plant to reduce reliance on imports. Pakistan’s total DAP requirement ranges between 1.3 million and 2.3 million tons annually, making it vulnerable to prolonged disruptions in the Middle East, which could tighten global supplies and push prices higher.
Meanwhile, the local industry currently holds around 0.9 million tons of urea inventory, sufficient to meet demand during the upcoming Kharif season, provided all urea plants remain operational throughout the year.
The disruption of Qatari gas exports—an essential input for ammonia production—has significantly impacted fertilizer manufacturing in the Gulf region. Gulf producers account for nearly 30 percent of global urea exports, meaning any production disturbance has immediate global repercussions.
Consequently, international urea prices have surged to approximately USD 740–750 per ton, levels rarely seen in recent years. The situation has been exacerbated by the closure of the Strait of Hormuz, a key shipping route for fertilizer supplies to South Asia. With maritime logistics disrupted, shipments to import-dependent countries have been delayed, tightening global availability.
Under current conditions, the landed cost of imported urea is estimated at Rs13,700–14,700 per bag, compared to the domestic price of around Rs4,400 per bag.
Sector representatives emphasized that without sustained domestic production, Pakistani farmers would have been forced to purchase fertilizers at significantly higher international prices. Local production thus serves as a critical buffer, shielding the domestic market from global volatility.
Experts warn that rising fertilizer prices could have far-reaching consequences. Higher costs typically lead farmers to reduce fertilizer use, which lowers crop yields and ultimately drives up food prices, contributing to broader inflationary pressures.
Copyright Business Recorder, 2026