Fertilizer Offtake in Pakistan Rises 2.4% YoY Amid Strong Urea Demand and Stable Production

October 17, 2025

Fertilizer consumption in Pakistan posted a steady increase in September 2025, with overall nutrient offtake rising by 2.4% year-on-year, according to the latest Monthly Fertilizer Review published by the National Fertilizer Development Centre (NFDC). This growth highlights the ongoing recovery in the agricultural sector as demand for essential inputs remains resilient despite cost pressures and market fluctuations.

Kharif Season Shows Strong Performance

For the ongoing Kharif season (April–September 2025), cumulative fertilizer offtake surged by 11.7% compared to the same period last year. The rise was mainly driven by higher demand for urea, which increased by 13.1% to reach over 3.1 million tonnes. DAP consumption, on the other hand, rose slightly by 1.2% to about 650,000 tonnes.

In September alone, urea usage reached 429,000 tonnes, marking a sharp 17.4% jump from the previous year’s level. Nitrogen and potash consumption also grew by 11.8% and 3.5%, respectively, reflecting healthy agricultural activity across major growing regions. However, DAP usage dropped by 27.3%, while phosphate demand fell by 24.6%, signaling a shift in farmers’ fertilizer preferences.

Overall, the total nutrient offtake for September stood at around 296,000 tonnes, compared to 289,000 tonnes in the same month last year, confirming a consistent but modest upward trend.

Domestic Production Remains Steady

Pakistan’s domestic fertilizer industry maintained stable operations during the month. Total fertilizer production in September 2025 stood at 784,000 tonnes, with urea contributing the bulk of it at 544,000 tonnes, accounting for nearly 70% of overall output. Other major products included NP and CAN, both producing around 74,000 tonnes each.

On the import side, DAP remained the key imported fertilizer, with inflows of about 99,000 tonnes, while MAP imports were recorded at 7,000 tonnes. The NFDC report noted that the combination of strong local production and moderate imports ensured adequate supply in the domestic market.

Regional Trends

Regionally, urea demand recorded a healthy increase across most provinces. Punjab, which accounts for the largest share of fertilizer consumption, witnessed a 7.5% rise in urea usage. Sindh showed an impressive 54% jump, while Balochistan also reported an 18% increase. However, Khyber Pakhtunkhwa (KP) saw a modest 12% decline.

In contrast, DAP consumption dropped sharply across the country. It declined by 34% in Punjab, 42% in KP, and 25% in Balochistan, though Sindh recorded a slight 2% increase. The report attributes these variations to changing crop patterns, price fluctuations, and farmer affordability concerns.

Mixed Price Movements

Fertilizer prices in September showed mixed behavior. Urea (Sona) declined marginally by 0.3%, bringing its average retail price to around Rs. 4,388 per 50kg bag, while other urea brands saw a 0.4% drop. In contrast, DAP prices increased by 2.2%, reaching approximately Rs. 13,809 per bag, reflecting tighter international supply conditions.

Other fertilizer varieties such as NP and SSP also registered slight price hikes of 2.9% and 0.3%, respectively, while CAN prices fell by 0.6%. On the global front, both urea and DAP prices declined in key markets like China and the Middle East, easing some import cost pressures.

Outlook

With steady domestic production and sufficient buffer stocks, the fertilizer supply chain in Pakistan is expected to remain stable through the remainder of the Kharif season. The strong recovery in urea demand reflects healthy crop activity and improved farmer sentiment.

However, the significant drop in DAP consumption and persistent regional disparities in fertilizer usage are areas of concern. Industry experts emphasize that policymakers should continue monitoring these patterns to ensure balanced nutrient use and support sustainable agricultural productivity across the country.

Overall, the NFDC report indicates that while fertilizer demand remains strong, efficient distribution and pricing stability will be critical to maintaining growth momentum in Pakistan’s agriculture sector for the rest of 2025.