Fauji Fertilizer temporarily closes DAP plant 

With offtake tanking over the past few months, FFBL says a timeline for reopening has not been decided for the temporary maintenance-related shutdown

ISLAMABAD: Fauji Fertilizer Bin Qasim Limited (FFBL) has shut down its Diammonium Phosphate (DAP) plant on December 21, 2022, the company announced to the Pakistan Stock Exchange (PSX) on Thursday. 

“The Company hereby informs that its DAP Plant has been shut down on December 21, 2022 to more efficiently manage its DAP inventory owing to demand and supply situation in the market. During the shutdown period, planned annual maintenance activity will also be carried out in January 2023 to ensure reliability and sustainable safe operations at the plant. After the completion of annual maintenance, the startup of DAP plant will commence based on the DAP market situation. Notwithstanding the temporary closure, the Company intends to meet the projected DAP demand in the country. However, the Urea plant is operating normally”, read the notification. 

FFBL did not announce the length of the DAP plant shutdown. 

Fertilizer offtake has declined in recent months in Pakistan. According to the latest report by National Fertilizer Development Centre (NFDC) for October 2022, the DAP offtake in October 2022 was 71,000 tonnes, a significant decline of 79.1% compared to last year in October 2021. NFDC credits this decrease to heavy rains/floods and high prices of DAP fertilizer in the domestic market.

According to the same report, in its outlook for Rabi 2022-23, the total availability of DAP is expected to be around 1,158 thousand tonnes, which comprises 300 thousand tonnes of imported supply, 399 thousand tonnes of domestic production and 460 thousand tonnes of opening stock. The offtake of DAP is estimated around 829 thousand tonnes. Situation regarding DAP looks satisfactory as other phosphate fertilizers like NP, MAP, SSP and NPKs will also be available in the market to meet phosphate demand.

In recent months, DAP prices have continued to increase making it harder for the farmers to buy and other fertilizer products. DAP price during October 2022 was in the range of Rs. 8934 to 9,928 per 50 kg bag. 

Last month, the government announced a Kisan Package where the DAP prices were reduced to Rs 11250 per bag from Rs 13,750 per bag. This was expected to provide relief to the farmers. The Rs 2,500 decrease in DAP prices will be covered by the government as a subsidy. The latest prices for DAP in December are around Rs. 11,450 to 11,700 per 50 kg bag.

The majority of DAP in Pakistan is imported. Earlier this year in August, the government decided to regulate the import of DAP by making the Trading Corporation of Pakistan’s (TCP) approval necessary, a move that was criticized by fertilizer manufacturers. 

The total market for DAP in Pakistan is approximately 2 million tonnes out of which around two-third volume is imported to meet the country’s agricultural needs. Globally, DAP is recognised as one of the most standard source of phosphorus and is used with urea to provide balanced nutrition for crops. The balanced use of fertilisers can improve wheat productivity by 35 percent and maize by 40 percent, which are the leading contributors to Pakistan’s economy. 

About the company

Fauji Fertilizer Bin Qasim Limited (FFBL) was incorporated in 1993. It is mainly involved in the manufacturing, purchasing, marketing, and distribution of chemical fertilizers for the farmers and agriculture sector of Pakistan. FFBL is the only manufacturer of DAP and Granular Urea in Pakistan. FFBL commenced its commercial operations in 2000.

In 2005, Fauji Group started a Joint Venture with Office Cherifien des Phosphates Group (OCP) and formed a new entity with the name of Pakistan Maroc Phosphore S. A (PMP). FFBL has 25% equity holding in PMP and has ensured its continuous supply of Phosphoric Acid P2O5 which is a raw material for production of DAP Fertilizer. 

The Fauji Group as part of its diversification strategy acquired 21.57% of shares in Askari Bank and 50.59% shares in Fauji Foods Limited (FFL) formerly Noon Pakistan Limited. FFBL has also diversified in the energy sector and has 35 % stakes each in Foundation Wind Energy-I & Foundation Wind Energy-II (FWE-I & II). FFBL has majority stakes in its two unlisted subsidiaries, FFBL Power Company Limited (FPCL) and Fauji Meat Limited (FML), besides its 100% ownership in FFBL Foods Limited.


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Muhammad Raafay Khan
Muhammad Raafay Khan
Sector Analyst for Profit Magazine. Focus on corporates on the PSX. Can be reached at [email protected]



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