Fertilizer consumption sees mixed performance in July 2025, DAP faces sharp decline

Urea and potash consumption rise, but DAP usage falls sharply amid regional variations

ISLAMABAD: Fertilizer consumption in Pakistan showed a mixed performance in July 2025, with overall nutrient offtake declining by 12% year-on-year, as per the latest data from the National Fertilizer Development Centre (NFDC). Despite the monthly dip, cumulative figures for the ongoing Kharif season (April-July) showed a modest increase of 2.7%, indicating resilience in agricultural demand.

According to the NFDC’s Monthly Fertilizer Review, urea offtake remained relatively stable at 608,000 tonnes, reflecting a marginal decline of 0.6% compared to the same month last year. In contrast, DAP consumption saw a sharp drop of 34.6%, falling to 107,000 tonnes.

Monthly Fertilizer Offtake – July 2025 vs July 2024:

  • Urea: 608,000 tonnes (-0.6%)

  • DAP: 107,000 tonnes (-34.6%)

  • Nitrogen: 329,000 tonnes (-5.7%)

  • Phosphate: 63,000 tonnes (-35.4%)

  • Potash: 2,700 tonnes (+40.7%)

Regionally, urea offtake saw a significant increase in Balochistan by 42%, and Sindh recorded a rise of 11.8%, while Punjab reported a decline of 6.6%. However, DAP consumption fell across all provinces, with Khyber Pakhtunkhwa (KP) showing the steepest drop at 77.5%.

The report further reveals that the total nutrient offtake for the Kharif season reached 1.34 million tonnes, a slight increase from 1.30 million tonnes in the previous year. Urea demand increased by 2%, reaching 1.86 million tonnes, while DAP consumption saw a slight decline of 0.7%.

Cumulative Offtake – Kharif 2025 vs Kharif 2024:

  • Urea: 1.86 million tonnes (+2.0%)

  • DAP: 416,000 tonnes (-0.7%)

  • Nitrogen: 1.07 million tonnes (+3.4%)

  • Phosphate: 257,000 tonnes (-0.4%)

  • Potash: 9,000 tonnes (+15.7%)

In terms of domestic production, Pakistan produced 814,000 tonnes of fertilizers in July, with urea contributing 69.2% of total output. Other notable contributors included NP (79,000 tonnes), CAN (76,000 tonnes), and DAP (78,000 tonnes).

Despite the fluctuation in DAP consumption, the NFDC’s supply-demand projections for the rest of the Kharif season indicate a comfortable buffer in fertilizer availability. Urea availability stands at 4.25 million tonnes, exceeding the projected demand of 2.96 million tonnes, and DAP availability is expected to meet a demand of 739,000 tonnes.

Domestic Fertilizer Prices – July 2025:

  • Urea (Sona): Rs4,425 (-0.6%)

  • DAP: Rs13,031 (+2.1%)

  • NP: Rs8,125 (+2.7%)

  • SSP: Rs3,085 (+3.8%)

  • CAN: Rs4,076 (+0.3%)

The NFDC noted that the price of urea has declined slightly by 0.6%, while DAP prices have risen by 2.1%, reflecting the dynamics of the global fertilizer market. Internationally, urea and DAP prices rose in key markets like China and Morocco, which could impact future import costs.

With sufficient buffer stocks and steady domestic production, the fertilizer supply chain is expected to remain stable through the remainder of the Kharif season. However, the sharp decline in DAP consumption and regional disparities in offtake patterns warrant close monitoring by policymakers and market stakeholders.

Monitoring Desk
Monitoring Desk
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