Pakistan’s Urea buffer stocks at 829,000 tonnes, no shortage expected for Kharif season

Pakistan has more than 800,000 tonnes of urea in buffer stocks, with fertiliser manufacturers indicating no supply shortage for the ongoing Kharif season.

Executive Director of the Fertiliser Manufacturers of Pakistan Advisory Council, Brig Sher Shah Malik (retd), said available stocks stand at 829,000 tonnes, sufficient to meet domestic demand.

He said most fertiliser plants are operating at full capacity, except Fatima Fertilizer’s Sheikhupura plant, which is not receiving gas, and Fauji Fertilizer Company’s Bin Qasim plant, which is receiving 32 mmcfd of gas against a requirement of 60 mmcfd. The shortfall has led to an estimated production loss of around 100,000 tonnes.

On the flip side, fertiliser prices have also increased, with DAP rising by Rs1,000 per bag and urea by Rs200 to Rs400, mainly due to higher freight costs. Current market prices place DAP at around Rs15,000 per bag and urea at approximately Rs4,500.

Market sources said curbs on urea smuggling to Afghanistan have improved local availability and helped stabilise prices.

President of the Pakistan Kissan Ittehad Khalid Arian said higher DAP prices affected wheat output, which is expected to reach around 27 million tonnes against a target of 30 million tonnes.

He said small farmers were unable to afford DAP at current prices, reducing crop yields. With sowing of Kharif crops such as rice, cotton, maize and potatoes beginning this month, he said timely availability of urea at affordable rates remains essential.