Urea sales in Pakistan fell to 351,000 tonnes in October, marking a 2% year-on-year (YoY) decline and an 18% month-on-month (MoM) drop, according to data compiled by Topline Securities. Analysts attribute the decline to pre-buying in earlier months, which reduced demand in October.
The month saw Engro Fertilizer increase its discount on urea bags to Rs320 per bag by the end of October, while Fauji Fertilizer maintained a more modest discount of Rs70 per bag. Despite these pricing adjustments, urea sales remained subdued.
In the first ten months of 2025, urea offtake reached 4.55 million tonnes, down 8% compared to 4.93 million tonnes in the same period last year, reflecting ongoing challenges in the agricultural sector. Urea inventories also rose, with closing stocks reaching 1.42 million tonnes in October, up from 1.15 million tonnes in September.
Meanwhile, Di-Ammonium Phosphate (DAP) sales for October were estimated at 140,000 tonnes, showing a significant 55% decline YoY but a 44% increase MoM, largely due to seasonal demand. Total DAP offtake during the first ten months of 2025 stood at 936,000 tonnes, marking a 25% YoY decrease.
Closing DAP inventories reached 408,000 tonnes in October, slightly higher than 392,000 tonnes in September and 307,000 tonnes in the same month last year.
Experts suggest that urea inventory levels are likely to remain high in the near term due to continued weakness in farm economics. However, improving farm incomes are expected to contribute to a gradual recovery in the agricultural sector.
