Fertilizer offtake dips in July 2025

August 18, 2025 (MLN): Fertilizer consumption in Pakistan witnessed a mixed performance in July 2025, as overall nutrient offtake declined by 12% year-on-year, according to the latest Monthly Fertilizer Review released by the National Fertilizer Development Centre (NFDC).

Despite this monthly dip, cumulative figures for the ongoing Kharif season (April–July) show a modest 2.7% increase, indicating resilience in agricultural demand amid fluctuating market conditions.

In July, urea offtake remained relatively stable at 608,000 tonnes, registering a marginal decline of 0.6% compared to the same month last year. In contrast, DAP consumption dropped sharply by 34.6%, falling to 107,000 tonnes.

Nutrient-wise, nitrogen offtake decreased by 5.7%, while phosphate usage saw a steep decline of 35.4%. Potash, though consumed in smaller volumes, recorded a notable increase of 40.7%, reflecting a shift in regional cropping patterns or targeted soil management practices.

Table 1: Fertilizer Offtake – July 2025 vs July 2024

Over the first four months of the Kharif season, total nutrient offtake reached 1.34m tonnes, up from 1.30m tonnes in the same period last year. Urea demand rose by 2%, reaching 1.86m tonnes, while DAP consumption slightly declined by 0.7% to 416,000 tonnes.

Nitrogen usage increased by 3.4%, and potash saw a healthy rise of 15.7%, though phosphate remained nearly flat.

Table 2: Cumulative Offtake – Kharif 2025 vs Kharif 2024

Domestic fertilizer production in July 2025 totaled 814,000 tonnes, with urea accounting for nearly 69% of the output.

Other significant contributors included NP (79,000 tonnes), CAN (76,000 tonnes), and DAP (78,000 tonnes). Imports remained modest, led by DAP at 19,000 tonnes and ammonium sulfate (AS) at 12,500 tonnes.

Table 3: Domestic Production – July 2025

Regionally, urea offtake rose sharply in Balochistan by 42% and in Sindh by 11.8%, while Punjab recorded a 6.6% decline. Khyber Pakhtunkhwa (KP) saw a modest increase of 9.3%. DAP consumption, however, fell across all provinces, with KP registering the steepest drop of 77.5%. Punjab and Sindh also reported significant declines of 30% and 45%, respectively.

Table 4: Province-wise Offtake – July 2025

NFDC’s supply-demand projections for the remainder of Kharif 2025 suggest a comfortable buffer.

Urea availability is estimated at 4.25m tonnes against a projected demand of 2.96m tonnes, while DAP availability stands at 961,000 tonnes versus a demand of 739,000 tonnes.

On the pricing front, domestic fertilizer prices showed mixed trends. Urea (Sona) declined slightly by 0.6% to Rs. 4,425 per 50 kg bag, while other urea brands dropped by 1%. DAP prices rose by 2.1% to Rs. 13,031 per bag.

NP and SSP also saw price increases of 2.7% and 3.8%, respectively. Internationally, urea and DAP prices rose in key markets such as China and Morocco, potentially influencing future import costs.

Table 5: Domestic Fertilizer Prices – July 2025

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.

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