Govt skips DAP imports for Kharif 2026

April 10, 2026 (MLN): Pakistan will not import diammonium phosphate (DAP) fertilizer for the upcoming Kharif 2026 season, as the government has decided to rely on domestic supply management amid global procurement uncertainties and logistical constraints.

According to discussions held in a high-level Fertilizer Review Committee meeting chaired by Federal Minister for National Food Security and Research Rana Tanveer Hussain.

The meeting reviewed fertilizer supply–demand dynamics for urea and DAP across the ongoing Rabi season, Kharif 2026 outlook, and Rabi 2026–27 preparedness.

The session was attended by senior federal and provincial officials, along with representatives from major fertilizer producers, including Fauji Fertilizer Company, Engro Fertilizers, Fatima Fertilizer Company, and Agritech Limited.

For DAP, officials informed the committee that no import plan has been finalized for Kharif 2026 due to international market uncertainty and vessel availability challenges, according to the press release.

The Ministry of Maritime Affairs has been engaged, and the Pakistan National Shipping Corporation has agreed to facilitate vessel arrangements to support supply chain continuity.

The minister directed strict monitoring of prices to prevent further escalation and ensure smooth market availability.

On urea, the committee was told that the Rabi season remained largely stable.

Opening inventory stood at around 11.5 lakh tonnes, while domestic production reached approximately 32.32 lakh tonnes, taking total availability to 43.8 lakh tonnes.

Offtake was recorded at 35.63 lakh tonnes, leaving a closing stock of about 8 lakh tonnes, which will serve as the opening inventory for Kharif 2026.

A buffer stock of roughly 5 lakh tonnes was maintained, although concerns were raised over its adequacy during peak demand months of December and January.

It was also noted that Agritech Limited faced gas supply constraints that limited optimal production.

For Kharif 2026, participants assessed an expected rise in urea demand driven by improved farm economics.

However, concerns were raised over fertilizer smuggling risks along the western border due to a sharp price differential, with domestic urea priced at around Rs 4,500 per 50 kg bag compared with nearly Rs 14,000 internationally.

The minister called for strict vigilance to curb illegal movement and protect domestic availability.

Farmer affordability was also highlighted as a key constraint, with rising input costs and reduced purchasing power expected to impact optimal fertilizer application, particularly DAP usage, potentially affecting crop yields and agricultural productivity.

The committee also discussed pricing behavior in the urea market, noting variations across brands that were contributing to demand distortions.

Industry representatives said pricing remained market-driven and denied any artificial shortages or exploitative practices, assuring uninterrupted supply.

For Rabi 2026–27, scenario planning was undertaken based on production assumptions from key plants including FFC’s Port Qasim facility, Fatima Fertilizer, and Agritech.

The committee examined multiple operational scenarios, noting that delays or shutdowns during Kharif could strain buffer stocks during peak winter demand months of December to February.

It was also observed that full operationalization of plants from July 1, 2026, would significantly improve supply stability.

Estimated that the Port Qasim plant alone could contribute an additional 2 to 2.5 lakh tonnes over a six-month period under normal operations.

The minister directed stakeholders to present a consolidated scenario assuming full plant operations from July 2026, alongside projected production gains.

He emphasized coordination among stakeholders, uninterrupted plant operations through consistent gas supply, and proactive measures to maintain fertilizer availability and price stability in Pakistan’s agriculture sector.

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