Fertilizer offtakes decrease by 39.2% in August

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September 24, 2022 (MLN): The country’s overall nutrients offtake fell by 39.2% to 301,000 tonnes during August 2022 compared to the same month last year, the latest monthly report of fertilizer offtake issued by the National Fertilizer Development Company (NDFC) showed.

Among the nutrients, nitrogen and phosphate offtake decreased by 24.3% YoY and 84.4% YoY to stand at 283,000, and 17,000 tonnes, respectively during August 2022. While Potash offtake also moved down by 93.5% over August 2021.

The report underlined that about 777,000 tonnes of different fertilizer products were produced in Pakistan during the month of August 2022. The major share was of urea (69.6%) with 541,000 tonnes.

Other products were DAP (77,000 tonnes), Nitrophos (71,000 tonnes), CAN (76,000 tonnes), SSP (4,200 tonnes), SOP (3,200 tonnes), and various grades of NPK (4,000 tonnes). Total imported supplies were 1,000 tonnes comprising 400 tonnes of DAP, 600 tonnes of SOP, and a small quantity of AS i.e., 50 tonnes during August 2022.


The total sales of urea stood at 552,000 tonnes in August 2022, showing a decline of 14.8% when compared to August 2021.

Total urea availability during August 2022 was 745,000 tonnes, which comprised 205,000 tonnes of the previous month's leftover and domestic production of 541,000 tonnes. Urea offtake during August 2022 was 552,000 tonnes while leaving behind 195,000 tonnes of opening stock for September 2022.

Meanwhile, the average price of a 50 kg bag of urea (sona) in the domestic market during the said month jumped by 2% MoM to Rs2,424 while the price of urea (other) went up by 3.5% to Rs2,337 over July 2022.

In the international market, Fob bulk China urea price was quoted as $470-520/t during August 2022. Arabian Gulf prilled urea price ranged between $550-685/t fob. The price of imported urea was in the range of Rs. 6,450 to 9,009 per 50 kg bag.

Province-wise, urea offtake declined in Punjab, Sindh, and Balochistan by 9%, 24%, and 58% respectively, as compared with August 2021. On the other hand, its offtake increased by 10% in KP over the same period the previous year.

During Kharif 2022 (April-August), urea offtake was 2,629,000 tonnes, showing a decrease of 5.1% against the same period of Kharif 2021.

Urea availability during Kharif 2022 was estimated to be around 3,517,000 tonnes comprising 200,000 tonnes of opening inventory, 200,000 tonnes of imported supplies and 3,117,000 tonnes of domestic production.

Moreover, total urea offtake is projected to be around 3,168,000 tonnes leaving a balance stock of 346,000 tonnes of urea for upcoming Rabi 2022-23, the report added.


The sales of diammonium phosphate (DAP) witnessed a significant drop of 86% to 26,000 tonnes in August 2022, against 187,000 tonnes recorded in the same month last year.

As per the report, total available DAP during August 2022 was 451,000 tonnes comprising 374,000 tonnes of opening balance, 400 tonnes of imported supplies and 77,000 tonnes of domestic production. DAP offtake was 26,000 tonnes leaving a balance of 426,000 tonnes for September 2022.

The price of a 50 kg bag of DAP in the domestic market during the said month jumped by 4.8% MoM to Rs12,698 when compared to Rs12,120 reported in July 2022, it added.

In the international market, DAP prices were in the range of $825-875/t fob bulk in Australia and $840-920/t fob in China market.

Province-wise, DAP offtake during the review month moved down in all provinces Punjab, Sindh, Balochistan, and KP by 88%, 78%, 89%, and 86%, respectively over August 2021.

DAP offtake was 428,000 tonnes indicating a 35.8% decrease over the same time frame of Kharif 2021. To note, the offtake of DAP is experiencing a downward trend due to price escalation.

Kharif, 2022 started with an opening balance of 276,000 tonnes. Domestic production during the season is estimated to be 451,000 tonnes and imported supplies will be around 160,000 tonnes. Thus, the total availability of DAP will be around 887,000 tonnes.

The report highlighted that the offtake for DAP during Kharif 2022 is estimated to be around 547,000 tonnes, leaving a balance of 378,000 tonnes for the upcoming Rabi season.

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Posted on: 2022-09-24T22:42:40+05:00

News Id :35222

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