Islamabad: The fertilizer sector is experiencing significant shifts in demand patterns as of September 2024, with urea off-take expected to decline sharply by 35% year-over-year, totaling 365,000 tons. Meanwhile, Diammonium Phosphate (DAP) sales are projected to rise by 24%, reaching 131,000 tons.

According to JS Global, urea sales by major producers such as Fauji Fertilizer Company (FFC) and Engro Fertilizer (EFERT) are set to decrease. FFC’s urea sales are expected to drop by 18% to 187,000 tons, while EFERT might see a more substantial decline of 71%, with sales amounting to only 56,000 tons. Conversely, Fauji Fertilizer Bin Qasim Limited (FFBL) is anticipated to report a significant increase in urea and DAP sales, with growth rates of 103% and 3% year-over-year, respectively.

The downturn in urea sales and the rise in DAP off-take reflect ongoing challenges within the agricultural sector, including seasonal demand fluctuations, unfavorable market conditions, and increased operational costs. These factors, combined with lower support prices for major crops and rising temperatures, continue to impact farmers’ profitability and overall crop yields.