Karachi: Urea demand witnessed a significant increase in September, with offtakes estimated at 610,000 tons, marking a 42% rise compared to the same period last year, though a 13% decrease from the previous month. Dealers are reportedly building inventory in anticipation of possible Rabi-season shortages and potential gas curtailment during the winter months.

According to JS Global, the market share for urea is expected to be led by FFC with 43%, followed by EFERT and FATIMA, holding 36% and 17% respectively. In contrast, DAP offtakes in September are estimated at 59,000 tons, reflecting a 39% year-over-year decline and a 53% month-on-month decrease. The persistent high prices of DAP continue to affect farmer affordability, necessitating government subsidies to support phosphatic application.

The combined Kharif fertilizer offtakes, including both Urea and DAP, are projected to reach 3.84 million tons, representing a 2.4% year-over-year increase from last year's 3.75 million tons. This growth is driven by an 8% rise in urea offtakes, totaling 3.36 million tons. However, DAP offtakes have declined by 27% year-over-year to 474,000 tons.