Karachi: Urea sales in March are projected to increase by 82% year-over-year, reaching 558,000 tons, as fertilizer companies gear up for the upcoming Kharif season. This surge comes amid a backdrop of suppressed demand earlier in the year and anticipates a potential price hike due to geopolitical uncertainties.

According to JS Global, the urea off-take in March is set to rise sharply, with company-wise sales showing significant growth. Fauji Fertilizer Company (FFC) is expected to report a urea sales volume of 283,000 tons, marking a 51% increase from last year. This figure includes 26,000 tons of granular urea. Engro Fertilizers (EFERT) is projected to see an even more substantial rise, with sales likely to grow by 206% to 180,000 tons. Fatima Fertilizer is also expected to report an increase, with a urea volume of 58,000 tons, a 58% uptick year-over-year.

The marked rise in sales is attributed to a low base in January and February, when demand was subdued due to dealer stockpiling following significant discounts offered in December 2025. As a result of increased sales, urea inventory levels are anticipated to decline from 0.86 million tons in February to 0.82 million tons by the end of March 2026. This inventory reduction is largely driven by a reversal of the typical post-Rabi slowdown, bolstered by pre-buying for the Kharif season, which includes key crops such as rice and cotton. Additionally, there is a heightened anticipation of a price increase amid prevailing geopolitical uncertainties.