Pakistan’s urea sales climbed 46% year-on-year to 816,000 tons in August 2025, driven by lower rainfall and dealer restocking after subdued demand earlier in the year. Provisional data shows a strong rebound in fertilizer demand during August, with monthly urea sales rising 34% from July, reflecting seasonal buying by farmers.
Analysts attribute the year-on-year jump largely to improved weather conditions compared to last year and inventory rebuilding by dealers who had kept offtake lower in the early months of calendar year 2025.
Company-wise, Fauji Fertilizer Company (FFC) and Fauji Fertilizer Bin Qasim Limited (FFBL), collectively referred to as the Fauji Group, recorded urea sales of 323,000 tons in August, up 29% from 251,000 tons in the same month last year.
Engro Fertilizers Limited (EFERT) posted a sharper rise, with sales increasing 71% year-on-year to 278,000 tons from 163,000 tons. This trend highlights the uneven recovery across the sector, with EFERT showing stronger growth momentum.
Despite the robust August sales, industry-wide urea inventory levels dropped to an estimated 1.06 million tons at the end of the month, down from 1.28 million tons in July. EFERT held the largest stockpile at 493,000 tons, followed by FFC at 272,000 tons and Fatima Fertilizer at 228,000 tons.
The decline in inventory indicates stronger product absorption in the domestic market. In the diammonium phosphate (DAP) segment, sales also rebounded, rising 41% year-on-year to 125,000 tons from 89,000 tons last August.
FFC led the surge with a 99% year-on-year jump to 107,000 tons, while EFERT recorded a steep 39% decline, with sales falling to just 7,000 tons. This divergence reflects contrasting strategies among fertilizer producers in handling DAP supply amid fluctuating international prices and domestic demand cycles.
However, cumulative figures for the first eight months of calendar year 2025 show a more subdued picture. Urea sales over January–August totaled 3.8 million tons, representing a 10% decline compared with 4.2 million tons in the same period last year.
The contraction underscores the broader demand weakness earlier in the year, which August’s spike has only partially offset. Industry observers note that the fertilizer sector’s sales trends are closely tied to rainfall patterns and government policies on crop support prices.
Last year’s heavier-than-usual monsoon suppressed urea demand, while this year’s lower rainfall has aided application.
Moreover, dealers’ efforts to replenish depleted inventories ahead of the Rabi season have amplified the August sales figures. Looking ahead, the fertilizer market’s trajectory will depend on sustained farmer demand during the upcoming sowing season, as well as global urea and DAP price trends, which influence domestic pricing and import decisions.
Analysts also point out that inventory management by leading players such as FFC, EFERT, and Fatima Fertilizer will play a crucial role in stabilizing supply to farmers.
The surge in urea sales during August provides temporary relief to manufacturers after a weak start to the year, but cumulative declines highlight the challenges facing the sector. Whether this momentum continues into September and beyond will depend largely on weather conditions and government policy support for agriculture.
