Urea Sales Decline 13% Month-on-Month Despite Yearly Surge in Pakistan

KARACHI: Urea sales in Pakistan experienced a significant month-on-month decline of 13%, totaling 611,000 tonnes in September, despite a robust year-on-year increase of 43%. This fluctuation highlights the seasonal dynamics affecting the agricultural sector.

According to Myesha Sohail of Topline Securities, the month-on-month drop is primarily attributed to seasonal factors, while the year-on-year rise is largely due to a low base effect and improved crop activity, which has bolstered urea demand. Over the first nine months of 2026, urea sales saw a modest increase of 5%, reaching 4.4 million tonnes.

The decline in sales coincides with a reduction in industry urea inventory, which fell to a nine-month low of 650,000 tonnes in September, down from 750,000 tonnes in August. Engro Fertilisers leads the inventory holdings with 519,000 tonnes, followed by Fauji Fertiliser Company at 88,000 tonnes and Fatima Group at 29,000 tonnes.

In contrast, diammonium phosphate (DAP) sales plummeted by 39% year-on-year and 50% month-on-month to just 59,000 tonnes in September, bringing total sales for the first nine months of 2026 to 756,000 tonnes, a 5% decrease compared to the previous year. The DAP closing inventory stood at approximately 259,000 tonnes. Looking ahead, Sohail anticipates that urea sales may experience modest growth, driven by improved crop prices.