Urea sales in Pakistan witnessed a significant drop, plunging 35% year-on-year (YoY) to 365,000 tons in September 2024, compared to 564,000 tons in the same month last year. The sharp decline has been attributed to weak agronomic conditions, as reported by Arif Habib Limited.
Company Performance Breakdown
- FFC & FFBL Group: Combined sales for Fauji Fertilizer Company and Fauji Fertilizer Bin Qasim fell by 8% YoY to 231,000 tons.
- FATIMA: Sales decreased by 20% YoY, amounting to 69,000 tons.
- EFERT: Engro Fertilizer saw the most significant drop, with a 71% YoY decline, selling only 56,000 tons, impacted by higher urea prices compared to competitors.
Month-on-month (MoM), the scenario remained grim, with an overall 35% decline in urea sales. FFC and FFBL, FATIMA, and EFERT recorded MoM drops of 8%, 48%, and 65%, respectively.
Year-to-Date Urea Sales
For the first nine months of 2024 (9MCY24), cumulative urea sales fell by 8% YoY to 4.573 million tons. Here’s how key players fared:
- FATIMA: Sales dropped 23% to 621,000 tons.
- EFERT: Declined by 11%, totaling 1.322 million tons.
- FFC & FFBL: Bucked the trend, showing a modest 3% YoY growth with 2.224 million tons sold.
DAP Sales Surge Ahead of Rabi Season
In contrast, Diammonium Phosphate (DAP) sales surged 35% YoY and 61% MoM in September, reaching 143,000 tons. The increase was driven by pre-buying activity ahead of the Rabi cropping season. However, year-to-date figures for DAP remained subdued, with total offtake declining by 6% YoY to 939,000 tons during 9MCY24.
Outlook
The contrasting trends in urea and DAP sales reflect the challenges and shifting dynamics in Pakistan’s agriculture sector. Rising fertilizer costs and weak agronomic conditions continue to strain farmers, raising concerns for the upcoming crop seasons.
News Sources,
ARY NEWS, CNN, BBC NEWS, DAWN NEWS