Urea Sales Surge 46% in august Amidst Price Cuts and Dealer Demand
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KARACHI, Pakistan – September 3, 2025 – Urea sales in Pakistan experienced a meaningful jump in August, rising by 46% year-on-year to 816,000 tonnes. this substantial increase, also representing a 34% month-on-month gain, was primarily fueled by aggressive price reductions offered by key manufacturers and anticipatory purchasing by dealers ahead of anticipated price adjustments in September.
Engro Fertilisers spearheaded the discounting trend, implementing an average price cut of Rs269 per bag throughout august. While a portion of this discount was retracted at the beginning of September, its impact on August sales was considerable. Dealers capitalized on the lower prices, making advance purchases to stock up on the fertilizer.
Despite the strong August performance, cumulative urea offtake for the first eight months of Fiscal Year 2025 (8MFY25) remains down 10% at 3.77 million tonnes, compared to 4.21 million tonnes during the same period last year. Analysts attribute this overall decline to challenging economic conditions impacting the agricultural sector.
According to Asad Ali of Topline securities, urea inventory levels decreased in August, closing at 1.06 million tonnes, down from 1.23 million tonnes in July. This reduction in inventory suggests strong demand and efficient distribution following the price incentives.
Understanding Urea and Pakistan’s Fertilizer Market
Urea is a crucial nitrogen-based fertilizer essential for crop production in Pakistan, a largely agrarian economy. fluctuations in urea sales directly reflect the health of the agricultural sector and broader economic conditions.Goverment policies, international fertilizer prices, and weather patterns all play a role in shaping demand and supply. Pakistan relies heavily on fertilizer imports to meet its agricultural needs, making domestic production and pricing strategies vital for food security.
Frequently Asked Questions About Urea Sales in Pakistan
What caused the surge in urea sales in August 2025?
the increase was primarily driven by significant price discounts offered by manufacturers, particularly engro Fertilisers, and anticipatory buying by dealers expecting price rollbacks in September.
How much did Engro Fertilisers reduce urea prices by?
Engro Fertilisers offered an average price cut of Rs269 per bag during August, though a portion of this discount was later withdrawn.
Despite the August increase, are overall urea sales down for the year?
Yes, cumulative urea offtake for the first eight months of FY25 is down 10% compared to the same period last year, largely due to weaker farm economics.
What was the urea inventory level at the end of August?
Urea closing inventory in August stood at 1.06 million tonnes, a decrease from 1.23 million tonnes in July.
What factors influence urea sales in Pakistan?
Several factors impact urea sales, including government policies, international fertilizer prices, weather conditions, and the overall economic health of the agricultural sector.
Why are dealers pre-buying urea?
Dealers pre-buy urea to take advantage of lower prices before potential price increases or policy changes, ensuring they have sufficient stock to meet farmer demand.
What is the significance of urea sales for Pakistan’s economy?
Urea is a critical input for agricultural production, and its sales are a key indicator of the health of Pakistan’s agricultural sector, which is a significant contributor to the national economy.
Published in Dawn,September 3rd,2025
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