Check Out the Latest DAP Prices in Pakistan Today

By Newztodays Team

Are you curious to know about the latest price of DAP fertilizer in Pakistan today? We have found the latest list of DAP and urea prices in Pakistan.

No, doubt these skyrocketing costs of DAP fertilizer are affecting the country’s farming community which calls for actions on the government side to combat industry hoarding and support farmers.

Engro, one of Pakistan’s most popular fertilizer brands, has been causing concern among farmers with its high prices.

Engro imports products whereas another popular brand Fauji Fertilizer produces DAP locally.

With fertilizer prices reaching unprecedented heights in Pakistan, it’s important for the government to come up with solutions and actions to save farmers from the ills of skyrocketing prices of fertilizers.

The high prices of fertilizers are also discouraging farmers from cultivating crops especially cotton in more areas.

Additionally, they are switching to other crops which may result in a shortage of cotton for the textile industry which is considered to be the backbone of the country.

• Read More: ECC approves Kisan Package, reduces DAP Price

Pakistan is only good in textile exports. If cotton, a raw material for the textile industry disappears from the market, there will be a big blow to the textile industry which brings precious dollars to Pakistan.  

Fertilizer Prices in Pakistan Today 

Discover the shocking truth about DAP fertilizer prices in Pakistan and how they are affecting the country’s farming community. Read on to find out more.

Urea Prices in Pakistan Today

Brand	MRP (Price)
FFC	3410
Engro	3596
Fatima	3410
Agritech	3411
Fatima Babarshar	3625

What is DAP?

The price of Di-Ammonium Phosphate (DAP) in Pakistan has been a cause for concern among farmers and agricultural communities.

Despite the government’s efforts to reduce the cost of DAP through the Kisan Package and subsidies, reports suggest that manufacturers were also planning to increase the price to Rs. 16,000 per bag.

This is a big concern about the disastrous effects on cotton production during the current Kharif season sowing season, as higher prices may reduce DAP usage and application on crops, leading to reduced harvests.

There were also reports that due to higher prices of DAP, the farmers had been using unapproved fertilizer which marketers had been marketing and selling to the farmers.

These types of fertilizers could also be dangerous for the farmers.   

To prevent a shortage and reduce the price of DAP, Dr. Ibrahim Mughal, chairman of the Agri Forum of Pakistan, recommended importing fertilizer to reduce the price of DAP by Rs. 8,000 per bag.

In the past, the government had been considering options to consider other options, such as reducing imports withholding taxes and providing direct subsidies to farmers, to save $3 billion in foreign exchange on wheat imports.

The price of DAP from popular fertilizer brands like Engro is also causing concern among farmers. Engro had increased the price of urea several times.

The price of Engro Zorawar, compared to other fertilizers in Pakistan, had been much higher.

These high prices put a significant burden on farmers who are paying the highest price in history.

Hoarding of DAP  

The fertilizer industry in Pakistan has also been accused of hoarding and manipulating prices, causing significant price increases in both nitrogenous and phosphate fertilizers.

The government has been taking steps to manage hoarding and profiteering, but more needs to be done to make fertilizers affordable for poor farmers.

The situation required urgent attention, and effective measures to ensure food security and support the agricultural sector.

Kisan Package approved to support wheat crops and food security

During the present government, the Economic Coordination Committee (ECC) approved the Kisan Package to reduce the cost of Di-Ammonium Phosphate (DAP) and increase agriculture loan disbursement to support wheat crops and food security.

The package also included interest-free loans to convert 3 lac tube wells to solar.

Farmers struggle with the high cost of DAP

Despite the relief provided by the Kisan Package, farmers still struggled with the high cost of DAP.

Former Prime Minister Shahbaz Sharif had announced subsidies to cut its price to Rs. 11,250 per bag, but farmers found it beyond their reach.

Farmers concerned over high prices of DAP

The farmers have raised serious concerns over disastrous effects on cotton production.

They are already facing the burden of higher prices of high speed diesel and electricity prices which added to their miseries.

The agricultural community expressed concern that such high prices could have disastrous effects on cotton production during the current Kharif sowing season.

The prices could reduce DAP usage and application on crops, leading to reduced harvests.

Anticipated DAP shortage and its impact on Cotton production

Pakistan Kisan Ittehad (PKI) President Khalid Khokhar predicted an anticipated DAP shortage for the crops.

During the recent Rabi season, he had cautioned about the shortage of wheat.

The government had imported wheat from Russia to meet the local demand of the masses.

He had warned that lower DAP application by farmers could reduce the harvest by at least 20 percent, or approximately 5.4 million tonnes. This could cost $3 billion to import.

However, due to better weather conditions, the wheat production had been good despite the lowest usage of DAP.

Despite the Kisan package offered to lower DAP prices from Rs 15000 to Rs 11000 per bag, it was available in the market at Rs 10,000 per bag as the farmers had refused to buy it.

Therefore, demand-supply situation resulted in lowering the price of DAP in the local market for wheat crops.  

Recommendations to prevent DAP shortage and reduce its price

To prevent the DAP shortage and reduce its price, Dr. Ibrahim Mughal, chairman of the Agri Forum of Pakistan, emphasized that the government should support farmers instead of importing wheat from other nations.

PTI’s tenure is worst for farmers in terms of fertilizer prices

During the Pakistan Tehreek-e-Insaf’s (PTI) tenure, farmers witnessed the highest-ever increase in fertilizer prices.

The price of Urea went up by Rs. 681 per bag, and DAP by Rs. 7,661 per bag. The PTI government has been the worst for farmers in terms of fertilizer prices.

The fertilizer industry in Pakistan has been accused of hoarding and manipulating prices, causing significant price increases in both nitrogenous and phosphate fertilizers.

For example, DAP prices in the open market reached Rs 15000 per 50 kg bag for the first time in the country’s history, and the urea price soared to Rs 3000 per 50 kg bag.

The shortage of these fertilizers in the open market has left farmers with no choice but to sow wheat crops without them. The fertilizers are sold on the black market at much higher prices, making them unaffordable for poor farmers.

Government Intervention

The government has taken notice of the situation and is trying to manage hoarding and profiteering.

Fertilizer review meetings have been held with the industry, and the government has taken action against hoarders and profiteers.

The government has also urged farmers not to pay more than the prescribed rates and is monitoring the supply of fertilizers across the country.

DAP Price in 2021

The FFC rates and FFBL DAP retail prices stood at Rs 5,989 and Rs 6,039 per bag, respectively. Engro’s DAP price stood at Rs 5,769 per bag. During the period under review, both these companies had raised their prices several times.

In September 2020, Fauji Fertilizer Limited (FFC PA) and Engro Fertilizer Limited (EFERT PA) increased the price of DAP fertilizer in Pakistan by Rs 100/bag and Rs 250/bag, respectively.

This hike was mainly due to an increase in prices in the international market. Both companies had increased their prices due to continuous hikes in the landed cost of imported commodities.

According to analysts, DAP fertilizer prices in Pakistan have increased due to the continuous increase in landed costs for imported DAP.

FFC had increased its Sona-DAP and FFC imported DAP prices by Rs 100/bag effective from September 17, 2020, while EFERT had already increased its DAP prices by Rs 250/bag.

The companies have also increased their prices due to lower inventory carried by private importers and a 6% average increase in international DAP prices since China lifted the lockdown in Hubei province, which accounts for 27% of China’s DAP production.

As per calculations, DAP costs for importers were Rs 3,370 per bag to attain break-even at prevailing international DAP and Rupee parity.

Both India and Pakistan have placed more import orders, while Thailand has lower DAP inventory levels.

This sector outperformed given the government’s food security efforts, as evidenced by continuous monitoring of locust outbreaks and the Rs 50bn package for agriculture.

Furthermore, a decline in fuel prices and better pricing for wheat and sugarcane crops supported farmers’ liquidity positions.

DAP fertilizer is very expensive for farmers. However, they have to use it for better returns and output.

In recent years, the prices of DAP fertilizer have continued to rise, putting an additional burden on the farmers. Farmers have been demanding that the government reduce the prices of DAP fertilizer in Pakistan.

However, fertilizer manufacturers are a powerful lobby in Pakistan who manages the prices despite receiving subsidies worth billions of rupees on account of discounted gas.

Engro DAP Price in Pakistan 2021

The Engro DAP price in Pakistan stood at Rs 6,550 per 50 kg bag. However, this is a retail price that farmers pay to dealers to buy DAP for crops.

Sona DAP Price in Pakistan 2021

The DAP fertilizer prices in Pakistan were the same. Therefore, its price also stood at Rs 6,550 per 50 kg bag. This is also the retail price.

FFC owns Sona DAP. Although fertilizer plants had not increased the prices of DAP, dealers continued hiking prices, which swelled to Rs 9,000 per bag.

Hoarders also continued making money. These black markets spread rumors regarding the shortage of DAP and subsequently, increased prices.

DAP Supply and Demand

The government had projected that the sale of DAP would decline by 10% due to a price hike in DAP during 2021-22.

It has projected demand for DAP at 508,000 metric tons in Rabi season 2021-22. Domestic production of DAP was projected to stand at 372,000 metric tons.

The total availability of DAP was projected to be 880,000 metric tons. However, the government has estimated the total offtake of DAP at 1,003,000 metric tons.

Wrap Up

The prices of Engro fertilizers and those from other companies are putting a significant burden on farmers in Pakistan. The government is taking steps to manage hoarding and profiteering, but more needs to be done to make fertilizers affordable for poor farmers.