The domestic prices of diammonium phosphate (DAP) have dipped below Rs. 11,000 per bag as the industry continues to reel from flood aftershocks.
Domestic fertilizer producers — Fatima Fertilizer Company Limited and Fauji Fertilizer Bin Qasim Limited (FFBL)— announced a decrease in DAP by Rs. 1,130 per bag on Thursday, according to JS Research. Effective from 10 November 2022. DAP retail prices of Fauji Fertilizer Company Limited (FFC) and FFBL now stand in the Rs. 10,200-10,350 per bag range, while Fatima’s DAP rate is around Rs. 10,220 per bag.
A similar announcement by Engro Fertilizers Limited (EFERT) is expected shortly.
The drop comes almost two weeks after fertilizer manufacturers agreed to consider a significant reduction in the prices of DAP fertilizer at the request of Finance Minister Ishaq Dar.
Overall, DAP sales for October 2022 are projected to be down by 82 percent YoY at 63,000 tons. Monthly sales are projected to remain flat, taking overall sales for January-October to around 800,000 tons.
Stay Connected with ProPakistani
Get the latest business news, market insights, and economic updates wherever you prefer.
Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.
The prices of DAP are generally linked with international markets as bulk of the demand is met through imports. FFBL the sole producers of DAP were under immense pressure due to inventory building up every day. The farmers have stopped buying and applying DAP due to higher price of DAP and indecisiveness to the wheat support price. Thus market forces have been forced to reduce the price despite purchase at higher price. That is why it is vital to let the market forces prevail.