The price of diammonium phosphate (DAP) has been increased by Rs. 200 per bag.
Fauji Fertilizer Company Limited (PSX: FFC) and Fauji Fertilizer Bin Qasim Limited (PSX: FFBL) have increased urea prices effective from 6 October 2023 (today) to Rs. 12,200 per bag and Rs. 12,258 per bag, respectively, according to JS Global.
This surge in fertilizer costs could impact demand and hurt yields due to unaffordability. The price hike combined with an across-the-board withdrawal of domestic subsidies as per budget 2023-24 may give rise to smuggling and pivot more power to mafias running the urea market from down under.
The impact of the aforesaid hike will be significant on the fertilizer industry, as feed and fuel prices are expected to remain volatile, requiring fertilizer manufacturers to increase urea prices.
