Pakistan’s urea sales have dropped sharply to a 24-quarter low of 1.04 million tons in 1Q2026, reflecting a significant slowdown in fertilizer demand after an earlier buying surge.
The decline comes after fertilizer companies rolled back discounts that had encouraged heavy advance purchases toward the end of 2025, according to a report by Topline Securities.
Industry data shows that December 2025 saw unusually high buying activity, as farmers and dealers stocked up on urea ahead of expected price changes, effectively pulling demand forward.
This front-loading of demand has now resulted in a temporary slump in sales, with volumes falling to their lowest level in six years.
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Urea demand in Pakistan is closely tied to crop cycles and pricing incentives, meaning any policy changes or discounts can shift demand across quarters rather than eliminate it entirely.
The latest drop does not necessarily indicate a structural decline in fertilizer usage but rather a correction after earlier aggressive buying. However, the trend also reflects broader pressure in the agriculture sector, where farmers are already dealing with pricing uncertainties, delayed procurement policies, and rising input costs.
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