Fauji Fertilizer Company Raises Urea Price by Rs. 125 Per Bag

Fauji Fertilizer Company (FFC) has increased the price of granular urea by Rs. 125 per bag, taking the maximum retail price of FFBL-branded granular urea to Rs. 4,749 per bag, according to Topline Securities.

The latest increase comes amid stable industry demand and rising inventory levels across Pakistan’s fertilizer sector. Meanwhile, the price of prilled urea currently stands at Rs. 4,525 per bag.

According to data compiled by Topline Research, Pakistan’s urea sales reached around 419,000 tons in May 2026, broadly unchanged from the same month last year but down 10 percent compared to April. Analysts attribute the monthly decline to the completion of early Kharif season purchases, with dealers focusing on clearing existing inventories after heavy buying activity in April.

Higher fertilizer prices have also strained farmers’ liquidity, resulting in delayed purchases in some regions. As a result, industry urea inventories are estimated to have increased to 0.99 million tons in May from 0.83 million tons a month earlier.

Topline data also reported that despite the monthly slowdown, cumulative urea sales during the first five months of 2026 are estimated at 1.9 million tons, up 8 percent compared to the same period last year, indicating that underlying agricultural demand remains relatively healthy.

Company-wise, Engro Fertilizers is estimated to hold the largest inventory at approximately 637,000 tons, followed by Fatima Group with 221,000 tons and FFC with 113,000 tons. FFC’s urea sales are expected to rise 24 percent year-on-year to 257,000 tons in May, while Fatima Group’s sales are projected to increase sharply to 87,000 tons. In contrast, Engro Fertilizers’ sales are estimated to decline significantly during the month.

The fertilizer sector is also witnessing weakness in DAP demand. Industry estimates suggest DAP sales fell 42 percent year-on-year and 34 percent month-on-month to around 55,000 tons in May as prices remained above Rs. 15,000 per bag. However, cumulative DAP sales for the first five months of 2026 are still expected to be 30 percent higher than last year.