Govt says 500,000-tonne fertiliser buffer stock in place for kharif season

ISLAMABAD: The federal government said on Thursday that around 500,000 tonnes of fertiliser buffer stock had been maintained for the upcoming kharif season, while asking manufacturers to step up supply and keep the market adequately stocked.

The assessment came during a meeting of the Fertiliser Review Committee, which carried out a detailed review of the supply and demand position for urea and other major fertilisers. The discussion focused on projections for the kharif season as well as preparedness for rabi 2026-27.

The meeting was chaired by Minister for National Food Security and Research Rana Tanveer Hussain and attended by senior federal and provincial officials, along with representatives of major fertiliser producers, including Fauji Fertiliser, Engro Fertiliser, Fatima Fertiliser and Agritech.

Urea outlook and stock position

Participants were told that urea demand could rise during kharif because farm economics had improved compared to last year. At the same time, the meeting expressed concern over possible smuggling on the western border because of a wide gap between domestic and international prices. Local prices were said to be around Rs4,500 per 50kg bag, compared to about Rs14,000 in international markets.

The minister was informed that the urea situation during the rabi season had remained broadly stable and under control. Opening inventory was approximately 1.15 million tonnes, while domestic production reached about 3.23 million tonnes, taking total availability to 4.38 million tonnes.

Offtake stayed steady at 3.56 million tonnes, and the meeting noted there had been no signs of panic buying, which reflected market stability and effective supply chain management. Closing stock was estimated at around 800,000 tonnes, which will become the opening inventory for the coming kharif season.

However, concerns were also raised about whether this stock would be sufficient during peak-demand months, especially December and January. The meeting further noted that Agritech had faced gas supply constraints, affecting its ability to produce at optimal levels.

DAP supply and shipping arrangements

The committee also reviewed the position of DAP fertiliser in detail. For kharif, no imports have been planned because of global uncertainty and logistical difficulties in securing vessels.

Rana Tanveer Hussain told participants that the Ministry of Maritime Affairs had been engaged on the issue and had agreed to help ensure vessel availability through the Pakistan National Shipping Corporation.

Price monitoring and production directives

The minister stressed the need for strict monitoring of prices and directed that all possible steps be taken to ensure smooth supply and prevent any further increase in prices. He also instructed all stakeholders to adopt proactive and practical measures to improve production efficiency and maintain sufficient availability in the market.

Special emphasis was placed on uninterrupted operations at fertiliser plants, particularly through a consistent gas supply, so that supply-side pressure could be managed and market stability preserved.

The meeting also examined pricing trends and market behaviour in the urea sector. Concerns were raised over price differences among brands, which participants said were causing distortions in the market and encouraging preference for lower-priced products.

Industry representatives told the minister that prices were largely market-driven and that value-added products were aimed at specific segments. They assured him that there would be no artificial shortages or exploitative practices and that supply would remain uninterrupted.