Pakistan’s August DAP stocks fall as demand rises
Published by Oliver Kleinschmidt,
Deputy Editor
World Fertilizer,
According to research from Argus Media, Pakistan's DAP stocks fell by 11 000 t in August as offtake picked up seasonally. But inventories are expected to be more than sufficient by the start of the October - March rabi season.
Pakistan began August with 327 000 t of DAP in stocks, data from government agency the NFDC show. The country produced 77 000 t of DAP during the month, broadly in line with the long-term norm, but it only imported 50 000 t compared with average imports during the kharif season (April - September) of 63 000 tpm. Importers were dissuaded from bringing in more DAP in August following 128 000 t of imports in June, high international prices and expectations that a lack of affordability among farmers would lead to lower-than-usual domestic offtake over the rest of the kharif season.
Offtake jumped to 136 000 t in August, outpacing domestic production and imports but below the 172 000 t August average in 2020 - 2024, as farmers struggled with low crop prices. An absence of government subsidies to support wheat prices in 2025 has exacerbated farmers' financial woes.
September opening DAP stocks stood at 316 000 t, the latest NFDC data show. DAP inventories are expected to total 445 000 t by the beginning of the rabi season, based on start-of-September stocks, domestic production of 73 000 t, offtake of 151 000 t and 207 000 t of DAP imports in September, according to NFDC estimates and Argus Media line-up data.
Pakistani importers are under no immediate pressure to secure fresh supply, and only limited additional imports could be needed in 2025 to keep up with 4Q25 DAP demand peak.
Damage caused to agricultural land by seasonal floods was below initial expectations, and corn, wheat, maize, potato, rice, and cotton crop prices have surged, boosting farmer finances and prospects for future DAP offtake. But some September demand could be delayed into the fourth quarter by farmers hoping to capitalise on a potential November DAP subsidy of 3000 rupees/50kg bag (US$10.53/50kg bag) to support wheat farmers. And suppliers have been withholding sales of DAP bought before July as they seek to secure stronger margins against rising domestic prices.
Read the original article by Adrien Seewald on Argus Media.
Read the article online at: https://www.worldfertilizer.com/phosphates/01102025/pakistans-august-dap-stocks-fall-as-demand-rises/