Islamabad, July 2, 2025: Engro Fertilizers (EFERT) has increased the price of Diammonium Phosphate (DAP) fertilizer by Rs200 per bag, pushing the new retail price close to Rs13,000 per 50kg bag. This marks an approximate 10% hike in DAP prices in 2025, aligning with global cost pressures and rising raw material expenses.
According to industry insiders, the fertilizer sector continues to maintain strong profitability, with average margins holding steady at around $280 per ton. The increase in local prices comes amid a trend of international price recovery, driven by tightened global supply and firm input costs.
Other major players in the market, including Fauji Fertilizer Company (FFC) and Fatima Group, have also followed suit, reflecting a synchronized pricing strategy across the industry. Market watchers suggest these moves are aimed at preserving profit margins amid volatile global commodity markets.
With the Kharif season underway, the price hike could increase the cost burden on farmers, especially those relying heavily on DAP for crop yield enhancement. Experts stress the need for timely subsidies or policy adjustments to shield the agriculture sector from cost shocks.
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The continuous rise in DAP prices is expected to have a ripple effect on crop production costs and food inflation, warranting close attention from policymakers and agricultural stakeholders.
