Islamabad: Fauji Fertilizer Company (FFC) has increased the price of Di-Ammonium Phosphate (DAP) fertilizer by Rs 320 per bag, effective immediately.
This price hike comes as a result of rising international phosphoric acid prices, a key component in DAP production.
Key Details:
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New DAP Price (MRP): Around Rs 12,650 per bag
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Increase: Rs 320 per bag
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Reason: Pass-through of rising international phosphoric acid prices
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Current Local DAP Primary Margins: Around US$313/ton
Impact and Industry Trends:
This price increase is part of a broader cost-push pricing trend in the fertilizer sector, especially for phosphatic fertilizers.
Despite the volatility in global input costs, local producers like FFC seem to be maintaining healthy profitability due to attractive primary margins.
This move reflects the ongoing challenges faced by the sector in dealing with fluctuating international raw material prices.
However, with favorable margins, FFC and other local players in the fertilizer industry continue to stay profitable, though the rising costs will likely impact farmers and agricultural input costs in Pakistan.
Background of DAP Prices
Over the past few years, Di-Ammonium Phosphate (DAP) fertilizer prices in Pakistan have experienced significant fluctuations due to a combination of global and local factors.
In 2019, the price of DAP was relatively stable, hovering around Rs 5,500–6,000 per bag.
Read More: Pakistan Fertilizer Sector: Sales Down, Profits Steady
However, in 2020, the prices started to rise due to a surge in international phosphoric acid prices and an increase in the cost of raw materials, which are essential for DAP production.
By the end of 2020, the price of DAP had crossed the Rs 8,000 per bag mark.
In 2021, the trend of rising prices continued as global supply chain disruptions, increased demand, and higher shipping costs contributed to further price hikes.
By mid-2021, DAP prices in Pakistan surged to approximately Rs 10,500–11,000 per bag.
In 2022, prices saw another substantial increase, touching around Rs 12,000–12,500 per bag, driven by continued volatility in international phosphoric acid prices, higher fertilizer demand due to crop seasons, and inflationary pressures.
Also Read: Fertilizer Utilization Reduces by 54% YoY in Mar 2025
Most recently, in 2025, Fauji Fertilizer Company (FFC) increased DAP prices by Rs 320 per bag, pushing the price to Rs 12,650 per bag, maintaining the upward trend amid international price volatility.
Overall, DAP prices in Pakistan have shown a consistent upward trajectory, largely driven by global market dynamics and cost-push inflation. Story by AHmed Mukhtar.
