Urea Sales Hit 15-Year November High in Pakistan as Farmers Increase Rabi Season Purchases

Pakistan’s fertilizer sector witnessed a historic surge in urea sales during November 2025, reaching the highest November offtake in 15 years. The sharp rise came as farmers stepped up purchases ahead of the Rabi cropping season, supported by discounts offered by major fertilizer manufacturers and improving farm economics.

According to industry data, urea offtake surged across the country, significantly reducing inventories and signaling strong agricultural activity. Leading producers including Fauji Fertilizer Company (FFC) and Engro Fertilizers posted record November sales, underlining broad-based demand from farmers nationwide.

Pakistan Urea Sales Reach Highest November Level Since 2010

The fertilizer industry recorded exceptionally strong urea sales in November 2025, pushing total offtake to levels not seen since 2010. Analysts attribute this growth to a mix of seasonal demand, price incentives, and farmer confidence ahead of Rabi sowing.

Urea is a key input for crops such as wheat, vegetables, oilseeds, and fodder, making November a critical month for fertilizer purchases. This year, demand exceeded expectations, surprising even industry insiders.

Fauji Fertilizer Company Posts Best November Sales in 15 Years

Fauji Fertilizer Company (FFC) emerged as one of the biggest beneficiaries of the demand surge.

Key Highlights:

• FFC recorded its strongest November urea offtake in 15 years
• Company inventory share dropped to 23% in November, down from 28% in October
• Faster stock movement reflected robust farmer demand

The decline in inventory share indicates that urea stocks moved rapidly into the market, easing storage pressure and improving cash flows for manufacturers.

Engro Fertilizers Also Records Record November Urea Offtake

Engro Fertilizers, another major player in Pakistan’s fertilizer market, also reported its highest-ever November urea sales.

This confirms that the sales surge was industry-wide, rather than limited to a single producer. Analysts say Engro’s performance shows that farmers across regions increased fertilizer usage, likely expecting better crop yields and favorable market prices.

Industry Urea Inventories Fall Sharply in November 2025

Strong sales translated into a significant drawdown in industry inventories.

Inventory Movement:

• Total industry urea stocks fell to 1.14 million tonnes in November
• Inventories were 1.40 million tonnes in October
• Month-on-month reduction of 260,000 tonnes

Lower inventories are generally seen as a positive sign, reducing the risk of price pressure and storage constraints for manufacturers.

Why Farmers Increased Urea Purchases Before Rabi Season

Several factors contributed to higher urea buying by farmers:

1. Rabi Season Sowing Demand

November marks the peak sowing period for wheat, Pakistan’s staple crop. Farmers typically increase fertilizer use during this time to maximize yields.

2. Discounted Urea Prices

Fertilizer companies rolled out discounts and incentives, encouraging bulk purchases and early stocking by farmers.

3. Improved Crop Price Expectations

Rising expectations for better wheat and vegetable prices motivated farmers to invest more in inputs.

4. Availability of Urea

Unlike previous years marked by shortages, urea availability remained stable, allowing farmers to buy without fear of supply disruptions.

Impact of High Urea Sales on Pakistan’s Agriculture Sector

The surge in urea sales is expected to have positive implications for agricultural productivity.

Higher Crop Yields Expected

Adequate fertilizer application improves soil nutrition, leading to better germination and higher yields, particularly for wheat.

Support for Food Security

Stronger wheat output helps stabilize food prices, reduces reliance on imports, and strengthens national food security.

Boost for Rural Economy

Increased agricultural activity translates into higher rural incomes, benefiting farmers, laborers, and input suppliers.

Fertilizer Industry Outlook After Strong November Performance

Industry experts believe the momentum could continue into December and early 2026, depending on weather conditions and crop progress.

Key Outlook Factors:

• Continued Rabi fertilizer demand
• Government policies on gas supply to fertilizer plants
• Global urea price trends
• Domestic crop pricing dynamics

If inventories remain under control, manufacturers may maintain stable pricing, benefiting farmers further.

Role of Fertilizer Discounts in Driving Sales Growth

Discounting played a crucial role in reviving demand.

Manufacturers used targeted price cuts to clear stocks accumulated earlier in the year. This strategy proved effective, helping companies:

• Reduce inventory holding costs
• Improve liquidity
• Strengthen market presence

For farmers, lower prices reduced input costs at a critical stage of crop planning.

Comparison With Previous Years’ November Urea Sales

Historically, November urea sales have been volatile due to:

• Gas supply disruptions
• Policy uncertainty
• Import delays

However, November 2025 stands out because:

• Sales surpassed all November figures since 2010
• Multiple manufacturers achieved record offtake
• Inventory levels normalized quickly

This indicates a structural improvement in supply-demand alignment.

What This Means for Urea Prices in Coming Months

Lower inventories typically support price stability, but several risks remain:

• Any disruption in gas supply could tighten production
• Unexpected surge in demand may strain stocks
• International price movements could influence imports

For now, analysts expect prices to remain relatively stable through the peak Rabi season.

Government Policy and Its Impact on Fertilizer Market

While the current surge is market-driven, government policies still play a major role.

Key Policy Areas:

• Gas allocation to fertilizer plants
• Import duty structure on urea
• Support prices for wheat and other crops

Stable policies will be crucial to maintain farmer confidence and industry performance.

Conclusion: Strong Urea Sales Signal Healthy Rabi Season Start

The 15-year high November urea sales mark a strong start to Pakistan’s Rabi season 2025–26. With farmers actively investing in fertilizers, the outlook for wheat production and overall agricultural output appears encouraging.

For the fertilizer industry, rapid inventory drawdown and record sales highlight improving market dynamics. If supportive conditions continue, both farmers and manufacturers stand to benefit in the months ahead.

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