Engro Fertilizers Limited has announced an increase in the price of urea, effective April 4, 2026. The new rate will be Rs. 4,435 per bag, marking a Rs. 150 hike from the previous price.
This price adjustment comes after the company had already reduced its earlier discount on urea from Rs. 400 per bag to Rs. 150 per bag. With the latest revision, the remaining discount has been fully withdrawn, leading to higher retail prices just ahead of the new application cycle.
Industry experts suggest that other major fertilizer producers, including Fauji Fertilizer Company, may also revise urea prices soon. The increases are largely linked to rising input costs and international market trends.
Pakistan’s urea demand has weakened in recent months. Total urea sales for January and February 2026 stood at 468,000 tons, down 41% compared to the same period last year. Despite a partial recovery in February, sales remain lower than previous peaks, including record highs in December 2025.
The latest withdrawal of discounts signals a shift in strategy from supporting demand to protecting profit margins. This comes as inventory pressures have eased following heavy advance buying in late 2025.
International urea prices have also risen sharply. Middle East granular urea prices increased from $580 per ton at the start of March to $750 per ton by the end of the month, a rise of over 29%. Analysts attribute this surge to heightened geopolitical tensions in the region, affecting global supply and trade.
The increase in urea prices may impact farmers preparing for the upcoming crop season. Agricultural experts advise planning purchases early and monitoring market trends to manage costs effectively.
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Engro Fertilizers and other industry players are closely watching market dynamics. Prices are expected to remain influenced by international trends, regional supply issues, and domestic demand patterns. The urea sector in Pakistan faces a critical balance between affordability for farmers and sustainability for producers.
