The price of diammonium phosphate (DAP) has been increased by Rs. 663 per bag.
Engro Fertilizers Limited (PSX: EFERT) has increased urea prices effective from 17 August 2023 (today. According to the new prices, a DAP bag will be sold at Rs. 10,780 post increase, according to JS Global.
In comparison, DAP prices for Fauji Fertilizer (PSX: FFC) and Fauji Fertilizer Bin Qasim Limited (PSX: FFBL) stand at Rs. 10,325 per bag and Rs. 10,375 per bag, respectively.
This surge in fertilizer costs could impact demand and hurt yields due to unaffordability. Fertilizer costs have more than doubled since January 2021, and the pricing trend is anticipated to go further up amid prevalent shocks of inflation gripping the cash-strapped country.
The price hike combined with an across-the-board withdrawal of domestic subsidies as per budget 2023-24 may give rise to smuggling and pivot more power to mafias running the urea market from down under.
Source: Pro Pakistani
