Pakistan provided $270 million in interest-free loans to support 500,000 farmers

Pakistan’s fertilizer industry has reported diverging sales trends for the first ten months of 2024, with a notable decrease in urea usage offset by an increase in Diammonium Phosphate (DAP) sales, as per data from AKD Research and government sources. Urea consumption fell by 8.7%, dropping from 5.403 million metric tonnes to 4.931 million metric tonnes, while DAP sales saw a 6.9% rise, reaching 1.239 million metric tonnes during the same timeframe.

The decrease in urea sales reflects a broader struggle with declining farmer incomes. However, the surge in DAP sales, particularly during the Rabi season—a critical period from October to March for crops like wheat, barley, and pulses—is attributed to increased demand facilitated by government incentives.

Notably, Pakistan imported 220,662 metric tonnes of urea in the ten months of 2024, marking a slight increase from the previous year. This increment comes despite domestic challenges, indicating a complex interplay of market forces and import strategies.

The Fertiliser Review Committee (FRC), led by Federal Minister for Industries, Production, and National Food Security Rana Tanveer Hussain, has assured that the country’s fertilizer reserves are well-positioned to meet the Rabi season’s demand. This reassurance is crucial as the season is vital for the agricultural output of staple crops.

In a significant push to support farmers, the Punjab government’s Kisan Card initiative disbursed approximately PKR 75 billion (around US$ 270 million) in interest-free loans to 500,000 farmers, enhancing their purchasing power for essential inputs like seeds and fertilizers. Minister Hussain highlighted that the Kisan Card program led to a 44% increase in DAP sales in October 2024 alone, with farmers procuring substantial amounts of fertilizer through the aid provided.

As the country prepares for the upcoming agricultural season, Minister Hussain emphasized the critical role of farmers’ prosperity in driving economic growth and called for stringent measures against hoarding and price manipulation to ensure a stable supply of fertilizers. The government’s continued focus on balancing fertilizer usage aims to maximize crop yields and sustain the agricultural sector’s health amidst fluctuating market dynamics.