Engro Tops Pakistan’s Urea Market as August Sales Jump 18%

ISLAMABAD: Pakistan urea sales saw a dramatic swing in August 2026, as heavy monsoon rains delayed fertilizer application before improving weather triggered a sharp rebound in demand.

Urea sales across Pakistan likely clocked in at 702,000 tons in August 2026, according to industry estimates a 14% drop from August 2025, but a sharp 21% jump from July's numbers. Focus Pakistan trace the yearly decline directly to heavy monsoon rains that delayed Kharif crop application this season, especially against a comparatively strong August 2025 base. The month-on-month surge tells the opposite story: as rains eased, dealers rushed to clear a backlog of delayed applications, and August's status as peak season for cotton, rice and sugarcane only accelerated the catch-up.

Eight-month cumulative sales paint a steadier picture. Urea volumes for January through August 2026 are expected to hold flat at roughly 3.8 million tons, suggesting farmers still applied their full seasonal requirement just later than usual.

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Inventory tells its own tale of a market working through a bottleneck. Industry urea stocks likely fell to 0.75 million tons in August, down from 0.93 million tons in July, as accelerated dealer offtake ate into stockpiles. Engro Fertilizers sits on the largest inventory cushion at 592,000 tons, well ahead of Fauji Fertilizer Company's 96,000 tons and Fatima Group's 56,000 tons.

The company-level split gets more interesting. Fauji Fertilizer Company and Fatima Group both took a hit in August, with sales falling an estimated 30% and 19% year-on-year to 226,000 tons and 140,000 tons respectively. Engro Fertilizers took a completely opposite path, registering an impressive rise of 18% to 327,000 tons – an indication that the company probably managed to grab a bigger market share because of the delayed demand. Looking at the figures for the eight-month period, however, the scenario becomes opposite: while Fauji Fertilizer and Fatima Group register year-on-year increases of 11% and 3%, respectively, rising to 1.9 million tons and 682,000 tons, Engro Fertilizers' production falls by 12% year on year to 1.0 million tons.

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DAP sales followed a similar rain-driven pattern. The figures for August sales were probably 123,000 tons, a decline of 10% year-on-year but a rise of 28% month-on-month, taking the eight-month DAP sales figure to 703,000 tons, only showing a slight rise of 1% from last year's total. The company that holds sway in this sector is Fauji Fertilizer, which recorded sales of 91,000 tons in August versus Engro's 16,000. DAP inventory likely settled around 253,000 tons by month's end.

Looking ahead, analysts expect urea demand to stabilize as farmer incomes improve, with the flat eight-month trend already signaling that annual demand hasn't actually eroded it just arrived on a delayed schedule this year.