By Ayesha Saba

Fertilizer nutrient offtake increased by 11.4% during July-March FY2026, reflecting stronger agricultural activity and improved input utilization as farmers sought to enhance crop productivity despite weather-related challenges, according to the Pakistan Economic Survey 2025-26 released by the Ministry of Finance.

The survey highlights fertilizer consumption as an important indicator of farm activity, investment in crop production and overall confidence in the agriculture sector.

According to the survey, fertilizer nutrient offtake during July-March FY2026 stood at 3,795 thousand tonnes, which was 11.4% higher than the corresponding period of the previous year.

Nitrogen offtake stood at 3,035 thousand tonnes, phosphate offtake at 712 thousand tonnes and potash offtake at 48 thousand tonnes during the period under review.

The survey notes that nitrogen and potash offtake increased by 14.8% and 26.2%, respectively, during the first nine months of FY2026, while phosphate offtake declined by 1.9% due to higher prices.

The increase came despite significant disruptions caused by floods during 2025, which affected crops, agricultural infrastructure and rural livelihoods in several parts of the country.

The Ministry of Finance notes that higher fertilizer usage reflects continued efforts by farmers to improve yields and maintain production levels amid growing food demand and changing climatic conditions.

The survey indicates that agriculture grew by 2.89% during 2025-26, compared with 1.53% in the previous year, despite flood-related losses. The sector’s performance was supported by stronger output of wheat, sugarcane, rice, vegetables and pulses, along with sustained growth in livestock.

According to the report, improved access to agricultural financing also supported farm activity. During July-March FY2026, financial institutions disbursed Rs2,161.6 billion in agricultural credit, which was 71% of the annual credit expansion plans submitted by financial institutions for FY2026 and 15% higher than Rs1,880.4 billion disbursed during the same period last year.

As per the agriculture expansion plans of financial institutions, agricultural credit disbursement is expected to reach Rs3,062 billion in FY2026, which is 19% higher than last year’s disbursement of Rs2,577 billion.

The availability of institutional financing enabled farmers to purchase essential inputs, including fertilizers, seeds, pesticides and farm machinery.

The survey highlights that fertilizer is one of the most important and expensive agricultural inputs, contributing 30% to 50% towards increase in crop yield. Its share in the cost of production of major crops is around 10% to 15%.

According to the report, the farming community spends around Rs1,200 billion per annum on the purchase of fertilizer. An increase of Rs100 per 50kg bag puts an additional financial burden of Rs20 billion on farmers.

The survey notes that nitrogenous fertilizer remained the dominant component of nutrient offtake. During July-March FY2026, nitrogen offtake stood at 3,035 thousand tonnes, far higher than phosphate and potash offtake.

Domestic fertilizer production in nutrient terms decreased slightly by 0.5% during July-March FY2026 compared with the same period of FY2025, while fertilizer imports declined by 20.0%. As a result, fertilizer availability decreased by 2.8%.

Prices of nitrogenous fertilizers declined during July-March FY2026, while phosphate fertilizer prices showed an upward trend. Urea and CAN prices decreased by 4.5% and 4.8%, respectively, compared with the same period last year, while DAP, NP and SSP prices increased by 18.3%, 16.6% and 12.5%, respectively.

According to the survey, total availability of urea during Rabi 2025-26 was 4,382 thousand tonnes, comprising 1,148 thousand tonnes of opening inventory and 3,234 thousand tonnes of domestic production. Total urea offtake was 3,564 thousand tonnes, leaving an inventory of 803 thousand tonnes for the upcoming Kharif 2026 season.

Availability of DAP during Rabi 2025-26 was 1,044 thousand tonnes, comprising 392 thousand tonnes of opening inventory, 381 thousand tonnes of local production and 271 thousand tonnes of imported supplies. DAP offtake stood at 835 thousand tonnes, leaving an inventory of 214 thousand tonnes for Kharif 2026.

The survey points out that Pakistan’s agriculture sector faces increasing pressure to raise productivity as the country’s population grows and demand for food continues to expand.

Pakistan’s population was estimated at 252.09 million in 2025, making higher agricultural output a key policy priority for food security and rural income growth.

The report notes that higher fertilizer consumption coincided with improved performance in several major crops. Wheat production increased by 4.3% to 29.61 million tonnes, sugarcane output rose by 6.2% to 89.45 million tonnes, and rice production increased by 2.8% to 9.99 million tonnes.

Other crops also recorded growth of 2.43% despite flood-related disruptions, mainly supported by higher production of pulses, vegetables and fruits, which increased by 31.4%, 12.6% and 2.8%, respectively.

The survey highlights the importance of balanced nutrient use and efficient fertilizer application in sustaining long-term soil productivity.

According to the report, government programmes and agricultural extension services continued promoting improved farming practices and greater awareness regarding input management.

The Ministry of Finance notes that fertilizer availability remains essential for ensuring food security and supporting rural livelihoods, particularly as climate-related challenges continue to affect agricultural production.

The survey also points to ongoing efforts aimed at improving agricultural resilience through enhanced access to credit, better seed varieties, mechanization, irrigation development and modern farming techniques.

According to the report, strengthening input use efficiency will remain important for increasing agricultural productivity while minimizing environmental pressures.

The increase in fertilizer nutrient offtake during July-March FY2026 reflects growing farm activity and continued investment by farmers in crop production despite weather-related disruptions and economic challenges.

With fertilizer nutrient offtake rising by 11.4% and agricultural credit disbursement reaching Rs2,161.6 billion during July-March FY2026, the agriculture sector demonstrated sustained efforts to improve productivity and support food production for the country’s growing population.

Credit: INP-WealthPk