Domestic supply spares farmers as local prices stay at Rs4,400 per bag despite disruptions
ISLAMABAD:
Escalating tensions in the Middle East have disrupted global fertiliser supply chains and pushed international urea prices to $740-750 per tonne, exposing vulnerabilities in global agricultural markets and raising concerns for import-dependent countries.
According to a statement issued on Saturday, the crisis was triggered by disruptions to Qatari gas exports and the closure of the Strait of Hormuz, developments that have throttled fertiliser output across the Gulf region, which supplies nearly one-third of the world’s urea.
The impact on international markets has been swift, with prices climbing to levels rarely seen in recent years.
For Pakistan, where urea is essential for wheat and rice cultivation, the timing of the disruption carries significant implications for agricultural production and input costs.
With shipping lanes linked to the Strait of Hormuz disrupted, supplies destined for import-dependent countries across South Asia remain stranded offshore, tightening availability in regional markets.
The scale of the price difference becomes evident when comparing international and domestic costs.
Under current international conditions, the landed cost of imported urea is estimated at Rs13,700 to Rs14,700 per bag. The domestic price stands at roughly Rs4,400 per bag.
Analysts say that gap, more than three times the local price, illustrates the potential pressure Pakistani farmers could have faced if the country had relied more heavily on imports.
Higher fertiliser costs typically force farmers to reduce application rates, which can depress crop yields and contribute to rising food prices.
Pakistan’s domestic fertiliser manufacturers, drawing on locally available gas resources and existing production capacity, have continued supplying the market through the disruption.
Industry representatives say this supply continuity has shielded Pakistani farmers from volatility in global fertiliser markets.