Urea prices in Pakistan have risen again, after Fauji Fertilizer Company increased prices by Rs54 per bag across all Sona Urea variants, a day after Engro Fertilizers raised its price by Rs50 per bag.
The latest increase, reported by Topline Research on November 7, takes the maximum retail price of Sona Urea Prilled to Rs4,579 per bag and Sona Urea Granular to Rs4,803 per bag. It is the second urea price rise in two days and the latest in a series of increases this year.
Engro Fertilizers increased its urea price by Rs50 per bag on November 6, taking its dealer transfer price to Rs4,585 per bag, according to channel checks reported by JS Research. The increase follows an earlier Rs150 per bag hike announced by Engro in March 2026.
Urea prices in Pakistan: two producers, one direction
The two companies dominate Pakistan’s urea market, and their prices tend to move together. Engro has maintained its pricing stance throughout the year. In August, the company’s management indicated that it had no plans to reduce urea prices or restore discounts, despite higher inventory levels, citing expectations that seasonal demand would help clear stocks.
That expectation has held. Demand is rising, and the producers have used the stronger market to lift prices rather than cut them to clear inventory. For farmers, the result is higher input costs at the start of the Rabi season, when urea is applied heavily to wheat and other winter crops.
Sales are growing, and so are prices
The price increases come amid expanding demand in Pakistan’s urea market. According to FFC’s third quarter corporate briefing, industry urea sales increased by approximately 5 percent to 4.403 million tons during January to September 2026, compared with 4.205 million tons in the corresponding period last year. FFC’s own sales rose 10 percent to 2.160 million tons, increasing its market share to 49 percent from 47 percent.
FFC also reported total industry urea inventory of 649,000 tons as of September 2026, of which 88,000 tons were held by the company. Meanwhile, the fertilizer manufacturer noted that farm returns had improved across major crops during 2025 to 2026 but remained below 2022 to 2023 levels.
That last point matters for farmers. Returns have improved from the recent lows, but they are still short of the levels seen three years ago. A higher urea price eats into that recovery, since fertilizer is one of the largest single costs in growing wheat, rice, cotton and sugarcane. The farm economy has been under strain on several fronts: a flour crisis was averted in Rawalpindi this week.
What it means for farmers
Urea is the main nitrogen fertilizer used on Pakistani farms, and a Rs54 rise per bag adds up quickly. A farmer buying 10 bags for a small holding pays Rs540 more than before the increase, and larger growers face thousands of rupees in extra cost.
The timing adds to the pressure. With the Rabi sowing season under way, farmers are buying fertilizer now, so the increase lands at the moment of purchase rather than at some distant point in the year. There is no subsidy announced alongside the increase, and the dealer’s price is the price farmers pay. Punjab has fixed the wheat support price at Rs4,500 a maund, which gives growers a firmer floor for the crop the urea will feed, but the higher input cost still eats into margins.
The broader cost picture is mixed for households. Electricity tariffs have also moved this week, with Nepra notifying a Rs2.36 per unit fuel adjustment, while Pakistan’s trade deficit widened to $14.6 billion in July-October as imports rose faster than exports. Farm input costs are one more line in that squeeze.
For the fertilizer companies, the picture is different. Rising sales, a 49 percent market share for FFC and firm prices point to a strong year. The question for the coming months is whether demand holds at the higher prices, or whether farmers cut back on application and the industry’s inventory starts to build again.
Frequently asked questions
How much did urea prices rise?
FFC raised prices by Rs54 per bag across all Sona Urea variants, a day after Engro raised its price by Rs50 per bag.
What is the new price of Sona Urea?
Sona Urea Prilled now costs Rs4,579 per bag at maximum retail price, and Sona Urea Granular costs Rs4,803 per bag.
How much urea did Pakistan sell in 2026?
Industry urea sales reached 4.403 million tons in January to September 2026, up about 5 percent from 4.205 million tons in the same period last year.
Why are urea prices rising?
Producers cite strong seasonal demand. Engro said in August it had no plans to cut prices or restore discounts despite higher inventory, expecting demand to clear stocks.
