New Delhi, March 26: The ongoing Gulf conflict has disrupted global fertilizer markets, highlighting vulnerabilities in Pakistan’s agricultural input security.
According to an article in the ‘Dawn’ newspaper, domestic production capacity has shielded Pakistan from the worst effects of the urea crisis. However, the situation is different for diammonium phosphate (DAP). The reliance on imports weakens the agricultural economy.
In the case of urea, local production has prevented farmers from reducing fertilizer use, which would lead to lower yields and higher food prices. The scenario for DAP is not as favorable.
Pakistan produces only 0.7 million tons of DAP annually, while the requirement exceeds 2 million tons. To bridge this gap, imports from the Middle East are necessary. Under normal circumstances, this dependence is manageable, albeit costly. In the current crisis, it poses a significant weakness.
Unlike urea, where domestic stocks and production continuity offer a safety net, DAP imports are directly sensitive to price volatility and logistical challenges. Supply disruptions, shipping restrictions, and raw material shortages are already limiting global availability. Prolonged interruptions could lead to sharp cost increases. Availability may be restricted during planting season, forcing farmers to either reduce application or alter nutrient mixes.
The report indicates that the agricultural impact is severe. DAP plays a crucial role in early-stage crop development, especially for key crops. Its inadequate use cannot be easily compensated by urea or other nutrients without affecting production capacity. Thus, the DAP shortage is not merely a supply issue; it threatens production, farmers’ incomes, price stability, and ultimately food security.
Ensuring a continuous gas supply to existing DAP plants is essential. Additionally, policymakers should reconsider the broader incentive structure to promote an expansion of production capacity and gradually reduce import dependence.
As geopolitical uncertainties persist, the gap between the country’s resilience and vulnerabilities will be determined by what it can produce domestically.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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