Fertilizer prices in Pakistan are likely to come under fresh upward pressure as international phosphoric acid prices have surged to a 16-quarter high.
Key products such as Diammonium Phosphate (DAP) are likely to be impacted.
According to Topline Securities, international phosphoric acid prices averaged around $1,647 per ton in 3Q2026-to-date, due to the Gulf war. The development is particularly significant for Pakistan, as around 50 percent of the country’s phosphoric acid supply is imported from the Middle East.
Phosphoric acid contract prices for the third quarter of 2026 have been settled at around $1,700 per ton, sharply higher than the $1,360 per ton recorded in the second quarter.
The increase is a bad omen for a key input to DAP production and is likely to intensify cost pressures on fertilizer manufacturers and, eventually, farmers if higher international prices are passed through to the domestic market.
Naturally, international DAP prices have also climbed to an average of around $840 per ton in 3Q2026-to-date, a 16-quarter high.
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