Fertilizer prices in Pakistan could face another increase as a sharp rise in global phosphoric acid prices pushes the cost of DAP to its highest level in 16 quarters.
Phosphoric acid prices have climbed to an average of around $1,647 per ton during the third quarter of 2026 so far, with supply concerns linked to geopolitical tensions in the Middle East driving the increase. Pakistan is particularly exposed to the development, with roughly half of its phosphoric acid supplies sourced from the Middle East.
Market reports indicate that the contract price for phosphoric acid in the third quarter has been agreed at approximately $1,700 per ton, compared with $1,360 per ton in the second quarter.
The sharp increase in the cost of the key fertilizer input has also pushed international DAP prices to an average of nearly $840 per ton in 3Q2026-to-date, also the highest level seen in 16 quarters.
Higher international prices could translate into increased production and import costs for Pakistan’s fertilizer sector, potentially putting upward pressure on domestic fertilizer prices if the elevated costs persist.
With Pakistan relying heavily on Middle Eastern supplies, continued geopolitical disruption in the region could further affect phosphoric acid availability and fertilizer pricing in the coming months.
