Pakistan’s agriculture sector continues to face mounting financial challenges as fertilizer costs remain one of the largest expenses for farmers across the country. According to the Economic Survey 2025-26, farmers collectively spend nearly Rs. 1,200 billion every year on fertilizer, highlighting its critical role in agricultural productivity and food security.
The report reveals that even a modest increase in fertilizer prices can have a significant economic impact. Officials estimate that every Rs. 100 rise in the price of a 50-kilogram fertilizer bag results in an additional burden of approximately Rs. 20 billion on farmers nationwide.
Fertilizer is considered one of the most essential inputs in modern farming. It plays a key role in improving crop growth, enhancing soil fertility, and increasing agricultural output. Experts believe that fertilizer usage contributes between 30 percent and 50 percent of the overall improvement in crop yields, making it indispensable for farmers aiming to maximize production.
The Economic Survey also highlights the direct connection between fertilizer costs and farming profitability. Fertilizer expenses account for nearly 10 percent to 15 percent of the total production cost of major crops grown in Pakistan. As a result, fluctuations in fertilizer prices can substantially affect farm incomes and the overall cost of food production.
Higher input costs often force farmers to adjust their cultivation strategies, reduce fertilizer application, or absorb financial losses. Such decisions can ultimately impact crop yields and agricultural productivity, creating broader concerns for food supply and market stability.
Agriculture remains a backbone of Pakistan’s economy, supporting millions of livelihoods and contributing significantly to national GDP. With fertilizer prices playing such a crucial role in production costs, policymakers and industry stakeholders continue to monitor the sector closely to ensure sustainable agricultural growth.
The findings from the Economic Survey underscore the importance of maintaining affordable access to fertilizer. Any increase in prices not only affects individual farmers but also has wider implications for food production, rural incomes, and the country’s agricultural performance.
