Fertilizer

Plants, just like humans, need nutrients to survive and reach their full nutritional potential. Three
of these elements – carbon, hydrogen, and oxygen – are obtained through the air and water. But
there are 14 remaining elements that need to come from the soil, and these are the elements in
modern-day fertilizers. These elements are grouped into three categories: macronutrients,
secondary nutrients, and micronutrients. All must be present in soil in the right form and at the
right rate, time, and place to grow healthy crops.

Macronutrients
Nitrogen, phosphorus, and potassium are macronutrients. These nutrients make up the majority of
all fertilizer produced; they are all necessary for plant growth.
1. Nitrogen
Nitrogen is essential in the formation of vital proteins not just in the plants we eat,
but in all living things. While the Earth’s atmosphere is about 78 percent nitrogen by
volume, most plants are unable to meet their nitrogen needs from the air. To produce
nitrogen fertilizer, manufacturers use the Haber-Bosch process, which captures nitrogen
from the air and combines it with hydrogen derived from natural gas. In other cases,
nitrogen is mined from desert rocks.
2. Phosphorus
Phosphorus is necessary for photosynthesis, the process plants use to convert
sunlight to energy. Fertilizer manufacturers mine phosphorus from phosphate rock, which
is found in shallow rock deposits formed by the decay of ancient sea life.
3. Potassium
Potassium, also known as potash, is essential for carbohydrate and starch synthesis,
and it also helps plants resist wilting. Up to 98 percent of potassium in the soil is
unavailable to plants in its existing form, making potash fertilizer essential for crop
production. Potassium is mined from deep deposits left by evaporation of ancient sea beds.

Secondary nutrients
Secondary nutrients, while still essential for plant growth, are typically needed in smaller quantities
than macronutrients.
1. Calcium
Calcium is used to help reduce soil acidity and aids nutrient absorption within the
plant itself. It also improves a plant’s ability to resist disease.
2. Magnesium
Magnesium is a component of chlorophyll. It is necessary for photosynthesis as it
helps plants metabolize phosphorus molecules.
 3. Sulfur
Sulfur can be found in the soil, but typically in amounts that are insufficient for
many crops. Plants use sulfur to synthesize important amino acids, and it’s useful to boost
winter hardiness.

Micronutrients
Micronutrients may sound less important, but they’re not. The ‘micro’ means plants only
require trace amounts, but they still can’t do without them. Together, these nutrients support all
aspects of plant growth, including structural integrity, vitamin production, and increasing yields

Pakistan’s Fertilizer Industry

With almost 20% of Pakistan’s Gross Domestic Product (GDP) contributed by the agricultural
sector, there is significant dependence on agrarian products in the country’s economy. Demand of
fertilizer products in Pakistan is largely driven by factors including availability of cultivable land,
availability of water, prices of fertilizer products, population growth and government policies such
as commodity support prices offered to farmers. Availability of cultivable area bears a direct
relation with the demand for fertilizer products.
During fiscal years of 2010 - 2014, cultivable area in Pakistan has depicted a nominal growth of
1% on account of damage caused by floods and increasing severity of water-logging and salinity
issue. Going forward, area under cultivation is expected to largely remain unchanged provided no
natural calamities take place. Largest contribution to the agrarian economy emanates from Punjab
followed by Sindh given its sizeable cultivable area. Commodity support prices offered by the
Government of Pakistan (GoP) to farmers have also played a crucial role in fostering demand of
fertilizer. Incentive, in the form of higher prices, encourages the farmers to improve crop yield
through application of fertilizers. Over the years, support prices offered by the government have
depicted an upward trend. This resulted in higher use of fertilizer over the same horizon. Another
reason attributable to increase in fertilizer usage is the growing awareness about its benefits by
farmers. Nine companies operate in the fertilizer sector of Pakistan, with Fauji Fertilizer and Engro
Fertilizer collectively accounting for a total share of 83% in the Urea market. Moreover, these two
companies also contribute almost three-fourth of the DAP market. With excess supply and fierce
competition in the industry, pricing power of the manufacturers is considered to be on the lower
side. As a result of these dynamics, margins of industry are expected to remain under pressure. W

Producers
Nitrogen, DAP and phosphate are used as the main source of input.