FACT halts ammonium sulphate production amid raw material crunch, rising costs

Public sector Fertilisers and Chemicals Travancore Ltd (FACT) has suspended production of ammonium sulphate following supply chain disruptions and soaring raw material costs triggered by geopolitical developments. However, it will not have any impact on farmers as the Indian government has imported more of the fertilizer than the suspended output. Expecting a crisis, the Fertilizer Ministry had directed the import ammonium sulphate.

According to company officials, the production of NP fertilizer has been curtailed with limited operations being sustained using available captive phosphoric acid and the restricted quantity of sulphur.

The suspended production is 25,000 tonnes a month. Even FACT brought 30,000 tonnes last month. Further import is expected to overcome the sulphur supplies issue.

S. Sakthimani, Chairman and Managing Director, said that FACT is presently experiencing temporary production constraints due to extraordinary global developments. The ongoing geopolitical tensions in West Asia, coupled with severe climate-related disruptions, have significantly affected the international supply chain of critical fertilizer raw materials.

Suppliers cry off

The sharp increase in global sulphur prices and the resulting shutdown of several phosphoric acid manufacturing facilities overseas have led to an unprecedented shortage of sulphur and phosphoric acid in the international market, he said.

Despite long-term supply agreements, suppliers have been unable to honour their contractual commitments. Besides, recent tenders floated by FACT for sulphur procurement did not receive any offers, while domestic availability remains inadequate, he added.

However, to ensure uninterrupted availability of fertilizers, FACT has initiated large-scale imports of essential fertilizers. Imported consignments of Ammonium Sulphate and DAP have already arrived, while shipments of NPK 15:15:15 and Muriate of Potash (MoP) are expected to reach India by next month. At present, adequate quantities of fertilizers are available to meet the requirements of the kharif 2026 season, he said.

FACT, in close coordination with the Union Government, is actively pursuing alternative domestic and international sources of raw materials to restore normal production at the earliest. Simultaneously, it is working on long-term strategic sourcing arrangements to strengthen supply security and protect against future global commodity disruptions.

Unions protest

The company remains fully committed to ensuring uninterrupted fertilizer availability and continues to take all possible measures to resume full-scale production at the earliest, he added.

FACT operates two manufacturing complexes in Kochi — Udyogamandal Complex and Cochin Division — and annually manufactures and markets around 1 million tonnes of its own fertilizers, in addition to 1.5-2 lakh tonnes of imported fertilizers. It primarily produces NP 20:20:0:13 and Ammonium Sulphate, using key raw materials such as sulphur, rock phosphate, phosphoric acid, sulphuric acid and ammonia.

The total production of ammonium sulphate by FACT last year was 2.8 lakh tonnes. It is used in different crops such as paddy, onion, sugarcane, maize. Farmers prefer it instead of urea as it is giving them better quality of yield, the officials said.  

Ammonium sulphate is a highly effective nitrogenous fertilizer that supplies two essential plant nutrients namely Nitrogen (20.5%) and Sulphur (23%). It promotes healthy vegetative growth, enhances chlorophyll formation while sulphur plays a vital role in oil formation and overall crop quality. 

This fertilizer is particularly beneficial for sulphur-responsive crops such as oilseeds, pulses, sugarcane, tea, coffee, onion, garlic, potato, and cotton. It is especially suitable for alkaline soils, where it helps to improve nutrient availability by slightly reducing soil pH. Regular application of ammonium sulphate increases crop yield, enhances grain protein and oil content, improves fertilizer use

Meanwhile, the crisis has triggered protests by unions, demanding emergency action plan to resume production and safeguard workers’ livelihoods. They pointed out that the production halt affected temporary contract workers engaged in loading, bagging and transportation activities, pushing many into financial distress. The unions urged the management to ensure adequate availability of raw materials and immediately restart production.

Published on July 22, 2026