Public sector Fertilizers and Chemicals Travancore Ltd (FACT) has suspended production of ammonium sulphate following supply chain disruptions and soaring raw material costs triggered by geopolitical developments, according to company officials. The suspended output is 25,000 tonnes per month, but the Indian government has imported more fertilizer than the lost production, ensuring no impact on farmers.
Supply Disruption and Raw Material Crunch
S. Sakthimani, Chairman and Managing Director of FACT, said the company is experiencing temporary production constraints due to "extraordinary global developments." He cited "ongoing geopolitical tensions in West Asia, coupled with severe climate-related disruptions," which have significantly affected the international supply chain of critical fertilizer raw materials. 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, Sakthimani explained.
Despite long-term supply agreements, suppliers have been unable to honour their contractual commitments. Recent tenders floated by FACT for sulphur procurement received no offers, while domestic availability remains inadequate. FACT has curtailed production of NP fertilizer, sustaining limited operations using available captive phosphoric acid and restricted quantities of sulphur.
Government Intervention and Imports
Expecting a crisis, the Fertilizer Ministry directed the import of ammonium sulphate. Even before the halt, FACT had brought in 30,000 tonnes last month, and further imports are expected to overcome the sulphur supply issue. To ensure uninterrupted fertilizer availability, FACT has initiated large-scale imports: 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.
| Item | Monthly Production Suspended | Imported Last Month | Additional Imports Planned |
|---|---|---|---|
| Ammonium Sulphate | 25,000 tonnes | 30,000 tonnes | Further shipments en route |
Sakthimani stated that at present, adequate quantities of fertilizers are available to meet the requirements of the kharif 2026 season. 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. Last year, total ammonium sulphate production was 2.8 lakh tonnes.
Impact on Farmers and Product Significance
FACT officials emphasized that the suspension will not affect farmers due to the government's proactive imports. Ammonium sulphate is used in crops such as paddy, onion, sugarcane, and maize, and farmers prefer it over urea as it provides better quality yield. The fertilizer supplies Nitrogen (20.5%) and Sulphur (23%), promoting healthy vegetative growth and chlorophyll formation, while sulphur plays a vital role in oil formation and overall crop quality. It is particularly beneficial for sulphur-responsive crops like oilseeds, pulses, sugarcane, tea, coffee, onion, garlic, potato, and cotton, and is suitable for alkaline soils.
Outlook and Next Steps
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. The company remains fully committed to ensuring uninterrupted fertilizer availability and continues to take all possible measures to resume full-scale production. Meanwhile, unions have protested the production halt, though details of the protests were not provided in the company statement.
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