Fertilisers and Chemicals Travancore Ltd. (FACT) has temporarily suspended ammonium sulphate production following severe disruptions in the global supply chain and a sharp rise in raw material prices triggered by geopolitical tensions. The shortage of key inputs, particularly sulphur and phosphoric acid, has forced the company to curtail operations. Despite the production halt, the company has assured that fertilizer availability for farmers will remain unaffected, as the government has significantly increased imports to bridge the supply gap.
Government Steps in to Secure Fertilizer Supply
Anticipating potential shortages, the Ministry of Fertilizers directed the import of ammonium sulphate to ensure uninterrupted availability during the Kharif 2026 season. FACT has also strengthened its import programme by procuring essential fertilizers from overseas. According to the company, imported consignments of ammonium sulphate and diammonium phosphate (DAP) have already arrived, while shipments of NPK 15:15:15 and Muriate of Potash (MoP) are expected to reach India next month. As a result, fertilizer stocks are currently adequate to meet farmers’ requirements.
NP Fertilizer Production Also Curtailed
Besides suspending ammonium sulphate production, FACT has also reduced the production of NP fertilizers due to the limited availability of captive phosphoric acid and restricted sulphur supplies. The company has suspended production of approximately 25,000 tonnes of ammonium sulphate per month. To offset the shortfall, FACT imported around 30,000 tonnes of ammonium sulphate last month and plans to increase imports further until raw material supplies stabilize.
Global Crisis Disrupts Raw Material Supply
S. Sakthimani, Chairman and Managing Director of FACT, said the company is facing temporary production constraints due to extraordinary global developments. According to him, the ongoing geopolitical tensions in West Asia, combined with severe climate-related disruptions, have significantly affected the international supply chain for critical fertilizer raw materials. He noted that soaring global sulphur prices and the shutdown of several overseas phosphoric acid manufacturing facilities have created an unprecedented shortage of sulphur and phosphoric acid in international markets.
Suppliers Fail to Honour Contracts
The supply situation has worsened as several international suppliers have been unable to fulfil their long-term contractual commitments. In addition, FACT’s recent tenders for sulphur procurement failed to attract any bids, while domestic availability remains insufficient to support normal production. These developments have significantly constrained the company’s ability to source essential raw materials for fertilizer manufacturing.
FACT Expands Imports and Diversifies Sourcing
To minimise the impact of the supply disruption, FACT has accelerated imports of essential fertilizers while actively exploring alternative domestic and international sources of raw materials. At the same time, the company is working closely with the Central Government to restore normal production at the earliest. Looking ahead, FACT is also developing long-term strategic sourcing arrangements to strengthen supply security, reduce dependence on volatile global markets and safeguard operations against future geopolitical and commodity-related disruptions.
Outlook Remains Positive
Although global supply chain disruptions have temporarily affected domestic fertilizer production, proactive government intervention and increased imports are expected to ensure uninterrupted fertilizer availability during the current agricultural season. As reported by thehindubusinessline.com, with alternative sourcing strategies and long-term supply security measures underway, FACT aims to resume normal production once the availability of sulphur and phosphoric acid improves.
