FACT raises fertilizer prices as raw-material costs surge
India’s FACT has raised prices for several fertilizers, including Factamfos, after sharp increases in ammonia, sulphur and sulphuric-acid costs.
Fertilisers and Chemicals Travancore, better known as FACT, has raised prices for several products after a sharp run-up in the cost of key raw materials. The company said the increase was necessary because production costs had climbed so steeply that operations were no longer viable without revising rates. For the farm input market, the move matters because FACT remains an important supplier at a time when growers are preparing for seasonal demand.
The biggest visible change is in NP 20:20:0:13, sold by the company under the Factamfos brand. FACT said the price has been increased to Rs2,100 per bag from Rs1,750 earlier. At the same time, it said stocks already lying in godowns under the old pricing would continue to be sold at Rs1,750 per bag. That transition clause should soften the immediate impact for dealers and farmers who are drawing from existing inventories.
FACT also published the scale of the raw-material shock behind the decision. According to the company, ammonia prices, a major input in fertilizer production, rose from $490-560 a tonne in the first week of March to $870-930 a tonne by the third week of May. Sulphur prices almost doubled from $513-515 a tonne to $990-1,000 a tonne over the same period. Sulphuric acid also rose sharply, moving from $178-185 a tonne in early March to $375-385 a tonne.
Even with those cost pressures, the company said it intends to maintain uninterrupted fertilizer supply to farmers at reasonable prices. FACT said it is sourcing raw materials from all available global suppliers to sustain production and is also importing finished fertilizer products to bridge supply gaps. That indicates the company is using both procurement flexibility and direct imports to keep material flowing into the farm market rather than relying only on domestic output.
FACT added that, as part of a consortium, it is finalising additional imports of DAP. It is also taking steps to import ammonium sulphate and supply it as an affordable alternative fertilizer for farmers. Alongside that, the company said it has already started producing and supplying DAP containing 18% nitrogen and 46% phosphorus, two nutrients essential for crop growth, and that the product is currently available in the market at Rs1,350 per bag.