Early monsoon boosts FACT fertiliser sales, but rising input costs pose challenges
The early arrival of the southwest monsoon has boosted fertiliser demand and significantly improved Q1 sales for Fertilisers and Chemicals Travancore Ltd
The early onset of the South West monsoon has benefited the public sector FACT in terms of fertiliser sales in the first quarter of the current fiscal year compared to the same period last year.
The copious rain increased fertiliser demand, which is expected to continue for the remaining period as well, official sources said.
Figures showed that FACT handled 1.79 lakh tonnes of NPK in FY26 compared to 1.41 lakh tonnes in FY25. For ammonium sulphate, it was 45,320 tonnes in FY26 against 40,027 tonnes in the first quarter of FY25.
However, the soaring prices of raw materials, such as feedstock LNG, rock phosphate, phosphoric acid, sulphuric acid, and sulphur, are posing a problem and are starting to affect phosphatic fertiliser production through cost escalation. The current geopolitical situation is cited as one of the major reasons for the surge in raw material costs, which has led to rising freight costs, the sources said.
Pricey phosphoric acid, sulphur
There has been an increase of over $100 in the price of phosphoric acid recently, and sulphur prices also followed a similar pattern during the first half of the year. Sulphuric acid prices are also ruling high. These cost increases have been evident since January.
However, the company is trying to meet production requirements in line with market demand, especially for the kharif season, despite a surge in raw material costs.
M.P. Sukumaran Nair, an expert in the fertiliser industry, said that the Chinese supply of fertilisers, such as urea, DAP, and speciality fertilisers, has been dwindling for the last 4-5 years following a trade ban. On average, 2-3 lakh tonnes of speciality fertiliser products are consumed every year and are non-subsidised. Specialty fertilisers include slow and controlled-release fertilisers (SCRF), water-soluble fertilisers, and liquid fertilisers for foliar application and fertigation, micronutrients and so on.
Although India is a leader in fertiliser production, imports, and consumption, the country has not yet acquired the technology and expertise to domestically produce these vital inputs for agriculture.
He pointed out that attaining self-sufficiency lies in boosting domestic production, diversifying import sources, and promoting the use of alternative fertilisers and sustainable agricultural practices. The commissioning of plants under construction and the debottlenecking of other operating plants with digital capabilities are to be expedited to increase production. Available low-grade rock phosphate deposits in Rajasthan may be effectively used through advanced beneficiation, etc, he said
Published on July 16, 2025
