FACT Halts Ammonium Sulphate Output as Sulphur Crunch Bites; Imports Step In for Kharif 2026

Fertilisers and Chemicals Travancore (FACT) has suspended ammonium sulphate manufacturing at its two Kochi complexes — Udyogamandal Complex and Cochin Division — after a convergence of geopolitical stress and climate-related shocks severed the global supply chain for critical raw materials.

According to Chairman and Managing Director S. Sakthimani, ongoing tensions in West Asia alongside severe climate disruptions have caused an unprecedented shortage of sulphur and phosphoric acid in international markets. Several phosphoric acid manufacturing facilities overseas have been forced to shut down in the wake of sharply rising global sulphur prices, compounding the scarcity.

Critically, long-term supply agreements offered no protection: suppliers were unable to honour their contractual commitments. When FACT floated fresh tenders for sulphur procurement, not a single offer was received — and domestic availability, too, was found to be inadequate. NP fertiliser production has also been curtailed, with only limited operations continuing on the back of captive phosphoric acid stocks and a restricted quantity of available sulphur.

The Fertilizer Ministry had anticipated the supply crunch and directed large-scale imports before the crisis deepened. FACT itself imported 30,000 tonnes of ammonium sulphate last month alone — exceeding the 25,000-tonne monthly volume that has now been suspended from domestic production.

Imported consignments of ammonium sulphate and DAP have already arrived at Indian ports. Shipments of NPK 15:15:15 and Muriate of Potash (MoP) are expected to reach India by next month, according to FACT officials.

The bottom line for farmers: FACT has confirmed that adequate quantities of fertilisers are currently available to meet the requirements of the kharif 2026 season. Further imports are also being planned specifically to address the sulphur supply shortfall. The company said it is working with the Union Government to identify alternative domestic and international raw material sources while simultaneously developing long-term strategic sourcing arrangements to strengthen supply security.

Ammonium sulphate is no niche product — FACT produced 2.8 lakh tonnes of it in the last financial year. It is applied across a wide range of crops including paddy, onion, sugarcane, and maize, and has been gaining favour among farmers over urea because it is reported to deliver better yield quality, according to company officials.

The fertiliser supplies two essential plant nutrients — Nitrogen (20.5%) and Sulphur (23%) — making it particularly effective for sulphur-responsive crops such as oilseeds, pulses, sugarcane, tea, coffee, onion, garlic, potato, and cotton. It is also well-suited to alkaline soils, where it helps improve nutrient availability by marginally lowering soil pH.

Regular application is associated with higher crop yields, improved grain protein and oil content, and better overall fertiliser use efficiency — attributes that have driven its growing adoption as farmers seek alternatives to urea-only nutrition programmes.

The production halt has not been without human cost. Trade unions at FACT have launched protests, pressing management for an emergency action plan to restart output and protect workers' livelihoods.

Unions highlighted that the most immediate casualties are temporary contract workers employed in loading, bagging, and transportation — roles that have effectively ground to a halt alongside production. Many of these workers have been pushed into financial distress as a result.

The unions are calling on management to secure adequate raw material supplies and resume full-scale production without delay. FACT's management, for its part, has reiterated its commitment to restoring normal operations at the earliest opportunity, stating that all possible measures are being pursued in close coordination with the Union Government to achieve this.