FACT increased fertilizer prices, including Factamfos, due to soaring global raw material costs while ensuring continued fertilizer supply availability.
Fertilizer manufacturer The Fertilisers and Chemicals Travancore Limited (FACT) has announced a significant increase in fertilizer prices following a sharp surge in global raw material costs, particularly for essential inputs used in fertilizer production. The revision affects several products, including the company’s flagship fertilizer brand Factamfos, widely used by farmers across India.
Under the revised pricing structure, the rate of NP 20:20:0:13 fertilizer, marketed as Factamfos, has increased from Rs1,750 per bag to Rs2,100 per bag. However, the company clarified that stocks already available in warehouses and distribution centers under the previous pricing system will continue to be sold at the earlier rate of Rs1,750 per bag until existing inventory is exhausted. This move is expected to provide temporary relief to farmers who may still access fertilizer supplies at the old price before the revised rates fully take effect in the market.
According to FACT, the steep increase in the prices of critical raw materials has dramatically raised manufacturing expenses, making it difficult for the company to continue operations without revising product prices. The company emphasized that the unprecedented rise in international commodity prices has directly impacted fertilizer production economics, forcing the management to take corrective pricing measures to maintain operational sustainability.
Among the major cost drivers, ammonia prices have recorded one of the sharpest increases in recent months. FACT stated that ammonia, a vital feedstock in fertilizer manufacturing, was priced between $490 and $560 per tonne during the first week of March. By the third week of May, prices had surged to nearly $870-$930 per tonne, representing a massive increase in procurement costs. Similarly, sulphur prices almost doubled during the same period, climbing from around $513-$515 per tonne to nearly $990-$1,000 per tonne.
The cost escalation was also visible in sulphuric acid prices, another key ingredient in fertilizer production. Prices rose sharply from approximately $178-$185 per tonne in early March to nearly $375-$385 per tonne within a few months. These dramatic increases in input costs have placed considerable financial pressure on fertilizer manufacturers worldwide, including FACT.
Despite these mounting challenges, FACT reiterated its commitment to ensuring an uninterrupted supply of fertilizers to farmers at competitive and affordable prices. The company said it is actively sourcing raw materials from multiple international suppliers to sustain production levels and minimize disruptions in fertilizer availability. In addition to raw material procurement, FACT is also importing finished fertilizer products to bridge supply shortages and maintain steady market distribution.
The company further revealed that it is participating in a consortium effort to finalize additional imports of DAP (Di-Ammonium Phosphate), one of the most widely used phosphatic fertilizers in agriculture. FACT is also taking steps to import ammonium sulphate and provide it to farmers as an alternative nutrient source at reasonable prices.
Meanwhile, FACT has already commenced the production and distribution of DAP fertilizer containing 18 percent nitrogen and 46 percent phosphorus, both crucial nutrients for crop development and yield improvement. The company stated that the fertilizer is suitable for a wide range of crops and is currently available in the market at Rs1,350 per bag, offering farmers another viable fertilizer option amid rising input costs.
