FACT fertilizer price hike has become a major concern for farmers after fertilizer major FACT announced a steep increase in the prices of its products, including its flagship NP fertilizer Factamfos. The company cited a sharp rise in global raw material prices as the key reason behind the latest revision.
According to the revised rates, the price of NP 20:20:0:13 (Factamfos) has increased from Rs 1,750 per bag to Rs 2,100 per bag. However, FACT clarified that existing stocks available in godowns under the old pricing structure will continue to be sold at the earlier rate of Rs 1,750 per bag until stocks last.
The company stated that the unprecedented increase in raw material costs has severely impacted fertilizer production economics. FACT said the situation made it difficult to continue operations without implementing a price revision.
Sharp Rise in Ammonia and Sulphur Prices
FACT revealed that ammonia prices, one of the key raw materials used in fertilizer production, surged significantly in the global market. Prices increased from nearly $490-560 per tonne during the first week of March to around $870-930 per tonne by the third week of May.
Similarly, sulphur prices almost doubled during the same period, rising from $513-515 per tonne to nearly $990-1,000 per tonne. Sulphuric acid prices also witnessed a steep jump from $178-185 per tonne in early March to around $375-385 per tonne.
The company said the rapid increase in international raw material prices has substantially raised manufacturing costs for fertilizers.
FACT Ensures Fertilizer Supply Despite Cost Pressure
Despite the ongoing cost pressure, FACT assured farmers that it remains committed to maintaining uninterrupted fertilizer supplies across the market. The company said it is sourcing raw materials from multiple international suppliers to sustain production levels.
FACT also confirmed that it is importing finished fertilizer products to bridge supply gaps and ensure availability during the peak agricultural season.
As part of a consortium, the company is also finalizing additional imports of DAP (Di-Ammonium Phosphate). Apart from this, FACT is taking steps to import ammonium sulphate and provide it to farmers as an affordable alternative fertilizer option.
FACT Starts DAP Supply in Market
Meanwhile, FACT has commenced production and supply of DAP fertilizer containing 18 percent nitrogen and 46 percent phosphorus. The company stated that DAP is suitable for all crops and is currently available in the market at Rs 1,350 per bag.
The latest FACT fertilizer price hike reflects the growing pressure on fertilizer manufacturers due to volatile global commodity prices and supply chain challenges.
