Kerala - Kochi   

Another body blow for FACT

KOCHI: Fertilisers and Chemicals Travancore (FACT), where production has reached full steam after the annual shutdown, has been hit by the skyrocketing price of rock phosphate, key ingredient in producing phosphoric acid.

The situation is similar to the one six months ago when the public sector fertilizer company had to bear the brunt of the spiralling price of sulphur. It forced the company management to rethink on buying sulphur from the international market and production of key items like factamfos was reduced significantly. According to company sources, the price of rock phosphate has gone up to $275 a tonne from the level of $65 a tonne 12 months ago. Price of the raw material has gone up each quarter last year .

In tandem with the spiralling price of rock phosphate, the price of phosphoric acid has gone up. At present, phosphoric acid costs around $150 a tonne, it is learnt.

FACT is expected to do well this season with a Union government aid of Rs.200 crore in special dispensation package and subsidy for complex fertiliser inputs like sulphur from April. However, the shortage of rock phosphate has come as a major hurdle. However, it is learnt that the management is making all out efforts to source rock phosphate and an international tender, called directly by the company, closed on Wednesday. Union Minister for Fertilizers Ramvilas Paswan met Moroccan Prime Minister Abbas El Fassi last week to discuss enhanced supply of rock phosphate and phosphoric acid to India.

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