FACT, a Top Indian Fertilizer Producer, Raises Factamfos Price by 20%

The Fertilisers and Chemicals Travancore Limited (FACT), India's oldest large scale fertilizer producer based in Udyogamandal near Kochi in Kerala, has raised the price of its flagship complex fertilizer Factamfos. The cost of the NP 20:20:0:13 grade has moved up from Rs 1,750 to Rs 2,100 per 50 kilogram bag, an increase of about 20 percent. The company confirmed the revision in late May 2026 and pointed to a sharp rise in global raw material costs as the main reason behind the decision.

Factamfos is one of the most widely used fertilizers among farmers across the four southern Indian states, and FACT distributes it through cooperatives and private dealers. To soften the immediate impact, the company said that existing stock already held in warehouses and distribution centres will continue to be sold at the older rate of Rs 1,750 per bag until that inventory runs out. This gives farmers a short window to buy at the previous price before the revised rate fully reaches the market.

The price hike reflects a steep climb in feedstock costs that began in early March 2026. At that point ammonia, a core input for nitrogen fertilizers, traded between 490 and 560 dollars per tonne. By the third week of May the same material had jumped to roughly 870 to 930 dollars per tonne, almost doubling in under three months. Sulphur followed a similar path, rising from around 515 dollars per tonne in early March to close to 1,000 dollars per tonne by late May. Sulphuric acid prices also more than doubled over the same window, moving from about 180 dollars per tonne to nearly 380 dollars per tonne.

These increases are closely tied to the wider disruption in Middle East supply that started with the regional conflict in late February 2026 and the resulting interruption of shipping through the Strait of Hormuz. The Gulf region accounts for a large share of the world's traded ammonia, sulphur and finished fertilizers, so the loss of reliable exports pushed prices upward across the global market. India has felt the squeeze directly, with domestic urea and ammonia output also reduced because of tighter natural gas supply.

FACT said the unprecedented jump in international commodity prices made it very difficult to keep operating without adjusting product prices. Even so, the company stressed that it intends to keep fertilizer flowing to farmers without interruption. It is buying raw materials from several international suppliers to protect production levels and is importing finished fertilizers to cover any gaps in domestic availability during the busy planting season.

As part of these measures, FACT is working within a consortium to secure extra shipments of di-ammonium phosphate, known as DAP, one of the most important phosphate fertilizers in Indian farming. The company is also arranging imports of ammonium sulphate, which it plans to offer to farmers as a more affordable nutrient option while prices for other grades stay high.

In parallel, FACT has begun producing and distributing DAP that contains 18 percent nitrogen and 46 percent phosphorus. This grade suits a broad range of crops and is currently selling at Rs 1,350 per bag, a rate that remains supported by central government subsidy. The availability of DAP at this controlled price gives growers an alternative as the cost of complex fertilizers such as Factamfos rises.

The situation remains active as of late May 2026. With Middle East shipping flows still unsettled and feedstock prices near multi year highs, further pressure on Indian fertilizer prices cannot be ruled out in the coming weeks. Farmers entering the main cropping season face higher input bills, and the affordability of crop nutrients has become a growing concern for both producers and policymakers.