The Hindu Business Line : Input shortage forces FACT to reschedule production

Temporary arrangement
Contract with Indian Potash would become fully operational only from July
The ammonia plant has been temporarily shut down due to the low load of operations

Our Bureau

Kochi, June 11 Fertilisers and Chemicals Travancore Ltd (FACT) is constrained to go for a strategic rescheduling of the production of some of its important products due to raw material shortage.

Even though FACT had entered into a long-term contract with Indian Potash Ltd for continuous supply of certain raw materials, the contract would become fully operational only from July. This has created shortage of certain raw materials during the current month that has necessitated the production rescheduling, FACT said in a statement issued here.

The ammonia plant has been temporarily shut down due to the low load of operations, which was proving to be economically unviable.

However, the company said that it has sufficient stock of ammonia for the moment. But the shutdown of the ammonia plant has necessitated the suspension of caprolactam production.

stock of caprolactam

FACT said that it has enough stock of caprolactam to cater to the needs of users for the next couple of months.

In the first two months of the current fiscal, the company produced 92,000 tonnes of Factamfos and 35,000 tonnes of ammonium sulphate.

Though there has been a general slowdown in the production of phosphatic fertilisers in South India due to the steep hike in the price of several raw materials, FACT said that it has been able to sustain production to a great extent and make fertilisers available to the farmers in the southern States. While demand for ammonium sulphate is expected to pick up only by July/August, the company has built up a stock of 18,000 tonnes of the fertiliser, which would be enough to meet the requirements of the farmers.

Meanwhile, FACT is continuing with the production of Factamfos 20:20 at a reduced rate as the monsoon has already set in the South.

The company has also imported 23,000 tonnes of urea for supply in Kerala and Tamil Nadu and was confident that there would be no substantial fertiliser shortage in its marketing territory in the next two months.

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FACT shuts down plants for 3 months as losses mount

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