To meet requirements for rainy season
The public sector Fertilizers and Chemicals Travancore (FACT) is importing 33,000 tonnes of urea from Kuwait via Kochi Port to meet the fertilizer requirements for the rainy season. The consignment is expected to arrive next week.
This is the first time in a year that FACT is importing urea and bulk of the consignment will be sold in Kerala itself. The quantity of urea import via Kochi confirms to the quantity allotted by the Union Fertilizer Ministry for the port here. A spokesman for the company said there would be no shortage of fertilizer inputs during the coming monsoon and that the company was making all efforts to ensure fertilizer availability during the new crop season.
Meanwhile, a communication from the company said enhanced provisioning towards gratuity payment and a loss of Rs.12 crore on sale of fertilizer bonds resulted in the company ending up with a loss of over Rs.40 crore despite a spirited overall performance during the financial year 2010-11. The total outgo towards enhanced gratuity payment was Rs.68 crore. Another Rs.12 crore was lost on discounting fertilizer bonds.
A release from the company said if the loss on the sale of the bonds was reimbursed by the Union government and if the additional compensation due to increase in price of naphtha was approved there would be substantial difference in the financial figures. FACT's performance during 2010-11 was also affected by big increases in the cost of raw materials and low production levels due to shortage of phosphoric acid.
Sales turnover, however, increased to Rs.2,527 crore during 2010-11 from the previous year's Rs.2,150 crore. Caprolacatam sales stood at 44,136 tonnes compared to 38,253 tonnes during the previous year. FACT also set a new record in gypsum sale with a total of 4.75 lakh tonnes. Sale of zincated Factamfos fared well during the last financial year, touching 39,554 tonnes. The total fertilizer production during 2010-11 stood at 8.44 lakh tonnes, down from the previous year's 9.32 lakh tonnes.
Production of Factamfos, which is a sales driver for the company, was 6.43 lakh tonnes and ammonium sulphate production stood at two lakh tonnes. FACT also touched a new record in production and sale of bio-fertilizer with sales touching 74.89 tonnes during the last financial year