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FACT Starts Production of Di-Ammonium Phosphate (DAP) at Udyogamandal Plant

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Fertilisers and Chemicals Travancore Limited (FACT), a central public sector undertaking under the Ministry of Chemicals and Fertilizers, began production of Di-Ammonium Phosphate (DAP) at its Udyogamandal plant in Kochi, Kerala, on 15 May 2026. The production license was granted under the Nutrient Based Subsidy Scheme on 24 April 2026. DAP is a key phosphatic fertilizer supplying nitrogen and phosphorus essential for crop growth, classified as a complex fertilizer. FACT, established in 1943, plays a vital role in India’s fertilizer industry by producing various fertilizers including complex and organic types. This development supports agricultural productivity by enhancing availability of important fertilizers at subsidized rates.

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Key Facts

  • FACT stands for Fertilisers and Chemicals Travancore Limited, established in 1943.
  • FACT operates under the Ministry of Chemicals and Fertilizers with headquarters in Kochi, Kerala.
  • The Udyogamandal plant, located near Kochi, started DAP production on 15 May 2026.
  • Permission to manufacture DAP at the Kochi facility was granted on 24 April 2026 under the Nutrient Based Subsidy Scheme.
  • Di-Ammonium Phosphate (DAP) is a phosphatic fertilizer providing essential nutrients nitrogen and phosphorus, classified as a complex fertilizer due to containing multiple primary nutrients.

Background & Context

FACT is a central public sector enterprise incorporated in 1943, with two production units including Udyogamandal Complex near Kochi. It produces a range of fertilizers including complex, straight, organic, and bio-fertilizers. DAP is a commonly used phosphatic fertilizer that supplies nitrogen and phosphorus, critical for plant growth. The Nutrient Based Subsidy (NBS) Scheme, implemented by the Government of India since 2010, provides subsidies on phosphatic and potassic fertilizers based on their nutrient content, encouraging balanced fertilizer use, ensuring availability at affordable prices for farmers, and supporting manufacturers financially.

Under the NBS Scheme, fertilizer companies are permitted to set Maximum Retail Prices, while receiving fixed subsidies from the government, aiming to promote balanced fertilization, soil health, and agricultural productivity. DAP falls under this subsidy scheme.

Why This Matters for Exams

This event is important for competitive exams to understand the role of public sector undertakings in fertilizer production, government policies like the Nutrient Based Subsidy Scheme, and their impact on agriculture in India. Questions related to fertilizer types, manufacturing units, subsidy schemes, and their dates of establishment or commencement are common in exam syllabi.

Points to Remember

  • FACT is a central public sector undertaking established in 1943, headquartered in Kochi, Kerala.
  • The Udyogamandal plant started DAP production on 15 May 2026.
  • DAP manufacturing at Kochi facility was approved on 24 April 2026 under the Nutrient Based Subsidy Scheme.
  • DAP is a phosphatic, complex fertilizer supplying nitrogen and phosphorus.
  • The Nutrient Based Subsidy Scheme supports balanced fertilizer use by providing nutrient-based subsidies to manufacturers and promotes availability of fertilizers at affordable prices to farmers.
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