Date:01/12/2005 URL: http://www.thehindubusinessline.com/2005/12/01/stories/2005120101311200.htm

Back Rains buoy fertiliser demand in South

Our Bureau

FACT is getting increased orders from TN and AP.

Kochi , Nov. 30

THE widespread rainfall in Tamil Nadu and Andhra Pradesh has led to a steep increase in demand for fertiliser from most southern States.

Therefore, Fertilisers and Chemicals Travancore Ltd (FACT) has decided to streamline its production strategy and maximise the production of its fertiliser, Factamfos.

Though the quarter starting from December is generally a dull period for fertilisers, FACT is now getting increased orders from Tamil Nadu and Andhra Pradesh to the extent that the present production is not enough to meet the escalating demand.

All out efforts are being made to increase the production of Factamfos so that the market potential is fully utilised, a release from FACT has said.The above change in production strategy has necessitated a re-routing of priorities, by which, FACT has decided to temporarily suspend production of caprolactam and undertake preventive maintenance in the plant. There has been a 20 per cent fall in the price of caprolactam in the world markets during the last four weeks, following which major domestic consumers have adopted a policy of wait-and-watch, leading to a sharp decline in the demand for the product.

China, the major export market for caprolactam, is also not active in the field, as many nylon producers have cut down production, FACT pointed out. The company is keenly watching the fluctuations in the fertiliser and caprolactam markets and attempts are being made to utilise the market in its favour.