New Delhi, India | State-owned fertiliser companies Fertilisers and Chemicals Travancore Limited (FACT) and Hindustan Urvarak & Rasayan Limited (HURL) have signed a Memorandum of Understanding (MoU) for the financial year 2026–27 to strengthen fertiliser availability and improve supply chain coordination across key agricultural regions in India.
The agreement was formally signed by S. Sakthimani, Chairman and Managing Director of FACT, and Shiba Prasad Mohanty, Managing Director of HURL.
Collaboration to Ensure Fertiliser Availability
Under the terms of the agreement, the two public sector fertiliser companies will work jointly to ensure the supply and distribution of approximately 1.10 lakh metric tonnes (LMT) of fertilisers during FY2026–27 across their respective operational territories.
The collaboration is aimed at improving fertiliser availability during critical agricultural seasons and ensuring timely access to essential crop nutrients for farmers.
Officials stated that the partnership will help strengthen logistics coordination, streamline distribution channels, and support uninterrupted fertiliser supply during periods of high demand.
Supporting India’s Agricultural Sector
The agreement comes at a time when ensuring adequate fertiliser availability remains a key priority for India’s agricultural and food security strategy. Fertilisers play a vital role in maintaining crop productivity and supporting the country’s large farming sector.
Industry experts believe that stronger coordination among public sector fertiliser producers can help reduce supply disruptions, improve regional distribution efficiency, and stabilize availability during sowing and harvesting seasons.
The partnership is also expected to enhance operational synergy between the two companies while contributing to the government’s broader objective of supporting farmers through reliable agricultural input supply systems.
Strengthening PSU Cooperation
The MoU highlights increasing collaboration among government-backed enterprises in the fertiliser sector to improve efficiency, resource utilization, and nationwide supply management.
Fertilisers and Chemicals Travancore Limited is one of India’s oldest fertiliser and chemical manufacturing companies and plays a significant role in supplying fertilizers to southern Indian states. The company operates under the administrative control of the Government of India and is engaged in manufacturing fertilizers, petrochemicals, and industrial products.
Hindustan Urvarak & Rasayan Limited, a joint venture promoted by major public sector companies, was established to enhance domestic urea production capacity and strengthen India’s fertilizer self-sufficiency.
Focus on Food Security and Productivity
Agriculture experts note that maintaining a stable supply of fertilizers is critical for sustaining agricultural productivity, supporting rural livelihoods, and ensuring national food security.
The latest agreement between FACT and HURL is being viewed as part of broader efforts by India’s public sector enterprises to build a more resilient agricultural supply chain ecosystem and reduce dependency on supply uncertainties during peak cultivation periods.
The collaboration is expected to play an important role in meeting fertilizer demand efficiently during FY2026–27 while supporting the country’s long-term agricultural growth objectives.
