GSFC plans Jamnagar acid plant to cut fertiliser input import dependence

New Delhi: Gujarat State Fertilizers and Chemicals (GSFC) plans to set up a plant in Jamnagar with capacities for sulphuric and phosphoric acid to ensure a steady supply of raw materials for domestic phosphate-based soil nutrients, people aware of the matter said.

Both chemicals are critical for manufacturing phosphatic fertilisers such as di-ammonium phosphate (DAP) -India's second-most-used soil nutrient - and various nitrogen, phosphorus, and potassium (NP/NPK) grades. Boosting domestic output of these inputs will also help curb the country's reliance on imports. The proposed plant is expected to come up near the company's existing unit in Jamnagar, featuring a phosphoric acid capacity of 600 metric tonnes per day (MTPD) and a sulphuric acid capacity of 1,800 MTPD.

Supplies have tightened since the West Asia crisis disrupted sulphur availability, pushing prices to $1,000-1,100 per tonne from about $550 before the start of the conflict. The shortage has affected the production of several fertilisers. The Gujarat government-promoted firm has a large portfolio of subsidised fertilisers, including urea, DAP, ammonium phosphate, ammonium sulphate and various formulations of NPK complexes. Its Sikka complex manufactures phosphate-based fertilisers, making reliable supplies of phosphoric acid particularly important to its operations.


By integrating acid production with its fertiliser operations, GSFC aims to make its supply chain more resilient to external shocks.