The company is incurring a loss of about Rs 3,000 a tonne on phosphate fertiliser produced in the plant.

Similarly, rock phosphate price has increased to $125 a tonne from $79.

These raw materials are imported and orders are placed every quarter.

The annual requirement of sulphur and rock phosphate is two lakh tonnes and three lakh tonnes respectively.

The major importers of these items are India and China. So far, according to information available, no fertiliser plant in south India has bought at the prevailing rate.

“We may call for fresh quotation this month and hope the prices would be lower,” he said.

Add to this is the high price of naphtha, which is a major raw material used by FACT.

Its price is ruling at Rs 25,000 a tonne against Rs 5,000 a tonne for LNG.

The company’s revival is mainly dependent on the commissioning of Petronet LNG’s proposed terminal here.

But the commissioning is being delayed for various reasons. It was earlier expected to become operational by September 2009, but is now scheduled for 2011.

This delay would result in FACT incurring losses till LNG is made available, the source said.

The Government used to extend subsidy for ammonium sulphate in the past, which has been withdrawn.

The cost of phosphate has gone up to Rs 7,500 a tonne from Rs 3,000 in 2000.

A subsidy on ammonium sulphate coupled with the marginal profit from the sale of caprolactam would enable the company to operate these plants without loss, the source added.

However, factamfos production is in full swing as there is good demand for the product; the company is using the stock available, which may last till July-end, while the demand for ammonium sulphate would come up by late July or early August.

An estimated 20,000 tonnes of field stock of this product are held by the company to meet the requirement of the farmers next month in Andhra Pradesh and Tamil Nadu, he said.

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