IFFCO Paradeep Unit Halts Production: Supply Chain Crisis Hits Odisha

22 May 2026, 11:17 by Vinay Kakkad · KalingaTV

The Paradeep plant of Indian Farmers Fertiliser Cooperative Limited (IFFCO) has come to a standstill due to a severe shortage of key raw materials. The shutdown began on Thursday, directly tied to the escalating conflict between the United States and Iran. That standoff has thrown shipping and cargo movement through the Strait of Hormuz—one of the world’s most important trade routes—into complete chaos.

The whole problem started because the plant suddenly ran out of key raw materials, all of which come from overseas. The facility leans heavily on imports from the Middle East: ammonia, sulfur, rock phosphate, and phosphoric acid all arrive through Paradip Port. But since blockades and delays have choked the Hormuz Strait, those supply chains are broken. Now, the plant can’t get crucial shipments of ammonia and sulfur, leaving the operation in limbo.

The operational freeze at the Paradeep IFFCO plant carries significant weight due to the sheer scale of the facility. It’s one of the biggest fertilizer production complexes around, with a huge annual output of nearly 22 lakh metric tonnes of fertilizer. To keep things rolling, the plant needs a steady, massive flow of ingredients every year—over 5 lakh metric tonnes of ammonia and more than 16 lakh metric tonnes of sulfuric acid.

This abrupt halt has set off alarm bells about how long the plant can stay shut and what that means for the region’s fertilizer supply if the crisis drags on.