The impact of disruptions in the Strait of Hormuz has reportedly begun affecting industrial operations in Odisha, with fertiliser production at the Paradip unit of IFFCO coming to a standstill due to a shortage of key raw materials.

According to reports, IFFCO has suspended production at its Paradip fertiliser plant from Thursday as the supply of essential imported inputs has been severely affected. The disruption is said to be linked to the ongoing tensions and conflict involving the United States and Iran, which have impacted movement through the strategically important Hormuz Strait – a critical global trade route for oil and industrial commodities.

Sources indicate that the fertiliser plant has been unable to receive crucial raw materials such as ammonia and sulphur from overseas markets, leading to the production halt. IFFCO imports several essential raw materials including ammonia, sulfur, rock phosphate, and phosphoric acid from Middle Eastern countries through Paradip Port. The disruption in shipping routes through the Hormuz Strait has directly affected the transportation and timely arrival of these inputs.

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The Paradip IFFCO plant is one of the major fertiliser production facilities in the region, with an annual production capacity of around 22 lakh metric tonnes of fertiliser. To maintain such large-scale production, the plant reportedly requires over 5 lakh metric tonnes of ammonia and more than 16 lakh metric tonnes of sulfuric acid every year.

The sudden interruption in supply chains has raised concerns over the plant’s operations and potential implications for fertiliser availability if the situation persists. However, despite attempts to seek clarification, IFFCO officials have reportedly declined to comment on the matter.