Fertilizer Stocks Surge On Subsidies Doubling Plan Report

Fertilizer Stocks Surge On Subsidies Doubling Plan Report

Fertilizer shares jumped Wednesday after a Reuters report that the government plans to increase fertilizer subsidies to a record high of more than Rs 1.55 lakh crore in 2021-2022 to avoid deficits amid a sharp rise in global prices.

India, the best urea importer, has already raised twice the amount of manure in this fiscal year ending 31 March, and the new figure is almost twice the amount originally budgeted.

Global fertilizer prices have almost doubled in the past year due to record increases in the prices of coal and natural gas, the two main energy sources used to produce nutrients, and new export restrictions by China and Russia.

Shares in Rashtriya Chemicals and Fertilizers Ltd, Chambal Fertilizers & Chemicals Ltd, National Fertilizers Ltd and Madras Fertilizers Ltd jumped between 6 per cent and 9 per cent in early trading on Wednesday.

The government provides financial support to companies that sell fertilizers at below-market prices. The agricultural sector employs about 60 percent of India’s workforce and accounts for 15 percent of the $ 2.7 trillion economy.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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