Fertiliser Shares Rally on Increased Gas Supply to Fertiliser Units, Teesta Agro and RCF Post Gains Up to 8%

Fertiliser Shares Surge 8 Percent Amid Government's Gas Supply Increase

Fertiliser shares experienced a significant boost on Monday, with prices settling up to 8 percent higher following the government's decision to increase natural gas supply to fertiliser units. This move is part of efforts to ensure energy stability in light of the evolving situation in West Asia.

The government has announced an increase in gas supply to fertiliser plants and key sectors to 90 percent from the existing 70-75 percent, effective April 6, 2026. This increase is supported by available domestic inventory and scheduled LNG cargo arrivals, and is aimed at ensuring steady feedstock supply to urea plants ahead of key agricultural demand.

In addition to the increase in gas supply to fertiliser plants, the government has also announced a further 10 percent increase in gas supply to other industrial and commercial sectors, including those linked to City Gas Distribution (CGD) networks, also effective April 6.

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The announcement has had a positive impact on fertiliser company shares, with several stocks experiencing significant gains. Teesta Agro Industries led the rally, surging 8.29 percent to an intraday high of Rs 110 per share on the BSE. Other fertiliser companies, including Rama Phosphates, Aries Agro, Zuari Agro Chemicals, Madras Fertilizers, Rashtriya Chemicals and Fertilizers, and Fertilisers and Chemicals Travancore (FACT), also rose between 2-5 percent.

The move is expected to support fertiliser production and help maintain industrial activity at a time when global energy markets remain volatile due to geopolitical tensions. Fertiliser plants are among the largest consumers of natural gas in India, and higher supply levels are likely to support urea output and supply chains. However, rising energy costs are seen increasing fertiliser production expenses, which may add to broader inflationary pressures.