Fertiliser Stocks Surge on Centre's Subsidy Increase Amid West Asian Crisis

Fertiliser Stocks Surge as Centre Announces Higher Subsidy

Fertiliser stocks traded in the green on Thursday after the Centre announced a higher subsidy to offset rising input costs linked to the ongoing West Asia crisis. The move aims to cushion farmers from higher global prices and supply disruptions triggered by the crisis.

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved Rs 41,534 crore towards nutrient-based fertiliser subsidy for the upcoming summer-sowing season, marking an increase of Rs 4,317 crore, or nearly 12%, from the previous cropping cycle. This enhanced subsidy is expected to keep prices of key fertilisers stable, particularly diammonium phosphate (DAP), with 50-kg bags likely to remain priced at Rs 1,350 despite rising import costs.

Shares of Fertilizers and Chemicals Travancore Limited (FACT) surged 4.54% to Rs 854.95, while Coromandel International rose 1.25% in morning trade, with the stock trading at Rs 2,142.40 on the NSE. However, shares of Chambal Fertilisers & Chemicals Limited traded in the red, down 0.53% at Rs 462.50 as of 10:05 am.

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Under the nutrient-based subsidy (NBS) regime, fertilisers are provided to farmers at below-market rates based on their phosphatic and potassic content, with the objective of promoting balanced nutrient usage and discouraging overconsumption. The government's move comes at a crucial time, as ensuring adequate availability and affordability of fertilisers remains key to food security in India ahead of the summer planting season.