Fertiliser shares fall as government slashes non-urea fertilizer subsidy
Chambal Fertilisers, Corromandel International, GSFC, GNFC, Deepak Fertilisers and RCF are down 1-7% compared to 1.3% rise in benchmark Sensex.
Shares of fertilizers companies are under pressure in otherwise firm market after the government announced a cut in subsidy on complex non-urea fertilisers for the current fiscal. The move followed on decline in global prices of potassic and phosphatic nutrients.
Chambal Fertilisers and Chemicals, Corromandel International, GSFC, GNFC, Deepak Fertilisers and Rashtriya Chemicals and Fertilisers are down 1-7% on BSE compared to 1.3% rise in benchmark Sensex at 1454 hours.
“The Union Cabinet on Wednesday gave a nod to the Nutrient-Based Subsidy (NBS) rates for phosphatic and potassic (P&K) fertilisers for 2013-14. These are expected to cut the fertiliser subsidy by about 15% in the current financial year, compared to 2012-13,” the Business Standard report suggests.
As the domestic demand for P&K fertiliser is largely met through import of finished fertilisers and the raw materials, the domestic price should normally move in line with those in the international market, added report.
Chambal Fertilisers and Chemicals, Corromandel International, GSFC, GNFC, Deepak Fertilisers and Rashtriya Chemicals and Fertilisers are down 1-7% on BSE compared to 1.3% rise in benchmark Sensex at 1454 hours.
“The Union Cabinet on Wednesday gave a nod to the Nutrient-Based Subsidy (NBS) rates for phosphatic and potassic (P&K) fertilisers for 2013-14. These are expected to cut the fertiliser subsidy by about 15% in the current financial year, compared to 2012-13,” the Business Standard report suggests.
As the domestic demand for P&K fertiliser is largely met through import of finished fertilisers and the raw materials, the domestic price should normally move in line with those in the international market, added report.