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.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%