Fertiliser shares gain as government introduces uniform gas price for urea plants

Zuari Agro, FACT, RCF, GNFC and Chambal Fertilisers were up 5%-13% on the Bombay Stock Exchange.

Shares of fertiliser companies were trading higher in early morning trade on reports that the government announced a uniform gas pricing policy and pooling of domestic and imported natural gas for urea plants in India.

Zuari Agro Chemicals has rallied 13% to Rs 258, while Fertilizers & Chemicals Travancore  (FACT) surged 7% to Rs 30 on the Bombay Stock Exchange (BSE).

Rashtriya Chemicals & Fertilisers, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) and Chambal Fertilisers and Chemicals were up 5% each, Deepak Fertilisers & Petrochemicals Corporation up 4% and Gujarat State Fertilizers & Chemicals up 3% on the BSE.

It was expected the cost of urea production at the pooled price would be less than the price of imported urea, which would encourage existing urea units to produce beyond their reassessed capacity, said an official statement, the Business Standard report suggests. CLICK HERE TO READ FULL REPORT.