 "Fertiliser shares in focus; FACT, SPIC, Chambal Fertilisers up over 10%")
Shares of fertilizers companies have rallied by up to 18% on the BSE on back of heavy volumes after the media report suggested that the companies will be paid subsidies every week instead of waiting for months.
Fertilizers & Chemicals Travancore (FACT), Southern Petrochemicals, Chambal Fertilisers & Chemicals and Madras Fertilizers have rallied in the range of 10% to 18% on the BSE in intra-day trade.
Nagarjuna Fertilizers and Chemicals, National Fertilizers, Rashtriya Chemicals & Fertilizers (RCF), Deepak Fertilisers & Petrochemicals, Gujarat State Fertilizers & Chemicals were up between 3% and 6%. In comparison, the S&P BSE Sensex was up 0.36% at 38,832 points.
The Direct Benefit Transfer (DBT) has now been rolled out on a nationwide basis as all the states are now under the ambit of DBT. Fertilizer companies have started aligning their sales through the DBT mechanism.
“The initial challenges with respect to connectivity at farmers' ends have been resolved (technology, compliance, and recording of transactions on the POS machines); however, there are still some system-related issues relating to opening stocks during Q1, which is now being addressed by the Department of Fertilizer. The subsidy payout under DBT has started, and the government has been to settle the claims within 2-3 weeks,” CARE Rating said in sector update.
The Government of India is focused towards the development of the agricultural sector and on improving the rural economy. So far the FY19 quarter has commenced on a positive note with an almost near normal monsoon and a healthy hike in the minimum support price (MSP) of major crops. Given the importance towards the agricultural sector and the impetus given in increasing crop production we estimate the overall fertilizer production to increase during FY19 to 422-425 LMT, it added.
Fertilizers & Chemicals Travancore (FACT), Southern Petrochemicals, Chambal Fertilisers & Chemicals and Madras Fertilizers have rallied in the range of 10% to 18% on the BSE in intra-day trade.
Nagarjuna Fertilizers and Chemicals, National Fertilizers, Rashtriya Chemicals & Fertilizers (RCF), Deepak Fertilisers & Petrochemicals, Gujarat State Fertilizers & Chemicals were up between 3% and 6%. In comparison, the S&P BSE Sensex was up 0.36% at 38,832 points.
The Direct Benefit Transfer (DBT) has now been rolled out on a nationwide basis as all the states are now under the ambit of DBT. Fertilizer companies have started aligning their sales through the DBT mechanism.
“The initial challenges with respect to connectivity at farmers' ends have been resolved (technology, compliance, and recording of transactions on the POS machines); however, there are still some system-related issues relating to opening stocks during Q1, which is now being addressed by the Department of Fertilizer. The subsidy payout under DBT has started, and the government has been to settle the claims within 2-3 weeks,” CARE Rating said in sector update.
The Government of India is focused towards the development of the agricultural sector and on improving the rural economy. So far the FY19 quarter has commenced on a positive note with an almost near normal monsoon and a healthy hike in the minimum support price (MSP) of major crops. Given the importance towards the agricultural sector and the impetus given in increasing crop production we estimate the overall fertilizer production to increase during FY19 to 422-425 LMT, it added.
| COMPANY | LATEST | PREV CLOSE | GAIN(%) |
| F A C T | 48.00 | 42.35 | 13.34 |
| CHAMBAL FERT. | 171.40 | 152.00 | 12.76 |
| S P I C | 33.95 | 30.20 | 12.42 |
| MADRAS FERT. | 29.20 | 26.50 | 10.19 |
| NAGARJUNA FERT. | 13.60 | 12.72 | 6.92 |
| R C F | 75.80 | 71.70 | 5.72 |
| NATL.FERTILIZER | 50.20 | 48.00 | 4.58 |
| ZUARI AGRO CHEM. | 325.90 | 313.10 | 4.09 |
| ZUARI GLOBAL | 130.20 | 126.25 | 3.13 |
| G S F C | 120.90 | 117.40 | 2.98 |
One subscription. Two world-class reads.
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%