Fertiliser stocks in limelight; surge as much as 10%

Fertiliser stocks were in limelight today, surging as much as 10 per cent a day after the government approved a proposal to extend urea subsidy till 2020.

Shares of Nagarjuna Fertilisers and Chemicals soared 9.82 per cent, National Fertilisers 7.45 per cent, Rashtriya Chemicals and Fertilisers 6.58 per cent, Coromandel International 3.45 per cent and Chambal Fertilisers & Chemicals 3 per cent on BSE.

The government yesterday approved a proposal to extend urea subsidy till 2020 and also implementation of direct benefit transfer (DBT) for disbursement of fertiliser subsidy.

Urea is made available to farmers at a statutorily controlled price of Rs 5,360 per tonne. The difference between the delivered cost of the fertiliser at farm gate and MRP is given as subsidy to manufacturers.

"The continuation of the urea subsidy scheme will ensure adequate quantity of urea is made available to farmers at statutorily controlled price," an official release said after a CCEA meeting.