Recovery in kharif sowing to boost fertiliser sales this year

Estimates of normal rainfalls this monsoon season to support the move, rising raw material prices to affect margins

Fertiliser companies are well placed to post higher top lines in the second quarter of the current financial year and onwards, following a rise in the overall kharif sowing area this year.

The Union Ministry of Agriculture, in its latest report released on September 7, has estimated a sharp recovery in sowing area this kharif season. With this, the deficit of about 1.21 per cent in kharif acreage till August-end has recovered fully, with a marginal surplus of 0.20 per cent to 104.17 million ha. This development raises hopes for an increase in overall sowing area in the days ahead.