The shares of fertiliser companies are in limelight on the bourses ahead of government meeting today to consider giving fertiliser companies freedom to fix the maximum retail price of di-ammonium phosphate (DAP).
The decision on DAP was postponed last week due to the absence of fertiliser minister MK Alagiri.
In April, the government had forbidden companies from hiking MRP of DAP by more than Rs 600 a tonne from the prevailing rate of Rs 10,750 a tonne.
However, due to rising global prices, the companies did not contract DAP imports, fearing losses because they were not allowed to raise MRP beyond the cap fixed by the government. Now, the country is facing a huge shortage of DAP, the report suggests.
Among the individual stocks, RCF, National Fertilisers, Chambal Fertilisers, GNFC and Nagarjuna Fertiliser are trading higher by 2-5% on the Bombay Stock Exchange (BSE).
