Fertiliser stocks rally on hike in urea prices buzz

The shares of fertiliser companies are in limelight on the bourses on reports that the Finance Ministry has asked the Fertiliser Ministry to accelerate the proposal to raise urea prices to reduce subsidy burden.

Urea is the only fertiliser that remains under full price control. In 2011-12, urea subsidy was Rs 24,500 crore.

“In June, the Cabinet Committee of Economic Affairs (CCEA) had deferred the decision on urea price increase and had asked the Ministry to make certain changes in view of opposition from various quarters,” the PTI report suggests.

Among the individual stocks, Rashtriya Chemicals and Fertilisers have rallied 10% to Rs 64.40 on the Bombay Stock Exchange. National Fertilisers and Chambal Fertilisers have surged 6% each at Rs 87.45 and Rs 75.90 respectively.

 

Fertilisers and Chemicals Travancore, GNFC and GSFC are trading higher by 2-5% on the Bombay Stock Exchange (BSE).