FACT, Paradeep Phosphates soars 7%; What's driving the fertiliser stocks?

Shares of fertiliser companies advanced on Tuesday after the Finance Minister said there was no shortage of fertilisers during the ongoing Rabi season, boosting investor sentiment.

 

Fertilisers and Chemicals Travancore stock rose as much as 7.63 per cent, while Paradeep Phosphates and Madras Fertilisers stocks rallied 6 per cent. Chambal Fertilisers & Chemicals shares gained 5 per cent on Tuesday, while Gujarat State Fertilisers & Chemicals rose 2 per cent. 

 

As of 12:30 PM, shares of Fertilisers and Chemicals Travancore and Paradeep Phosphates were up 6.3 per cent and 4.5 per cent, respectively, compared to a 0.46 per cent decline in the benchmark Nifty50 index. 

 

What's driving the rally in fertiliser stocks

Finance Minister (FM) Nirmala Sitharaman told Parliament on Monday that there was no shortage of fertiliser in the country, whether it was imported or domestically produced, and there was enough buffer available for the upcoming rabi season. “The Centre has supplied fertilisers to every state, and the supplies are monitored in real time,” she said.

 

"After a good monsoon, there is a demand for additional urea utilisation. It is the business of the government to provide it," Sitharaman said. Sitharaman added that by carefully managing imports, urea stock increased from 48.64 lakh tonnes as of October 1, 2025, to 68.85 lakh tonnes by October 31, 2025.

Fertiliser import likely to jump 41% in FY26

India’s fertiliser imports are expected to rise 41 per cent to 22.3 million tonnes in the 2025–26 financial year, driven by higher domestic demand following a good monsoon, the Fertiliser Association of India said last week.

 

The world's second-largest fertiliser consumer imported 14.45 million tonnes during April-October, up nearly 69 per cent from 8.56 million tonnes a year earlier, the industry body said.

 

Fertiliser stocks stood at 10.2 million tonnes by the end of November versus 9.97 million tonnes a year earlier, including 5 million tonnes of urea, 1.7 million tonnes of DAP and 3.5 million tonnes of NPK fertilisers, he said. Domestic fertiliser production rose marginally to 29.97 million tonnes in April-October from 29.75 million tonnes a year earlier, FAI data showed.