Analysts say the hike in DAP subsidy will have a positive rub-off on fertiliser and agri-input companies
A sharp rally in fertilizer stocks on Thursday on hike in subsidy has opened doors for more upside in the coming days
A govt statement said the Centre would spend an additional Rs 14,775 cr on fertiliser subsidy in the current financial year
With the increase in subsidy in DAP, Government of India will spend an additional Rs 14,775 crore as subsidy in Kharif season
The government has not yet taken a final decision on implementation of direct cash transfer of fertiliser subsidy to farmers, Fertiliser Minister D V Sadananda Gowda informed Parliament on Tuesday.
Combined market capitalisation of 10 fertiliser companies up 10% in Nov, against 12% rise in Sensex
After the Garib Kalyan Yojana was extended by five months from July To November, an additional subsidy of Rs 76,000 crore had to be borne by the govt
Birla's sale of fertiliser arm comes within two years of Tata's exit from sector
These could include direct cash transfer, encouraging rational use of fertilisers
Centre allocates extra Rs 65,000 crore for FY21, over the BE of Rs 71,309 crore
If the government accepts this recommendation, the ongoing practice of transferring subsidy to fertiliser-producing companies will be discontinued
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While total requirement in the current fiscal is pegged at around Rs 128,000 crore, the 2020-21 Budget provided Rs 71,309 crore towards fertiliser subsidy
Fertiliser subsidy down, food subsidy up
Farmers do not favour direct cash transfer
The government's approach towards fertilisers and soil health seems rather paradoxical
A decision in this regard was taken at the meeting of Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi
Fuel, food and fertiliser remain key focus areas
A rise in fertiliser prices overseas and a fall in the rupee currency made imported fertilisers more expensive, lifting the total subsidy requirement for the year to Rs 1 trillion, sources said
The backlog of pendency will be cleared from the balance funds available during the current fiscal and the remaining dues will be paid on receipt of additional budget