Fertiliser stocks are in the limelight today morning after some unconfirmed news came in about subsidy - India plans to increase 2021/22 fertiliser subsidies to a record of more than Rs.1.55 trillion rupees ($20.64 billion) to avoid shortages amid a sharp increase in global prices of the chemical. This is almost double the amount budgeted for fertiliser subsidies in the budget for current FY22 fiscal.
The Govt has already raised fertiliser subsidies twice, pushing up the Rs.836 billion budgeted support by Rs.434 billion.
Urea prices all across the globe have spiked up over 200% from a year ago due to record high prices of natural gas and coal, which is required to produce the urea. What also did not help was the export restrictions placed by China and Russia.
Chambal Fertiliser is among the top three gainers on the BSE since the opening bell today, rising almost 10% to Rs.398.80. RCF, NFL, Madras Fertiliser, Deepak Fertiliser, Cormandel, GSFC, Zuari Industries, MCF; all are in the green.