Fertilizer Industry Round Up (31/5/14 to 7/6/14)

Published on June 9, 2014

The fertilizer industries are in hope that with the coming of new government the shares of the fertilizer industry will increase and also the year 2013/14 outstanding subsidy payments for this sector will soon be cleared. Major fertilizer industries such as Chambal Fertilisers and Chemicals, Rashtriya Chemicals and Fertilizers and National Fertilizers have gain shares by 6.5%, 6% and 10%, respectively. Moreover subsides owned by the government are noted more than Rs. 350 billion, as per the estimates done by the industry experts.

As per government and industry officials India plans to raise urea prices by at least 10% which is mostly used by the farmers and in order to contain subsidy costs that are straining the budget. This hike in prices of fertilizer will dubiously impact individual companies as financial assistance will decline and there will be rise in MRP which will not benefit private companies.

The first major price trudge in four years to engrave wasteful use of urea and alleviate fiscal pressures resulting from a weak economy, the new government would mark an important steps. Over the past few decades, fearing a backlash from the prominent farm lobby the fertilizer subsidy costs have quadrupled as the earlier government had kept urea prices below the cost of production.


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