Indian fertiliser stocks surge on subsidies doubling plan report

Madras Fertilizers

01/12/2021 04:40

BENGALURU, Dec 1 (Reuters) - Indian fertiliser stocks jumped
on Wednesday after a Reuters report the government plans to
increase fertiliser subsidies to a record of more than 1.55
trillion rupees ($20.67 billion) in 2021-2022 to avoid shortages
amid a sharp rise in global prices.
    India, the top urea importer, has already raised fertiliser
subsidies twice in this fiscal year ending March 31, and the new
figure is almost double the amount initially budgeted.
 urn:newsml:reuters.com:*:nL1N2SM04V
    Global fertiliser prices have almost trebled over the past
year due to record increases in the prices of coal and natural
gas, the two main energy sources used to produce the crop
nutrients, and new export restrictions by China and Russia.
    Shares in Rashtriya Chemicals and Fertilizers Ltd  RSTC.NS ,
Chambal Fertilsers & Chemicals Ltd  CHMB.NS , National
Fertilizers Ltd  NAFT.NS  and Madras Fertilizers Ltd  MDFT.NS 
jumped between 6% and 9% in early trading on Wednesday.
    The government provides financial support to companies that
sell fertilisers at below-market rates. The agriculture sector
employs about 60% of India's workforce and accounts for 15% of
the $2.7 trillion economy.
     
($1 = 74.9720 Indian rupees)

 (Reporting by Rama Venkat in Bengaluru)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;))