Fertilizer stockpiles spiked on Wednesday after Reuters reported that the government plans to increase fertilizer subsidies to a record level of more than Rs 1.55k between 2021-2022 to avoid shortages amid global prices rose sharply.
India, the top urea importer, has increased fertilizer subsidies twice in the financial year ending March 31, and the new figure is almost double the amount originally budgeted.
Global fertilizer prices have almost tripled in the past year due to record prices of coal and natural gas, the two main sources of energy used to produce nutrients for crops, and restrictive measures. New exports of China and Russia.
Shares of Rashtriya Chemicals and Fertilizers Ltd, Chambal Fertilsers & Chemicals Ltd, National Fertilizers Ltd and Madras Fertilizers Ltd were up 6% to 9% in early Wednesday trading.
The government provides financial support to companies selling fertilizers at below-market prices. The agricultural sector employs about 60 percent of India’s workforce and accounts for 15 percent of the $2.7 trillion economy.
(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)
