Shares of fertiliser companies rallied on Wednesday after reports emerged that the Ministry of Chemicals and Fertilisers has indicated it will need an additional 100% of its budget estimate. Such a provision would effectively double the Rs 1.71 lakh crore fertiliser subsidy outlay, in order to manage the impact of the West Asia conflict on fertiliser prices and supply.
Media reports suggest that the fertiliser ministry has indicated that it would require an additional 100% of the budget estimate of Rs. 1.71 lakh crore for the fertiliser subsidy this year.
Chambal Fertilisers and Chemicals Ltd. was the top gainer in the space, rising 4.23% to Rs. 474. FACT gained 3.26% to Rs. 904.65, while National Fertilizers Ltd. was up 3.08% to Rs. 76.65.
Coromandel International Ltd., Rashtriya Chemicals & Fertilizers Ltd. and Gujarat State Fertilizers & Chemicals Ltd. also ended higher.
Among laggards, Paradeep Phosphates Ltd. was the only stock in the red, down 0.21% to Rs. 126.
CEA V. Anantha Nageswaran had flagged earlier today that government expenditure this year will be contingent on, among other factors, international fertiliser prices.
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