Fertiliser companies’ shares climb 8% as FM Nirmala Sitharaman announced subsidy of Rs 65,000 crores

Finance Minister Nirmala Sitharaman on Thursday announced a subsidy of Rs 65,000 crore to the farmers on selected or subsidized fertilizer which resulted in an increase of 8 percent of shares of the fertilizer companies. The Rs 65,000 crore subsidy provided will ensure the availability of fertilizers to farmers in the upcoming crop season.

FM Nirmala Sitharaman said that there is an estimated increase in fertilizer usage of 17.8 percent over the actual usage of 571 lakh metric tonnes in FY20. Fertilizer consumption is going up significantly and an increased supply of fertilizers will ensure that the forthcoming crop seasons will not be affected for want of adequate fertilizers


As per estimates, fertilizer consumption which stood at 499 lakh metric tonnes in FY17 is expected to rise to 673 lakh metric tonnes in FY21.

Post the announcement, Mangalore Chemicals jumped 7.36 percent to Rs 33.55, Shiv Agro rose 3.76 percent to Rs 38.65, Coromandel International added 3.14 percent to Rs 739.55, and Nagarjuna Fertilizers gained 3.27 percent to Rs 4.10.