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Kolkata: Agriculture is one of the key sectors that acts as the bedrock of the economy. For the Rabi season this year, the government has approved a fertiliser subsidy of Rs 38,000 crore, which exceeds that for the Kharif season by Rs 736 crore. This largesse is going to benefit a few firms as much as it is going to benefit the farmers of India. Let's have a close look at a few stocks related to this sector.
The broad aim of the government is to ensure that farmers continue to get essential fertilisers such as DAP (di-ammonium phosphate) and NPK (nitrogen, phosphorus, potash) at affordable rates in spite of fertilizer price soaring in the global market. The collateral benefit is for the investors of a few stocks linked to the sector. Those which can be big beneficiaries include Coromandel International, Chambal Fertilizers, FACT (Fertilizers and Chemicals Travancore), Khaitan Chemicals, Rashtriya Chemicals and Fertilizers (RCF) and Paradeep Phosphates. These play a major role in the production and distribution of DAP and NPK.
Coromandel International: The Coromandel International stock was trading at Rs 2,242.90, up Rs 1.90 (or 0.085%) on October 29 morning. The stock has returned 40.61% in the last one year and 218.22% in five years.
Chambal Fertilizers: Chambal Fertilisers and Chemicals stocks were trading at Rs 494.20, up Rs 6.80 (or 1.40%) on the morning of October 29. The stock has generated about 9% in the past one year and 188.93% in five years.
FACT: The Fertilisers And Chemicals Travancore (FACT) stock was trading at Rs 912.65, up Rs 13.70 (or 1.52%) on October 29 morning. The stock has generated 13.85% in the last one year, while it returned 1,840.67% in five years.
Khaitan Chemicals: The Khaitan Chemicals And Fertilizers stock was trading at Rs 126.33, down Rs 1.04 (or 0.82%) on the morning of October 29. The stock jumped by 100% during the year and 507.64% in the past five years.
Rashtriya Chemicals and Fertilizers: The Rashtriya Chemicals and Fertilizers stock was trading at Rs 150.80, up Re 0.55 (or 0.37%) on the morning of October 29. The stock price returned 0.33% over one year and 246.26% in five years.
Paradeep Phosphates: The Paradeep Phosphates stock was trading at Rs 171.23, up Rs 2.05 (or 1.21%) on October 29 morning. The stock generated 96.69% in one year and 288.40% in five years.
The Centre has opted for Nutrient-Based Subsidy scheme this time, in which the subsidies are dictated by the nutrient content of different types of fertilisers. The table read like the following:
Nitrogen (N): Rs 43.02/kg
Phosphorus (P): Rs 47.96/kg
Potash (K): Rs 2.38/kg
Sulphur (S): Rs 2.87/kg
The subsidy has been increased by about 55% compared to what it was in the Rabi season of FY25. It also reflects the government's emphasis on the gari sector. The subsidy call will also speed up business activities in the fertiliser sector and raise investor activity.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, INVITs, any form of alternative investment instruments and crypto assets.)
