Indian fertilizer stocks surge after Reuters reveals gov't subsidies plan - Reuters News Agency
Business & FinanceEnergy

Indian fertilizer stocks surge after Reuters reveals gov’t subsidies plan

Shares of Indian fertilizer companies surged after Reuters exclusively reported that the federal government plans to increase fertilizer subsidies to a record of more than 1.55 trillion rupees ($20.64 billion) in 2021-22. Global fertilizer 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. The Indian government provides financial support to companies that sell fertilizers at below-market rates.

Market Impact

Shares of fertilizer companies including Rashtriya Chemicals and Fertilizers Ltd, Chambal Fertilsers & Chemicals Ltd, National Fertilizers Ltd and Madras Fertilizers Ltd jumped between 5% and 9% on the news.

Article Tags
Topics of Interest: Business & FinanceEnergy
Type: Reuters Best
Sectors: Commodities & Energy
Regions: AsiaEmerging Markets
Win Types: Exclusivity
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Significant National Story
FILE PHOTO: Farmers sprinkle fertilizer on a wheat field on the outskirts of Ahmedabad, India, December 15, 2015. REUTERS/Amit Dave
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