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National Fertilisers spikes as much as 13% in trade after reports that urea subsidy may rise

market | Dec 15, 2022 2:45 PM IST

National Fertilisers spikes as much as 13% in trade after reports that urea subsidy may rise

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Shares of National Fertilisers and FACT are gaining between 13 and 17 percent respectively on Thursday.

The shares of National Fertilisers jumped as much as 13% in trade on Thursday (December 15) after news reports, citing sources, said that the government subsidy for urea may be increased in the upcoming budget.

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The current subsidy for urea is Rs 266 per kilogram, which the government may increase to Rs 288, according to the report. The hope for higher subsidy follows the recent spike in fertiliser prices due to supply constraints and higher global prices.
"Fertiliser prices have dropped 15-20 percent recently but they are still very high," Kishor Rungta of FACT told CNBC-TV18 today.
The fertiliser subsidy bill is expected to be over Rs 2 lakh crore for this financial year, while the same stood at Rs 1.62 lakh crore in the previous fiscal.
In an interaction with CNBC-TV18, fertilisers secretary Arun Singhal said the subsidy bill is indeed very high but farmers are always the highest priority of this government.
"The government is fully committed to ensure that sufficient adequate supply of fertiliser is available to farmers and at reasonable rates," he said. "The commitment is there and therefore that will translate into action on the funds front also. So I don't foresee any problems."
Singhal also spoke about the prices of di-ammonium phosphate (DAP) which have come down to $720-$730 per tonne from $920 per tonne earlier.
FACT mentioned that the current outstanding subsidy for the company stands between Rs 150 crore to Rs 200 crore.
Singhal also spoke about the nano fertiliser opportunity for which he expects approval by next year. "By next kharif season we should have it," he said. "Once it is approved, it will be out in the market."
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