Fertilizer stocks were showcasing dejected move after India’s Cabinet Committee on Economic Affairs (CCEA), which met to discuss the Fertilizer Ministry’s proposal to raise the retail prices of urea by 10% to Rs 5,841 per tonne for the financial year 2012-13, deferred the same.
Rashtriya Chemicals & Fertilizers is currently trading at Rs 57.20, down by 0.95 points or 1.63% from its previous closing of Rs 58.15 on the BSE. The scrip opened at Rs 58.30 and has touched a high and low of Rs 59.00 and Rs 57.15 respectively. So far 65033 shares were traded on the counter.
Chambal Fertilisers & Chemicals is currently trading at Rs 72.70, down by 1.45 points or 1.96% from its previous closing of Rs 74.15 on the BSE. The scrip opened at Rs 75.50 and has touched a high and low of Rs 75.50 and Rs 72.50 respectively. So far 154109 shares were traded on the counter.
National Fertilizers is currently trading at Rs 80.85, down by 2.05 points or 2.47% from its previous closing of Rs 82.90 on the BSE. The scrip opened at Rs 82.50 and has touched a high and low of Rs 82.75 and Rs 80.70 respectively. So far 24458 shares were traded on the counter.
The fertilizer ministry has proposed to modify the New Pricing Scheme (NPS) Stage-III instead of decontrolling the urea sector, mainly to promote balanced use of fertilizer, trim down its subsidy burden and to compensate companies of rising input costs, which has been opposed by various ministries.
Earlier, the government had plans to decontrol the urea sector by bringing it under the nutrient based subsidy (NBS) scheme. However, the proposal was opposed by the fertilizer ministry, among others in view of increase in retail prices of phosphatic (P) and potassic (K) fertilizers, which was decontrolled in April 2010. To compensate the price rise, farmers started using cheaper urea fertilizers, which led to imbalance in use of soil nutrients.
In 2011-12, urea is expected to have added Rs 24,500 crore to the fertilizer subsidy bill. Subsidy is mainly given on fertilizers, fuels and food and the difference between the production cost and the Maximum Retail Price (MRP) is paid to manufacturers by the government.
The annual demand for urea in the country is expected to be around 28 million tonne, of which 22 million tonne is indigenously produced and the rest is imported. Urea is the only fertiliser that remains under full price control. Its current retail price is Rs 5,310 per tonne.
| Company Name | CMP |
|---|---|
| Coromandel Interntl. | 2038.50 |
| National Fertilizers | 77.43 |
| RCF | 130.50 |
| Chambal Fert & Chem | 447.00 |
| Paradeep Phosphates | 137.05 |
| View more.. | |
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