Rashtriya Chemicals & Fertilizers (RCF) would remain unaffected to the recent subsidy cut on fertilizer, given the downward trend in prices of inputs in global markets that could reduce the Farm gate price. In fact, the company is expecting higher demand and lower working capital requirement on account of lower prices.
Government, recently reduced subsidy on DAP (Di-Ammonium Phosphate), by 14% to Rs 12,350 PMT (Rs 14,350 PMT in the previous year), MoP (Muriate of Potash) by 22% to Rs 11,300 PMT (Rs 14,400 PMT in the previous year). These rates have been reduced by Government in line with the decline in global prices of DAP and potash.
The subsidy rates for Complex fertilizers have been reduced based on the nutrients. Subsidy on 'N' is revised from Rs 24.0/kg to Rs 20.9/kg, 'P' is reduced from Rs 21.8/kg to Rs 18.7/kg and on 'K' from Rs 24.0/kg to Rs 18.3.
RCF is one of the leading producers of fertilizers in India. Sujala, Suphala 15:15:15, Suphala 20:20:0, Ujjwala, Microla and Biola are its major fertilizer brands.
