Centre directs fertiliser firms not to hike price of non-urea fertilisers
PTI
New Delhi |
Updated on
April 09, 2021
Mansukh Mandaviya× The Centre on Friday directed fertiliser companies not to increase the maximum retail price (MRP) of non-urea fertilisers such as DAP and asked them to sell at old rates.
A direction in this regard was issued to fertiliser companies in a high-level meeting on Thursday in the wake of an increase in domestic retail prices of non-urea soil nutrients in line with the global market.
Retail prices of non-urea fertilisers such as di-ammonium phosphate (DAP), Muriate of Potash (MoP) and NPK are decontrolled and are determined by manufacturers, while the Centre gives them fixed subsidies each year.
Govt tells fertiliser companies to not raise prices, sell at old rates
The statement comes after fertiliser companies, including the country s largest seller Indian Farmers Fertiliser Cooperative (IFFCO), raised prices by up to 58 per cent after rates of potash and phosphate jumped in the international market
BusinessToday.In | April 9, 2021 | Updated 22:11 IST
The government on Friday told fertiliser companies to roll back back the hike in maximum retail price (MRP) of non-urea fertilisers after some companies raised prices this week. It has been decided that in the present circumstances there shall be no immediate increase in prices of fertilisers, said Mansukh Mandaviya, Union Minister of State for Chemicals and Fertilisers.
Read more about Top stocks that are likely to benefit from FM s Budget proposals on Business Standard. According to Phillip Capital increased allocation for capital expenditure will bode well for large banks, namely ICICI Bank, Axis Bank, HDFC Bank and State Bank of India
What could the Budget mean for stock specific movers or any individual sectors?
There has to be a lot of focus on public spending and if that happens, the large construction companies, particularly a company like L&T should benefit out of that. So I will be a buyer in L&T pre budget if I have to take a trade. That is one trade which I think I am willing to bet on.
The other area I can look at is fertiliser. The fertiliser subsidy is one single item in the Union Budget which has not really moved much. It is still about Rs 85,000-90,000 crore and something needs to be done about it. Any further rationalisation in the subsidy, apart from easing the burden for the government, helps the fertiliser companies. I will be looking closely in that area as well and remember this is going to be a long awaited structural change. So a Chambal Fertiliser, a