Fertilizer demand reaches 20% amid supply concerns

 

 

Fertilizer stocks were the best performers today on the back of frenzied buying in these outlets. Madras Fertilizers shares were closed at the 20 per cent cap. RCF, GSFC, National Fertilizer and Zuari Agro all rose 8-13 percent each. Show more

 

Meanwhile, the BSE Sensex was up 0.35 percent at 57,801.

Last month, Madras Fertilizers increased 76.7 percent. GNFC and MP Agro are up 54 percent each. Other major gainers include FACT, GSFC, RCF, National Fertilizers, SPIC, Khaitan Chemicals, Mangalore Chemicals and Rama Phosphates, each with increases of more than 20 percent.

 

The demand for stocks of fertilizer companies was riding on the commodities boom, even more so after the outbreak of the conflict between Russia and Ukraine. According to reports, the prices of three main types of nutrients have been rising for several months on the back of supply shortages and higher energy prices.

 

For its part, the government has been monitoring the impact of the Ukraine war and will take the necessary steps to ensure import from alternative sources.

 

Recently, the government allowed fertilizer companies to increase production of urea manufacturing units beyond installed capacity, in order to fill the shortage.

 

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