Cabinet okays revision in nutrient-based fertilizer subsidy
The cabinet has approved revision in nutrient-based subsidy (NBS) on fertilizers with effect from April 1, 2011. The government would be spending Rs 33,500 crore for NBS.
April 29, 2011 / 10:04 IST
While the inter-ministerial panel had decided this over a month ago, the cabinet on Thursday approved revision in nutrient-based subsidy (NBS) on fertilizers, reports CNBC-TV18 quoting NewsWire18. The government would be spending Rs 33,500 crore for the subsidy, which would come into effect from April 1, 2011.
Sources in the government indicate that fertiliser firms can raise di-ammonium phosphate (DAP) price by up to Rs 600 per tonne.Phosphatic subsidy has been hiked to USD 612 while potassic subsidy has been raised to USD 420. (Read: Fertilizer subsidy revised: Which stocks will yield gains?)On the back of this news, major fertiliser stocks rallied. Here is a lowdown.Rashtriya Chemicals and Fertilisers touched an intraday high of Rs 90.30 and an intraday low of Rs 88.50. At 12:19 hrs the share was quoting at Rs 89.85, up Rs 2, or 2.28%.Zuari Industries touched an intraday high of Rs 699 and an intraday low of Rs 682. At 12:19 hrs the share was quoting at Rs 687, up Rs 2.05, or 0.30%.Tata Chemicals touched an intraday high of Rs 392 and an intraday low of Rs 383. At 12:19 hrs the share was quoting at Rs 385.05, down Rs 4.45, or 1.14%.Fertilisers and Chemicals Travancore touched an intraday high of Rs 44 and an intraday low of Rs 43. At 12:19 hrs the share was quoting at Rs 43.40, up Rs 1.10, or 2.60%.Coromandel International touched an intraday high of Rs 335 and an intraday low of Rs 326. At 12:19 hrs the share was quoting at Rs 329.50, up Rs 7.80, or 2.42%. "The revision in subsidy is on expected lines," managing director Kapil Menon said adding that the fundamentals for the company continue to be strong with robust demand. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
